MOHAMMAD YUSUF AND OTHERS ETC. ETC. versus STATE OF HARYANA AND OTHERS

Citation: [2018] 3 S.C.R. 1075 · Decided: 16-04-2018 · Supreme Court of India · Bench: R.K. AGRAWAL · Disposal: Dismissed

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Judgment (excerpt)

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MOHAMMAD YUSUF AND OTHERS ETC. ETC.
v.
STATE OF HARYANA AND OTHERS
(Civil Appeal Nos. 3807-3825 of 2018)
APRIL 16, 2018
[R. K. AGRAWAL AND S. ABDUL NAZEER, JJ.]
Land Acquisition Act, 1894 – ss.4, 9, 18 and 23 – Land in
Firozpur village acquired by respondent-State for construction of
Mini Secretariat – Land Acquisition Collector (LAC) assessed the
market value of the acquired land as Rs. 16 lakhs per acre along
with 30% solatium and 12% additional amount to the landholders
– Land Acquisition Collector-cum-SDO(C) on reference enhanced
the compensation to Rs. 72,00,000/- per acre and applied the
development cut at the rate of 55% and a further cut of 5% on
account of waiting period, totaling to 60% and determined
compensation at Rs. 28,80,000/- per acre along with the statutory
benefits – Cross appeals filed before High Court by landholders as
also the State – High Court partly allowed the appeals of the
landholders by enhancing the compensation to Rs. 64,80,000/- per
acre, however, reduced the cut on development charges to 10% –
Cross appeals filed by State were dismissed – Held: In the present
case, after having regard to the circumstances of the case and perusal
of the sale deeds of adjourning area, the compensation granted at
the rate of Rs.72 lacs per acre is as per the law and no injustice
had occurred to the appellants-landholders  – Further, a cut at the
rate of 10% is very reasonable towards development of acquired
land as some further development would obviously be required to
make it fit for the purpose for which it was acquired – Impugned
decision of the High Court not interfered with – Constitution of
India – Art.300A.
Land Acquisition Act, 1894 – Compensation – Meaning of –
Discussed.
Land Acquisition Act, 1894 – s.23A – Compensation under –
Basis for calculation of – Discussed.
[2018] 3 S.C.R. 1075
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
Land Acquisition Act, 1894 – Deduction on account of
development charges – Factors to be considered for – Discussed.
Dismissing the appeals, the Court
HELD: 1.1  The intention behind the enactment of the Land
Acquisition Act, 1894 was to acquire land for welfare purposes
and to compensate the owners adequately. It is well known fact
that the Right to Property is a Constitutional Right (earlier it was
a Fundamental Right until 1978) as provided under Article 300A
of the Constitution of India. The term “compensation” was
interpreted by Supreme Court in a number of cases that it is to
be “a just equivalent of what the owner has been deprived of.”
Hence, the acquisition must pass the test of compensation being
reasonable, just and fair. In a catena of cases, Supreme Court has
held that compensation should be adequate and there must be
no injustice with the land owners since they stand deprived from
their very vital right i.e. Right to Property. At the same time, it is
also to be kept in mind that no hypothetical view shall be taken
as it may be harmful to the public exchequer in case of acquisition
for public purposes. Hence, courts must maintain balance between
both the parties.[Paras 10, 11][1081-C-D, E-F]
1.2  On a plain reading of Section 23 of the LA Act, it is
evident that the compensation has to be calculated according to
the value of the land to the owner and the question to be
considered is whether the person from whom the land was taken
was to lose by having it taken from him. The probable use to
which the land might be put was necessarily an element to be
taken into consideration for calculating the compensation of
acquired land. The land owners get compensation on the basis of
the value of the land, in its actual condition at the time of the
publication of the Notification under Section 4 of the LA Act. [Para
13][1082-H; 1083-A-B]
1.3  It is a well established rule that in the cases of
calculation of compensation, there cannot be a straight jacket
formula, hence, each case has to be dealt in the light of
circumstances of each case. Common sense is the best and most
reliable guide. It is a well settled law that when there are several
exemplars with reference to similar land, usually the highest of
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the exemplars which is a bonafide transaction, will be considered.
[Paras 14, 15][1083-D-E]
1.4  The appellants produced various sale deeds. The vital
sale deed dated 05.10.2005, wherein land admeasuring 1 kanal 6
Marlas, situated in village Ferozpur Namak, Tehsil Nuh, was sold
for a sale consideration of 

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