IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH RFA No.1505 of 2003. Date of Decision : 26.4.2010. Zile Singh ......Appellant Versus State of Haryana & others ......Respondents CORAM : HON'BLE MR. JUSTICE NAWAB SINGH Present: Mr. Jaswant Jain, Advocate, for the appellant. Mr. H.S. Hooda, Advocate General, Haryana & Mr. Lekhraj Nandal, AAG, Haryana. for respondent-State. Ms. Vandana Malhotra, Advocate, for the HUDA-respondent. NAWAB SINGH J.(ORAL) This judgment would dispose of above mentioned 202 appeals as the same arise out of a common acquisition. RFA Nos. 1505-09, 1539, 2194, 2246-80, 2586-89, 2668-71 of 2003, 1023, 1722-23, 1791, 1893-94, 2223-27 of 2004 and 2939 of 2005 have been filed by the land owners seeking enhancement of the compensation for the acquired land and RFA Nos. 611-18, 990-1026, 1114-20 of 2003, 1896-1902, 1935 of 2004, 766-68 of 2005, 2561 of 2006, 4563, 4928-35, 5033, 5154-55, 5554 of 2008, 2604-16, 3611- 42 of 2003, 90-96 of 2004 and 4078-86 and 4115, 4135 of 2008 have been filed by the State of Haryana and Haryana Urban Development Authority (for short 'the HUDA') seeking reduction of the compensation awarded to the land owners. 2. These appeals are directed against the judgments/Awards dated October 31 st, 2002, November 28 th, 2002, April 19 th, 2004, March 22 nd, 2004, July 20 th, 2005 and April 25 th, 2008 passed by the Additional District Judge/Court of Reference, Hisar (Here in after referred to as “the Court of Reference”). 3. Pursuant to the notification dated June 12 th, 1995 published under Section 4 of the Land Acquisition Act, 1894 (for RFA No.1505 of 2003. (2) short 'the Act') the land measuring 39.57 acres of Hansi, District Hisar was acquired for the development and utilization of land for residential, commercial, industrial and transport purpose. The Land Acquisition Collector (for short 'the Collector') determined the compensation by categorizing the acquired land into following three blocks:- (i) Rs.1,80,000/- per acre for Gair Mumkin lands. (ii) Rs.1,40,000/- per acre for Nahri lands. (iii) Rs. 1 lac per acre for Gair Mumkin Johar land. 4. The land owners feeling dis-satisfied with the Award of the Collector, sought references under Section 18 of the Act. The Court of Reference assessed the market value of the acquired land by categorizing the land in two categories (i) Land abutting the National Highway No.10, Tosham and Bhiwani road at the rate of Rs.360/- per square yard and Rs.225/- per square yard for the rest of the land. In the Award dated April 25 th, 2008, the market value of the acquired land was assessed at the rate of Rs.700/- per square yard over and above the price fixed by the Collector. 5. The Court of Reference while determining the price of the acquired land at the rate of Rs.360/- per square yard relied upon sale instances (Exhibit P-7), whereby, a plot measuring 60 square yards was sold on May 23 rd, 1992 at the rate of Rs.900/- per square yard and by applying the cut of 60%, assessed the market value at the rate of Rs.360/- per square yard. So far as market value assessed by the Award dated April 25 th, 2008 is concerned, the Court of Reference assessed it at the rate of Rs.700/- per square yard over and above the market value assessed by the Collector on the basis of a judgment (Exhibit P-10) passed by the Court of Reference, Hisar in respect of land earlier acquired for the same purpose as that of the present notification in Hansi Town. 6. Learned counsel for the land owners have assailed the Awards on the grounds (i) that the Court of Reference has not taken into consideration the topography of the land; (ii) that it did not rely upon two sale transactions Exhibit P-4 and P-29 apart from sale RFA No.1505 of 2003. (3) transaction Exhibit P-7 particularly when those sale instances were part and parcel of the acquired land; (iii) that the cut imposed by the Court of Reference, that is, 60% was on much higher side and; (iv) that belting system should not have been adopted while determining the market value of the land because the entire chunk of land is situated in the midst of the town of Hansi and possessed potential value as building sites as such, the market value of the acquired land should have been fixed at a uniform rate. 7. On the other hand, learned Advocate General, Haryana has vehemently urged that the sale instance Exhibit P-7 should not have been relied upon by the Court of Reference because the same was of a tiny piece of land, that is, measuring 60 square yards and as such that could not have been made the basis for determination of the market value of the acquired land. Learned State counsel has also urged that Award dated April 25 th, 2008 is also not sustainable because the notification earlier to the present notification for which the land in Hansi was proposed to acquire was withdrawn by the State Government. 8. After hearing learned counsel for the parties and perusing the record, the question emerging for consideration is what should be the reasonable market value which the lands are capable of fetching ? 