RFA No.1881 of 2000 1 In the Punjab and Haryana High Court,at Chandigarh. RFA No. 1881 of 2000 Decided on August 25,2008. 1.Labh Singh (dead) through his LRs Major Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 2 RFA No. 1525 of 2000 Decided on August 25,2008. Kuldip Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 3. RFA No. 1527 of 2000 Decided on August 25,2008. Pritam Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 4. RFA No. 1528 of 2000 Decided on August 25,2008. Gulzar Singh (dead) through Lrs Gurcharan Kaur and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 5 RFA No. 1529 of 2000 Decided on August 25,2008. Sarup Singh (dead) through LR and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 2 6. RFA No. 1656 of 2000 Decided on August 25,2008. Nirmal Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 7. RFA No. 1667 of 2000 Decided on August 25,2008. Nirmal Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 8 RFA No. 1880 of 2000 Decided on August 25,2008. Janam Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 9 RFA No. 1882 of 2000 Decided on August 25,2008. Prem Singh (dead) through LRs Kahmir Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 10 RFA No. 1883 of 2000 Decided on August 25,2008. Bhajan Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 3 11 RFA No. 1884 of 2000 Decided on August 25,2008. Daljit Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 12. RFA No. 1974 of 2000 Decided on August 25,2008. Ajmer Singh and another --- Appellants vs. The Collector, Land Acquisition and another --- Respondents 13 RFA No. 1975 of 2000 Decided on August 25,2008. Gurcharan Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 14. RFA No. 1976 of 2000 Decided on August 25,2008. Nirmal Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 15. RFA No. 1977 of 2000 Decided on August 25,2008. Gurcharan Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 4 16. RFA No. 1979 of 2000 Decided on August 25,2008. Swaranjit Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 17. RFA No. 1981 of 2000 Decided on August 25,2008. Labh Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 18. RFA No. 1984 of 2000 Decided on August 25,2008. Mohinder Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 19. RFA No. 1985 of 2000 Decided on August 25,2008. Gurmel Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 20. RFA No. 1988 of 2000 Decided on August 25,2008. Gurbachan Singh through LRs and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 5 21. RFA No. 1989 of 2000 Decided on August 25,2008. Harjinder Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 22. RFA No. 1991 of 2000 Decided on August 25,2008. Har Nidhan Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 23. RFA No. 1992 of 2000 Decided on August 25,2008. Gurbachan Singh (dead) through his LRs Harjinder Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 24. RFA No. 1993 of 2000 Decided on August 25,2008. Gurbachan Singh (dead) through his LRs Harjinder Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 25. RFA No. 1994 of 2000 Decided on August 25,2008. Smt.Balwinder Kaur ---Appellant vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 6 26. RFA No. 1995 of 2000 Decided on August 25,2008. Harjit Singh ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 27. RFA No. 1996 of 2000 Decided on August 25,2008. Har Nidhan Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 28. RFA No. 1997 of 2000 Decided on August 25,2008. Smt.Gurdev Kaur and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 29. RFA No. 1998 of 2000 Decided on August 25,2008. Gurmit Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 30. RFA No. 2645 of 2000 Decided on August 25,2008. Ujaggar Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 7 31. RFA No. 1978 of 2000 Decided on August 25,2008. Satinder Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 32. RFA No. 1983 of 2000 Decided on August 25,2008. Smt.Jaswant Kaur ---Appellant vs. The Collector, Land Acquisition and another --- Respondents 33. RFA No. 1987 of 2000 Decided on August 25,2008. Harjinder Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 34. RFA No. 1988 of 2000 Decided on August 25,2008. Jarnail Singh and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 35. RFA No. 1980 of 2000 Decided on August 25,2008. Palwinder Singh and another ---Appellants vs. The Collector, Land Acquisition and another --- Respondents RFA No.1881 of 2000 8 36. RFA No. 123 of 2001 Decided on August 25,2008. Mushtarka Malkan of Mushtarka land and others ---Appellants vs. The Collector, Land Acquisition and another --- Respondents 37. RFA No. 125 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Mohinder Singh --- Respondent 38. RFA No. 126 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Smt.Balwinder Kaur --- Respondent 39. RFA No. 127 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Satinder Singh and another --- Respondent 40. RFA No. 128 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Badan Singh(dead) through his LRs Gurcharan Singh and others ---Respondents RFA No.1881 of 2000 9 41. RFA No. 137 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Ujagar Singh and others --- Respondents. 