Cumulative annual increase over valuation must displace the valuation based on Sale Deed : SC

It is true that the process of determining the value by annual increase was considered as one of the alternatives in Wazir and Another vs. State of Haryana. But in that case, three methods including one relating to cumulative annual increase were considered and that method which led to the highest valuation was adopted. But the law laid down in ONGC Ltd. is quite clear. In case we go by the method of cumulative annual increase it would mean that cumulative increase over the valuation in Wazir and Another vs. State of Haryana must displace the valuation based on Sale Deed, which is normally the safest method. (Para 11)

Ved & Anr. v. State of Haryana & Anr.

Civil Appeal No(s). 1158 of 2021 (@ out of Special Leave Petition (Civil) No.24520 of 2018)

Decided on 8th April, 2021.

The division Bench of the Supreme Court comprising of Justice Vineet Saran and Justice Uday Umesh Lalit pronounced the Judgment.

Notification dated 17.09.2004 was provided under Section 4 read with Section 17(2)(c) of The Land Acquisition Act, 1894 to begin land acquisition proceedings for the purpose of establishing Industrial Model Township, Phase-V, Manesar, Gurgaon for the construction of an integrated complex for industrial, commercial, recreational, and other public utilities. The Notification was accompanied by a Declaration released under Section 6 of the Act on October 27, 2004.

The land covered by the declaration measured 956 acres, 5 kanals, and 18 marlas, according to the High Court's records. The market value of the lands was estimated at Rs.12.50 lakhs per acre by the Land Acquisition Collector. In the case of the villages other than Manesar, the Reference Court calculated compensation at Rs.50,43,315/- per acre. The Acquiring Body, namely, HSIIDC as well as some landholders, being aggrieved, filed appeals in the High Court. The market value of lands in villages Naurangpur and Lakhnoula was determined by the High Court to be Rs.48,46,000/- per acre, while the market value of lands in villages Nawada Fatehpur, NaharpurKasan, and Shikohpur was determined to be Rs.43,61,400/- per acre. The market value of lands in the villages of Naurangpur and Lakhnoula was determined by the High Court to be Rs.48,46,000/- per acre. Being aggrieved, these appeals have been preferred by the landholders.

On behalf of the landlords, it was submitted that the lands of villages Naurangpur, Lakhnoula, and Shikohpur were on a better footing and has a lot of potential for residential and commercial use. On behalf of the State, it was argued that the valuation reached and the High Court's discussion on the issue did not necessitate any intervention.

The Court heard both sides and proceeded to consider the evidence placed on record to see if the landholders are right in seeking enhancement.

The Court held:

It is true that the process of determining the value by annual increase was considered as one of the alternatives in Wazir and Another vs. State of Haryana. But in that case, three methods including one relating to cumulative annual increase were considered and that method which led to the highest valuation was adopted. But the law laid down in ONGC Ltd. is quite clear. In case we go by the method of cumulative annual increase it would mean that cumulative increase over the valuation in Wazir and Another vs. State of Haryana must displace the valuation based on Sale Deed, which is normally the safest method. (Para 11)

The Court dismissed the appeal.

View/Download judgment: Ved & Anr. v. State of Haryana & Anr.

Yashwardhan Bansal