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Supreme Court of India

RAJ KUMAR AND ANR.versusSTATE OF PUNJAB AND ANR.

Citation
1995 INSC 25
Decided
11 January 1995
Disposal
Dismissed

Holding

The determination of a 22‑karmas belting area for differential compensation and the market value of Rs 65,000 per acre for the remaining land are lawful and cannot be disturbed.

Summary

The State of Punjab acquired 56 acres of land for a grain market. The Land Acquisition Officer initially fixed the market value at Rs 24,000 per acre for the first 22 karmas (belting) and Rs 20,000 per acre for the rest. The Additional District Judge and later the Punjab & Haryana High Court enhanced the belting value to Rs 1,60,000 per acre and the remaining land to Rs 65,000 per acre. Two claimants appealed to the Supreme Court, arguing that the 22‑karmas belting was arbitrary and that a higher market value should be awarded, relying on a different judgment that fixed Rs 14,000 per marla. The Court held that a 22‑karmas belting is a settled principle for differential compensation and that the High Court’s determination of Rs 65,000 per acre for the rest of the land, based on the evidence, is correct. Consequently, the appeals were dismissed without costs.

Issues considered

  • Whether the designation of a 22‑karmas belting area for differential compensation is legal or arbitrary.
  • Whether the market value of the remaining land should be higher than the Rs 65,000 per acre fixed by the High Court.
  • Whether the precedent of Gunneet Singh & Ors. v. Land Acquisition Collector (Rs 14,000 per marla) is binding on the present case.

Legislation cited

Subjects

Land acquisitionCompensationMarket valueBeltingDifferential compensationSection 24PunjabGrain market

Judgment

A                           RAJ KUMAR AND ANR.
                                   v.
                        STATE OF PUNJAB AND ANR.

                                JANUARY 11, 1995

B           [R. RAMASWAMY AND SUJATA V. MANOHAR, JJ.)
                                                                '
          ·Land ;4.cquisition Act. 1894: Award of Compensatiort-Belting-Dif-
    f erential treatment from rest of the lands--Fixing of market value on that
    basis-Held valid-For other lands, market value determined on the basis or
C   evidence on record-Held, no inferference called for.

         In respect of certain lands acquired the Land Acquisition Officer
    determined the Market value @ Rs. 24,000 per acre upto a belting of
    22 Karmas and for the rest of the land, he determined the market value
    @ Rs. 20,000 by acre. On reference, the Additional District Judge enhanced
D   the market value @ Rs. 1,60,000 per acre upto 22 karmas, @ Rs. 1,000 per
    maria and for the rest of the land @ Rs. 50,000 per acre.

          On appeal, the High Court confirmed the determination of compen-
    sation up to 22 karmas @ Rs. 1;60,000, and enhanced the market value of
E   the remaining land to Rs. 65,000 per acre; with statutory benefits. State
    did not file appeals. Two of the claimants preferred the present appeals,
    claiming higher compensation.

          Dismi:;sing the appeals, this Court

F         HELD: 1. The Land Acquisition Officer, the District Judge as well
    as the High Court have consistently taken 22 karmas to be the proper
    area of dimension for belting which should be separately treated from rest
    of the land. Belting is a settled rule of law to award differential compen-
    sation. The land abutting road upto a depth of 22 karmas was treated as
    unit and compensation was determined separately to the rest of the land.
G   The entire extent of 56 acres of the acquired land cannot be considered to
    have the same value. For the rest of the land compensation was determined
    at Rs. 65,000 per acre. The courts below, therefore, rightly determined 22


H
    karmas to be the belting area for differential treatment from the rest of
    the lands. It is settled law that belting is one of the principles on the basis
    of which market value would be determined. It being the principle the
                                          184
                                                                                      -
                           R. KUMAR v. STATE                              185

belting has been rightly determined by the High Court, the Civil Court as        A
well as the Land Acquisition Officer. [186-D-F]

       2. The purpose of acquisition i.e., to establish market an on that
account the lands are possessing value, is irrelevant by operation of s.24
of the Act. It is true that the High Court in another case has determined
the market value@ Rs.14,000 per Marla, but there is no material to show          B
as to what has happened to the judgment. Further the basis on which the
High Court, in the appeals and other cases, has determined the market
value is on appreciating the evidence placed on record. As the State did
not file the appeal, this Court is of the view that the High Court has rightly
determined the market value for the rest of the land at Rs. 65,000 per acre.     C
                                                             [186-G-H, 187-A]
      CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 783-84
of 1995.

