Union of India v. Baldev Singh & Ors.

Delhi High Court · 08 Jul 2011 · 2011:DHC:13936
Pradeep Nandrajog
LA.APP.1057/2010
2011:DHC:13936
property appeal_allowed Significant

AI Summary

The Delhi High Court held that fair market value for land acquisition compensation must be based on government notified minimum prices adjusted by annual increments and locational advantages, rejecting speculative pre-notification sale deeds as reliable evidence.

Full Text
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$--173 HIGH COURT OF DELHI
LA.APP.1057/2010
UNION OF INDIA Appellant
Through: Mr.Sanjay Poddar, Advocate with Ms.Deepika, Advocate
VERSUS
BALDEV SING H & ORS. Respondents . Through: Mr.Arun Birbal, Advocate for DDA
CORAM:
HON'BLE MR. JUSTICE PRADEEP NANDRAJOG
08.07.2011 For orders, see LA.APP.No. 78412005.
PRADEEP NANDRAJOG, J.
JULY 08, 2011 . mm 2011:DHC:13936 £ ! - . ,. . ... . , . . . . .
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HIGH COURT OF DELHI
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I l Date ofDec!SJQQ 8th /uly,. kAiPP 784/2 Q 0 r4\
JAMNA
Appellant
Through Mr L B Ral, Advocate, Mr I S Dahiya, Advocate, L
M D S Lakra, Advocate, . - . . . . .
Mr K Suni l, Advocate, qw . . ' MrAnuj Bhandafl, Adv0cate
Mr Shadam Farashat, Advocate
• : •
Wrsus UOI & ORS RespondfltS. Through Mr Sanjay Poddar, Standing
Counsel (LA), GNCTDeIhI with Ms Deepika, M r.Sachin Nawafli and
Mr Siddharth Panda Advocates 1 Mr Ajay Verma, Ms Kanika
Agnihotfl, Mr Kunal Sharma, Mr Sumer Seth', Mr B B Sharma, M hobhna Takiar and Mr Arun
Birbal, Advocates for DDA
•
:
AND
LAAPP 879/2005, LAAPP 880-881/2005, LAAPP
121/2006,43/2007 (Relating to Notification u/s 4 dated
25.02 1997 & Award No 2/1999-2000, Village Mundka)
AND
; 583/2:009, 603/2009, LAPP 6Q4/2
LA APP, LA.APP; 00 •
LA APP 606/2009, LA APP 610/2009, 74/20 10, LA APP 78/2010, LA APP 784/2005 & connected
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LAAPP 79/2010, LAAPP 121/2010, LAAPP 122/2010, LAAPP
125/2010, LAAPP 164/2010, LAAPP 185/2010, LAAPP
180010, LA APP 20012010, LA APP 238/20101 LA APP
239/2010, LAAPP 243/2010, LAAPP 244/2010, LAAPP
245/2010, LAAPP 247/2010, LAAPP 251/2010, LAAPP
252/2010, LAAPP 266/2010, LAAPP 267/20101 LAAPP
• 273/2'0i0 LA.'APP.74/20IO, ,LA.APP. 275/20]40,' •LA.APP.. :
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912/2010, •
LAAPP 3124/2010, LA A P P
- ' 326/2010, LAAPP 327/2010, LA APP 329/2010, LA APP 330/201!0, LAAPP
331/2010 LA APP 332/2010, LA APP 333/2010 with CM APPL
No 5524/20111 LAAPP 335/2010, LA APP 367/2010, LAAPP
368/2010, LAAPP 369/2010, LAAPP 371/2010 & CM APPL
No:20099/2010, LA.APP. 374/2010, LA.AP:P. 375/2010, LA.APP.
377/2010, LAAPP 379/2010, LAAPP 423/20101 LAAPP
452/2010, LAAPP 461/2010, LAAPP 472/2010, LAAPP
694/2010, LA APP 696/2010 & CM APPL No 6340/2011, LA APP
•
697/2010, LA APP 698/2010 & CM APPL 1734/2011, LAAPP
706/2010 & CM APPL 17215/2010, LA APP 707/210, LA APP
708/2010 LA APP 709/2010, LA APP 710/2010 with C.M.APPL
2568/2011, LA.APP.13/2010 with CM APPL. No7473I20
