Case: M/s Acquainted Realtors LLP etc. etc Vs. State of Haryana &amp; Others

of Sale Deed dated 17.08.2003 in favour of Reliance Industries Limited with adequate frontage on National Highway was rightly found to be appropriate. No fault can be found with such exercise. 11. While answering question No.1 against the landholders, the High Court relied upon following observations in the decision in ONGC Ltd. (2008) 14 SCC 745. 15. Normally, recourse is taken to the mode of determining the market value by providing appropriate escalation over the proved market value of nearby lands in previous years (as evidenced by sale transactions or acquisitions), where there is no evidence of any contemporaneous sale transactions or acquisitions of comparable lands in the neighbourhood. The said method is reasonably safe where the relied-on sale transactions/acquisitions precede the subject acquisition by only a few years, that is, up to four to five years. Beyond that it may be unsafe, even if it relates to a neighbouring land. What may be a reliable standard if the gap is of only a few years, may become unsafe and unreliable standard where the gap is larger. For example, for determining the market value of a land acquired in 1992, adopting the annual increase method with reference to a sale or acquisition in 1970 or 1980 may have many pitfalls. This is because, over the course of years, the rate of annual increase may itself undergo drastic change apart from the likelihood of occurrence of varying periods of stagnation in prices or sudden spurts in prices affecting the very standard of increase. Wazir and another vs. State of Haryana5 had considered the value by annual increase as one of the alternatives. Secondly, the rate adopted in that case was only 8%. The valuation in Wazir and another vs. State of Haryana (2019) 13 SCC 101 , by itself, cannot therefore be taken as the basis in preference to what could possibly be concluded on the basis of Sale Deeds on record. The submission therefore does not merit acceptance. 12. However, two aspects of the matter are quite striking and distinguish the instant acquisition from the one that was under consideration in HSIIDC vs. Roshan Lal and others. A) The notification for acquiring the lands for Kondli Manesar Palwal Expressway was issued prior in point of time. It is true that according to the record, except for certain exits, the Expressway would otherwise be unapproachable as stated by PW3 Ranbir Singh Yadav, Assistant Manager, HSIIDC. However, a dimension distinguishing the instant case certainly got added in that, even if there was to be no direct approach to the acquired lands from the Expressway, in terms of potential, the lands in the instant case definitely got closer to development. B) Secondly, the acquisition in the case of HSIIDC vs. Roshan Lal and others was a year before the present acquisition. If the lands in both cases were otherwise identical in material terms, the valuation found with respect to the former in the year 2004, must have undergone some upward change when the valuation of the latter set of lands is to be considered for the year 2005. 13. The High Court was right to a certain extent that there was nothing on record to indicate such upward movement. At this stage, we may refer to the principles laid down by this Court in ONGC Ltd.(2008) 14 SCC 745 :- 13. Primarily, the increase in land prices depends on four factors: situation of the land, nature of development in surrounding area, availability of land for development in the area, and the demand for land in the area. In rural areas, unless there is any prospect of development in the vicinity, increase in prices would be slow, steady and gradual, without any sudden spurts or jumps. On the other hand, in urban or semi-urban areas, where the development is faster, where the demand for land is high and where there is construction activity all around, the escalation in market price is at a much higher rate, as compared to rural areas. In some pockets in big cities, due to rapid development and high demand for land, the escalations in prices have touched even 30% to 50% or more per year, during the nineties. 14. On the other extreme, in remote rural areas where there was no chance of any development and hardly any buyers, the prices stagnated for years or rose marginally at a nominal rate of 1% or 2% per annum. There is thus a significant difference in increases in market value of lands in urban/semi-urban areas and increases in market value of lands in the rural areas. Therefore, if the increase in market value in urban/semi-urban areas is about 10% to 15% per annum, the corresponding increases in rural areas would at best be only around half of it, that is, about 5% to 7.5% per annum. This rule of thumb refers to the general trend in the nineties, to be adopted in the absence of clear and specific evidence relating to increase in prices. Where there are