Compensation at ₹6.5 lakh per kanal upheld based on proximate market evidence.

The State acquired 20 kanals and 12 marlas of land at Diwar Yakhmanpora, Tehsil Pattan, District Baramulla, comprising several survey numbers, for construction of an Armed Police Complex.

The Collector Land Acquisition passed an award dated 25 March 2010, fixing compensation at ₹3.50 lakhs per kanal, with the total compensation stated as ₹82,92,500.

Dissatisfied landowners sought a reference under Section 18 of the J&K Land Acquisition Act.

The Reference Court enhanced the compensation to ₹6.50 lakhs per kanal, inclusive of fruit-bearing trees, together with 15% jabirana and interest at 7% per annum on the enhanced amount from the date of possession.

The landowners filed MA No. 174/2015 seeking further enhancement to ₹15 lakhs per kanal and employment, while the State filed RFA No. 11/2020 seeking reduction or reversal of the enhancement.

Whether the Reference Court correctly determined the market value of the acquired land at ₹6.50 lakhs per kanal, inclusive of fruit-bearing trees, rather than the Collector’s rate of ₹3.50 lakhs per kanal.

Whether the landowners were entitled to further enhancement of compensation to ₹15 lakhs per kanal and other relief, including employment.

Whether the State established any ground for reducing the compensation awarded by the Reference Court.

Whether the statutory component of 15% jabirana and interest awarded on the enhanced compensation was legally sustainable.

The Court applied Section 23 of the J&K Land Acquisition Act, 1990, under which compensation is principally determined by the market value of the land on the date of publication of the Section 6 declaration, along with legally compensable damage relating to crops, trees, severance, injurious affection, relocation, and diminution of profits.

The Court further recognised the statutory entitlement to an additional 15% of the market value in consideration of the compulsory nature of acquisition.

The market value must be assessed with reference to the prevailing value at the relevant statutory date, which in this case was 19 December 2009, and may be evaluated from reliable oral and documentary evidence, including proximate comparable transactions.

A Reference Court’s valuation based on the evidence will not be interfered with in appeal absent a demonstrated error or manifest inadequacy/excessiveness.

The Court held that the relevant valuation date was the date of publication of the Section 6 declaration in 2009, rather than merely the date of the Collector’s award.

Although the landowners’ witnesses claimed market rates of ₹14–15 lakhs per kanal, those assertions were not supported by executed sale deeds and were therefore treated as exaggerated.

However, the evidence included proximate agreements to sell from 2006 and 2009 showing rates of ₹8.80 lakhs, ₹9.10 lakhs and ₹5 lakhs per kanal, together with the testimony of a retired Tehsildar regarding the land’s productivity, location, development potential, proximity to the National Highway, tourism and commercial activity.

Considering this evidence, the Reference Court reasonably enhanced the Collector’s rate from ₹3.50 lakhs to ₹6.50 lakhs per kanal.

The State led no rebuttal evidence, while the landowners failed to establish the higher rate of ₹15 lakhs per kanal.

The High Court therefore found the Reference Court’s valuation to be evidence-based and neither excessive nor inadequate.

The landowners were held entitled to compensation at ₹6.50 lakhs per kanal, inclusive of fruit-bearing trees, together with 15% jabirana and interest at 7% per annum on the enhanced amount from the date of possession, subject to deduction of compensation already received.

The claims for further enhancement to ₹15 lakhs per kanal and employment were not granted, and the State’s challenge for reduction of compensation was rejected.

Pending applications were disposed of and interim directions, if any, were vacated.