FAO No.574 of 1983 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No. 574 of 1983 Date of decision: 5.11.2008 Tej Ram and Others …..APPELLANTS Versus Union of India and Others …..RESPONDENTS CORAM: HON’BLE MR JUSTICE T.P.S.MANN PRESENT: Mr Rajnish Narula, Advocate for the appellants. Mr Rajiv Sharma, Senior Panel Counsel for Union of India. T.P.S.MANN, J. Challenge in the appeal is to the award dated 3.3.1983 given by learned Additional District Judge, Gurdaspur, who, while exercising the powers of an Arbitrator under Section 8 of the Punjab Requisitioning and Acquisition of Immovable Property Act, 1952, hereinafter referred to as “the Act”, assessed the compensation payable to the claimants- appellants at the rate of 150/- per marla for the acquired land, besides granting them solatium at the rate of 15% on the amount so assessed and interest at the rate of 6% per annum on the enhanced amount from the date of acquisition till the actual payment/deposit of the compensation. The appellants have prayed for determining the compensation at the rate of Rs.220/- per marla and awarding them an amount of Rs.44590/-, over and above the amount of compensation as awarded by the learned Arbitrator. FAO No.574 of 1983 -2- Land measuring 31 kanals 17 marlas, belonging to Shiv Nath, the predecessor-in-interest of the appellants, situated in village Bharoli Kalan, Tehsil Pathankot was acquired by Union of India for the defence purpose, under Section 7 of the Act. The competent authority, thereafter, gave an award, which did not satisfy the appellants, who filed an application under Section 8 of the Act for the appointment of an Arbitrator for determination of compensation of the acquired land, as the compensation offered was most inadequate. Accordingly, learned Additional District, Gurdaspur was appointed as an Arbitrator. In their application under Section 7 of the Act, the landowners/appellants pleaded that the area acquired was situated at a very conspicuous place and could be used for business and abadi purposes, as it was adjacent to the National Highway. The market value of the acquired land and similar land was not less than Rs.700/- per marla. While assessing the market value of the acquired land, the Special Land Acquisition Collector had altogether ignored the situation of the same, which touched the municipal limits of Pathankot town also. Accordingly, it was prayed that compensation for the acquired land be awarded at the rate of Rs.700/- per marla, besides the grant of solatium and interest. The application of the appellants was hotly contested by the respondents by filing a written reply, pleading therein that the land acquired was of inferior quality and far away from conspicuous places FAO No.574 of 1983 -3- and G.T road. The land had got no residential or commercial value. An adequate and fair compensation had already been assessed and awarded by learned Special Land Acquisition Collector by keeping all the relevant factors in view. After going through the evidence led by the parties, learned Arbitrator assessed the market value of the acquired land at Rs.150/- per marla and directed the payment of the same as compensation, along with solatium and interest, as mentioned above. Learned counsel for the appellants submitted that the learned Arbitrator lost sight of the fact that the land in question had a great potential at the time of its acquisition. The acquired land was located on the Pathankot and Jalandhar bye-pass. The municipal limits of Pathankot city stood extended up to a place near the acquired land. The market value of the land in question was not less than Rs.600/- per marla at the time of its acquisition, but the learned Arbitrator had granted inadequate compensation by assessing the price of the acquired land at the rate of Rs.150/- per marla. However, the appellants have prayed for the grant of compensation at the rate of Rs.220/- per marla only, i.e. an increase of Rs.70/-per marla, over and above the amount of compensation already awarded by the learned Arbitrator and therefore, they be awarded an amount of Rs.44,590/-, over and and above the amount of compensation as awarded by the learned Arbitrator for their entire acquired land. Learned counsel for the respondents opposed the stand of FAO No.574 of 1983 -4- the appellants and argued that the compensation has been rightly determined by the learned Arbitrator. I have heard learned counsel for the parties and perused the evidence with their able assistance. The appellants had examined one of them i.e. Tej Ram as AW-1 in support of their application under Section 8 of the Act. He deposed that the acquired land abutted the Pathankot-Jalandhar bye-pass. On the other side of the acquired land, was the Railway line connecting Pathankot with Amritsar. The entire land was situated by the side of abadi of village