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1991 INSC 1
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Neutral Citations
1991 INSC 1
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Smart Summary

Factual and Procedural Background

A group of appeals and special leave petitions were filed by landowners dissatisfied with compensation awarded for approximately 331 acres of land acquired by the State of Haryana in Hissar for a residential-cum-commercial complex. The Land Acquisition Collector divided the land into three belts and awarded compensation at Rs 4.13 per sq. yd. for belt A, Rs 2.43 per sq. yd. for belt B, and Rs 1.65 per sq. yd. for belt C. On reference, the Additional District Judge, Hissar, maintained the belting but enhanced the rates to Rs 10, Rs 6, and Rs 4.50 per sq. yd. for belts A, B, and C respectively.

On first appeal, the High Court eliminated belt C, retaining only belts A and B, and further enhanced compensation to Rs 23 per sq. yd. for belt A and Rs 16 per sq. yd. for belt B. The landowners then approached the Supreme Court by special leave seeking further enhancement and challenging the belting system.

Legal Issues Presented

  1. Whether the “belting” method of valuation should be discarded in favor of a uniform rate of compensation across the acquired land.
  2. Whether an instance of a small parcel sold at Rs 42 per sq. yd. should be adopted to determine the market value for the acquired land, either uniformly or at least for belt A.
  3. Whether there existed sufficient grounds to interfere with and enhance the compensation fixed by the High Court for belts A and B.

Arguments of the Parties

Appellants' Arguments

  • The belting system should be discarded and compensation should be uniformly assessed at Rs 42 per sq. yd.
  • The acquired land is a large stretch along the G.T. Road for approximately 3 km, with a railway line on the opposite side; the belting was done in a haphazard manner.
  • Because the land was acquired for building purposes, its agricultural quality should not have influenced valuation; compensation should have been uniform across the space.
  • The rate of Rs 42 per sq. yd. should be accepted based on a pre-acquisition sale of a parcel measuring about 125 sq. yd. at that rate.
  • It was further contended that the High Court, in another case under the same notification, relied on the same sale instance to award Rs 42 per sq. yd.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

  • The Court declined to discard the belting method. It observed that although the acquisition pertained to ground space for building purposes, the “tiller’s effort to keep his land more productive” could not be ignored in awarding compensation. The belting reflected differences in land quality, which explained why the belting lines appeared haphazard on the plan.
  • The Court found no supportive material to justify a uniform rate across the entire tract. The mere assertion that “belting is normally not resorted to” did not warrant departing from the belting approach in this case.
  • As to the proposed benchmark of Rs 42 per sq. yd., the Court endorsed the High Court’s reasons for rejecting it: the cited transaction involved a very small parcel (about 125 sq. yd.), already fully constructed with a house and a godown, and directly abutting the G.T. Road—factors rendering it non-comparable to the larger acquired tract.
  • The appellants’ claim that the High Court later accepted the same sale instance in another case was not entertained. The purported judgment was not on record, no permission to adduce additional evidence had been sought, and such a judgment could not be invoked as a precedent or even to persuade the Court in the absence of proper proof.
  • On a cumulative assessment of these factors, the Court concluded that the appellants had been adequately compensated and that no case for enhancement was made out, negating any need for interference.

Holding and Implications

DISMISSED: The Supreme Court dismissed the appeals and the special leave petitions. The application for condonation of delay in the unnumbered SLP titled Kanhya Lal v. State of Haryana was dismissed as withdrawn at the request of the appellant’s counsel. There was no order as to costs.

Implications: The compensation as fixed by the High Court—maintaining belting into two categories (A and B) with rates of Rs 23 and Rs 16 per sq. yd., respectively—stands. The appellants receive no enhancement. The decision is confined to the facts presented and sets no new legal precedent beyond affirming the appropriateness of belting in this case and the insufficiency of the proffered sale instance and unrecorded judgment to warrant interference.