     From the Judgment and Order dated 12.11.88 of the Punjab &                  D
Haryana High Court in R.FA. Nos. 218-19of1985.

      S. C. Maheshwari and Ms. Sandhya Goswamy for the Appellants.

      Ranbir Yadav for G .K. Bansal,· for the Respondents.

      The following Order of the Court was delivered :                           E

      Leave granted.

      A notification under s.4(1) of the Land Acquisition Act wa8 publish-
ed in the State Gazette on January 24, 1980 acquiring a total extent of 56
acres, 5 kanals and 11 marlas of land for establishment of a Grain Market. F
The Land Acquisition Officer by his award dated February 21, 1982
determined the market value at Rs. 24,000 per acre upto a belting of 22
karmas and for rest of the land he determined the market value @ Rs.
20,000 per acre. On reference, the Addl. District Judge enhanced the
market value by his award and decree dated June 15, 1984 at Rs. 1,60,000 G
per acre upto 22 karmas at the rate of Rs. 1,000 per marlas and for rest of
the land he determined compensation at the rate of Rs. 50,000 per acre.
However, on further appeal while the High Court confirmed determination
of the compensation upto 22 karmas at the rate of Rs. 1,60,000 per acre,
enhanced the market value for the remaining land to Rs. 65,000 per acre
with the statutory benefits by its judgment and decree dated October 15, H
    186                    SUPREME COURT REPORTS                  [1995) 1 S.C.R.

A . 1985. The State did not file appeals. However, still not being satisfied, two
    of the claimants filed these appeals by special leave.

           The first question that arises, as strenuously contended by the
    learned counsel for the appellant, is whether belting of 22 karmas is illegal
B   or arbitrary. The land abutted the main road Jullundhar to Pathankot,
    would no doubt command higher potentiality for the purpose of shopping.
    But to what extent the belting should have been given would be a question
    of fact. It is also contended that the other lands also equally possessed of
    the same potential value. The acquisition of land for Mandi market itself
    shows that the land has potential value. The High Court, therefore, should
C   have awarded higher compensation. Thirdly, it was contended that in a
    subsequent judgment in Gunneet Singh & Ors. v. Land Acquisition Collec-
    tor & Ors, Regular First Appeal No. 1848/85 dated August 21, 1989, another
    Division Bench has granted@ Rs. 14,000 per Marla and that therefore the
    appellant should also be paid at the same rate. We find no force in these
D   contentions. It is seen that the Land Acquisition Officer, the District
    Judge as well as the High Court have consistently taken 22 karmas to be
                                                                                     -'1t-.
    the proper area of dimension for belting which should be separately treated
    from rest of the land. Belting is a settled rule of law to award differential
    compensation. The land abutting road upto a depth of 22 karmas was
    treated as a unit and compensation was determined separately .to the rest
E   cif the land. The entire ex1;ent of 56 acres of the acquired land cannot be
    considered to have the same value. For the rest of the land compensation
    was determined at Rs. 65,000 per acres. The courts, below, therefore,
    rightly determined 22 karmas to be the belting area for· differential treat-
    ment from the rest of the lands. It is settled law that the belting is one of
F   the principle on the basis of which market value would be determined. It
    being the principle, the belting has been rightly determined by the High
    Court, the Civil Court as well as the i;.,and Acquisition Officer. We find no
    illegality in determining the belting at 22 karmas and thus no further
    interference is required in the matter. The purpose of acquisition i.e., to
    establish market and on its account the lands are possessing potential
G   value, is irrelevant by operation of s.24 of the Act. It is true that the High
     Court in another case by another bench has determined the market value
     @ Rs. 14,000 per Marla in the judgment referred to above, but we do not
    find any material as to what has happened to the judgment. Further the
    basis on which the High Court, in the appeals and other cases, has
H   determined the market value is on appreciating the evidence placed on
                          R. KUMAR v. STATE                           187

record. As the State of did not file the appeal, we are of the view that the A
High Court has rightly determined the market value for the rest of the land
at Rs. 65,000 per acre. Accordingly we do not think that there is any
justification warranting interference in the matter.

       The appeals are accordingly dismissed but without costs.
                                                                            B
G.N.                                                   Appeals dismissed.


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