IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA RFA No. 349 of 2005 and RFA No. 350 of 2005 Date of Decision : June 19, 2009 RFA No. 349 of 2005 Collector Land Acquisition HP.PWD., Kullu and others. Appellants Versus Shri Hukam Ram and others. Respondents RFA No. 350 of 2005 Collector Land Acquisition, HP.PWD, Kullu and others Appellants Versus Shri Chaman Lal and others. Respondents Coram: Hon’ble Mr. Justice Sanjay Karol, Judge. Whether approved for reporting?1 No. RFA No. 349 of 2005 and RFA No. 350 of 2005 For the appellants : Mr. R. K. Bawa, Advocate General with Mr. Vivek Thakur, Addl. A.G. and Mr. J. S. Rana, Asst. A.G. for the appellants. For the respondents : Mr. Naveen K. Bhardwaj, Advocate, for the respondents. Sanjay Karol, J. (Oral) The present appeals arise out of the same impugned award hence are being heard and disposed of together. For the public purpose namely “construction of Kullu Manali Left Bank Road” the State Government acquired land belonging to 1 Whether reports of Local Papers may be allowed to see the judgment? 2 land owners including the claimants herein. The notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) issued on 8.4.1999 was published in the H.P. Gazette on 22.4.1999. The Collector passed his Award No. 3 of 2000 dated 21.2.2000 (Ext.PA) determining the market value of the acquired land as under: Kind of land Area Per Bigha value Market value of the acquired land. Bagicha Ropa 0-10-16 7,41,612.00 4,00,470.00 Ropa Dom 0-13-9 5,96,514.00 4,01,156.00 Ropa Som 0-13-0 4,40,668.00 2,86,434.00 Gair Mumkin 0-1-7 69,862.00 4,716.00 Total: Rs.10,92,776.00 The extent and particulars of the acquired land are as under: Sr. No. Kind of land Area under acquisition 1. Bagicha Ropa 0-10-16 bighas 2. Ropa Dom 0-13-9 bighas 3. Ropa Som 0-13-0 bighas 4. Gair Mumkin 0-1-7 bighas Total: 1-18-12 bighas Aggrieved by the same the land owners, including the claimants filed various land reference petitions under Section 18 of the Act. Based on the pleadings of the parties the Court below framed the following issues: “1. Whether the compensation awarded by the Collector is inadequate. If so, what was the market value of the acquired property at the time of notification under Sec. 4 of the Land Acquisition Act? OPP 2. Relief.” 3 Opportunity to lead evidence was afforded to the parties and based on the material (oral and documentary) the Court below passed the impugned award dated 8.9.2005 in Land Reference Petition No. 142/2004, titled Hukam Ram and others versus Collector Land Acquisition HPPWD, Central Zone Mandi, H.P. and others and Land Reference Petition No. 143/2004, titled Chaman Lal and others versus Collector Land Acquisition HPPWD, Central Zone Mandi, H.P. The claimants proved on record, through the statement of Shri Megh Nath (PW-1) and Shri. Neerat Ram (PW-2), sale deeds Ext.PW 2/A, Ext.RA, Ext.RC and Ext. RE. The awards Ext. PD and Ext.PE, passed by the District Judge in other land reference petitions, pertaining to the acquisition of land in the very same area were also proved on record. The Court below did not consider the sale deeds proved on record by the claimants for the reason that there was no evidence to prove the proximity of the distance and the quality of the land sold under the said exemplar sale deeds. However relying upon award Ext. PE the Court below, enhanced the compensation awarded by the Collector by determining the market value of the instant acquired land to be Rs. 80,500/- per biswa. This was done after giving an increase of 5% for every successive year after 1997, for the reason that land covered under the exemplar award Ext. PE pertained to the acquisition proceedings for the said year. 4 In terms of the award dated 10.6.2003 Ext. PD, passed by the District Judge, Kullu in land reference petition No. 01/2001, titled as Shri Dina Nath Verma versus Collector Land Acquisition, Manali, Distt. Kullu, H.P. and another land situate in the very same Fatti i.e. Vashisht, where the instant acquired land is also situate was acquired in terms of the notification issued under Section 4 of the Act on 20.12.1997. In terms of award dated 6.12.2001 Ext. PE, passed by the District Judge, Kullu, in land reference petition No. 101/2001, titled as Durga Dass versus Collector, Land Acquisition Kullu and another, land also situated in the very same Fatti was acquired by the State Government in terms of notification issued under Section 4 of the Act dated 11.4.1996. While passing the said award the District Judge relied upon Award Ext. PD, to determine the market value of the land to be Rs. 70,000/- per biswa. In the instant case, the Court below has made these awards as basis for determining the market value of the instant acquired land and by giving an annual increase of 5% on Rs. 70,000/- for every subsequent period of 3 years, being an overall increase of Rs. 10,500/-, the market value of the instant acquired land has been determined to be Rs. 80,500/- per biswa, irrespective of the kind of land. Having heard learned counsel for the parties and perused the record I find that there is no illegality, infirmity or irregularity in the 5 impugned award. It is well reasoned and has considered the material in its entirety. There is nothing on record to show that the awards Ext. PD and Ext. PE have not been accepted by the State. It is not the appellants’ case either that they have