UOI v. Amar Singh

ORDER

23.12.2011 For orders see LA.APP No. 608 of 2009. «L GAUR) JUDGE December 23, 2011 rs LA.App No.608/2009 & Connected matters Page 2 u IN THE HIGH COURT'OF DELHI AT NEW DELHI % Reservedon: S"^ November.2011 Pronouncedon: 23''"'December,2011 + LA-APP No-608/2009 SHRI RAMESHKUMAR .....Appellant-Tlii-ough; Mr. Deepak ICliosla & Mr. V.P. Rana, Advocates. versus UNIONOF INDIA &ORS. -•••Respondents Through: Mr. Sanjay Podar, Senior Advocate with Mr.Sanjay Kumar Pathak, Ms. K.Kamoudi Kiran, Mr. Mohitrao Jadhav & Ms. Navlin Swain, Advocates. + LA APP.415/201LLA.APP 608/2009.LA.APP129/2MiLJ:^iLAP£ 130/2010, LA.APP 176/2010 •& CM No. 12873/2011, LA_,APP 177/2010, LA.APP 179/2010. LA.APP 184/2010, LA.APP 214/:^^ LA.APP219/2010. LA.APP 229/2010, LA.APP233/2010, ]..A^T 234/2010, LA.APP 235/2010. LA.APP 236/2010, LA.APP LA.APP 240/2010. LA.APP 241/2010. LA.APP 255/2010, LA_AJ2 256/2010& CM No. 12934/2011 Across ohiections).LA.APP 257/201^ LA.APP258/2010.LA. APP 259 /2010, LA.APP 271/2010, LA.APP 413/2010. LA.APP 414/2010. LA.APP 415/2010. LA.APP 416/2010, LA.APP 417/2010 & CM No.3584/2011 (cross objections), LA.APP 419/2010., LA.APP 425/2010. LA.APP 453/2010, LA.APP 54d/2(I.lJ), LA.APP 547/2010, LA.APP 548/2010, LA.APP 549/2010, LA.APP 550/2010. LA.APP 551/201CLXArAPP.552Mrr0, LA.APP 553/20JA LA.APP 554/2010. LA.APP] 555/201^MrA.APP556/2010, LA.APP 557/2010, LA.APP 558/2010^^.API^559/201Q.LA.APP 560/2010, LA.APP 561/2010. LA.APP 562/2010, LA.APP 563/2010, LA.APP 564/2010, LA.APP 565/2010. LA.APP 567/2010. LA.APP 568/2010, LA.APP 569/2010. LA.APP 570/2010. LA.APP 571/2010, LA.APP 572/2010. LA.APP 573/2010. LA.APP 574/2010. LA.APP 575/2010, LA.APP 576/2010. LA.APP 770/2011. LA.APP 771/2010, LA.APP 772/2010, LA.APP 773/2010. LA.APP 774/2010.. LA.APP 775/2010, LA.AppNo.608/2009&Connectedmatters 1^ LA.APP 805/2010. LA.APP 822/2010. LA.APP 824/2010 & CM No.10333/2011fcross-obiection).LA.APP 864/2010.LA.APP 901/2010, LAAPP 902/2010, LA.APP 962/2010, LA.APP 1014/2010. LA.APP 1015/2010: LA.APP 1016/2010. LA.APP 1027/2010. LA.APP 1032/2010.LA.APP 1035/2010.LA.APP 1037/2010.LA.APP 1038/2010 & CM No. 12952/2011 (cross-obiections). LA.APP 1039/2010 (CM No.12875/2011 & CM No.12876/2011 (cross objections). LA.APP 154/2011. LA.APP 158/2011. LA.APP 274/2011, LA.APP 368/2011, LA.APP 379/2011. LA.APP 384/2011 & LA.APP 411/2011 (Relating to NotificationNo. F.N6.1l(36)/94-L&B/LA/5722dated. 5^'' April, 1995 issuedunder Section4 ofthe Land AcquisitionAct, 1894 & Award No. 19/97-98,Village-Shahpur Garhi, Delhi) COl^M: HON'BLE MR. JUSTICE SUNIL GAUR - • ORDER W

23.12.2011 • -

¶1The above captionedappeals arise out of Award No.19/97-98 of the concernedLand AcquisitionCollectorpertainingto the agricultural land in the revenue estate of Village-Shahpur Garhi, Delhi, which was acquired by the respondentvide Notification-of 5"^ April, 1995 under Section 4 of the Land AcquisitionAct, 1894. The market price of the acquired land in question was determined by the Land Acquisition Collector(§ ^8,01,600/-per acre or ^1,67,000/-per bigha.

