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Civil Property & InheritanceSupreme Court of India

Balwant Singh (D) thru LRs. Gurbinder Singh v. The State of Haryana

Civil Appeal · 2019 INSC 343Decided 11 Mar 2019
Civil Appeal No. 2736 of 2019
Justice L. Nageswara Rao · Justice M.R. Shah

Background

Land in villages near Faridabad, Haryana was acquired by the State under notifications issued between 1986 and 1995 for purposes including a green belt, educational/medical facilities, and residential/commercial development. The landowners disputed the compensation fixed by the Collector and the Reference Court, and after earlier rounds of litigation (including a prior remand by the Supreme Court), the Punjab and Haryana High Court fixed compensation at varying rates per square yard for the different notifications. Both the landowners and the State appealed to the Supreme Court: the landowners seeking higher compensation, the State seeking a reduction.

Decision Breakdown

The Supreme Court found no merit in the State's appeal for a reduction, since the State had not produced any fresh evidence to challenge the High Court's valuation. On the landowners' side, the Court agreed with the High Court's base valuation of Rs. 435 per square yard for the 1986 notification (based on comparable nearby land values from precedent cases), but held that the annual escalation rate the High Court applied for the later notifications (1992 and 1995) was too conservative given the area's rapid urban development. It raised the cumulative annual increase from the High Court's rate to 12% per annum, resulting in enhanced compensation of Rs. 860 and Rs. 1,210 per square yard for land acquired under the 1992 and 1995 notifications respectively.

Lesson Learnt

In land acquisition compensation disputes, courts will look at the real pace of urban development and comparable land values in the surrounding area to fix a fair annual escalation rate, rather than mechanically applying a lower standard rate that doesn't reflect how fast prices actually rose in that locality.

Balwant Singh (D) thru LRs. Gurbinder Singh v. The State of Haryana – Legal Case Shots | LegalAware