Supreme Court Grants Higher Compensation to Landowners in Uttar Pradesh Land Acquisition Case

The case of Narendra & Ors. vs. State of Uttar Pradesh & Ors. is a significant judgment concerning land acquisition compensation. The Supreme Court was called upon to decide whether landowners who had claimed a lower compensation amount could be granted a higher amount as determined in a related case. The Court ruled in favor of the landowners, emphasizing the principle of fair and just compensation.

Background of the Case

The dispute arose when the Government of Uttar Pradesh acquired land belonging to the appellants through a Notification dated September 12, 1986, under Section 4(1) of the Land Acquisition Act, 1894. The declaration under Section 6(1) followed on February 24, 1988. The land, situated in Village Makanpur, Paragana Loni, Tehsil Dadri, District Ghaziabad, was acquired for the planned development of Vaishali and handed over to the Ghaziabad Development Authority (GDA).

The Special Land Acquisition Officer passed an award on January 18, 1990, fixing the compensation at Rs. 50 per square yard. Dissatisfied with this rate, the appellants sought a reference under Section 18 of the Act. The Reference Court, on April 19, 1999, increased the compensation to Rs. 90 per square yard. However, the landowners were still not satisfied, and various appeals were filed.

In a related case decided on November 13, 2014, the Allahabad High Court fixed the compensation at Rs. 297 per square yard. However, when the appellants’ case came up, the High Court limited their compensation to Rs. 115 per square yard on the grounds that they had only claimed compensation at that rate and had paid court fees accordingly.

Legal Issues in the Case

Whether the High Court was correct in limiting the compensation to Rs. 115 per square yard, despite a precedent fixing the rate at Rs. 297 per square yard.
Whether the principle of fair compensation should override technical restrictions based on the amount claimed.
Whether the appellants could be granted a higher compensation rate even if they had initially claimed a lower amount.

Arguments of the Petitioners (Narendra & Others)

The petitioners contended that their land was acquired under the same notification as others who were granted Rs. 297 per square yard, and thus, they were entitled to the same compensation.
They argued that the limitation of Rs. 115 per square yard, merely because they had claimed that amount, was unjust.
The principle of fair compensation should be upheld, as courts have the duty to award just and reasonable amounts based on market value, irrespective of the amount claimed.
The precedent set in Bhag Singh vs. Union Territory of Chandigarh (1985) established that landowners should not be denied fair compensation simply because they claimed a lesser amount.

Arguments of the Respondents (State of Uttar Pradesh & GDA)

The respondents argued that compensation should be restricted to the amount claimed and for which court fees were paid.
The petitioners had not initially claimed Rs. 297 per square yard, so granting them a higher amount would be inconsistent with their own pleadings.
The High Court’s decision was correct in limiting the compensation based on the amount demanded in the appeals.

Supreme Court’s Observations

The Supreme Court reviewed the facts and precedents and made the following key observations:

The Allahabad High Court had already awarded Rs. 297 per square yard in a related case, and this rate had attained finality as the appeal against it had been dismissed.
Technical limitations should not prevent courts from awarding just compensation.
In Ashok Kumar vs. State of Haryana (2016), the Court had ruled that the duty of courts is to award fair compensation, regardless of what was initially claimed.
Section 28A of the Land Acquisition Act allows landowners to claim higher compensation based on a later judicial determination.

The Court emphasized:

“Fairness requires that all those similarly situated are treated similarly. Technicalities qua rate as per exemplars filed by poor farmers, who are illiterate, have to be given only such importance as may not defeat their right of fair and just compensation.”

Final Ruling

The Supreme Court set aside the High Court’s ruling and ordered that the appellants be compensated at Rs. 297 per square yard. The key directions included:

The compensation for the appellants was increased to Rs. 297 per square yard.
The difference in compensation, along with statutory benefits, was to be paid within three months.
The appellants were directed to pay the additional court fees corresponding to the higher compensation.
All pending applications in the case were disposed of.

The Court ruled:

“The scheme of the Land Acquisition Act is to ensure fair compensation for landowners. Once a rate is judicially determined, it should be uniformly applied to all affected parties under the same notification.”

Conclusion

This judgment reinforces the principle that fair compensation should be the guiding factor in land acquisition cases. The Court’s ruling ensures that technical limitations do not prevent landowners from receiving just compensation. The decision also highlights the need for consistency in awarding compensation in cases arising from the same land acquisition notification.

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Download Judgment: Narendra & Ors. vs State of Uttar Prade Supreme Court of India Judgment Dated 11-09-2017.pdf

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