No; 1 iO ; i:,...
LA APP 715/2010, LA APP 717/2010, LA APP 719/2010, LA APP
766/2010, LA APP 796/2010, LA APP 797/2010, LAAPP t 798/2010, LAAPP
7A99/2010, LAAPP 818/2010, LAAPP 819/2010, LA APP 829/2010, LA APP 831/2010 & CM APPL
955/2011, - LAAPP 83212010, LA.APP., -83'/2O10. & 'M'APPL.-
6392/2011, LAAPP 834/2010, LAAPP 842/2010, LAAPP
871/2010, LAAPP 874/2010, LAAPP 875/2010, LAAPP
876/2010, LA APP 877/2010, LA APP 878/2010, LA APP
879/2010, LA APP 880/2010, LA APP 881/2010 & CM
APPL65O5/2011 LAAPP 882/2010, LAAPP 883/2010, LAAPP
• 884/2010 1 LAAPP 886/2010, LAAPP 888/2010, 8892010 & CM APPL2249/2011, LAAPP 890/2010, LAAPP
893/2010 & CM APPL 6750/2011, LA APP 894/2010 & CM
No.23353/2010,. LA.APP. 95/20.10, LA.APP. 896/2010, LA.APP.
897/2010 & CM APPL78/2O11, LAAPP 903/2010,, LAAPP
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907/2010, LAAPP 938t/2010, LAAPP 939/2O10, LAAPP
1034/2010 & 1CM APPL 8086/2011, LA APP 1040/2010 & CM
APPL. 56:73/2011 LA;APP. 1041/2010, LA.PP. 1O4P010., LA APP 1045/2010, LA APP 1046/2010, LA APP 1048/20101
LAAPP1 1049/2010, LAAPP 1050/2010, :LAAPP 1056/20101
LA APP 1060/2010, LA APP 1061/2010, LA APP 1071/2010, LAAPP 125/2011,1AAPP 126/2011,LAAPP 258/2011
(Relating to Notification u/s 4 dated 21 03 2003 & Award
No 3/2005-06, Village-Mundka)
AND
LAAPP 600/2009, LAAPP 605/2009, LAAPP 615/2009, LA APP 310/2010, LA APP 325/2010, LA APP 376/2010, LA APP
383/2010, LIAPP 384/2010, LAAPP 385/2010, LAAPP
473/20, LAAPP 492/2010, LAAPP 586/2010, LAAPP
.
591/2010, LAIAFP.', 638/2010,. LA.APP. s. 690/2010, .LA.APP
692/2010, LAAPP 711/2010, LAAPP 716/2010, LAAPP
763/20101 LA.APP. 872/2010 LA.APP. :873:/2010; LAAPP.
.885/2010, LA.APP 887/2010,:
892/2010,1LAAPP 898/20101 LAAPP 906/2010 &I CM APPL
No4443/2010, LAAPP 937/2010 & CM APPL 23299/2010, LA APP 1042/2010, LA APP 104712010
(Relating to Notification u/s 4 dated 21 03 2003 & Award
No 112005-06, ViIlage - Mundk)
AND
LAAPP 1003/2010, LAAPP 1017/2010, LAAPP 1019/2010, •
1022/10, LA APP 1023/2010, LA APP 1044/2010, LA APP 20
LA.APP: 1051/2010, LA.APP. , 1053/2010, LA.A•P.P. 1054/
~ APP.
CM' AEL N9, -66/2011, LA APP 1055/2010, 1057/2010J-IAPP 1058/2010, LA APP 1059/2010, LA APP
_-1-O&8OY6, LAAPP 1069/2010, LAAPP 14/2011, LAAPP
127/2011, LA.APP .128/2011,LA.APP. 259/20I1
LA APP 784/2005 & connected I
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Relating to Notification u/s 4 dated 17 06 2005 & Award
No 13/2006-07, Viilage-Mundka)
AND
LA APP 4012009 & Cross Objections, LA APP 426.12009, LAAPP 428/2009 442/2009, LAAPP 611/20, LAAPP
616/20091 LA APP 278/2010 (Relating to1 Notification uI5 4 dated 24 09 200 & Award
F.Jo 3/2004-05, Village-Bakkarwala)
• :
AND
LAAPP 10212010 & CM No5948/201 , LAAPP 1030/2010, LA APP 1031/2010, LA APP 1033/10 & CM. No 6645/2011, LPAPP 106212010, 1063/201q0 & CM
No 6943/2011, LA APP 1064/2010, LA APP' 1Q66/21O, LA PP
1067/2010,LAAPP 11/2011,LAAPP 122/2011 (Relating to Notification u/s 4 dated 17 06 2005 & Award
No 1/2006-07 Village-Bakkarwala)
CORAM
HON'BLE MR JUSTICE PRADEEP NAN DFAJOG
ORDER

