Land Acquisition - Compensation must be assessed uniformly irrespective of its classification and nature

Himachal Pradesh High Court Upholds Enhanced Compensation for Land Acquisition. Court rules in favor of uniform compensation for acquired land, emphasizing potential use over prior classification.

In a landmark judgment, the Himachal Pradesh High Court, presided by Justice Sushil Kukreja, has upheld the decision of the Additional District Judge (II), Mandi, granting enhanced compensation for land acquired by the state for the construction of a water tank in the village of Thurd, Tehsil Sarkaghat, District Mandi. The appeal, filed by the Executive Engineer IPH and others, was dismissed, reaffirming the principles of fair compensation under the Land Acquisition Act, 1894.

The original award by the Land Acquisition Collector had assessed the compensation at Rs. 5,50,050 per hectare. However, the claimant, Sanyaru, sought enhancement under Section 18 of the Act, arguing that the potential and future productivity of the land were not adequately considered. The Reference Court agreed, awarding a flat rate of Rs. 50,000 per biswa, disregarding the previous classification of the land.

Justice Kukreja emphasized that when land is acquired for public purposes, like the construction of infrastructure that benefits the public, the assessment of market value should be uniform, focusing on the potential use rather than its classification. This principle aligns with the precedent set in previous cases, such as Gulabi v. State of H.P., and is consistent with the Apex Court's rulings, which advocate for the valuation of land as a single unit.

The judgment also covered the inclusion of solatium, additional compensation, and interest as per Section 34 of the Land Acquisition Act, stating that no deductions are permissible in cases where land is acquired for public purposes. The court found no merit in the appellants' argument for deductions, as the acquisition served a public purpose without profit motives.

This decision reinforces the legal framework for fair compensation in land acquisitions, ensuring that landowners receive appropriate recompense based on potential and market value, rather than outdated classifications. The ruling sets a significant precedent for future cases involving public infrastructure projects, emphasizing the equitable treatment of landowners.

Bottom Line:

Land Acquisition - Compensation for acquired land must be assessed uniformly irrespective of its classification and nature, considering market value and potential use of the land.

Statutory provision(s): Land Acquisition Act, 1894 Sections 18, 34

Executive Engineer IPH v. Sanyaru, (Himachal Pradesh) : Law Finder Doc Id # 2804102