CHARAN SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) IN order to rehabilitate slum dwellers of Kumhar Colony in Sector 25, Chandigarh, the Chandigarh Administration issued notification dated 13.6.1980 under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred it as the Act), acquiring an area measuring 1341 acres of land in village Dadu Majra. Notice under Section 9 of the Act was issued on 18.6.1980. Its perusal reveals that the land was being acquired for development of the city of Chandigarh. The Land Acquisition Collector, Chandigarh allowed compensation of the claimants @ Rs. 33,000/- per acre by his award dated 23.7.1980.

(2.) DISSATISFIED with the quantum of compensation determined by the Land Acquisition Collector, Chandigarh, applications were filed under Section 18 of the Act for enhancement of compensation. The Reference Court accepted the claim petitions filed by the land owners by holding that they were entitled to compensation @ Rs. 70,000/- per acre, besides solatium @ 15% per annum on the enhanced amount of compensation and 6% interest per annum on the amount payable from the date of taking over possession till the date of realisation.

(3.) ORDINARILY , compensation for land acquired under the Land Acquisition Act, is based on the market value of the acquired land, which is determined by calculating the average value of land, from sale transactions of similar land, in close proximity of time (relatable to the notification under Section 4 of the Act). In the instant case, however, learned counsel for the land owners had not relied on any sale transaction whatsoever in order to canvass the claim of the appellant for higher compensation. He has merely relied upon Ex. P-2 to P-4. Exs. P-2 and P-3 are judgments rendered by this Court, whereas, Ex. P-4 is a judgement rendered under Section 18 of the Act by a Reference Court. The common factor in Exs. P-2 to P-4 is that they all deal with the determination of compensation for lands acquired out of the villages surrounding Chandigarh for the development of the city of Chandigarh.