¶2In the Referencesought under Section 18 of the Land Acquisition Act, 1894 by the claimants/ land owners i.e. the appellants, the Reference Court has enhanced the compensation to ^8,16,720/- per acre. Not satisfied with the aforesaid enhancement of ?15,120/- per acre for the acquired land, appellantshave come up in these appeals to seek much higher compensationi.e. enhanced compensation@ f'lOO/- per square yard.

¶3For development of Freight Complex in Narela Project, vide Notificationof 5"' April, 1995, under Section4 of the Land Acquisition LA.App No.608/2009 &Connectedmatters Page 2 % /V Act, alargeareaofagriculturallandmeasuring733 bighasand 10 biswas of Village-ShahpurGarhi, Delhi was acquiredby the respondents.The factual details disclosing as to how in pursuance to the aforesaid Notification,AwardNo. 19/97-98cameto be passedand the substanceof the evidenceled beforethe ReferenceCourtstandsnotedin the impugned judgmentand is not requiredto be recapitulated.

¶4Beforethe ReferenceCourt^ assessmentofthe marketvalue ofthe acquiredland in questionwas soughton the basis ofDDA predetermined rate of the.year 1992-93pertainingto NarelaResidentialSchemeand on the strengthofDSIDC approvedlandrate for allotmentofplotsin Narela IndustrialComplex,which stands negated in the impugnedorder while, relying upon decision of the Apex Court in Union ofIndia Vs., Ram Phool (2003) 10 see 167. On the aspectof potentialityof the acquired land in question being near the developed land, Reference Court has extensivelyrelied upon DivisionBench decisionof this Court in Gajraj Singh Vs. Union of India 2006 VI AD (Delhi) 13 in maintaining enhancement@11.5% from the effectivedate of governmentpolicy of fixing minimum price,of agriculturallands in Delhi, till Notification under Section4 of the Land AcquisitionAct was issued. Notingthat the boundary of ViWdigQ-Shahpur Garhi touches the boundary of Village-HolambiKalan,ReferenceCourtin the impugnedjudgmenthas assessed the compensationin the instant case on,the basis ofthe compensation, assessedby this Courtin GajrajSingh (Supra)relatingto Notificationof 15^'' November, 1996, under Section 4 of Land AcquisitionAct, 1894,' 'A\ pertainingto Village Kalan.

¶5In these appeals,at the final hearing,the counselspresenton behalf ofthe appellantsas well as seniorcounselfor the respondentswere heard and with their assistance,the impugnedjudgment and the record was LA.AppNo.608/2009&Connectedmatters' Page3 ' U perused. Since the submissions advanced by both the sides in these appeals were common, therefore, with the consent of learned counsel for the parties, these appeals and cross-objections are being decided by this common order.

¶6The grounds of challenge to the Award of Land Acquisition Collector before the Reference Court are being noticed herein, for the reason that the same very grounds have been urged in these appeals on behalf of the appellants. These are:- 'i) That LAC has given very low rate of market value though the land of the petitioner has got potential value as the land of the petitioner is surrounded by the biggest colony of Asia namely Rohini and the land was acquired for the commercial activities; %

ii) that LAC has not taken into considerationthat land has been acquired for commercial activities such as for setting of freight complex, therefore, market value of the land should be fixed at the rate of Rs.5,000/- per sq.meter.

iii) that his land is •situated quite close to the residential area of Narela and DSIDC Complex due to which his land has more potential value;

iv) that land of the petitioner is between two roads including a national highway i.e. Govermnent Karnal Road, and Delhi Narela Road, therefore, it has great potentiality for residential and commercial puiposes; that palatial farm house has been constructed in the same revenue estate in which land of the petitioner has been situated;

v) that land of thepetitioneris fiilly developedand has all the modern facilities/necessitiesi.e. telephone, electric, connection,water supply, public schools and SSN College and most frequent service of DTC buses and other private transport.'

