Land Acquisition Case: Supreme Court Remands Case for Fresh Determination of Compensation

The Supreme Court of India, in its judgment on January 25, 2018, ruled on a significant land acquisition dispute concerning compensation for landowners whose properties were acquired by the State of Haryana for the construction of the Kundli-Manesar-Palwal (KMP) Expressway. The case, Surender Singh v. State of Haryana & Ors., involved multiple appeals challenging the compensation awarded by the Land Acquisition Officer, the Reference Court, and the Punjab & Haryana High Court. The Supreme Court ultimately set aside the High Court’s ruling and remanded the matter for fresh determination of compensation.

Background of the Case

The case pertains to the acquisition of approximately 520 acres of land spread across 15 villages in Haryana. The land was acquired under notifications issued on January 11, 2005, and November 17, 2005, under Section 4 of the Land Acquisition Act, 1894. The acquisition was for the construction of the KMP Expressway, a major infrastructure project in the region.

The Land Acquisition Officer initially awarded compensation at a uniform rate of Rs. 12,50,000 per acre. Dissatisfied with the amount, landowners sought re-determination before the Reference Court, which increased the compensation to Rs. 43,17,841 per acre. Subsequently, both the landowners and the State appealed to the Punjab & Haryana High Court. The High Court further enhanced the compensation to Rs. 62,11,700 per acre.

The matter was then brought before the Supreme Court by both the landowners, seeking further enhancement, and the State, arguing that the compensation awarded was excessive.

Arguments by the Petitioners (Landowners)

The landowners contended that:

• The acquired land had immense commercial and residential potential, given its proximity to urban centers and existing infrastructure.
• The High Court’s compensation determination was still inadequate compared to prevailing market rates.
• Their submitted sale exemplars demonstrated significantly higher market values for similar lands.

Arguments by the Respondents (State of Haryana)

The State argued that:

• The compensation awarded by the High Court was excessive and not based on adequate evidence.
• The High Court erred in relying on a previous Supreme Court judgment (Pran Sukh case) that determined compensation for land in Kasan village without considering differences in land quality and potential across different villages.
• The Reference Court had already awarded reasonable compensation, and further enhancement was unwarranted.

Observations of the Supreme Court

The Supreme Court reviewed the evidence and found several deficiencies in the High Court’s approach:

• “The High Court failed to consider essential factors such as the actual distance between villages, land quality, and prior development when applying a uniform compensation rate.”
• “There is no evidence to establish that the acquired land was homogeneous across all 15 villages.”
• “The High Court incorrectly relied on the compensation awarded in the Pran Sukh case without evaluating whether the lands in question had similar characteristics.”
• “Potentiality and market value must be assessed village-wise rather than applying a single rate for all acquired land.”

Final Verdict

The Supreme Court set aside the High Court’s judgment and remanded the matter to the Reference Court for fresh determination of compensation. The Court directed that:

• The Reference Court must evaluate evidence afresh, including village-wise potential and market rates.
• Both parties must be allowed to present additional evidence to support their claims.
• The Reference Court must determine compensation based on established legal principles under Section 23 of the Land Acquisition Act.
• The matter must be disposed of within one year from the date of appearance of parties before the Reference Court.

Conclusion

This judgment highlights the importance of meticulous evaluation in land acquisition cases. The Supreme Court’s directive ensures that compensation is determined based on concrete evidence rather than arbitrary uniform rates, thus upholding the principles of fairness and equity in land acquisition proceedings.

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Download Judgment: Surender Singh vs State of Haryana & O Supreme Court of India Judgment Dated 25-01-2018.pdf

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