special reasons for applying a higher rate of increase, or any specific evidence relating to the actual increase in prices, then the increase to be applied would depend upon the same. 14. Guided by the rule of thumb stated in said decision, and even while considering that the lands in the instant case were agricultural in nature and away from the Highway, in our considered view, two aspects detailed hereinabove, definitely weigh in favour of the landholders. At the same time, it cannot be ignored that the values arrived at in HSIIDC vs. Roshan Lal and others (in the light of subsequent decision in Wazir and another vs. State of Haryana (2019) 13 SCC 101 ) were themselves on the higher side. Although, the decision in HSIIDC vs. Roshan Lal and others was not challenged by the State, the fact remains that the values assessed is that decision were theoretically on a higher scale and the landholders, on that score, have received an advantage.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]7. It must be stated here at the outset that in respect of Phases II, III and IV of the Industrial Model Township, Manesar, Gurgaon, acquisition proceedings were initiated with regard to lands falling in villages Naharpur Kasan, Kasan, Bas Kusla, Bas Haria, Dhana and Manesar by issuing Notifications dated 06.03.2002, 07.03.2002 and 26.02.2002 under Section 4 of the Act. The High Court vide its decision dated 09.03.2018 in Madan Pal III vs. State of Haryana 2018 SCC Online P & H 2871 assessed the market value in respect of lands from villages Naharpur Kasan, Kasan, Bas Kusla, Bas Haria, and Dhana (covered by Phases II and III) at Rs.41.40 lakhs per acre; while compensation for lands from village Manesar (covered by Phase IV) was assessed at Rs.62.10 lakhs per acre. The appeals arising therefrom were decided by this Court vide its Judgment dated 11.01.2019 (2019) 13 SCC 101 as modified by Order dated 08.02.2019 (2019) 13 SCC 123 in Civil Appeal Nos.264-270 of 2019 and other connected matters (Wazir and Another vs. State of Haryana (2019) 13 SCC 101   ) i.e., after the decision of the High Court which is presently under appeal. The relevant operative directions issued by this Court were:-32. In the circumstances, we direct:32.1 In respect of lands under acquisition from Villages Naharpur Kasan and Kasan the market value shall be Rs.39,54,666 per acre. Additionally, all statutory benefits would be payable.32.2 In respect of lands under acquisition from Villages Bas Kusla, Bas Haria and Dhana the market value shall be Rs.29,77,333 per acre. Additionally, all statutory benefits would be payable.32.3 In respect of lands from Village Manesar the market value shall be Rs.59,31,999 lakhs per acre. Additionally, all statutory benefits would be payable.Pertinently, the decision of the High Court in HSIIDC v. Roshan Lal and others, which was the basis of the decision in the present matters, had in turn relied upon the assessment made by the High Court in its earlier decision dated 09.03.2018 in Madan Pal III v. State of Haryana 2018 SCC Online P & H 2871 . Since the assessment in Madan Pal III vs. State of Haryana 2018 SCC Online P & H 2871 was scaled down by this Court in Wazir and Another vs. State of Haryana (2019) 13 SCC 101   , theoretically, the market value arrived at by the High Court in HSIIDC v. Roshan Lal and others would be on the higher side.Schedule II to the Sale Deed shows that apart from the land described in Schedule I, constructed area, machinery including canteen, kitchen, offices, 7 air handling units, air colling units, centrifugal chillers of 400 tons each, LAN networking with extensive cabling, fire fighting implements also formed part of the price.This document was therefore rightly ruled out.10. Post-acquisition sale deeds have, at times, been relied upon by Courts. But in a case where pre-acquisition sale instances are otherwise found to be adequate and appropriate, post-acquisition instances, by themselves, cannot outweigh and discard such pre-acquisition sale instances. The pre-acquisition pointer in the form of Sale Deed dated 17.08.2003 in favour of Reliance Industries Limited with adequate frontage on National Highway was rightly found to be appropriate. No fault can be found with such exercise.11. While answering question No.1 against the landholders, the High Court relied upon following observations in the decision in ONGC Ltd. (2008) 14 SCC 745.  