¶7In substance, aforesaid grounds are the submissions advanced on behalfofthe appellantsbeforethis Courtto challengethe impugnedorder ofthe ReferenceCourt.Undisputedly,the land use ofthe acquiredland in LA.AppNq.608/2009&. Connectedmatters Page4 I ji ill HIsI I I question was agricultural at the time of issuance of Notification under Section4 of Land AcquisitionAct in question.The main ground to seek enhancementof compensationput forth on behalfof the appellantsis the potentialvalue of the land in question.Thoughthe standof the appellants herein before the Reference Court was that the land in question is strategicallylocatedfrom the commercialand industrialpointof view, as it is just two kilometres away from Narela Green Mandi and three kilometresaway from DSIDC IndustrialComplexand that it has a great marketvalueand potentiality,as ithas been acquiredfor the development of Rohini Residential Scheme.

¶8Appellants claim that acquired land is in close proximity of IndustrialArea developedby DSIDCand residentialcolonydevelopedby DDA, and they rely upon Letterof Allotment(EX. PW-l/A)of a plot in NarelaIndustrialComplex@?650/-per squaremeterin the year 1990 by DSIDC. It is also claimed by the appellantsthat allotmentof alternate plot under the NarelaResidentialScheme by DDA in the year 1992-93, was available@ ^650/- per square meter as per demand cum allotment letter (EX. PW2/1). Thus, seeking parity with aforesaid rates of developed lands, enhancement in compensation is sought by the appellants.

¶9On the factual aspect, it stands noted in the impugnedjudgment that the land of the villages adjoiningthe village in question,including village-Holambi Kalan, has been acquired for the development of industrialarea and Narelaresidentialarea in Narela. Concedingthat the acquiredland is in proximityofthe industrialarea developedby DSIDC, learnedseniorcounselfor the respondenthas clarifiedthat the purposeof acquisitionofthe land in questionis solelyfor the developmentoffreight complex in Narela. However, it was disputed that the acquiredland in LA.App.No.608/2009&Connectedmatters Page 5 1^ .. • n-;; ST ' question is suiTounded by any developed colony and thus, it was contended that the appellants cannot claim enhancement. of the compensation by relying upon the rate of land in Narela Industrial Complexorunderthe NarelaResidentialSchemefloatedbyDDA. In this regard reliancewas placed upon the decisionof the Apex Court in Lai Chand Fs. Union of India & Anr. (2009) 15 SCC 769. Reliancewas also placed upon a decision of a Coordinate Bench of this Court in LA.APP 266/2008Jai Singh Vs. Union of India & Anr. , renderedon 23"' August, 2011, wherein in relation to this village,,pertainingto an •: " acquisition of land vide Notification of 16^*" May, 2002, amount of compensationwas determined at ?18,65,500/-per acre while relying % uponaDivisionBenchdecisionofthis Courtin GajmjSingh Vs. Union o/7/irf/rt2006 IV AD(Delhi) 13.

¶10Even in the impugnedjudgment,in the absence ofsale instances, Refeience Court has relied upon Gajraj Singh (Supra), wherein pertainingto acquisitionof the land of the adjoiningvillage-Holambi Kalan, in relation to. Notification of 15^'' November, 1996, the compensationdeterminedwas @ ?9,76,121/-per acre, for A Category land and @^9,51,121/-per acre for BCategoryland.

¶11ReferenceCourt has rightly concludedthat grounds of challenge laid to the Award, as noted in paragraphNo.6 herein above, againstthe Award in question,remainsunsubstantiatedby the appellants. '

¶12While relying upon two decisions of the Apex Court in Bhim Singh Vs. StateofHaiyana (2003) .10 SCC 529 &Union ofIndia Vs. Ram Phool (2003) 10 SCC 167, claim of the appellants^,toapply DDA and DSIDC rates to the land in questionstands repelledby holdingthat no willingpurchaserwould buy agriculturallandin questionat the rate on whichgovernmentis allottingdevelopedland. LA.AppNo.608/2009&Connectedmatters ^ ^ Pag^