1 WhMher the Reporters of local papers may be allowed to see the judgment[2]

2 To be referred to Reporter or not?

3 Whether the judgment should be reported in the Digest? • PRADEEP NANDRAJOG, I (Oral) 4 • •• •. •.•.•' • • •. ••..

4.

1 I am deciding the • above captioned appeals and relatable civil miscellaneous applications which are by way of cross objections, all of which have been listed hereinabove •. •..,,.••. •• pursuant to a notification dated 25 2 1997 issued under Section 4 of the Land Acquisition Act as per award No 2,']Q99/2000 Agricultural lands in the revenue estate of village F'1undka were further acquired pursuant to a notif cation dated 2 3 00 issued under Section 4 of the Land Acquisition ct as per award S.•••;. No 3/2005-06 as also award No 1/2005-06 Further lands in the revenue estate of the same village were acquiredpursuant to a notification dated 17 6 2005 issued under SectiOni 4 of the Land 'Acquisition Act as per Award No 13/2006-07.

I. 5... S.

8 Agricultural lands in the revenue estate of village Bakkarwala were acquired pursuant to a notification dated 24.942003 issued under Section 4 of the La'nd Acquisition Act as per Award No 3/2004-05 Further lands in the revenue estate of the same village were acquired pursuant to a notification dated 17 6 2005 (the same notification under which lands in village Mundka were acquired) as per award No 1/2006-07 9 In a nut shell, the Land Acquisition Collector determined the fair market value of the acquired lands, under all the awards, with reference to the minimum' price for agricultural iand as notified by the Government of NCT Delhi

10 For clarity I may note that pertainin to the notification dated 25 2 1997 under which agricultural lands in the revenue estate of village Mundka were acquired, the learned Land Acquisition Collector determined the fair market value with reference to the minimum pricq t for agricultural land notified with effect from 1 4 1997 @ T10 acs per acre and since the date 5..........,... 'S.......,..[5] of Section 4 notification was anterior in point of time, discounted IAAPP784/2005&connected Page6ofl[9] annum determined the sum arnved at as of 21 3 2003 as also 24.9.200.. 3The two sums arrived at were added and divided by two to arrive at the mean figure as of 21 3 2003, which I note comes to U[5],92,083 33 per acre (In sorrie deisions I note the sum arrived at is 15,92,215/-) For the de 24 9 2003 the price determined was 2D,41,000!- er acre

15 Pertaining to the notification date,d. 17 6 2005 pursuant whereto agricultural lands were 4aquired )n v'illage Bakkarwala and Mundka the learned Reference Court adopted the minimum price for agricultural lands notified by. the Government of NCT Delhi with effect from 1 4 2001 and giving increase @10% per annum determined the* value and with respect to the lands in village Mundka, on account of locational dvantage, being abutting NH-10 gave 5% more and determined the fair market value as of 17 6 2005 in sum of 21,37,017 75 per acre and for v1illage Bakkarwala the price determined was 20,35,255/- per acre

