Supreme Court Enhances Land Compensation for Rupnagar Transport Nagar Scheme

The Supreme Court of India, in its judgment dated April 24, 2019, ruled on the compensation for land acquired for the Transport Nagar Scheme, Rupnagar. The case involved appeals filed by landowners challenging the compensation awarded for their acquired lands. The Supreme Court ultimately increased the compensation, bringing relief to affected landholders.

Background of the Case

The case revolved around land acquisition in Rupnagar, Punjab. Notifications under Section 36 of the Punjab Town Improvement Act, 1922, were issued on June 18, 1993, June 25, 1993, and July 2, 1993, covering 24 acres, 6 kanals, and 11 marlas of land. The acquisition was for the Transport Nagar Scheme. The initial compensation offered by the Land Acquisition Collector was:

Chahi Land: Rs.2,01,984 per acre
Barani Land: Rs.1,00,992 per acre
Gair Mumkin Land: Rs.1,39,200 per acre

Upon references made by landowners, the District Judge, Rupnagar, increased compensation to Rs.6,93,000 per acre through an award on November 9, 2001. However, the Punjab and Haryana High Court later quashed this award, stating that the matter should have been decided by a Land Acquisition Tribunal and not solely by the District Judge. The case was remanded for fresh determination.

Revised Compensation and Further Challenges

After remand, on February 1, 2014, the Land Acquisition Tribunal, Rupnagar, issued a fresh award:

Chahi Land: Rs.2,69,312 per acre
Barani Land: Rs.1,34,656 per acre
Gair Mumkin Land: Rs.1,85,600 per acre

Dissatisfied, the landowners again approached the Punjab and Haryana High Court. On February 9, 2017, the High Court modified the award and set a flat compensation rate of Rs.2,69,312 per acre, irrespective of land type.

Arguments by the Appellants

The landowners argued that lands from neighboring villages had been awarded higher compensation in similar acquisitions.
They cited a case where land acquired in Kotla Nihang village (notification dated March 20, 1985) was awarded Rs.4,84,000 per acre.
Another case involving Haveli Khurd (notification dated April 12, 1989) had seen compensation fixed at Rs.5,25,000 per acre.
The appellants contended that their land, acquired in 1993, was similarly situated and warranted compensation at least equivalent to that awarded in 1989.

Arguments by the Respondents

The Improvement Trust, Rupnagar, opposed the claims, arguing that the appellants’ land was not comparable to the previously cited cases.
The respondents contended that the landowners were not entitled to higher compensation as the land rates had been fairly determined.

Supreme Court’s Observations

The Supreme Court noted that the Kotla Nihang and Haveli Khurd lands were in close proximity to the acquired lands in this case.
The Court held that the 1989 compensation of Rs.5,25,000 per acre should serve as the base rate for calculating the appropriate compensation.
Applying a 6% annual cumulative increase, the Court recalculated the compensation for the 1993 acquisition:

Final Compensation Calculation

Year 1: Rs.5,25,000 + 6% = Rs.5,56,500
Year 2: Rs.5,56,500 + 6% = Rs.5,89,890
Year 3: Rs.5,89,890 + 6% = Rs.6,25,283
Year 4: Rs.6,25,283 + 6% = Rs.6,62,800

The Supreme Court ultimately awarded a compensation rate of Rs.6,62,800 per acre, irrespective of land classification.

Final Judgment

The appeals were allowed, and the landowners were granted the revised compensation of Rs.6,62,800 per acre.
The ruling provided statutory benefits based on the updated compensation rate.

Legal Implications

This judgment reinforces the principle that compensation must be based on comparable land valuations and economic factors.
It affirms that courts should consider cumulative price escalation when determining compensation for land acquisitions occurring at different times.
The ruling provides guidance for future land acquisition disputes where similar precedents exist.

Conclusion

The Supreme Court’s decision ensures fair compensation for landowners while balancing the government’s interests in urban development projects. By applying a logical escalation formula, the Court set a benchmark for similar cases involving land acquisition disputes.

Petitioner Name: Sardara Singh & Others.
Respondent Name: Land Acquisition Collector, Improvement Trust, Rupnagar & Others.
Judgment By: Justice Uday Umesh Lalit, Justice Indu Malhotra.
Place Of Incident: Rupnagar, Punjab.
Judgment Date: 24-04-2019.

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