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UDHO DASS versus STATE OF HARYANA & ORS.

Citation: [2010] 8 S.C.R. 900 · Decided: 21-04-2010 · Supreme Court of India · Bench: H.S. BEDI, J.M. PANCHAL · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
(2010] 8 S.C.R. 900 
UDHO DASS 
v. 
STATE OF HARYANA & ORS. 
(Civil Appeal No. 3677 of 2010) 
APRIL 21, 2010 
[HARJIT SINGH BEDI AND J.M. PANCHAL, JJ.] 
Land Acquisition Act, 1894: 
C 
Acquisition of land for setting up a housing project -
Compensation - HELD: Once a conclusion is reached that 
there was the possibility of the acquired land being used for 
putting up buildings in the immediate or near future, such 
conclusion would be sufficient to hold that the acquired land 
had a building potentiality and proceed to determine its 
D market value taking into account the increase in price 
attributable to such building potentiality - If the compensation 
proceedings continued over a period of almost 20 years, as 
in the instant case, the landowner is entitled to say that the 
potential of the land acquired from him must a/so be 
E adjudged keeping in view the development in the area spread 
over the period of 20 years, if the evidence so permits, and 
cannot be limited to the near future alone - In the instant 
case, admittedly the land acquired in the year 1990 had great 
potential, and has been completely urbanized as huge 
F residential and commercial complexes had come up in the 
area during the last ten or fifteen years - Thus, the landowners 
are fully entitled to say that the potential of the land acquired 
was not fully recognized by the High Court and the authorities 
below - In the circumstances, compensation@ Rs.2251- per 
G sq. yard, which would come to Rs. 10, 89, 0001- per acre, on the 
basis of the compensation awarded in respect of the 
neighbouring land pertaining to the year 1992, would be 
adequate. 
H 
900 
UDHO DASS v. STATE OF HARYANA & ORS. 
901 
Acquisition of lands for urban/commercial purposes -
A 
Compensation - HELD: Though the Act provides for payment 
of solatium, interest and the additional amount, but the 12% 
per annum increase hardly does justice to such land-owners, 
andjudicial notice can be taken that increase in price in such 
cases is upto 100% a year - Judicial notice. 
B 
Land of the appellants was acquired for a housing 
project, pursuant to the Notification u/s 4 of the Land 
Acquisition Act, 1894 issued in May 1990. The Collector 
awarded the compensation at the rate of Rs.2,00,000/- per 
acre. The reference court applied the belting method and C 
enhanced the compensation to Rs.6,05,000/- and 
7 ,26,000/- per acre (@ Rs.125/- per sq. yard and Rs.1501-
per sq. yard, respectively). The High Court further 
enhanced the compensation to Rs.6,53,000/- and 
Rs.7,74,400/~ per acre (@ Rs.135/- and Rs.160/- per sq. D 
yard). 
In the instant appeals filed by the land-owners, it was 
contended for the appellants that the compensation 
awarded in the case of the adjoining land pertaining to 
E 
the acquisition of the year 1992 at the rate of Rs.250/- per 
sq. yard should have been made the basis in the instant 
case also; and that the High Court as also the authorities 
below did not appreciate the full potential of the land, 
particularly, in view of the fact that though the 
compensation proceedings started in the year 1990, the 
F 
same were still continuing. 
Allowing the appeals, the Court 
HELD: 1.1. Once a conclusion is reached that there 
was the possibility of the acquired land being used for G 
putting up buildings in the immediate or near future, such 
conclusion would be sufficient to hold that the acquired 
land had a building potentiality and proceed to determine 
its market value taking into account the increase in price 
H 
A 
8 
902 
{ ,, 
SUPREME COURT REPORTS 
[2010] 8 S.C.R. 
attributable to such building potentiality. [para 15] [911-
C-D] 
1.2. Admittedly, in the instant case, the land is 
situated within the municipal limits of the district 
headquarters adjoining Delhi and within the National 
Capital Region. The acquired land is situated on both 
sides of the road. It must also be noticed that enormous 
developments have taken place in the area, as huge 
residential and commercial complexes have came up, 
resulting in enormous increase in the price of the 
C 
acquired land in the last 15-20 years. [para 14] (909-F-H; 
910-A-D] 
P. Rama Reddi and Others vs. Land Acquisition Officer, 
Hyderabad Urban Development Authority, Hyderabad and 
0 
others 1995 ( 1 ) SCR 584 = (1995) 2 sec 305, relied on. 
E 
F 
Executive Director Vs. Saraf Chandra Bisoi and Another 
(2000) 6 sec 326, held inapplicable. 
1.3. Although, in the present matter, sale instances 
around o

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