16 In the aforesaid backdrop of the fctuaI scenario in which I have penned profiled the reasoning of the Land Acquisition Collector as also that of. the Reference Court, I delve into the arguments advanced beford me during hearing today H nd 3 biswa of agricultural land in village Muçdka was sold as of,[8] 1996 for a sale consideration of 4,7S,000/- 38,000i[7] was incurred towards sale duty and thus the price of the land would be 5,13,000I- acid calculated with reference thereto, l,and price per bigha would come to Z[4],46,000/- as of 5 8 1996 Learned counsel would urge that there is no reason not to hold that fair market viue of agricultural lands in village Mundka was 4,46,0O9I- per bigha as of 5 8 1996 Taking the argument forward, it is urged that with 'reference to the said price, fair market value needs to be determined as of f 25 2 1993,.2I.3.2003 and 17.62005., i.e. the dateswhenno.tificatio1un.de • Section 4 of the Land Acquisition Act were issued pursuant wEereto agricultural lands were acquired in 'village Muñdka, by increasing the price progressively, if not by 12% per annum at least by 10% per annum It is urged that on the same basis, laç'id price should be determined fbr the agricultural lands in village Bakkarwala Alternatively, it was urged that since villages Tikri Kalan, Mundka and Bakkarwala are contiguous villages, and in fact village Tkri Kalan is further towards the township of. Rohtak, some increase be made in the value of the land in village Mundka and Bakkarwala with reference to the judgment and decree dated 19 12 2008 deciding a batch of • Land Acquisition Appeals, lead matter being LA Appeal No 193/2006 Pratap Singh (L7eceased) Thr. LRs Vs 00/ as per which fair market value of land, per bigha, was determined in the revenue estate of village Tikri Kalan as of 16 11 1995, 11 6 1996 and 17 12 2002 at 2,15,164/- for category A land LA APP 784/2005 &connected H'.•. as Petitions for $pecial Leav'eto Appeal filebefor Suprem Court by, either side have been dismissed Learied couns& takes the argument forward by urging that by, a'dqpting the fair market value of land in village Bakkarwala as of 15 10 1993 at 1,32,000/- per bigha, the fair market value should be ascertained by increasing the price progressively. by 10% per annum to determine the market value of land in village Bakkarwala as of 24 9 2003 as also 17 6 2005 Learned counsel riould urge that in view of the locational advantage of village Mundka, fair market value of Jand in village Mundka should be determined as of 25.2.1997, 21 3 2003 and 17 6 2005, by giving 5% increase

22 With respect to the sale deed Ex P-i, whereunder 1 bigha and 3 biswa of agricultural land was sold in Village Mundka as of 5 8 1996, it would assume'importanCe that the kale is about 7 months prior to the date of the notification issued under Section 4 of the Land Acquisition Act, which was issued on 25 2 1997 It is a matter of common knowledge that preceding the publication of a notification under Section 4 of the Land Acquisition Act, survey's are carried out with the object of determining as to what lands, comprised in which khasra numbers and fieds are required to be notified for the proposed • r acqutsi tion and when this happens people in the area come to know that very soon there is every likçlihood that the lands would be acquired In Delhi, the large scale acquisition policy enjoins upon the Government to allot, at pre determined rites, a plot of developed residential land to the ones whose lands are acquired and thus, it is not uncommon, for persons to purchase i sniall parcels of lands in areas where acquisitiOns are likely to ta}<e place, these transactions are speculative and dannot be taken to be a representative measure of the fair market value of land as on the date of the sale Further, the principles of ratio and proportiofl as also the principles of averages and the principles of samphng tell me that to be' rejresentative of the whole, a sample must bear at intelligible proportion to the whole Thus, not for the reasoning advanced by the learned Reference Court, but for the twin reasoning hitherto-fore noted, I hold that Ex P-i cannot be good evidence wherefrom market value of the land could be determined Thre is an additional rçason not to rely upon the said sale deed The sale deeds Ex Rito Ex R-4, dated 6 1 1995, 30 5 1997, 4 6 1997 and 8 9 1997 are also pertaining to Village Mundka and reflect a sale price much lower than the sale price recorded i Ex P-i In fact, the sale price in the said 4 sale deeds averages much less than the minimum price for agricultJral land in Delhi notified by even the Government Thus, the fair market value of the lands would be required to be fixed either with refrenC to the decision of this • case (supra) or I highlight that both decisions, pepned by the Division Bench, of this Court have been upheld by the Supreme Court

25 The decision in JaiSIncLh'S case(supra) determined fair market value of land in Village BakkarWala in sum of 1,32,000/- per bigha as of 15 10 1993, and the perusal thereof Pagel4ofl[9] LAAPP784/2005&C0flCt would show that the Court assessed the fair market value with reference to sale deeds executed between the years1990 till the year 1996 either in Village Tikri Ialan or Village Mundka, apparently on the premise that being contiguous villagers, sale price of agricultural land in the 2 adjoinipg villages would be indicative of fair market value of land in Village Bakkarwala

26 In Pratap Sincjh's case (supra), the Division Bench was concerned with agricultural lands in Tikri Kalan and another adjoining Village named Ghevra and pertaining to various notifications issued under Section 4 of the Land Acquisition Act determined the fair market value of agricultural lands in ViHage Tikri Kalan and Ghevra as under -