preferred appeals against the said awards. The simple ground of challenge is that the said exemplar award cannot be made basis for determining the market value of the instant acquired land. From the record the similarity with regard to the potential and use of the acquired land with that of the exemplar land stands proved on record. This is evident from the statement of PW-1, who has stated that the acquired land is full of potentialities and is suitable for construction of buildings for commercial purpose, hotel and restaurants. The acquired land is situated near the places of tourist interest, i.e. Vashisht Temple, Solang Nala Mountaineering Research Institute, Nehru Kund Craft Centre in Manali town itself. The findings of the Court below, to the said effect are being reproduced with affirmation: “10. The said market value determined and compensation assessed by the Collector, Land Acquisition at the time of notification u/s 4 of the Act dated 8.4.99 is stated to be low, inadequate and unreasonable by the petitioners. In order to prove their said claim, the petitioners have examined Megh Nath as PW-1. He has testified that Manali town is extended up to the acquired land and locality at both the banks of river Beas. Near the acquired land Hotel Ashoka of India Tourism Development Corporation, Honey-moon Inn, Timber Trail, Holiday Inn and Hotel Ambassador are located. Solang-nallah 6 where competition of international skeing is held and Rohtang Pass are located in its North and Mountaineering Institute in its South where tourists from all over the world throng. In the acquired land hotels could have been constructed. At the time of acquisition of the land its value was between 1,50,000/- to 2,00,000/- per Biswa. Land of one Durga Das was acquired by P.W.D. five years prior to the acquisition of acquired land in which inadequate market value was given as a result of which reference was made and Court determined the market value at Rs. 70,000/- per Biswa. The land of Durga Dass was acquired for the construction of Bashisht- Manali link road whereas the land under present reference petitions has been acquired for the construction of National Highway, as the same is abutting to the National Highway where about 10-12 years back Nirat Ram had sold 3 Biswa of land in consideration of Rs. 3 lac which is located at a distance of 20-25 yards from the acquired land. The land of Durga Das acquired was of the same type. Similarly, the adjoining land was acquired by Snow and Avalanche Studies Department of which reference was made and market value was determined at Rs. 70,000/- per Biswa. He has further testified that the value of the land in the concerned locality is increasing day by day. PW-1 has been cross-examined at length. He has stated that area of Phati Bashisht is extended to large extent. Bahang is at a distance of 9-10 Kms. from Aleu where the acquired land is situated. From Rohtang Solangnallah is at a distance of 30 KMs.. He has refuted that the potentiality and value of the acquired land was not as such and not more than Rs. eight lac per Bigha. Nothing concrete could be extracted from the cross-examination of PW-1 to shatter his testimony.” 7 It is settled position of law that the awards passed by the District Judge in land reference petitions can be made basis for determining the market value of the acquired land. This of course is subject to enough evidence on record to prove the similarity of the acquired land with that covered by the exemplar awards, which in the present case stands established on record by clear, cogent, convincing and reliable evidence. The Court below has determined the market value of Rs. 80,500/- per biswa and uniformally applied the same with respect to the entire acquired land. The Court below has rightly appreciated the ratio of law laid by this Court in Smt. Gulabi versus State of H.P., 1997 (2) S.L.J. 1338 while doing so. It is a settled position of law that the compensation to be awarded under the Act has to be just, fair and reasonable and at such rates at which the seller is ready and willing to sell his land to the purchaser who is ready and willing to purchase the same. In Kanwar Singh and others versus Union of India, (1998) 8 SCC 136 the Apex Court has held that the market value at the time of issuance of the notification under Section 4 of the Act is to be seen and that while fixing such value of the acquired land, things to be considered are as to what price the parties are ready to sell and purchase the land. The compensation awarded by the Court below is fair and reasonable. I find no reason to interfere with the impugned award. 8 Mr. Vivek Thakur, learned Additional Advocate General has further argued that the impugned award is silent with respect to the date from which the claimants shall be entitled to interest. It is clarified that the statutory interest due and payable to the claimants shall be from the date of publication of the notification in the H.P. Rajpatra which is 22.4.1999. This is in terms of the ratio of law laid down by the Apex Court in Siddappa Vasappa Kuri and another versus Special Land Acquisition Officer and another, (2002) 1 SCC 142. Needless to add the claimants shall also be entitled to statutory benefits in view of the ratio of law laid down by the Apex Court in Sunder versus Union of India, 2001 (7) SCC 211. (Sanjay Karol), Judge. June 19, 2009 (PK)