LexNEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY versus HARNAND SINGH (DECEASED) THROUGH LRS & ORS.
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[2024] 7 S.C.R. 443 : 2024 INSC 509 New Okhla Industrial Development Authority v. Harnand Singh (Deceased) through LRs & Ors. (Civil Appeal No. 3674-3675 of 2023) 10 July 2024 [Surya Kant* and K.V. Viswanathan,JJ.] Issue for Consideration The matters in the instant case can be categorized into two groups: (i) SLPs, Miscellaneous Applications and Civil Appeals preferred by landowners who had already been granted compensation at INR 340 per sq. yd. and who are now seeking parity with Bir Singh where compensation was enhanced to INR 449 per sq. yd.; and (ii) Civil Appeals preferred by NOIDA as against the enhanced compensation of INR 449 per sq. yd. granted to some of the landowners The following questions arise for Consideration: (i) Should compensation be enhanced, and if so, to what extent. How should the quantum be calculated; (ii) Are the Miscellaneous Applications maintainable; (iii) Can the landowners rely upon Section 28A of the Land Acquisition Act, 1894 to seek parity with Bir Singh. Headnotes† Land Acquisition Act, 1894 – Whether the compensation should be enhanced – Determination of compensation – Applicability and use of principle of guesstimation: Held: The Court can use the principle of guesstimation in reasonably estimating the value of land in the absence of direct evidence, the exercise ought not to be purely hypothetical – Instead, the Court must embrace a holistic view and consider all relevant factors and existing evidence, even if not directly comparable, to arrive at a fair determination of compensation – Broadly, such relevant factors can be divided into three categories; Characteristics of the land; Future potentiality of the land; Factors denoting market sentiments – In the instant case, the evidence led by parties * Author 444 [2024] 7 S.C.R. Digital Supreme Court Reports provides several relevant factors – For instance, while the sale deed produced by the landowners cannot directly be relied upon for determining the price of the land, given its relative proximity, it nonetheless establishes its potentiality in the form of possible use towards residential purposes – Likewise, the lease deeds further underscore the commercial potentiality of land in the adjoining vicinity – As highlighted by the landowners, the land under acquisition lies near prominent amenities and landmarks such as a prominent school, a large Golf Course, and a prominent tourist attraction - the Film City – Apart from that, it is also in proximity to the DSC Shade, Okhla Barrage Highway and a School of Business Management – Additionally, the acquired land is enveloped by developed colonies and markets on all three sides – The acquired land benefits from convenient access to key landmarks in Delhi, highlighting its strategic location vis-à-vis its potentiality and future multiplicity of its market value – Taken together, all these facts and evidence lead to the reasonable inference that the subject land had significant potential for future commercial development at the time of issuance of the notification under Section 4 – This Court is inclined to estimate that the value of the subject land was appreciating at around 15% annually – Given that INR 350 per sq. yd rates were released by NOIDA towards the latter half of 1989, and considering how the acquisition process began on 05.01.1991, it would be appropriate to apply a 15% escalation for one year to this price-bringing total guesstimate to Rs. 403 per sq. yd – Therefore, in the light of the evidence produced by both, the State and the landowners, and on employing the principle of guesstimation, it stands conclusively surmised that the landowners herein are entitled to an enhancement in the compensation awarded – Accordingly, this Court partly allow these present appeals and revise the rate of compensation to INR 403 per sq. yd. for the entire acquired land except such part of it which was subject matter of the decision in Bir Singh. [Paras 34, 35, 36, 37, 38, 39, 41, 42, 44] Land Acquisition Act, 1894 – Maintainability of the Miscellaneous applications – Miscellaneous Applications seek parity with the rate of compensation awarded in Bir Singh: Held: It would indeed be unfair to single out a few individual landowners and deny them the benefit of just compensation, owing to factors and processes outside their control – Comparing the impact of not allowing these miscellaneous applications solely [2024] 7 S.C.R.
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