S. NO Date Village Price per Big ha

1 24 07 1995 & Tikri Kalan 2,15,160/- for Block 16 11 1995 f\ & T[1],73,500/7 for Block B land 2 11 06 1996 Tikri Kalan & T235,8151- for Block iI: - - Acquisition Appeal No 489/2009, Chiranit La!,5jgjof/n1- 2.[6] 2011 I have detrmined the fair market value of the Anr. on nds' in Village Ghevra at 4,b[3],425J- per bigha as of 6.[2] 2003 On the issue of comparabilitY of land' in village Bakkarwala with village Mundka, Ghevra and Tikri Kalan, it is no doubt true that whereas village BakkarWala does not abut NH-lU, as do the otrer villages, but i hs to be highlighted that it i more proximate to the urbn areas of Delhi vis-a-vis Ghevra and Tikri Kalan and to that extent, qua said 2 villages, has an advantage Since exactness can never be achieved in the matters of assessing fair compensation, it is the broad probabilities and similarities which matter. Thus, I hold all 4 villages to be equivaieflt, unless qua some land special feaureS can be shown

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28 Since the decision in case (supra) deals with notifications more proximate in point of time to the notifications with which I am concerned, I am of the opinion that it vould be just, fair and proper to determine the fair market value of lands with which I am concerned in relation to the fair market value of lands determined (supra) As per the decision inJrataP.ingh' case '(supra) for the date 24 7 1995, for Category A lands fair compensation assessed was 2,15,160/- per bigha and 1,73,500/- per bigha for Category Bi • land The first notification with which I am concerned is 25 2 1997 whereunder lands in Village Muhdka were acquired The time span sweeps 1 year and 216 days ie 5dayS In Pratap Sinqs case (supra) the annua/jflaaSe was determined to be 10% per annum (flat) Thus, pertainiflg to Category A 1• ft lands, thefair market value assessed is 2,49,408.[7] 5 per bigha I e 11,97,162/- per acre and for Category B lands, I assess the fir market value at 2,01,117/- per bigha ie 9,65,361 60 per acre 2? The next notification with which I am concernedj dated 21. 3 pertaining to Village Mundka In Chlranfi La/'s cas (supra), with reference to the decision in Pratap Stngh's case (supra), for agricultural lands in Village Ghevr pertaining to a t notification issued under, Section 4 of the Land Acquisition Act on 6.2.2003, the fair market value assessed 4wa.s 4,03,425!- per bigha This was uniformly applied Since thereis a time gap of.. just a little over 1 month, I am of the opini6n that pertaining to i. the notification dated 21 3 2003, fair market value of land in Village Mundka should be 4,03,425I- i e l[9],36,440I- per acre, which I hereby fix

30 I propose to deal with the notification dated 24 9 2003, after dealing with the notification dated 17 6 2005 pursuant whereto agricultural lands were acquired in Village Mundka and Village Bakkarwala e, in 31 As noted hereinabov Chirani LaI's case (supra), pertaining to the notification dated 6.2.2063, fair mari<et value assessed by me was 4,03,425I- per bigia nd thus, increasing • the same by 10% for 2 years and 131 days, the figure comes to 4,98,589I- per bigha, which comes to 23,93,227 20 per cre The same is held by me to be the fair market value of land in Village Mundka and Village Bakkarwala as of 17 6 2005 I decrç the same -- p.. 23 193 227 20 per acre, as on 17 06 2005 v) For the land situated in 'Village Bakkarwala the fair market value is fixed at 4,25,641/- per bigha ie 20,43,076 80 per acre, ason 24 09 2003 Appellants and cross-objectors who have succeeded oüld also be entitled to solatium candinterest a s per sttute and as clarified in the fdecision reported as................. 3(2001 DLT 569 Sunder vs 110/, for the compensation, paid originally and as enhanced by the Reference Court and finally on the sum enhanced by the present judgment and decree The appellants and cross-objectors who succeed would also be entitled to proportionate costs All pending applications stand disposed of in terriis of the prayers made therein

(PRADEEP NAN DRAJOG)

JUDGE JULY 08, 2011 t'nm tA.APP.784/2005 & connected...,. Page 19 of19