P&H HC Leaves Kurali Farmland Compensation At ₹16.45 Lakh/Acre, Upholding 40% Cut For Small-Plot Sale Comparables

In brief

The question

1. Whether the Reference Court was justified in relying on sale deeds for small plots to assess the market value of the acquired agricultural land

The court held

The High Court dismissed the landowners’ appeals, the Railway’s appeals, and the landowners’ cross-objections.

It also directed

Any delay in filing an appeal was condoned, but the appellants were not entitled to interest for the delayed period.

Pending applications were also disposed of.

01Facts

The State acquired 2 acres of agricultural land in Village Kurali, District Rupnagar, for a railway traction sub-station.

p. 3

Notifications under Sections 4 and 6 of the Land Acquisition Act, 1894, were issued on 9 June and 5 July 1999, respectively.

p. 3

The Collector assessed compensation at ₹10 lakh per acre; on reference, the Reference Court assessed market value at ₹16,45,715 per acre, applying a 40% deduction to the average value drawn from sale deeds for small plots.

pp. 3–4, 6

The landowners appealed for enhancement, while the Railway challenged the assessment; cross-objections were also before the High Court.

pp. 2–3, 5

02Issues

i.1. Whether the Reference Court was justified in relying on sale deeds for small plots to assess the market value of the acquired agricultural land

pp. 5–6

ii.2. Whether the 40% deduction applied by the Reference Court should be reduced or otherwise varied

pp. 4–7

03Law Applied

The appeals were brought under Section 54 of the Land Acquisition Act, 1894, and the references arose under Section 18.

pp. 3–4

In assessing market value, the Court treated the nature and size of exemplar lands as relevant: small residential or commercial plots may command higher prices than larger agricultural tracts, and a deduction may be appropriate when plot-sale exemplars are used to value agricultural land.

pp. 6–7

The landowners invoked Section 25 in arguing that certain sale deeds should not be considered, but the judgment does not set out or apply a separate Section 25 rule.

p. 4

Provisions in the judgment · 5

Land Acquisition Act, 1894 Section 54Section 4Section 6Section 18Section 25

04Reasoning

The Court accepted the Reference Court’s decision to average the prices in Ex. P-8 and P-9, noting that the other cited sale deeds disclosed the same per-acre price as P-9 and that P-8 covered a larger area than P-9.

p. 5

It considered the exemplar parcels to be small plots, rather than agricultural land comparable in character to the acquired tract; even the larger parcel, P-8, represented a carved-out residential or commercial plot.

pp. 6–7

Given the difference in size and nature between the exemplars and the acquired agricultural land, the Court found no basis to reduce the 40% deduction.

p. 7