LexHORRMAL (DECEASED) THROUGH HIS LRS & ORS. versus STATE OF HARYANA & ORS.
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[2024] 10 S.C.R. 1709 : 2024 INSC 797 Horrmal (Deceased) Through His LRs & Ors. v. State of Haryana & Ors. (Civil Appeal No. 11758 of 2024) 21 October 2024 [Surya Kant* and K.V. Viswanathan, JJ.] Issue for Consideration (1) Whether the appellants are entitled to higher compensation for their acquired lands, and if so, to what extent; and (2) Whether the methodology for calculating the quantum of such compensation has been appropriately applied. Headnotes† Land Acquisition Act, 1894 – ss.4, 6, 23(1) – Assessment of Market Value for Acquired Lands – Comparable Sales Method – Deduction for Developmental Charges: Held: Compensation for acquired lands must reflect their fair market value as of the date of the Section 4 notification – The "comparable sales method" is the preferred approach, using bona fide sales exemplars of similar land – The ‘market value’ is to be assessed with reference to factors such as standing crops and trees, the severance of part of the land, damage to movable or immovable property or earnings, the need to relocate one’s residence or business, and any loss of profits from the land between the publication of the declaration under Section 6 and the Collector's assumption of possession – Sale deeds of smaller parcels can be considered but must undergo appropriate deductions to account for developmental charges – Deductions may range from 20% to 75%, depending on the nature and location of the land. [Paras 18, 19, 26, 30] Compensation – Reliance on Best Sale Exemplars – Judicial Guidelines for Determination of Fair Value: Held: When multiple comparable sale exemplars exist, the highest bona fide exemplar should be preferred, provided it meets legal * Author 1710 [2024] 10 S.C.R. Digital Supreme Court Reports criteria – Even when averaging values, the highest exemplar may be considered to ensure fair compensation – The Reference Court’s valuation of ₹92,62,500 per acre aligns with market potential and statutory requirements, and the High Court erred in reducing it. [Paras 28, 35, 37] Principle of Potentiality – Strategic Location of Acquired Land – Enhancement of Compensation: Held: The acquired land’s strategic location and potential for non- agricultural development must be factored into the compensation. Lands situated near urban areas, major highways, or industrial zones have higher potential value – Deductions should not undermine this potentiality. [Paras 32, 33, 36] Case Law Cited Mehrawal Khewaji Trust v. State of Punjab [2012] 4 SCR 24 : (2012) 5 SCC 432; A. Natesam Pillai v. Tahsildar [2010] 10 SCR 1 : (2010) 9 SCC 118; General Manager, Oil and Natural Gas Corporation Ltd. v. Rameshbhai Jivanbhai Patel [2008] 11 SCR 927 : (2008) 14 SCC 745; Kanwar Singh v. Union of India [1998] Supp. 2 SCR 505 : (1998) 8 SCC 136; Subh Ram v. State of Haryana [2009] 15 SCR 287 : (2010) 1 SCC 444; Chimanlal Hargovinddas v. LAO [1988] Supp. 1 SCR 531 : (1988) 3 SCC 751; Shaji Kuriakose v. Indian Oil Corporation Ltd. [2001] Supp. 1 SCR 573 : (2001) 7 SCC 650; Administrator General of West Bengal v. Collector, Varanasi [1988] 2 SCR 1025 : (1988) 2 SCC 150; Atma Singh v. State of Haryana and Others [2007] 12 SCR 1120 : (2008) 2 SCC 568; Balwan Singh v. State of Haryana and others, 2022 SCC Online SC 637; Karan Singh v. Union of India [1997] Supp. 4 SCR 237 : (1997) 8 SCC 186; Rishi Pal Singh v. Meerut Development Authority [2006] 2 SCR 508 : (2006) 3 SCC 205; Sh. Himmat Singh v. State of M.P., (2013) 16 SCC 392 – relied on. Dollar Co. v. Collector of Madras, AIR 1975 SC 1670; Special Land Acquisition Officer v. T. Adinarayan Setty, AIR 1959 SC 429; Maya Devi v. State of Haryana [2018] 1 SCR 225 : (2018) 2 SCC 474 – referred to. [2024] 10 S.C.R. 1711 Horrmal (Deceased) Through His LRs & Ors. v. State of Haryana & Ors. List of Acts Land Acquisition Act, 1894; Haryana Urban Development Authority Act, 1977. List of Keywords Land Acquisition; Market Value; Comparable Sales Method; Development Charges; Potentiality of Land. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No. 11758 of 2024 From the Judgment and Order dated 23.08.2022 of the High Court of Punjab & Haryana at Chandigarh in RFA No. 13554 of 2018 With Civil Appeal Nos. 11759-11760, 11761, 11762-11766, 11767-11770, 11771-11772, 11773-11779, 11780-11786, 11787-11796, 11797, 11798, 11799, 11800-11806, 11807, 11808, 11809, 11810, 11811- 11812, 11813,11814, 11815, 11816, 11817, 11818-
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