¶13During the course of hearing, learned counsel for the appellants were not able to show that the aforesaid decisions are inapplicable nor any decision to the contrary was cited. Lifact, Apex Court in its recent decision in Lai Chand Vs. Union of India (2009) 15 SCC 769 has reiterated in no uncertain terms that the rates for allotment of developed land by the DDA cannot be the basis for calculationof the marketvalue of the acquiredundevelopedlands. The pertinent observationsmade in paragraphs No.44 & 48 in Lai Chand (Supra), which deserves to be highlighted, are as under '44. One of the recognized methodsfor determination ofmarketvalue is with referenceto the opinionofexperts. The estimation of market value by such statutorily constituted Expert Committees,as, expert evidencecan thereforeform the basis for determining the market value in land acquisition cases, as a relevant piece ofevidence. It will be however open to either party to place evidence to dislodge the presumption that mayflowfrom such guideline market value. We, however, hasten to add that the guideline market value can be a relevant piece of evidence only if they are assessed by statutorily , appointed Expert Committees, in accordance with the prescribed assessment procedure (either streetwise, or roadwise, or areawise, or village-wise) and finalized after inviting objections and published in the gazette. Be that as it may.

¶48Even if the relied upon transaction is only tM'o to three years prior to the acquisition, the Court should, before adopting a standard escalation, satisfy itself that there were no adverse circumstances.For example, if the acquisition is of the year 2009, it may not be possible to determine the market value, based on the 2007 or 2008 prices, by providing an increase of 12% or 15% per year, as the newspaper reports disclose that the price of immovable properties in most areas of the countiy 'came down by more than 40% to 50%from, the 2007 rates. Caution is therefore necessary before increasing the price Mnth reference to the old transactions. Be that as it may. It is clear that the award made in regard to a 1961 acquisition will not be of any usefor determining the market value for a 1981 acquisition.' LA.App No.608/2009 & Connected matters Page 7 V

¶14The aforesaid decision of the Apex Court in Lai Singh (Supra), has been followed by a Coordinate Bench of this Court in Jai Singh (Supra), .• which also applies on all fours in these matters as well. .

¶15On the potentiality aspect, neither the map / sizra (EX. PW3/A) nor any other evidence, establishes that apart from the DSIDC, there is any development in the vicinity of the acquired land. As already observed above, no sale instancesof the nearby area are forthcomingto depictthe potentiality of the area in question. It has to be kept in mind that the land in questionhas been acquiredfor developmentof the freightcomplexand ;f. not for the developmentof a residentialarea. Except the oral assertionof the appellants/claimantsthat the acquiredland is for the developmentof % 'theRohiniResidentialArea,thereis no tangibleevidenceto establishthis factual .assertion.

¶16Cross objectionsfiled by the respondentsto maintain the rate of compensationfixed by the Land AcquisitionCollectorand not to adopt the ratio of decisionin Gajraj (Supra), are found to be withoutsubstance for the reason that undisputedlyGajraj (Supra) has attainedfinalityand becauseit has not been shown by the respondentsas to how this decision of the Division Bench,ofthis Court has been wrongly applied by the ReferenceCourt to the facts of the instant cases. Rather, I find that the ReferenceCourthas correctlyreliedupon the decisionin Gajraj(Supra), to arriveat the correctmarketvalueofthe acquiredlandin question.

¶17Since the decision of the Division Bench of this case in Gajra.} (Supra), has attained finality and it is the basis of the decision of a CoordinateBenchofthis Courtin Jai Singh (Supra),and is also the basis of the impugned order, therefore,I find no infirmityin the impugned order, adoptingthe rate of compensationas fixed by DivisionBench of .this Court in Gajraj (Supra),in the matterof adjoiningvillage-Holambi LA.App No.608/2009 & Connected matters Page 8 I1 r>" , -IP Kalan. Even the reductionof the rate of compensationassessed@11.5% compoundinterestfrom the date of Notificationof 15"' November, 1996 in Gajraj (Supra) Xo date of Notificationof 5"' April, 1995 in the instant case is concerned, I find the same to be in conformity with the decision in Gajraj (Supra), wherein annual compounding @11.5% has been approved.

