“There is no straight jacket formula for determining the exemplar as it depends on the comparability of each case, which is for the court to analyze based on the evidence available on record,” the Supreme Court said recently. The Court bench was disposing of a set of appeals filed by appellants, who had been divested of their land either fully or in part for construction of an Express Highway for the benefit of others. “The process, to compensate the appellants with a just and fair quantum of money instead of being on the fast track, has been tardy. It is a couple of years short of two decades from the date of the preliminary notification and the appellants are still litigating to receive what is rightfully due to them,” the bench observed.
The appellants were before the Court for the second time, and their lands were notified under the Land Acquisition Act, 1894, for the construction of Express Highway Phase VII in Gurugram. The market value was fixed by the District Revenue OfficercumLand Acquisition Collector, Gurgaon, at Rs.12,50,000/ per acre. The Reference Court enhanced it to Rs.43,17,841/ per acre, which was further enhanced by the High Court to Rs.62,11,700/ per acre.
The Supreme Court remanded the cases to the Reference Court in 2018 for fresh evidence and a new decision. The Reference Court determined the market value at Rs.22,00,754/ per acre, which was modified by the High Court to Rs.14,52,010/ per acre, and the land losers appealed to the Supreme Court for further enhancement of the market value.
The Court observed that the acquisition notification was issued for a large extent of land, but the majority of landowners had a small extent of land. In the case of large extents of agricultural land sold for agricultural purposes, the price would be based on the nature of the land and the purpose for which it is used. To arrive at the market value, the capitalization method could be adopted, or the market value could be determined based on comparable exemplars.
“The difficulty arises when a person holds a smaller extent of land, classified as agricultural land but unfit for cultivation and more suitable for non-agricultural purposes due to urbanization. In such cases, the land must be treated as having non-agricultural potential for urban use. Therefore, the location and extent of land held by each landowner who is a part of the same acquisition must be kept in view while determining the appropriate exemplar,” the Court said.
In its order, the Supreme Court set aside the judgment passed by the High Court and restored and modified the judgment passed by the Reference Court and ordered the market value of the acquired land was ordered to be Rs. 25,20,000/- per acre, payable with statutory benefits and the costs incurred throughout by the appellants. The appeals were allowed in part.