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    Sher Singh And Others v. State Of Haryana And Others

    M.M Punchhi, J.— This bunch of appeals and special leave petitions are at the instance of the dissatisfied land owners whose lands were acquired in bulk by the State of Haryana, in the town of Hissar, for establishing a residential-cum-commercial complex.

    2. The land totalled approximately 331 acres. The Land Acquisition Collector appointed to determine the compensation belted the land in three parts awarding for block ‘A’ compensation at the rate of Rs 4.13 per sq. yd.; for block ‘B’ at the rate of Rs 2.43 per sq. yd. and for block ‘C’ at Rs 1.65 per sq. yd. The dissatisfied claimants took the matter in reference to the Additional District Judge, Hissar who maintained the belting, but raised the compensation for block ‘A’ to Rs 10 per sq. yd., block ‘B’ to Rs 6 per sq. yd. and block ‘C’ to Rs 4.50 per sq. yd.

    3. When the matter was taken up in first appeal before the High Court, it was persuaded to wipe out ‘C’ and confine it to belting ‘A’ and ‘B’. The entire evidence was considered by the High Court meticulously to come to the conclusion that belt ‘A’ should fetch compensation at the rate of Rs 23 per sq. yd. and belt ‘B’ Rs 16 per sq. yd. Still not satisfied the claimants/appellants by special leave have approached this Court for further enhancement.

    4. The goal of the appellants is that the belting as such should go and the land should uniformly be assessed to compensation at the rate of Rs 42 per sq. yd. The foundation for the argument in the first instance is that the acquired land comprises of a large area, situated alongside the G.T Road leading from Delhi to Hissar town in a strip approximately 3 kms. in length on the other side of which was the railway line. It was also commented that the belting had been done in a haphazard way. Keeping in regard the nature of the land, it was asserted that the land having been acquired for building purposes, its quality as agricultural land should not have weighed with the courts below and compensation should have assessed uniformly spacewise. These arguments do not appeal to us. Though the acquisition of ground space is the object in view, yet the tiller's effort to keep his land more productive cannot be lost sight of in awarding compensation. In fact the belting has kept in regard the quality of the land. This is the reason for its appearing to be a haphazard line on the plan. On the second limb of the argument, that it should have fetched uniform rate of compensation, we find no supportive material on record and none has been pressed before us on which we could change the decision, merely on the comment that belting is normally not resorted to. We are not persuaded in the instant case to discard the belting system and lean towards uniformity.

    5. The rate of Rs 42 per sq. yd. is claimed on the basis that a part of land measuring about 125 per sq. yd. which formed part of the acquired land, was, before the acquisition, purchased by a purchaser at the rate of Rs 42 per sq. yd. and that was an indication that the land acquired would have fetched Rs 42 per sq. yd. The High Court had rejected the contention of the appellants taking the twin view that firstly the land involved was small in measure and secondly it was fully constructed having a house and a godown facing the G.T Road itself. We find this reasoning sound. Having not been able to persuade us, each of learned counsel for the appellants differently put forth that the sole instance which the High Court had rejected had later been relied by it in another case pertaining to other land under acquisition under the same notification and having awarded the rate of Rs 42 per sq. yd. We regret our inability to entertain the argument because there is nothing on record to support the same. The judgment in which such view has statedly been taken has not been brought on record as a piece of evidence to be relied upon by the claimants and no permission has been sought to adduce additional evidence. The said judgment cannot be used as a precedent even to persuade us to take the view that the rate should be Rs 42 per sq. yd. for belt ‘A’ if not uniformly. All these factors cumulatively lead us to the view that appellants have no case for enhancement and have been adequately compensated for the land acquired. No interference is thus required in the instant case.

    6. Accordingly for the view above taken, we dismiss the appeals as also the special leave petitions. I.A for condonation of delay in SLP unnumbered titled Kanhya Lal v. State of Haryana, is dismissed as withdrawn at the askance of the learned counsel for the appellant. There shall be no order as to costs in all these cases.

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    Sher Singh And Others v. State Of Haryana And Others
    (Jan 8, 1991)