¶18As neither side could find fault in the impugned judgment determiningthe market value of the land in question@?8,16,720/-per acre, therefore,the appealsof the claimantas well as cross-objectionsof the respondentsare dismissed,with no order as to costs. Accordingly,all the above-mentionedappeals and cross-objectionsare disposed of with 'direction to the Registry to remit the compensation amount, if any, depositedby either side with the RegistrarGeneral of this Court, to the concerned Reference Court. Becember 23, 2011 rs LA.App No.608/2009 & Connected matters JUDGE Page 9

to % IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 8'^ November, 2011 Pronounced on: 23'^'^December, 2011 + 130/2010, :LA.APP 176/2010 & CM No. ^ -*• ^ ^ ^ ^ -- 12873/2011, LA.APP 177/2010, LA.APP 179/2010, LA.APP 184/2010, LA.APP 214/2010, LA.APP219/2010. LA.APP 229/2010, LA.APP233/2010, LA.APP 234/2010, LA.APP 235/2010, LA.APP 236/2010, LA.APP 237/2010, LA.APP 240/2010, LA.APP 241/2010, LA.APP 255/2010, LA.APP 256/2010 & CM No. 12934/201] L (cross obiections), LA.APP 257/2010, LA. APP. 258/2010, LA. APP /2010, LA.APP 271/2010, LA.APP 413/2010, LA.APP 414/2010, LA.APP 415/2010, LA.APP 416/2010, LA.APP 417/2010 & CM No.3584/2011 (cross objections), . LA.APP 419/2010, LA.APP 425/2010, LA.APP 453/2010, LA.APP 546/2010, LA.APP 547/2010, LA.APP 548/2010, LA. APP 549/2010, LA.APP 550/2010, LA.APP 551/2010, LA.APP 552/2010, LA.APP •553/2010, LA.APP 554/2010, LA.APPl[555/2010,1LA.APP 556/2010, LA.APP 557/2010, LA.APP 558/2010, LA.APP 559/2010, LA.APP 560/2010, LA.APP 561/2010, LA.APP 562/2010, LA.APP 563/2010, LA.APP 564/2010, LA.APP 565/2010, LA.APP 567/2010, LA.APP 568/2010, LA.APP 569/2010, LA.APP 570/2010, LA.APP 571/2010, LA.APP 572/2010, LA.APP 573/2010, LA.APP 574/2010, LA.APP 575/2010, LA.APP 576/2010, LA. APP 770/2011, LA.APP 771/2010, LA.APP 772/2010, LA.APP 773/2010, LA.APP 774/2010, LA.APP 775/2010, LA.APP 805/2010, LA.APP 822/2010, LA.APP 824/2010 & CM No.10333/2011 (cross-obiection). LA.APP 864/2010, LA.APP 901/2010, LA.APP 902/2010, LA.APP 962/2010, LA.APP 1014/2010, LA.APP 1015/2010, LA.APP 1016/2010, LA.APP 1027/2010, LA.APP 1032/2010, LA.APP 1035/2010, LA.APP 1037/2010, LA.APP 1038/2010 & CM No.12952/2011 (cross-obi ections), LA.APP 1039/2010 (CM No.12875/2011 & CM No. 12876/2011 (cross objections), LA.APP 154/2011, LA.APP 158/2011, LA.APP 274/2011, LA.APP ,168/2011, LA.APP 379/2011, LA.APP 384/2011 & LA.APP 411/2011 (Relating to Notification No. F.No.l l(36)/94-L&B/LA/5722 dated LA.App No.608/2009 & Connected matters Page 1 Certify that the digital file and physical file have been compared and the digital data is as per the physical file and no page is missing. 5*'' April, 1995 issuedunderSection4 ofthe Land AcquisitionAct, 1894 & Award No. 19/97-98, Village- Shahpur Garhi, Delhi) Present: Mr. Deepak Khosla & Mr. V.P. Rana, Advocates for appellants. Mr. Sanjay Podar, Senior Advocate with Mr.Sanjay Kumar Pathak, Ms. K.Kamoudi Kiran, Mr. Mohit Rao Jadhav & Ms. Navlin Swain, Advocates. CORAM: HON'BLE MR. JUSTICE SUNIL GAUR