Landholders entitled to 8% flat increase over market value in respect of lands from villages : SC

Landholders must be held entitled to 8% flat increase over the market value assessed in HSIIDC vs. Roshan Lal and others. in respect of lands from villages which were found to be comparable. The landholders must therefore get enhancement to the tune of 8% over Rs.43,61,400 per acre that is to say Rs.47,10,312 per acre (rounded of to Rs.47,10,500 per acre). Needless to say that they shall also be entitled to all the statutory benefits. (Para 15)

M/s Acquainted Realtors LLP etc. etc. v. State of Haryana and Ors.

Civil Appeal No. 1330-1332 of 2021

Decided on April 08, 2021.

A two-judge bench comprising of Justice Uday Umesh Lalit and Justice Vineet Saran decided the present case. The Court allowed the appeal stating that the landlord is entitled to 8% increase over the market value of the land.

Under Section 4 of the Land Acquisition Act, 1894 via a Notification dated 27.09.2005, proceeding of acquisition of lands was initiated for constructing an integrated complex for industrial, commercial and public utilities in Phase IV, Manesar, Gurgaon. Following the Notification, a declaration was also passed on 02.06.2006 under section 6 of the same act, measuring the land to 465 acres 5 Kanals 7 Marlas. The market value passed by the award dated 24.01.2007 was set at the rate of Rs. 12.50 Lakhs per Acre.

Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and the landlords approached the High Court with two main issues. The first being that whether cumulative increase was liable to be granted on the basis of an Award where there was a gap of 10 years and 10 months and the second being the relevant market value of the land situated in Villages Dhana, Kasan, Bas Huria, Bas Khulsa and Bas Lambi as on 27.09.2005. The appeals by the HSIIDC was allowed and the Court stated that the market value for the lands in question at Rs.43,61,400/- per acre and an increase of 10 % could be granted. Being aggrieved by the decision of the High Court, the landlords filled the present case before the Supreme Court.

The arguments put forth on the behalf of the land lords were that the land in question was adjacent to the Kundli-Manesar-Palwal Expressway and have potential. Further it was stated that the High Court erred in rejecting the sales deed dated 28.04.2004, which pertained 12 acres of land which was sold at the rate of Rs.1.13 crores per acre. They placed reliance on the judgment in Wazir and another v. State of Haryana, (2019) 13 SCC 101, to contend that an annual increase of 12% per annum could be granted.

On behalf of the State, it was stated that the High Court was right in relying upon Sale Deed dated 17.08.2003 to arrive at the valuation in respect of villages Shikohpur, Nawada Fatehpur and Naharpur Kasan and thereafter adopting same valuation for the lands involved in the instant case.

The Supreme Court after hearing the arguments from both the parties looked upon the sales deed dated 28.04.2004 and stated:

Schedule II to the Sale Deed shows that apart from the land described in Schedule I, constructed area, machinery including canteen, kitchen, offices, 7 air handling units, air colling units, centrifugal chillers of 400 tons each, LAN networking with extensive cabling, fire fighting implements also formed part of the price. This document was therefore rightly ruled out. (Para 9).

The Court further observed:

It is true that according to the record, except for certain exits, the Expressway would otherwise be unapproachable as stated by PW3 Ranbir Singh Yadav, Assistant Manager, HSIIDC. However, a dimension distinguishing the instant case certainly got added in that, even if there was to be no direct approach to the acquired lands from the Expressway, in terms of potential, the lands in the instant case definitely got closer to development. (Para 12 A)

The Court came to a decision that the landholders must be held entitled to 8% flat increase over the market value and stated:

In the totality of circumstances, in our view, the landholders must be held entitled to 8% flat increase over the market value assessed in HSIIDC vs. Roshan Lal and others. in respect of lands from villages which were found to be comparable. The landholders must therefore get enhancement to the tune of 8% over Rs.43,61,400 per acre that is to say Rs.47,10,312 per acre (rounded of to Rs.47,10,500 per acre). Needless to say that they shall also be entitled to all the statutory benefits. (Para 15)

View/Download Judgement: M/s Acquainted Realtors LLP etc. etc. v. State of Haryana and Ors.

Utkarsh Kumar Jayaswal