Supreme Court overturns High Court decision on land compensation, highlights evidence importance

The Supreme Court reviewed the Punjab and Haryana High Court's decision on compensation for land acquired by HSIIDC for an Industrial Model Township. The High Court's differential compensation was deemed discriminatory without a clear rationale. The Supreme Court criticized the flat annual increase method and highlighted the importance of considering relevant evidence. Maruti Suzuki was permitted to intervene due to land allotment. The Supreme Court set aside the High Court's judgment, directing fresh disposal of appeals and payment of balance compensation to landowners within four months.

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Issues Involved:
1. Quantum of compensation payable to the landowners.
2. Discrimination in awarding compensation.
3. Method of calculating annual increase in compensation.
4. Consideration of relevant evidence in determining compensation.
5. Impleadment of interested parties.

Summary:

Quantum of Compensation:
The Supreme Court reviewed the decision of the Punjab and Haryana High Court, which had enhanced the compensation for landowners from Rs. 28,15,356 per acre to Rs. 37,40,000 per acre. The land was acquired by the Haryana State Industrial Development Corporation Limited (HSIIDC) for establishing the Industrial Model Township (IMT) at Manesar.

Discrimination in Awarding Compensation:
The High Court awarded higher compensation to M/s. Kohli Holdings Private Limited at Rs. 1,02,55,960 per acre due to its special locational advantage. The remaining landowners were awarded Rs. 37,40,000 per acre. The Supreme Court found this discriminatory as no discernible reason was given for the differential treatment.

Method of Calculating Annual Increase:
The Supreme Court criticized the High Court for granting a flat annual increase of 12% for most landowners and 15% for M/s. Kohli Holdings Private Limited. The Court emphasized that the increase should be cumulative, not flat, as established in *Oil and Natural Gas Corporation Limited v. Rameshbhai Jivanbhai Patel*.

Consideration of Relevant Evidence:
The High Court failed to consider Exhibit PW9/A dated 23.11.1999, which indicated that HSIIDC had allotted land to M/s. Honda Motorcycles and Scooters India (Private) Limited at Rs. 1254.18 per square yard. This document was crucial for determining the market value of the acquired land, which would be much higher than Rs. 37,40,000 per acre if considered.

Impleadment of Interested Parties:
Maruti Suzuki India Limited (Maruti Udyog Limited) argued that they should have been impleaded as a party since they were allotted 600 acres of the acquired land. The Supreme Court allowed Maruti Udyog Limited to file an application for impleadment or to act as an intervener in the appeals before the High Court.

Conclusion:
The Supreme Court set aside the High Court's judgment and remitted the matter for fresh disposal of the appeals and cross objections. The High Court is to decide the matter uninfluenced by the observations of the Supreme Court. The State Government/HSIIDC is directed to pay the balance compensation of Rs. 9,24,644 per acre to the landowners within four months, following the procedure laid down in the interim orders.

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