Himachal Pradesh High Court Upholds Enhanced Compensation for Land Acquisition

Court Rules in Favor of Landowners, Rejects State's Appeal on Limitation and Compensation Assessment

In a significant judgment, the Himachal Pradesh High Court, presided over by Justice Romesh Verma, dismissed the appeal filed by the State against the award passed by the Additional District Judge, Hamirpur, which favored enhanced compensation for land acquired for a Water Supply Scheme in Hamirpur district. The court also rejected the cross-objections filed by the respondents seeking further enhancement of compensation.

The case, titled "Secretary (IPH) v. Mangal Devi," centered around the compensation awarded for land in village Ghanal Khurd, acquired for the construction of a water supply scheme. The original compensation, determined by the Land Acquisition Collector (LAC), was challenged by the landowners, leading to a petition under Section 18 of the Land Acquisition Act, 1894.

The State's appeal contended that the reference petition was time-barred and that the compensation determined by the reference court was excessive. However, the High Court, after examining the evidence and legal precedents, concluded that the respondents were not aware of the award until December 7, 2005, and filed their petition within the permissible period from the date of knowledge.

In its judgment, the court emphasized the necessity of actual or constructive knowledge of the award's essential contents for the limitation period to commence. The court cited several Supreme Court rulings to support the view that mere knowledge of the award's existence was insufficient; the affected party must be aware of its substantive details.

Furthermore, the court upheld the reference court's valuation of the land at Rs. 14,000 per marla, relying on sale deeds executed before the notification under Section 4 of the Act. The court agreed with the reference court that post-notification sale deeds could not be trusted due to potential price inflation.

While the State argued the compensation was excessive, the court found no evidence to suggest the reference court's assessment was unreasonable. On the respondents' cross-objections seeking further enhancement, the court found no grounds for increasing the compensation beyond what was already awarded.

Ultimately, the court dismissed both the State's appeal and the respondents' cross-objections, affirming the compensation as fair and reasonable given the evidence presented.

Bottom Line:

Land Acquisition Act - Determination of compensation - Knowledge of award must relate to essential contents of the award - Limitation period of six months for filing reference petition starts from the date of actual or constructive knowledge of the award.

Statutory provision(s): Land Acquisition Act, 1894 Sections 4, 12(2), 18, 23, 23(1-A), 23(2), 28

Secretary (IPH) v. Mangal Devi, (Himachal Pradesh) : Law Finder Doc Id # 2808619