Case Note & Summary
The Supreme Court addressed multiple civil appeals concerning land acquisition compensation for lands in villages Kheri Sadh and Baliyana, Haryana. The appeals arose from common judgments by the High Court of Punjab and Haryana regarding compensation rates determined under the Land Acquisition Act, 1894. The first phase acquisition for Kheri Sadh involved land acquired for an Industrial Model Township, with notifications issued on 9.6.2006 and 11.01.2007. The Reference Court initially set compensation at Rs. 24,00,000/- per acre for land abutting the highway and Rs. 19,77,000/- for remaining land. The High Court later enhanced the compensation for the former to Rs. 28,69,910/- by applying a 10% cut, which the Supreme Court found unjustified, reinstating the Reference Court's figures. For the second phase acquisition, the High Court had determined compensation at Rs. 30,89,066/- per acre for land up to one acre from the highway, which the Supreme Court upheld but noted the inadequacy of the 12% escalation rate. In contrast, for Baliyana, the court confirmed the High Court's compensation of Rs. 17,00,000/- per acre, emphasizing the differences in land potential and location compared to Kheri Sadh. The appeals from the original claimants were dismissed, and the court ordered no costs.
Headnote
A) Land Acquisition - Compensation Determination - Appropriate Compensation for Agricultural Land - Land Acquisition Act, 1894, Section 4 - The court determined that the compensation for land acquired in Kheri Sadh should be Rs. 24,00,000/- per acre for land abutting the highway and Rs. 19,77,000/- per acre for remaining land, correcting the High Court's application of a 10% cut instead of 20% as justified by the Reference Court. Held that the original claimants are entitled to the compensation determined by the Reference Court (Paras 20-21). B) Land Acquisition - Escalation Rate - Adequacy of Escalation for Second Phase Acquisition - Land Acquisition Act, 1894, Section 4 - The court upheld the High Court's determination of compensation for the second phase acquisition but noted the inadequacy of the 12% escalation rate, suggesting a higher rate was warranted due to market conditions. Held that the appeals for enhancement of compensation were dismissed (Paras 21-22). C) Land Acquisition - Comparison of Land Values - Compensation for Adjacent Lands - Land Acquisition Act, 1894, Section 4 - The court found that the lands of village Baliyana could not claim compensation parity with Kheri Sadh due to significant differences in location and potential, confirming the compensation of Rs. 17,00,000/- per acre for Baliyana. Held that the High Court's decision was upheld (Paras 18-19).
Issue of Consideration
Whether the compensation awarded for land acquired in Kheri Sadh and Baliyana was adequate and justified under the Land Acquisition Act, 1894.
Final Decision
The Supreme Court dismissed the appeals of the original claimants for Kheri Sadh, reinstating the Reference Court's compensation rates of Rs. 24,00,000/- per acre for land abutting the highway and Rs. 19,77,000/- for remaining land. The appeals for the second phase acquisition were dismissed, and the compensation for Baliyana was confirmed at Rs. 17,00,000/- per acre.
Law Points
- Land Acquisition
- Compensation Determination
- Sale Exemplars
- Escalation Rate
- Agricultural Land Valuation


