Allahabad High Court's big decision in land acquisition case, increased compensation amount

News Topical, Digital Desk : The Allahabad High Court, in a significant decision in a land acquisition case, ruled in favor of farmers and landowners that landowners should receive compensation based on the highest market value for their land. The court has revised and increased the amount previously set by the court.

The court has now fixed the compensation amount at a new rate of 17,062 per biswa, up from 26,624 per bigha previously. This order was passed by a single bench of Justice Sandeep Jain during the hearing of the case, Roop Narayan vs. Uttar Pradesh State Electricity Board.

what is the whole matter

Approximately 6 bighas (2 biswas) of land belonging to Roop Narayan, a resident of Natwa village in Mirzapur district, was acquired by the State Electricity Board for the construction of a 220 kV substation. In his award dated September 28, 1993, the collector fixed compensation at ₹26,624 per bigha. Additionally, payments for the well, house, and trees on the land were set at ₹3,076, ₹13,600, and ₹10,680, respectively.

Landowner's objection and appeal

Roop Narayan initially challenged the Collector's order before the Special Judge (Land Acquisition) in Mirzapur, calling it inadequate. However, on August 8, 2007, the court upheld the compensation. The landowner subsequently challenged this decision in the Allahabad High Court, arguing that the compensation was not adequate, commensurate with the land's actual market value.

Arguments put forward in the High Court

The landowner argued that compensation should be determined based on the value recorded in the sale deeds of the surrounding lands at the time of acquisition. Citing the principle laid down in Mehrawal Khewaji Trust v. Manohar and Others, the court held that if multiple sale deeds are available, the landowner is entitled to compensation based on the sale deed with the highest value.

Allahabad High Court decision

The court considered three sale deeds, which showed prices of ₹34,125, ₹25,000, and ₹25,000 per biswa, respectively. The court considered the highest rate of ₹34,125 as the standard rate, but, given that the land was for a small plot (4 biswas), a 50% deduction was applied based on the principle of Hormal v. State of Haryana. The court then determined the market value of the acquired land at ₹17,062.50 per biswa.

final court order

The High Court allowed Roop Narayan's appeal and directed that the landowners be paid the revised compensation rate, along with the benefit of 12% annual additional compensation and interest under the Land Acquisition Act. 

However, the court did not change the compensation for the well, house, and trees because the landowners could not provide any concrete evidence. This decision not only provides relief to farmers like Roop Narayan, but will also serve as a precedent for future land acquisition cases.

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