42. RFA No. 138 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Sham Singh and others --- Respondents. 43. RFA No. 139 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Janam Singh and others --- Respondents. 44. RFA No. 140 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Nirmal Singh and others --- Respondents. 45. RFA No. 159 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurcharan Singh and others --- Respondents. RFA No.1881 of 2000 10 46. RFA No. 2709 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Pritam Singh and others --- Respondents. 47. RFA No. 2710 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Labh Singh --- Respondent. 48. RFA No. 2711 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Smt.Jaswant Kaur ---Respondent. 49. RFA No. 2712 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Labh Singh and others --- Respondents. 50. RFA No. 2713 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Mushtarka Malkan --- Respondent. RFA No.1881 of 2000 11 51. RFA No. 2714 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Harjinder Singh and another --- Respondents. 52. RFA No. 2715 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Harjit Singh ---Respondent. 53. RFA No. 2716 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurnam Singh and another ---Respondents. 54. RFA No. 2717 of 2000 & X Obj No. 116-CI of 2007 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Arjun Singh (dead) through his LRs and others --- Respondents. 55. RFA No. 2718 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Jarnail Singh and others --- Respondents. RFA No.1881 of 2000 12 56. RFA No. 2719 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Sarup Singh and another --- Respondents 57. RFA No. 2720 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Harjinder Singh and another --- Respondents. 58. RFA No. 2721 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Ajmer Singh and others ---Respondents. 59. RFA No. 2722 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Swaranjit Singh and others ---Respondents. 60. RFA No. 2723 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Nirmal Singh and others ---Respondents. RFA No.1881 of 2000 13 61. RFA No. 2724 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Prem Singh ---Respondent. 62. RFA No. 2725 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Daljit Singh --- Respondent. 63. RFA No. 2726 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Bhagwan Singh and another ---Respondents. 64. RFA No. 2727 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another --Appellants vs. Kuldip Singh ---Respondent. 65. RFA No. 2728 of 2000 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Har Nidhan Singh and another --- Respondents. RFA No.1881 of 2000 14 66. RFA No. 51 of 2001 & X-Obj No. 110-CI of 2007 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Tara Singh and another --- Respondent. 67. RFA No. 52 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurmel Singh and another --- Respondents. 68. RFA No. 53 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Nirmal Singh and another --- Respondents. 69. RFA No. 54 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Bhajan Singh ---Respondent. 70. RFA No. 55 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurbachan Singh --- Respondent. RFA No.1881 of 2000 15 71. RFA No. 56 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurbachan Singh and another --- Respondents. 72. RFA No. 57 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Palwinder Singh and another -- Respondents. 73. RFA No. 58 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurbachan Singh and another --- Respondents. 74. RFA No. 59 of 2001 & X Obj No. 115-CI of 2007 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Dharamjit Singh and others ---Respondents. 75. RFA No. 60 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gurmit Singh and others --- Respondents. RFA No.1881 of 2000 16 76. RFA No. 61 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Har Nidhan Singh and another --- Respondents. 