Bharoli Kalan and also at a distance of half a furlong of from municipal limits of Pathankot city. According to him, in case the acquired land had been sold by converting it into residential plots, in the year 1970, when the acquisition had taken place, it would have fetched a price of Rs.600/700 per marla. In his cross-examination, he denied that the acquired land was full of boulders. However, it was barani. He also stated that he never sold any land at the rate of Rs.600/700 per marla. He denied the suggestion that the acquired land could have fetched a price of Rs 50/- per marla only in the year 1970. The appellants also tendered in evidence mutations Ex.A-2 to A-4. On the other hand, the respondents examined RW-1 Mohinder Pal-Patwari, who proved site plan Ex.R-1, besides showing the subject matter of Mutation Nos. 853 (Ex.R-2) and 862 (Ex.R-3), which had been relied upon by the respondents, by shading them in black lead FAO No.574 of 1983 -5- in the site plan. He had also shown the instances relied upon by the appellants in yellow colour. According to him, the subject matter of Ex.R-2 was at a distance of 28 karms from the acquired land, while that of Ex.R-3 was situated at a distance of 196 karms. The entire land was studded with boulders. He also stated that the municipal limits were at a distance of 3/4 karms from the acquired land. In his cross-examination, he admitted that buildings had been constructed on the acquired land and the junction of Jalandhar-Pathankot bye-pass and Pathankot-Amritsar National Highway was only 100 karms from the acquired land. He also admitted that the acquired land abutted village abadi. RW-2 B.L.Chhabra, SDO, MES Pathankot did state that the acquired land was studded with boulders, but it was situated only at a distance of 2½ kilometres from the main bus stand and about 1½ kilometres from the octroi post. Reference can now be made to the various sale transactions, which have been relied upon by the parties. Mutation Ex.A-2 pertained to sale of 7 marlas of land on 22.8.1964 for an amount of Rs.2500/- and the average price per marla came to be Rs.357/-. Mutation Ex.A-3 is in respect of 13 marlas of land, which was sold on 22.8.1964 for an amount of Rs.4000/- and the average price per marla came to Rs. 308/-. The last transaction relied upon by the appellants is mutation Ex.A-4 which was effected on 9.5.1967 for an amount of Rs.20,000/- in respect of land measuring 1 kanal 10 marlas. The average price of this sale transaction was Rs.667/- per marla. All the aforementioned pieces of land were situated within a distance of 200 karms from the acquired land. On the FAO No.574 of 1983 -6- other hand, Mutation No. 853 Ex.R-2 pertained to sale transaction dated 16.10.1970 for a piece of land measuring 7 marla for an amount of Rs.200/-, the average price per marla being Rs.29/- while mutation Ex. R-3 was in respect of 2 kanals of land being sold for Rs.2000/- on 20.5.1966 and the average price per marla came to Rs.50/-. The notification for acquisition of land was issued on 17.3.1970 and published on 27.3.1970. The various sale transactions, which have been relied upon by the respondents reflected the price of land at a rate which was less than the one as has now been granted by the learned Arbitrator. On the other hand, a big chunk of land measuring 1 kanal 10 marlas was sold on 9.5.1967 for Rs.20,000/-, mutation regarding which has been brought on record by the appellants as Ex.A-4. This transaction had taken place earlier to the issuance of notification for acquisition of the land in the present case. The price per marla as per mutation Ex.A-4 came to Rs.667/-. Under these circumstances, the appellants were not far away from truth when they pleaded that the market value of the land acquired was not less than Rs.600/- per marla. However, they have finally prayed for the grant of compensation at the rate of Rs.70/- per marla, over and above the compensation assessed by the learned Arbitrator at the rate of Rs.150/- per marla. In my considered view, the appellants are entitled to assessment of the acquired land at the rate of Rs.200/- per marla and therefore, they need to be paid an amount of Rs.50/- per marla, over and above the amount of compensation as awarded by the learned Arbitrator. FAO No.574 of 1983 -7- Resultantly, the appeal is allowed. The compensation payable to the appellants for the acquired land is fixed at Rs.200/- per marla. To that an extent, the impugned award given by the learned Arbitrator is modified. Besides the amount of compensation, the appellants shall also be entitled to the grant of solatium at the rate of 15% and interest at the rate of 6% per annum on the enhanced amount from the date of acquisition till the time the enhanced amount is actually paid or deposited. No order as to costs. November 05, 2008 (T.P.S.MANN) Pds. JUDGE