Land Acquisition: Sale Deed After First Notification Not Basis For Determining Compensation For Subsequent Acquisition- SC

The Supreme Court has recently while dealing with the appeals filed by Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) held that the sale deed after the first notification is not a basis for determining compensation for subsequent acquisition.

The appeals challenged the judgment passed by the Punjab and Haryana High Court in which the compensation for the land acquisition was enhanced to Rs. 29,54,000/- and Rs. 45,00,000/- per acre for the villages.

The Bench of Justice M.R. Shah and Justice Hima Kohli observed, “… the sale deed after the first notification dated 30.06.2005 could not have been the basis for assessing/determining the compensation with respect to the subsequent acquisition. … The impugned common judgment and order passed by the High Court insofar as the land acquired vide notification dated 30.06.2005 is concerned, is modified and it is ordered that the landowners/claimants shall be entitled to compensation @ Rs. 24,50,000/- per acre (instead of Rs. 29,54,000/- per acre), with all other statutory benefits which may be available under the provisions of the 1894 Act.”

The Bench said that the High Court’s judgment and order must be modified and that the appeals shall be partly allowed.

“. … Insofar as the land acquired vide notification dated 5.3.2007 is concerned, the impugned common judgment and order is modified and it is ordered that the landowners/claimants shall be entitled to compensation @ Rs. 30,73,280/- per acre (instead of Rs. 45,00,000/- per acre) …”, the Court noted.

Senior Advocate Alok Sangwan represented the appellants while Senior Advocate Rameshwar Singh Malik represented the respondents.

In this case, a large chunk of land situated at villages in District Sonipat, Haryana came to be acquired for the purpose of construction of the Express Highway known as “Kundli – Manesar – Palwal Highway (KMP) connecting National Highway No.1 in Sonipat by different notifications.

The matter came before the Supreme Court but it remitted back the same to the High Court for a fresh decision. The High Court thereafter enhanced the amount of compensation and hence being aggrieved and dissatisfied with the same, the HSIIDC preferred the appeals before the Apex Court.

The Supreme Court after hearing the contentions of both parties asserted, “… the High Court has committed a very serious error in assessing and determining the compensation @ Rs. 29,54,000/- per acre for the land acquired vide notification dated 30.06.2005. After making the round figure, the landowners/claimants shall be entitled to compensation @ Rs.24,50,000/- per acre with respect to the land acquired vide notification dated 30.06.2005, with all other statutory benefits, which may be available under the provisions of the 1894 Act.”

The Court further noted that giving an 8 to 12 percent cumulative increase on the amount of compensation awarded for the land acquired vide notification dated June 30, 2005, would be a safe and guiding factor.

The Apex Court, therefore, decreased the compensation awarded by the High Court to the landowners or claimants.

Accordingly, the Court partly allowed the appeals.

Cause Title- Haryana State Industrial & Infrastructure Development Corporation Limited & Others v. Satpal & Others

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