Balwan Singh (Dead) Thr. LR. Etc. vs The State of Haryana

Civil Appeal · 2022 INSC 593Decided 18 May 2022
Civil Appeal Nos. 3197-3216 of 2022
M.R. Shah · B.V. Nagarathna

Background

The Haryana government acquired large tracts of land at villages Kheri Sadh and Baliyana, District Rohtak, in two phases (2006 and 2008 notifications) to set up an Industrial Model Township. The Land Acquisition Officer initially fixed compensation at Rs. 16,00,000 per acre; landowners sought enhancement through Reference Courts and the Punjab & Haryana High Court, which granted different, inconsistent enhancements for the two villages and the two acquisition phases based on differing sale-exemplar evidence and "cuts" applied for undeveloped land. Both landowners and the State cross-appealed to the Supreme Court, with landowners arguing the compensation was still too low (citing a high-value sale exemplar and a later, much higher land allotment to Maruti Suzuki) and the State arguing the High Court had over-enhanced it.

Decision Breakdown

For Kheri Sadh's first-phase acquisition, the Court held the High Court erred in reducing the "cut" applied to certain sale exemplars from 20% to 10%, and restored the Reference Court's rates (Rs. 24,00,000/acre near the highway, Rs. 19,77,000/acre beyond it), partly allowing the State's appeal and dismissing the landowners'. It then applied the same first-phase logic with a 12% annual escalation to the second-phase acquisition (20 months later), fixing rates of Rs. 28,80,000 and Rs. 23,72,400 per acre, but left the High Court's order otherwise undisturbed since the State had not itself appealed that phase. For village Baliyana, the Court rejected the landowners' claim to parity with Kheri Sadh, holding that despite adjoining boundaries, the Reference Court had correctly found the two villages were not comparable in market potential given their different road frontages, and separately rejected reliance on the much later, much higher Maruti Suzuki land-allotment rate since it postdated the acquisition by three years and included development costs. The Baliyana compensation of Rs. 17,00,000 per acre was therefore confirmed and those appeals dismissed.

Lesson Learnt

In land acquisition compensation disputes, courts will not automatically equalise compensation for adjoining villages or plots merely because they share a boundary: actual market comparability (road access, location, and timing of sale exemplars relative to the acquisition notification) governs, and evidence of land value from years after the acquisition, especially involving added development costs, is not a reliable yardstick for valuing the land as it stood on the acquisition date.

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