9. Firstly, topography of the acquired land is to be seen. The acquired land has been shown in purple colour in sketch plan (Exhibit P-40). The land abuts (i) the National Highway No.10 leading from Delhi to Fazilka (ii) Hansi to Bhiwani road (iii) Hansi to Tosham road meaning thereby that it is surrounded by three roads including National Highway No.10 and office of Haryana State Electricity Board, General Bus Stand, Hansi Employees Housing Building Society, number of localities viz Patel Nagar, Ram Nagar, Kali Devi, Subhash Nagar. Not only that, it is hardly at a distance of 1 KM from the Judicial Court Complex. Hansi is one of the oldest Sub- Division of Hisar District. It has Judicial Courts, Executive Courts, Public Health Office and Electricity Board Office. The land is centrally RFA No.1505 of 2003. (4) located in the town. In view of this, there is no doubt that the acquired land had the great potential as commercial and building site. 10. Adverting to the determination of the market value, the best evidence would be the sale transactions in respect of the acquired land coupled with the situation and potentiality of the land. Land owners relied upon sale transactions Exhibit P-1 to 4, P-7 and P-29. Out of these sale instances, sale instances Exhibit P-1 to 3 cannot be relied upon because these pertain to Model Town Hansi, date back to year 1990 and are the sale transactions of booths sold by the HUDA. Sale instances Exhibit P-4, P-7 and P-29 are the best sale instances because these are the part and parcel of the acquired land. The sale instances Exhibit P-4 and P-29 were not relied upon by the Court of Reference by observing that there could not have been a spiraling trend towards price escalation within a short period of seven months. The approach of the Court of Reference was not rational particularly, when the land is situated in the midst of the town. By sale deeds Exhibit P-7, P-29 and P-4 dated May 23 rd, 1992, December 7 th, 1992 and July 7 th, 1994 land ad-measuring 60, 8 and 24 square yards were sold for an amount of Rs.900/-, Rs.2600/- and Rs.2541.50 ps per square yard respectively. These are of small pieces of land. By calculation, the average market value of the acquired land on the basis of these instances comes to Rs.2013/- per square yard. This figure has been calculated by this Court with the assistance of counsel for the land owners as well as the State. In this view of the matter, the gross value of the acquired land is assessed at the rate of Rs.2013/- per square yard. 11. The sale instances relied upon by the State cannot be taken into consideration because the Collector while assessing the market value of the acquired land has not relied upon the said sale transactions relied upon by the State and as such, they cannot be taken into consideration. Reliance in this regard may be placed on State of West Bengal vs. Secretary, Union Club Purulia AIR 1972 Calcutta 225. 12. The next question that arises for consideration is RFA No.1505 of 2003. (5) whether the belting system in fixing the price of the acquired land by the Court of Reference was warranted or not ? 13. In Meharban and others vs. State of U.P. and others 1997(6) Supreme Court Cases 54, a 3-Judge Bench of the Hon'ble Supreme Court held that where the entire lands are situated in well-defined and developed blocks, belting system is not reasonable. 14. In Union of India vs. Harinder Pal Singh and others 2005(4) RCR (Civil) 638, land comprised in five villages were more or less of similar nature and character and well connected by roads, had a good deal of potentiality for development of the locality, was acquired. A Division Bench of this Court assessed the market value of the acquired land of all the villages at a uniform rate, irrespective of their nature of quality and whether the same was situated nearer to the road or at some distance therefrom discarding the belting method adopted by the Court of Reference. Aggrieved of the judgment, Union of India filed Civil Appeal which was dismissed by the Hon'ble Supreme Court concurring with the view taken by this Court. 15. There is no need to repeat the description of the land which has been narrated in detail in paragraph No.9 of this judgment. It is a compact chunk falling in the heart of the town, it is well-defined and having great potential value of development for residential, commercial and industrial purposes. In such a situation, there is no justifiable ground that any area could be valued by reason of its location or any of its particular feature so as to form a distinct part of property. In view of this and the law laid down in the aforesaid authorities, the Court of Reference fell in error in adopting the belting method while determining the market value of the acquired land. 16. Since the aforesaid value has been determined on the basis of sale instances which relate to small piece of land, therefore, some discount by way of deduction has to be made as the acquired land was a large chunk. In considered opinion of this Court, 60% cut to the aforesaid valuation would be just and appropriate in the given circumstances of the instant case. Applying the same, the market value of the acquired land is assessed at the rate of Rs.805/- per square yard. 17. In upshot for the reasons recorded supra, the land owners will be entitled to compensation at the rate of Rs.805/- per square yard. Besides above, the land owners will also be entitled to the statutory sum in accordance with Section 23(1A) of the Act and solatium on the market value under Section 23(2) of the Act. They will also be entitled to interest as provided under Section 28 of the Act. Thus, the appeals file by the land owners are allowed in the manner indicated above and that of the State Government and HUDA are dismissed. (NAWAB SINGH) JUDGE 26.4.2010. SN