Supreme Court Enhances Compensation for Land Acquisition in Haryana

The Supreme Court of India recently delivered a landmark judgment in the case of Amanullah Khan vs. The State of Haryana & Others, addressing compensation disputes arising from land acquisitions in Haryana. The Court ruled in favor of the landowners, increasing the compensation amount for properties acquired under three separate notifications issued in 1986, 1992, and 1995. The ruling sets a precedent for ensuring fair compensation in land acquisition matters.

Background of the Case

The dispute revolved around the acquisition of land situated in village Ajronda, District Faridabad, Haryana. The lands were acquired under three different notifications issued under Section 4 of the Land Acquisition Act, 1894 for various development projects:

April 7, 1986: Land was acquired for developing a Green Belt along the Delhi-Mathura Road.
June 5, 1992: Land was acquired for semi-public use, including educational, medical, defense, and administrative purposes.
July 3, 1995: Land was acquired for commercial, institutional, recreational, and residential purposes.

The original compensation awarded by the Land Acquisition Officer (LAO) was challenged by the landowners, who sought enhancement based on prevailing market rates.

Key Legal Developments

Initial Compensation Awards

For the 1986 acquisition, the LAO awarded Rs. 3,38,800 per acre, which was later enhanced by the Reference Court to Rs. 435 per square yard.
For the 1992 acquisition, the LAO determined the market value at Rs. 4,50,000 per acre, but the Reference Court revised it to Rs. 392.50 per square yard.
For the 1995 acquisition, the LAO initially set the compensation at Rs. 5,85,000 per acre, which was revised by the Reference Court to Rs. 400/480 per square yard.

High Court Decision

The landowners and the State of Haryana both appealed the Reference Court’s ruling. The High Court ultimately revised the compensation rates:

1986 acquisition: Rs. 435 per square yard
1992 acquisition: Rs. 566 per square yard
1995 acquisition: Rs. 795 per square yard

The landowners, still dissatisfied, approached the Supreme Court seeking further enhancement.

Supreme Court’s Observations

A bench comprising Justice M.R. Shah and Justice Krishna Murari reviewed the case and made the following critical observations:

1. Uniform Compensation for Similarly Placed Landowners

The Court referred to its earlier decision in Balwant Singh (D) through Lr. Gurbinder Singh vs. State of Haryana, where the same notifications were involved. It ruled:

“Landowners whose lands were acquired under the same notifications must be compensated at the same rate to ensure uniformity and fairness.”

2. Revised Compensation Based on Precedents

The Court noted that in similar cases, the compensation had been determined at:

Rs. 435 per square yard for the 1986 notification
Rs. 860 per square yard for the 1992 notification
Rs. 1210 per square yard for the 1995 notification

It ruled that the present appellants were also entitled to the same revised rates.

3. Denial of Interest for Delay

The State of Haryana opposed the enhancement, citing delays in filing appeals. The Court condoned the delay but imposed a condition:

“The claimants shall not be entitled to statutory benefits, including interest on the enhanced compensation, for the period between the High Court’s judgment and the filing of the appeal before this Court.”

4. Importance of Section 28A of the Land Acquisition Act

The Court highlighted that Section 28A of the Land Acquisition Act, 1894 ensures that similarly placed landowners receive equal compensation, preventing discrimination in compensation awards.

Final Verdict

The Supreme Court modified the High Court’s decision as follows:

1986 acquisition: Rs. 435 per square yard
1992 acquisition: Rs. 860 per square yard
1995 acquisition: Rs. 1210 per square yard

The landowners were awarded the enhanced compensation, but without interest on the increased amount for the delayed period.

Impact of the Judgment

This ruling has significant implications for land acquisition cases:

It establishes that all landowners affected by the same notification must receive equal compensation.
It prevents undue delays by landowners seeking higher compensation through late appeals.
It reinforces the principle that the State cannot arbitrarily determine compensation without reference to market values.

Conclusion

The Supreme Court’s decision in Amanullah Khan vs. The State of Haryana is a landmark ruling that upholds the rights of landowners in compensation disputes. By ensuring uniform compensation and preventing arbitrary decisions, the judgment reinforces fairness in the land acquisition process. This ruling will serve as a critical precedent for future cases involving compensation disputes under the Land Acquisition Act.

Petitioner Name: Amanullah Khan.
Respondent Name: The State of Haryana and Another.
Judgment By: Justice M.R. Shah, Justice Krishna Murari.
Place Of Incident: Ajronda, Faridabad, Haryana.
Judgment Date: 08-09-2022.

Don’t miss out on the full details! Download the complete judgment in PDF format below and gain valuable insights instantly!

Download Judgment: amanullah-khan-vs-the-state-of-haryana-supreme-court-of-india-judgment-dated-08-09-2022.pdf

Directly Download Judgment: Directly download this Judgment

See all petitions in Property Disputes
See all petitions in Damages and Compensation
See all petitions in Landlord-Tenant Disputes
See all petitions in Judgment by Mukeshkumar Rasikbhai Shah
See all petitions in Judgment by Krishna Murari
See all petitions in partially allowed
See all petitions in Modified
See all petitions in supreme court of India judgments September 2022
See all petitions in 2022 judgments

See all posts in Civil Cases Category
See all allowed petitions in Civil Cases Category
See all Dismissed petitions in Civil Cases Category
See all partially allowed petitions in Civil Cases Category