Land Acquisition Act | Once Market Value Of Land Is Determined On Evidence, Reference Court Not Justified In Reducing Compensation: P&H High Court

The Punjab & Haryana High Court said that the reference court cannot reduce compensation for land acquisition merely on the assertion of the party when the market value has already been decided on evidence under the Land Acquisition Act, 1898.

Justice Rajbir Sehrawat said, "Once the market value has been determined on the basis of the evidence led on file, the reference court is not justified in reducing the amount of compensation payable to the land owners, only because of assertion made by the land owners qua the perceived market value, de hors the evidence on file. There is no provision in the Act, which may entitle the court to reduce the market value only on the basis of the assertion made by a party before the reference court."

These observations were made while hearing two appeals filed by the land owners for enhancement of the compensation amount on account of the acquisition of their land and another one was filed by the Haryana Government praying for reduction in the amount of compensation granted to the land owners.

The Government had acquired the land for the purpose of a sewerage scheme for a village in Haryana. The land acquisition collector awarded the compensation at the rate of Rs.5600 per Acre. Aggrieved against the same, the land owners sought a reference to the court.

The appellants-land owners lead in evidence the sale deeds, which reflected the market value of the land in the area ranging from Rs.1,00,000 to Rs. 3,42,8571 per Acre. After appreciation of the evidence the reference court came to the conclusion that as per the material on record, the market value of land in the area was not less than Rs. 1,00,000 per Acre.

However, on the ground that the land owners themselves have claimed the market value at the rate of Rs.70,000 per Acre, therefore, the Reference Court opined that the compensation payable to them was decided at the rate of Rs. 70,000 per Acre.

Aggrieved against this grant of lesser market value than even the market value assessed by the reference court, the present appeal was filed by the land owners.

After hearing the submissions, the Court opined that the land owners are entitled to the "market value" as the compensation for the land which they are losing and their claim per is an "irrelevant fact" even if the land owners claim any particular amount as the value of their land under acquisition.

"They are still required to lead evidence to justify their claim or to substantiate the market value of the land," it added.

Justice Sehrawat highlighted that "there is no provision in the Act, which may entitle the court to reduce the market value only on the basis of the assertion made by a party before the reference court can reduce the compensation payable to the claimants only be under the old law the restrict restriction could have been on the right of the land owner with reference to the payment of the court fees on the claim made in the 'appeal'..."

The bench further noted that the reference court gave no justification for reducing the compensation except that the land owners claimed a lesser value.

"Otherwise also; the landowners have not claimed the fixed value, rather, their assertion is only to the effect that the market value of their land was not less than Rs. 70,000/- per Acre. This obviously, means that value is anything higher than Rs.70,000/- per Acre. They have, in any case, proved the value to be Rs. 1,00,000/- per Acre," the Court added.

Stating that since the reference court itself has come to the conclusion that the market value of the land was Rs. 1,00,000 per Acre, the Court said, "that the land owners have to be held entitled to the compensation at the rate of Rs. 1,00,000 per Acre along with all statutory benefits as awarded by the reference court."

The plea was accordingly disposed of.

Title: Yash Pal & others v. State of Haryana

Mr. Sunil Panwar, Advocate for the appellant in RFA No. 1427 of 1998 and for respondents in RFA No. 1775 of 1997

Mr. Amit Aggarwal, DAG, Haryana for the appellant in RFA No. 1775 of 1997 and for respondent in RFA No. 1427 of 1998.

Citation: 2024 LiveLaw (PH) 254

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