In RFA No. 174 of 2013-HP HC- Market value of land could not be assessed  on basis of exemplar sale deed which was executed after about 11 months from date of issuance of notification u/s 4 of Land Acquisition Act, 1894: Himachal Pradesh HC
Justice Satyen Vaidya [25-04-2023] 

Read Order: Principal Secretary And Ors Vs. Mehar Chand And Ors 

Tulip Kanth

Shimla, April 26, 2023: While considering a matter pertaining to the Land Acquisition Act, 1894, the Himachal Pradesh High Court has set aside the awards passed by the Reference Court as the market value of land was assessed on basis of exemplar sale deed which was executed after about eleven months from the date of issuance of notification under Section 4. 

Justice Satyen Vaidya asserted, “...the learned Reference Court was not right in assessing the market value of exemplar sale deed, which was executed after about eleven months from the date of issuance of notification under Section 4 of the Act.”

The factual background of this case was such that the State Government issued a notification under Section 4 of the Land Acquisition Act, 1894 on July 8, 1992 for acquiring land measuring 0-41-23 hectares in Village Alyana situated in Himachal Pradesh for construction of Sarori-Rissa Road. The land to be acquired, included the lands of respondents also.

The Land Acquisition Collector  passed an award and offered the market value of Rs 13,166.20 for the entire land proposed to be acquired.

The respondents and other land owners whose land was sought to be acquired filed reference petitions under Section 18 and the appeals in question arose out of one of those Petitions.

All the Reference Petitions were decided by the Additional District Judge, Mandi whereby the compensation was reassessed at the rate of Rs 31.30 per square meters for land irrespective of its classification. The benefit of consortium and interest under Sections 23 (1)(a), 28 and 34 of the Act was also awarded.

The appellants assailed this award by filing appeals under Section 54.

It was contended from the side of the appellants-Authorities that the impugned award deserved interference, as the Reference Court had based its findings on only one exemplar sale deed. It was further contended that the area sold vide such deed was only 0-2-13 hectares and the sale deed for such a small area could not have been legally made the basis for determining the market value of the land. 

As per the appellants, the reference to the sale deed  being later in time to the date of notification under Section 4 of the Act was impermissible as this sale deed relied upon by the Reference Court was executed almost after eleven months of issuance of notification under Section 4.

The Bench referred to the judgment of the Supreme Court in General manager, OIL and Natural Gas Corporation Ltd vs. Rameshbhai Jivanbhai Patel,  wherein it was opined that the assessment of market value should be avoided on the exemplar sale transactions, which have taken place after the issuance of notification under Section 4

In light of such exposition, the Bench held that the Reference Court was not right in assessing the market value of exemplar sale deed, which was executed after about eleven months from the date of issuance of notification under Section 4. 

Also, except for an exemplar sale deed, the Reference Court had not placed reliance on any other evidence for assessment of market value of the land. Thus, it was held by the High Court that the impugned award, passed in the Reference Petitions couldn't be sustained.

Allowing the appeals and setting aside the impugned awards, the Bench remanded the matter back to the Reference Court to decide Reference Petitions afresh. 

“Since initiation of reference petitions dates back to the year 2002, it is expected from the learned Reference Court that the above noted reference petitions will be decided by such Court with sufficient expedition and preferably within three months from the date of receipt of this judgment”, the Bench further observed.