77. RFA No. 62 of 2001 Decided on August 25,2008. State of Punjab through the Collector, Land Acquisition Industries Department Punjab and another ---Appellants vs. Gulzar Singh and another --- Respondents. Present: Sarvshri.Arun Bansal, S.K.Singla, Gurcharan Singh, Satinder Khanna,Hardip Singh,P.K.Dwivedi,Advocate, for the appellants (in the appeals filed by the claimants/landowners) and for the respondents in the appeals filed by the State). Mr.Manohar Lall,Addl.A.G.Punjab, for the appellants (in the appeals filed by the State and for the respondents in the appeals filed by the claimants/landowners) Rakesh Kumar Jain,J: This judgment shall dispose of R.F.A. Nos.1881, 1525,1527 to 1529, 1656, 1667, 1880, 1882 to 1884,1974,1975 to 1977, 1979 to 1981, 1984,1985, 1988,1989,1991 to 1998, 2645,1978,1983,1987 of 2000, 123 of 2001 filed by the claimants/landowners and RFA Nos. 125 to 128, 137 to 140, 159 of 2001,2709 to 2716 of 2000, and RFA No.2717 with X- Objection No. 116-CI of 2000 and 2718 to 2728 of 2000, RFA No. 51 of 2001 with X-Objection No.110-CI of 2007, 52 to 58 and 59 with X- Objection No. 115-CI of 2007, 60 to 62 of 2001 filed by the State of Punjab, RFA No.1881 of 2000 17 arising out of the same notification and the same award of the Reference Court, therefore, they are being decided by a common judgment. However, the facts are being taken from R.F.A. No.1881 of 2000. Land measuring 1730 kanals 11 marlas (216 acres) of village Mangli Nichi, Tehsil and District Ludhiana, was notified on 7.5.1991 under Section 4 of the Land Acquisition Act, 1894 (for short 'the Act') for industrial Focal Point,Ludhiana and was followed by declaration under Section 6 of the Act, dated 18.3.1992. The Collector under the Act, vide her award No.3/Ludhiana dated 15.3.1994 for the year 1993-94 assessed the market value of the acquired land @ Rs. 3,00,000/-per acre for Niani Chahi; Rs. 2,50,000/-per acre for Khalas Chahi; Rs. 2,25,000/-for Gair Mumkin and Rs.1,20,000/-per acre for Banjar Kadim. The claimants filed objections under Section 18 of the Act, which were referred by the Collector to the Civil Court. The claim petitions were filed highlighting urban potentiality of the acquired land for which compensation @ Rs, 25,00,000/- per acre was set up which was stoutly contested by the respondents/State in which it was pleaded that though the land is acquired for a public purpose namely, for industrial Focal Point but nature of the land is agricultural and is far away from the site of industrial Focal Point for which adequate compensation has already been been awarded by the Collector. On the pleading of the parties, following issues were framed:- 1. What was the market value of the acquired land ?OPA 2. Whether the compensation is liable to be enhanced. If so to what amount ? OPA RFA No.1881 of 2000 18 3. Relief: Whereas in references No.3 to 10, one more issue has been framed which is as under:- 3-A. Since the reference is barred by time” OPR Relief: Both the parties led their oral as well as documentary evidence. The claimants produced Nirmal Singh as PW-1, Bant Singh as PW-2, Palwinder Singh as PW-3,Dilbagh Singh as PW-4, Heera Lal-Draftsman as PW-5 and also tendered into evidence sale deeds Ex. P-1 and P-2, site plan Ex.P-3 and Aksh Sajra Ex.P-4. Whereas the respondents examined Mohan Singh Partwari, Industries Department as RW-1 and also tendered into evidence sale deeds Ex R1 to R-3 alongwith site plan Ex. R-4. After appreciating the evidence, the Reference Court assessed the compensation @ Rs. 10,00,000/- per acre but after applying a cut of 55% awarded compensation @ Rs. 4,50,000/- per acre along-with all the statutory benefits except for interest on the amount of solatium. Learned counsel for the appellants has contended that the land in question was acquired on 07.5.1991. The sale deed Ex.P-1 pertaining to land measuring 4 kanals 1 marla is dated 15.11.1990 executed by Bant Singh PW-2 to Nirmal Singh PW-1 six months prior to the date of the present acquisition for a consideration of Rs. 5 lacs. The sale deed Ex.P-2 dated 30.11.1990 pertains to land measuring 1 kanal which has been sold by Dilbagh Singh-PW4 to Palwinder Singh PW-3 for a consideration of Rs.1,37,000/-. Sale deeds Exs.P-1 and P-2 are of village Mangli Nichi and forms the part and parcel of acquired land. It is further contended by counsel for the claimants that the RFA No.1881 of 2000 19 land is situated within the municipal limits of Ludhiana Municipal Corporation. As per site plan Ex.P-3 having been prepared by Heera Lal,Draftsman-PW5, the acquired land is surrounded by fully developed area comprising of various factories and commercial complexes and as per judgment of the Apex Court in the case of Special Deputy Collector & Anr v. Kurra Sambasiva Rao & Ors. etc. (1997) 6 S.C.C.41, the best evidence of the value for the acquired property are the sale transactions to which the claimant himself is a party and it must be a bonafide transaction. It is also maintained on behalf of the claimants that the Reference Court has palpably erred in law by applying