SUBH RAM & ORS. versus HARYANA STATE & ANR.

Citation: [2009] 15 S.C.R. 287 · Decided: 20-10-2009 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Case Partly allowed
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Judgment (excerpt)

(2009] 15 (ADDL.) S.C.R. 287 
SUBH RAM & ORS. 
A 
v. 
HARYANA STATE & ANR. 
(Civil Appeal No. 5844 of 2004) 
OCTOBER 20, 2009 
B 
[R.V. RAVEENDRAN AND G.S. SINGHVI, JJ.] 
' 
Land Acquisition Act, 1894: 
s. 23 - Compensation - Determination of - Deduction c 
towards development cost - Large tracts of agricultural land 
acquired for establishment of a jail -
Land Acquisition 
Collector awarded compensation ranging from 40, 0001- to 
60, 0001- per acre according to category of land - Reference 
+ 
court enhancing compensation to Rs. 36. 20 per sq. yd. D 
(Rs. 1, 75, 200 per acre) uniformly for all categories of land -
High Court declining to interfere - HELD: The sale-deed relied 
on by State disclosing the price less than the rate awarded by 
Land Acquisition Collector being grossly undervalued or a 
distress sale has to be excluded from consideration - When E 
market value of large tract of land acquired are compared with 
the instances of sale of small residential plots, it is necessary 
to make an appropriate deduction towards development cost 
~ ... 
- Concept of deduction of development cost explained - In 
the instant case, instances of sale being of 1981-82 and the 
F 
land in question having been acquired under Notification 
dated 22. 11. 1984, adding 12% per annum cumulatively for two 
years not challenged by State - It would be appropriate to limit 
the deduction to 40% towards deveiopment cost -
Thus, 
compensation for acquired land enhanced to Rs.59.34 per sq. 
yd.( Rs. 98.90 minus 40%) or Rs.2,87,2001- per acre -
G 
~ 
Claimants will also be entitled to all statutory benefits viz. 
solatium of 30% u/s 23(2), additional amount of 12% from the 
date of preliminary notification to date of award uls 23(1 )(a) -
287 
H 
288 
SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R. 
A Interest on total compensation less the amount awarded by 
LAC at 9% per annum for one year from the date of taking 
possession and 15% per annum thereafter. 
s. 24 - Matters to be neglected for determination of 
8 compensation - Purpose of acquisition - Consideration of -
HELD: The Act prohibits the court from taking into 
consideration any increased value of the land acquired likely 
to accrue from the use to which it will be put when acquired. 
Viluben Jhalejar Contractor (d) by Lrs. Vs State of 
C Gujarat 2005 (3) SCR 542; Nelson Fernandes and Ors. 
vs Special Land Acquisition Officer South Goa & Ors. 2007 
(3) SCR 563; Lal Chand vs. Union of India 2009 (11) Scale 
627; Tarlochan Singh vs. State of Punjab 1994 (6) Suppl. 
SCR 200; Raj Kumar vs. State of Punjab 1995 (1) SCR 184; 
o Administration Genl. of WB. vs. Collector Varanasi 1988 (2) 
SCR 1025; Mirza Nausherwan Khan vs. Collector Land 
Acquisition Hyderaf)ad 1975 (2) SCR 184; Padma Uppal 
vs. State of Punjab 1977 (1) SCR 329; Chimanlal 
Hargovinddas vs. Special Land Acquisition Officer Poona 
E 
1988(1) suppl. SCR 531, referred to. 
F 
G 
H 
Case Law Reference: 
2005 (3) SCR 542 
2007 (3) SCR 563 
referred to 
referred to 
2009(11) Scale 627 
referred to 
1994 (6) Suppl. SCR 200 referred to 
1995 (1) SCR 184 
1988 (2) SCR 1025 
1975 (2) SCR 184 
1977 (1) SCR 329 
referred to 
referred to 
referred to 
referred to 
para 6 
para 6 
para 7 
para 12 
para 12 
para 12.1 
para 12.1 
para 12.1 
+ 
SUBH RAM & ORS. v. HARYANA STATE & ANR. 
289 
1988 (1) Suppl. SCR 531 
referred to 
para 12.2 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
5844 of 2004. 
A 
From the Judgment & Order dated 31.3.2004 of the High 
Court of Punjab & Haryana at Chandigarh in R.F.A. No. 904 of 
B 
1989. 
WITH 
C.A. No. 1503-1504, 1505-1506 of 2005, 2893 of 2009 
C 
& 5226-5230 of 2007. 
Gagan Gupta, Parmanand Gaur, L.R. Khatana, S. 
Rajappa, Prashant Khatana for the Appellants. 
Kamal Mohan Gupta for the Respondents. 
The Order of the Court was delivered by 
ORDER 
D 
R.V. RAVEENDRAN J., 1. These appeals relate to 
E 
determination of compensation for 38.48 acres of land in village 
Jharsa, Tehsil & District Gurgaon, Haryana, acquired for 
,. ..... 
establishment of a jail. The acquisition was initiated under 
preliminary notification dated 22.11.1984, issued under section 
4(1) of the Land Acquisition Act, 1894 ('Act' for short). Land 
F 
Acquisition Collector C LAC' for short) by his award dated 
22.8.1985, offered compensation at the rate of Rs.60,000/- per 
acre for chahi land, Rs.50,000/- per acre for aabi land and 
Rs.40,000/- per acre for gair mumkin land. The Reference 
Court increased the compensation u
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