Additional compensation under Section 23(1-A) cannot be awarded for periods preceding the Section 4 notification.

The State acquired land measuring 10.89 acres in Village Ghasola and 5.96 acres in Village Balkara, Tehsil Dadri, District Bhiwani, for construction of the Ram Nagar Sub-Minor.

Notifications under Sections 4 and 6 of the Land Acquisition Act, 1894 (“1894 Act”) were issued on 05.12.1996 and 18.02.1997, respectively. The Collector passed the award on 04.05.1997, determining compensation according to the nature of the land and granting statutory benefits, including 12% additional amount under Section 23(1-A) from 05.12.1996 to 04.05.1997.

On references under Section 18, the Reference Court awarded additional compensation at 12% per annum for the period from 1986 until 04.12.1996, on the basis that possession had been taken in 1986. It declined the landowners’ claim for severance charges.

The State challenged the pre-notification award of additional compensation, while the landowners in the Balkara matters claimed severance charges. The appeals were heard and disposed of by a common order.

Whether additional compensation under Section 23(1-A) of the 1894 Act could be awarded for the period preceding publication of the notification under Section 4, where possession had allegedly been taken before that notification.

Whether the landowners whose lands were situated in Village Balkara were entitled to severance charges where the acquired land had been bifurcated by construction of the canal/minor.

Whether the compensation was required to be recalculated while preserving the basis that the additional amount had been calculated with reference to the market value prevailing in 1986.

Section 23(1-A) of the Land Acquisition Act, 1894 requires an additional amount at 12% per annum on the market value for the period commencing from the date of publication of the Section 4(1) notification and ending on the date of the Collector’s award or the date of taking possession, whichever is earlier.

Thus, the statutory period cannot commence before publication of the Section 4 notification. Market value under Section 23(1) is assessed with reference to the date of the Section 4 notification.

The Court also applied the principle recognised in Sahab Kaur & Ors. v. State of Haryana & Anr., RFA-3120-2006, order dated 03.09.2025, that landowners are entitled to severance charges at 20% of the market value where acquisition results in severance or bifurcation of their remaining land.

The Court held that the wording of Section 23(1-A) expressly fixes the commencement of the additional amount at the date of publication of the Section 4 notification. Since the notification in the present case was published on 05.12.1996, the Reference Court erred in granting the benefit from 1986 merely because possession had allegedly been taken in that year.

The Court distinguished any possible claim for compensation or rent for unauthorised use of land from the statutory additional amount under Section 23(1-A), observing that the latter could not be granted contrary to the statutory text.

However, for recalculation, the Collector or Executing Court was directed to take into account that the additional amount had been calculated on the market value prevailing in 1986.

As to Balkara, the State conceded that the acquired land had bifurcated the landowners’ holdings. Applying Sahab Kaur, the Court therefore allowed severance charges at 20% of the market value, subject to verification of actual bifurcation in individual cases.

The compensation was directed to be recalculated consistently with the Court’s clarification regarding the market value adopted for calculation.

The landowners of Village Balkara were held entitled to severance charges at 20% of the market value, provided their land was actually bifurcated; the State was permitted to raise this issue before the Executing Court in individual cases.

All connected appeals and pending miscellaneous applications were disposed of accordingly.