a cut of 55% upon the average of two sale deeds and assessed the market value @ Rs. 4,50,000/- per acre. It is submitted that the Reference Court has erred in observing that the appellants shall not be entitled to any interest on the amount of solatium. It is also urged that as per the judgment of the Apex Court in the case of Atma Singh (died) through LRs. v. State of Haryana, 2008 (1) Law Herald (Punjab and Haryana ) page-1, deduction of 10% from the market value at the most should have been applied by the Reference Court. On the other hand, while opposing the appeals filed by the claimants and pursuing their own appeals, learned counsel for the State has vehemently argued that the Reference Court has erred in not appreciating the sale deeds Ex. R-1 to R-3 relied upon by the respondents and further submitted that insofar as the question of application of cut of 55% is concerned, that has been applied on the lower side by the Court below in case the sale deeds relied upon by the claimants have to be upheld because acquired land is 1730 Kanal 11 Marla whereas the exemplars are of very small pieces of land measuring 4 Kanal 1 Marla and 1 Kanal respectively RFA No.1881 of 2000 20 and of undeveloped agricultural land which cannot form basis of large tracks of land. In this regard, the respondents have relied upon the decision of the Apex Court in the case of Kanta Devi and others v. State of Haryana and another J.T. 2008 (8) SCC 102 in which agricultural land was acquired for setting up a new grain market in which 60% cut was applied. In reply to this argument, learned counsel for the appellants/claimants has submitted that the sale deeds Ex. R-1 to R-3 have rightly been ignored by the Reference Court because of the reasons that they pertain to the different village namely Mundian Kalan which is far away from the land in dispute as evident from the site plan Ex. R-4 filed by the respondents and in those sale deeds the amount of sale consideration is even lessor than the amount awarded to the claimants by the Collector and also the sale deeds are after the date of notification issued under Section 4 (1) of the Act. I have heard learned counsel for both the parties and have perused the record. Insofar as the claimants/appellants are concerned, they have raised two grievances in their appeals. Firstly the Reference Court has wrongly applied a cut of 55% and secondly they have been denied interest on the amount of solatium. On the other hand, the objection of the respondent/State is that their sale deeds have been wrongly ignored by the Court below and the cut of 55% is on the lower side. Insofar as the case of the respondent-State is concerned, the sale deeds have been ignored by the Court below on the ground that the vendors and vendees of the sale deeds have not been produced. This view,however, is now contrary to the law laid down by the Apex Court in RFA No.1881 of 2000 21 Land Acquisition Officer & Mandal Revenue Officer v. Narasaiah- JT2001 (3) SC 157, Ranvir Singh and another v. U.O.I. J.T. 2005 (8) SC 253 and Cement Corporation of India Ltd v. Purya and others (2004) 8 SCC 270. As such, the sale deeds Exs R-1 to R-3 are being taken into consideration and are tabulated as under:- - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sr.No. Registration No. Date of Registry Area Value Bigha,Biswas Biswansi Ex.R-1. 1994 16.5.1990 1-17-7 Rs.1,70,000/- ExR-2. 11526 2.8.1990 0-2-13-1/2 Rs.10,000/- Ex.R-3. 6385 25.6.1991 2-16-0 Rs.60,000/- - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - All the above sale deeds admittedly pertain to village Mundian Kalan which are far away from the acquired land of village Mangli Nichi as depicted by the respondents in their site plan/Aksh-Sazra Ex.R-4. Moreover, the value arising out of the three sale deeds are less than the award of the Collector, as such, they cannot be set up as an exemplar for the purpose of assessing the market value of the acquired land and have to be rejected. Adverting to the contentions raised by learned counsel for the claimants; regarding interest on the amount of solatium, I have no difficulty to hold that this issue is no more res-integra in view of the judgment of the Supreme Court in the case of Sunder v. Union of India AIR 2001 Supreme Court 3516 in which the question referred to the Bench of the Five Hon'ble Judges was as to whether the State is liable to pay interest on the amount envisaged under Section 23 (2) of the Act. The question was answered in affirmative wherein it was held as under:- “In deciding the question as to what amount would bear interest RFA No.1881 of 2000 22 under S. 34 of the Act a peep into S.31 (1) of the Act would be advantageous. That sub-section says: “ On making an award under S.11, the Collector shall tender payment of