N.D. Sharma & Ors. v. Union of India & Ors.
Background
The appellants' land, situated in villages Holambi Khurd, Bawana and a locality called Iradat Nagar, was acquired by the Government under a Section 4 notification of the Land Acquisition Act, 1894 dated 3 June 1987 for building a Power House. In an earlier, separate case concerning adjoining land in Iradat Nagar (decided by the High Court in RFA No. 859/1995), the owners there had been awarded Rs. 32,951 per bigha. The appellants argued their land was part of the very same chunk and deserved the same rate, but had been awarded less.
Decision Breakdown
The Supreme Court accepted that the appellants' land and the Iradat Nagar land abutted each other and formed part of one continuous chunk acquired under the same notification for the same purpose. Applying the principle that similarly situated land acquired together should attract similar compensation, the Court directed that the appellants also be paid Rs. 32,951 per bigha plus statutory benefits: the same rate already awarded for the adjoining Iradat Nagar land. The impugned High Court judgment was modified accordingly and the appeals were allowed with no order as to costs.
Lesson Learnt
In land acquisition cases, landowners whose plots form part of the same acquired chunk as other plots that were already awarded higher compensation can claim parity: courts will equalise compensation across contiguous land acquired under the same notification for the same purpose.