MALA ETC. ETC. versus STATE OF PUNJAB AND OTHERS

Citation: [2023] 11 S.C.R. 121 · Decided: 17-08-2023 · Supreme Court of India · Bench: BELA M. TRIVEDI · Disposal: Dismissed
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Judgment (excerpt)

[2023] 11 S.C.R. 121 : 2023 INSC 735
121
CASE DETAILS
MALA ETC. ETC.
v.
STATE OF PUNJAB AND OTHERS
(Civil Appeal Nos. 3992-4000 of 2011)
AUGUST 17, 2023
[BELA M. TRIVEDI AND DIPANKAR DATTA, JJ.]
HEADNOTES
Issue for consideration : Whether the order passed by the High Court 
conferring the total amount of compensation payable to the land owners at 
Rs. 2,400/- per marla for the land Chahi, for the remaining kinds of land for 
the village Purhiran, and for all kinds of land for village Sutehri, along with 
all statutory beneﬁ ts available under the Land Acquisition Act, by applying 
one third cut on the assessed market value of Rs. 3,000/- per marla, towards 
development charges; and by not relying upon the sale deeds executed for 
the shops prior to the date of acquisition, warrants any inference u/Art. 136 
of the Constitution.
Land Acquisition: Compensation – Award of – Assessment of 
market value of the lands by the High Court – Deduction of one third 
amount towards development charges – Correctness of:
Held : High Court considered the relevant factors prescribed under the 
Act – It duly considered all the sale instances in the light of the evidence on 
record and relied upon sale instances executed in close proximity to the date 
on which the lands in question were acquired – Assessment of market value 
so determined after imposing cut of one third towards development charges 
was rightly done, thus, does not warrant any interference. [Paras 10 and 15]
Land Acquisition : Compensation – Award of – Deduction towards 
development charges – Determination of:
Held : Courts should keep in mind the nature of land, area under 
acquisition, the development of land and its extent of development, the purpose 
122
SUPREME COURT REPORTS 
[2023] 11 S.C.R.
of acquisition etc – While determining the market value of large chunk of 
land, the value of smaller pieces of land could be taken into consideration, 
however, after making appropriate deduction in the value of lands or setting 
apart land required for carving out roads, leaving open spaces, plotting out 
smaller plots etc – Percentage of deduction or the extent of area required 
to be set apart has to be assessed by the courts having regard to the size, 
shape, situation, user etc. of the lands acquired – It is essentially a kind of 
guess work the courts are expected to undertake. [Para 11]
Land Acquisition – Market value of the land – Determination 
of – Guiding principles: 
Held : For ascertaining the market value of the land, its existing 
condition, location and user, its proximity to residential, commercial or 
industrial area etc. are the factors to be considered – Size and nature of 
the lands acquired and size and nature of the lands in respect of which sale 
instances are produced, are also an important aspects – Sale instances of 
small piece of land cannot form reasonable basis to determine the market 
value of large chunk of land, unless suitable deductions are made in respect 
of development charges – Deductions to be made would depend on the 
nature of land, its topography, special features and state of its development 
so as to make it suitable for the purpose for which it is acquired. [Para 8]
Constitution of India: Art. 136 – Extra-ordinary jurisdiction 
under – Exercise of:
Held : Under Art. 136, plenary jurisdiction exercisable on assuming 
appellate jurisdiction has been conferred upon the Supreme Court – 
However, it is an extraordinary jurisdiction which must be exercised in 
exceptional circumstances with great care and caution. [Para 7]
LIST OF CITATIONS AND OTHER REFERENCES
Haryana State Industrial Development Corporation vs. Pran 
Sukh and Others (2010) 11 SCC 175; Chimanlal Hargovinddas v. 
Special Land Acquisition Officer, Poona and Anr. (1988) 3 SCC 751 : 
[1988] 1 Suppl. SCR 531; Lal Chand v. Union of India and Anr. (2009) 
15 SCC 769 : [2009] 13 SCR 622; Kasturi and Ors. v. State of Haryana
(2003) 1 SCC 354 : [2002] 4 Suppl. SCR 117; ig. Sahib Singh Kalha 
123
MALA ETC. ETC. v. STATE OF PUNJAB AND OTHERS
and Ors vs. Amritsar Improvement Trust and Others AIR (1982) SC 
940 – referred to.
OTHER CASE DETAILS INCLUDING IMPUGNED 
ORDER AND APPEARANCES
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3992-4000 
of 2011.      
From the Judgment and Order dated 17.08.2010 of the High Court 
of Punjab and Haryana at Chandigarh in CWP Nos.20433, 20318, 20319, 
20320, 20321, 20329, 20330, 20333 OF 2009 and CWP No.154 of 2010.
With
Civil Appeal Nos. 5218
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