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LUDHIANA IMPROVEMENT TRUST versus BRIJESHWAR SINGH CHHAL AND ANR. ETC.

Citation: [1996] 3 S.C.R. 668 · Decided: 19-03-1996 · Supreme Court of India · Bench: K. RAMASWAMY, S.P. BHARUCHA, K.S. PARIPOORNAN · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
LUDHIANA IMPROVEMENT TRUST 
v. 
BRIJESHWAR SINGH CHHAL AND ANR. ETC. 
~ 
MARCH 19, 1996 
B 
[K. RAMASWAMY, S.P. BHARUCHA AND 
K.S. PARIPOORNAN, JJ.] 
Punjab Town Improvement Act, 1922: Section 36. 
c 
Land Acquisition Act, 1894: Section 4(1) 
• • 
Land Acquisition-Compensatio1t-Principle for determination 
of-Classification of land as levelled up land and low lying land-Adopting 
belting system for detemiination of compensation-Award of less compensa-
tion for latter categoiy-Appeal by landowners-Fixation of market value by 
D High Court at unifonn rate-Held not correct in law-Held adopting belting 
system is a fair principle to detemtine just compensatio1t-Cl~}Jnallfs must 
establish that the levelled up lands and low lying lands command same 
market value-f!i the circumstance of case order of Reference Court awarding 
.. 
compensation restored. 
" ~ 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7025 of 
1996 Etc. 
From the Judgment and Order dated 17.12.92 of the Punjab & 
Haryana High Court in C.W.P. No. 3758 of 1992. 
F 
Prem Malhotra for the Appellants. 
~ 
Ujjagar Singh DeVendra, Verma and Ms. Naresh Bakshi for the 
Respondents. 
The following Order of the Court was delivered : 
G 
Delay condoned. 
Leave granted. We have heard learned counsel on both sides. 
The only question argued by the learned counsel for the appellant is 
H with regard to the belting of the land. An extent of 13 acres of land situated 
668 
LUDH!ANAIMPROVEMENTTRUSTv. B.S. CHHAL 
669 
near Ludhiana was acquired for commercial-cum-residential purpose. A 
Notification under Section 36 of the Punjab Town Improvement Act, 1922 
which is pari materia to the notification under Section 4( 1) of the Land 
Acquisition act, 1894, was published on July 13, 1973. The Land Acquisi-
tion Officer in his award dated February 3, 1976 classified the lands as 
levelled-up land and low-lying land. In respect of the levelled-up land he B 
awarded compensation @ Rs. 21 per sq. yd. and for the low lying land @ 
Rs. 13 per sq. yd. On reference, the District Judge awarded compensation 
@ Rs. 107 per square yard in respect of the lands abutting the main road 
at a depth of 5 karanams and for other land he awarded compensation @ 
Rs. 80 per sq. yd. and for the low-lying area @ Rs. 50 per sq. yd. The 
claimants challenged the award of the District Court and the High Court C 
in the writ petitions has held that all the lands are evenly situated. Accorcf-
ingly, it awarded compensation uniformly at Rs. 107 per sq. yd. The 
Improvement Trust felt aggrieved by the direction given by the High Court 
with regard to the belting. Hence these appeals by special leave. 
The Land Acquisition Officer has stated that the lands measuring 61 D 
kanals 10 marlas bearing different khasra numbers mentioned in the award 
are situated in low-lying area and are under the pond with a depth of 3 to 
6 feet. Unless the lands are improved by expending considerable amount, 
they cannot be levelled-up. Therefore, the Land Acquisition Officer 
awarded compensation for those land at Rs.13 per sq. yd. The High Court E 
in the impugned order relying .upon its earlier judgment held that the 
belting system adopted by the Land Acquisition Officer and the reference 
Court is not correct in law. It is settled by decisions of this Court that 
belting is a fair principle to determine just and adequate compensation lest 
unjust award would ensue. When large extent of land is acquired, land F 
abutting the roads or developed area and interior land do not commend 
the same market value. When it is proved that the lands are situated in 
low-lying area, obviously the lands situated at levelled area would com-
mand higher market rate than the lands situated in low-lying area. 
Shri Ujjagar Singh, learned senior counsel appearing for the G 
claimants, contended that the allottee would prefer to purchase the lands 
in low-lying area to build their shops or establishments underground so as 
to have economical use of the land allotted to them. Therefore, the fixation 
of the market value at the uniform rate by the.High Court is correct in law. 
We cannot appreciate the stand taken by the claimants. The claimants, as H 
670 
SUPREME COURT REPORTS 
[1996] 3 S.C.R. 
A a fact, have to establish that the levelled up lands and the low-lying lands 
command same market value and that, therefore, they are required to be 
awarded at the same rate. It is seen that the Land Acquisition Officer has 
himself stated whi

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