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Mohinder Singh v. State of Haryana

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 7227-7257 of 2014)Decided 5 Aug 2014
Civil Appeal Nos. 7227-7257 of 2014
Justice T.S. Thakur · Justice C. Nagappan · Justice Adarsh Kumar Goel

Background

Haryana acquired land near Shahabad for an urban estate. The reference court awarded Rs. 2,66,400 per acre, but the High Court reduced compensation using a forty-percent development deduction. Landowners argued that the acquired land already lay within municipal limits, surrounded by schools, businesses and other established facilities.

Decision Breakdown

The Court partly allowed the landowners' appeals, dismissed the State's appeals and restored the reference court's award. Although the small size of comparable sale plots justified some deduction when valuing the larger acquired area, a forty-percent cut did not fit these facts. The land already lay within developed municipal limits and had substantial residential, commercial and industrial potential. The reference court's deduction of one-quarter of the market value was appropriate, restoring compensation of Rs. 2,66,400 per acre with the associated statutory benefits awarded by that court.

Lesson Learnt

Development deductions in acquisition compensation must reflect the land's actual surroundings and development needs. Owners of land in an established urban area can challenge an excessive blanket deduction.

Official source (sci.gov.in)View Judgment (PDF)

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