15. Normally, recourse is taken to the mode of determining the market value by providing appropriate escalation over the proved market value of nearby lands in previous years (as evidenced by sale transactions or acquisitions), where there is no evidence of any contemporaneous sale transactions or acquisitions of comparable lands in the neighbourhood. The said method is reasonably safe where the relied-on sale transactions/acquisitions precede the subject acquisition by only a few years, that is, up to four to five years. Beyond that it may be unsafe, even if it relates to a neighbouring land. What may be a reliable standard if the gap is of only a few years, may become unsafe and unreliable standard where the gap is larger. For example, for determining the market value of a land acquired in 1992, adopting the annual increase method with reference to a sale or acquisition in 1970 or 1980 may have many pitfalls. This is because, over the course of years, the rate of annual increase may itself undergo drastic change apart from the likelihood of occurrence of varying periods of stagnation in prices or sudden spurts in prices affecting the very standard of increase.Wazir and another vs. State of Haryana5 had considered the value by annual increase as one of the alternatives. Secondly, the rate adopted in that case was only 8%. The valuation in Wazir and another vs. State of Haryana (2019) 13 SCC 101   , by itself, cannot therefore be taken as the basis in preference to what could possibly be concluded on the basis of Sale Deeds on record. The submission therefore does not merit acceptance.12. However, two aspects of the matter are quite striking and distinguish the instant acquisition from the one that was under consideration in HSIIDC vs. Roshan Lal and others.A) The notification for acquiring the lands for Kondli Manesar Palwal Expressway was issued prior in point of time. It is true that according to the record, except for certain exits, the Expressway would otherwise be unapproachable as stated by PW3 Ranbir Singh Yadav, Assistant Manager, HSIIDC. However, a dimension distinguishing the instant case certainly got added in that, even if there was to be no direct approach to the acquired lands from the Expressway, in terms of potential, the lands in the instant case definitely got closer to development.B) Secondly, the acquisition in the case of HSIIDC vs. Roshan Lal and others was a year before the present acquisition. If the lands in both cases were otherwise identical in material terms, the valuation found with respect to the former in the year 2004, must have undergone some upward change when the valuation of the latter set of lands is to be considered for the year 2005.13. The High Court was right to a certain extent that there was nothing on record to indicate such upward movement. At this stage, we may refer to the principles laid down by this Court in ONGC Ltd.(2008) 14 SCC 745   :-13. Primarily, the increase in land prices depends on four factors: situation of the land, nature of development in surrounding area, availability of land for development in the area, and the demand for land in the area. In rural areas, unless there is any prospect of development in the vicinity, increase in prices would be slow, steady and gradual, without any sudden spurts or jumps. On the other hand, in urban or semi-urban areas, where the development is faster, where the demand for land is high and where there is construction activity all around, the escalation in market price is at a much higher rate, as compared to rural areas. In some pockets in big cities, due to rapid development and high demand for land, the escalations in prices have touched even 30% to 50% or more per year, during the nineties.14. On the other extreme, in remote rural areas where there was no chance of any development and hardly any buyers, the prices stagnated for years or rose marginally at a nominal rate of 1% or 2% per annum. There is thus a significant difference in increases in market value of lands in urban/semi-urban areas and increases in market value of lands in the rural areas. Therefore, if the increase in market value in urban/semi-urban areas is about 10% to 15% per annum, the corresponding increases in rural areas would at best be only around half of it, that is, about 5% to 7.5% per annum. This rule of thumb refers to the general trend in the nineties, to be adopted in the absence of clear and specific evidence relating to increase in prices. Where there are special reasons for applying a higher rate of increase, or any specific evidence relating to the actual increase in prices, then the increase to be applied would depend upon the same.14. Guided by the rule of thumb stated in said decision, and even while considering that the lands in the instant case were agricultural in nature and away from the Highway, in our considered view, two aspects detailed hereinabove, definitely weigh in favour of the landholders. At the same time, it cannot be ignored that the values arrived at in HSIIDC vs. Roshan Lal and others (in the light of subsequent decision in Wazir and another vs. State of Haryana (2019) 13 SCC 101   ) were themselves on the higher side. Although, the decision in HSIIDC vs. Roshan Lal and others was not challenged by the State, the fact remains that the values assessed is that decision were theoretically on a higher scale and the landholders, on that score, have received an advantage.