Case Note & Summary
This appeal arose from land acquisition for commercial-cum-residential purpose near Ludhiana by the Ludhiana Improvement Trust. An extent of 13 acres of land was acquired. Notification under Section 36 of the Punjab Town Improvement Act, 1922, which is pari materia to notification under Section 4(1) of the Land Acquisition Act, 1894, was published on July 13, 1973. The Land Acquisition Officer in his award dated February 3, 1976 classified the lands as levelled-up land and low-lying land, awarding compensation at Rs.21 per sq yd for levelled-up land and Rs.13 per sq yd for low-lying land. On reference, the District Judge awarded compensation at Rs.107 per square yard for lands abutting the main road at a depth of 5 karanams, Rs.80 per sq yd for other levelled land, and Rs.50 per sq yd for low-lying area. The claimants challenged the award of the District Court, and the High Court in writ petitions held that all lands were evenly situated and awarded compensation uniformly at Rs.107 per sq yd. The Improvement Trust felt aggrieved by the High Court's direction with regard to belting and appealed by special leave. The Land Acquisition Officer had stated that the lands measuring 61 kanals 10 marlas bearing different khasra numbers were situated in low-lying area and were under pond with a depth of 3 to 6 feet, and unless improved by expending considerable amount, they could not be levelled-up. The Supreme Court considered whether belting was a fair principle to determine just and adequate compensation. The Court observed that when large extent of land is acquired, land abutting roads or developed area and interior land do not command the same market value. It was settled by decisions of this Court that belting is a fair principle. The claimants contended that allottees would prefer to purchase lands in low-lying area to build their shops or establishments underground so as to have economical use, and therefore fixation of market value at uniform rate by High Court was correct. The Court rejected this stand, holding that the claimants had to establish that levelled-up lands and low-lying lands commanded same market value. The Land Acquisition Officer's finding about depth of 3 to 6 feet was not disputed in the reference court. Unless the land is levelled-up, it cannot command the same market value as levelled-up land. The High Court was clearly in error in holding that belting system cannot be adopted and compensation should be awarded uniformly. The appeals were accordingly allowed and the order of the reference Court paying compensation at Rs.50 per sq yd to the low-lying lands admeasuring 61 kanals 10 gunthas in the khasra numbers mentioned in the award of the Land Acquisition Officer stood restored. No costs were awarded.
Headnote
A) Land Acquisition - Determination of Compensation - Belting Principle - Punjab Town Improvement Act, 1922, Section 36; Land Acquisition Act, 1894, Section 4(1) - When large extent of land is acquired, lands abutting roads or developed area and interior low-lying lands do not command the same market value; belting is a fair principle to determine just and adequate compensation. Land Acquisition Officer had stated that low-lying lands measuring 61 kanals 10 gunthas with depth 3 to 6 feet required levelling and could not command same market value as levelled-up land. The claimants failed to establish that levelled-up and low-lying lands commanded the same market value. The High Court erred in holding that belting system cannot be adopted and awarding uniform compensation of Rs.107 per sq yd. Held appeals allowed; reference court order of Rs.50 per sq yd for low-lying lands restored. (Paras 1-2)
Issue of Consideration
Whether the belting principle could be applied in determining compensation for acquired land under the Punjab Town Improvement Act, 1922, and whether the High Court erred in awarding uniform market value without evidence that low-lying and levelled-up lands commanded the same market value.
Final Decision
Appeals allowed. High Court's order awarding uniform compensation at Rs.107 per sq yd set aside. Order of reference Court paying compensation at Rs.50 per sq yd to low-lying lands admeasuring 61 kanals 10 gunthas in khasra numbers mentioned in the award of Land Acquisition Officer restored. No costs.
Law Points
- Belting is a fair principle to determine just and adequate compensation for large land acquisitions
- lands abutting roads or developed area and interior low-lying lands do not command same market value
- claimants must prove levelled-up and low-lying lands command same market value
- Punjab Town Improvement Act 1922 Section 36 notification is pari materia to Land Acquisition Act 1894 Section 4(1)
