LAL CHAND Vs. UNION OF INDIA

JUDGEMENT

(1.) This batch of appeals arise out a common judgment dated 27.4.2006 of the High Court of Delhi in RFA No.751/1994 (Jas Rath vs. Union of India) and other connected cases. They relate to determination of market value in regard to lands situated at village Rithala on the outskirts of Delhi, acquired for (i) construction of a supplementary drain; (ii) construction of sewage treatment plant; (iii) re-modelling of Nangloi drain; and (iv) planned development of Delhi. The said four acquisitions were initiated under notifications dated 13.2.1981, 20.2.1981 13.3.1981 and 31.12.1981 issued under section 4(1) of the Land Acquisition Act, 1894 ("LA Act' for short). The extent of lands acquired and compensation awarded are as under: <FRM>JUDGEMENT_1047_TLPRE0_2009_1.html</FRM>

(2.) The awards of the reference court were challenged by the landowners. The appeals were decided by the Delhi High Court by judgment dated 4.9.2001 awarding Rs.67000 per bigha in regard to lands covered by notifications dated 13.2.1981, 20.2.1981 and 13.3.1981 and Rs.73,584 per bigha in regard to lands covered by notification dated 31.12.1981. For arriving at the said market value, the High Court relied upon the allotment rates of Delhi Development Authority for plots shown in its Brochure issued on 9.2.1981 in respect of Rohini Residential Scheme (Phase-I), formed by acquiring part of Rithala village and surrounding villages. The provisional rates of allotment given in the said brochure were Rs.100, Rs.125, Rs.150, and Rs.200 per sq. m. respectively for plots of the size of 26,32,48,60 and 90 sq. m. The High Court took the average of those allotment rates as Rs.150 per sq. m. Having regard to the fact that the said rate was the premium for allotment on leasehold basis, the High Court inferred that the freehold market value of the said plots would be at least double, that is Rs.300 per sq. m. Taking note of the fact that considerable expenditure would have been involved for developing the plots, the High Court took the wholesale price of freehold plots as Rs.200 per sq. m. and after deducting 60% towards the cost of development and area required for roads etc., determined the market price at Rs.80 per sq. m. (or Rs.67/- per sq. yd.). The said rate was awarded as compensation for the first three acquisitions. In regard to land acquired under the last notification (dated 31.12.1981) it provided an increase of 12% per annum and arrived at the market value as Rs.73 per sq. yd. This worked out to Rs.67,536 per bigha in regard to the first three acquisitions and Rs.73,584 per bigha in regard to the last acquisition.

(3.) Feeling aggrieved the claimants as well as the Union of India filed appeals before this Court. This court by a common judgment dated 7.9.2005 Ranvir Singh v. Union of India, 2005 12 SCC 59 allowed the appeals, set aside the judgment of the High Court and remanded the matter to the High Court for determination of the market value afresh. This Court held :