No Cumulative Rate Of Increase In Value Can Be Granted When There Is Short Gap Between Sale Deed & Land Acquisition Notice: HP High Court
The Himachal Pradesh High Court has held that when the gap between the sale transaction date and the land acquisition notification is short, a cumulative rate of increase cannot be granted while assessing the market value of the land.The Court remarked that since the sale deed and the acquisition notification were issued within a period of nine months, no cumulative rate of increase could...
The Himachal Pradesh High Court has held that when the gap between the sale transaction date and the land acquisition notification is short, a cumulative rate of increase cannot be granted while assessing the market value of the land.
The Court remarked that since the sale deed and the acquisition notification were issued within a period of nine months, no cumulative rate of increase could be allowed while assessing the market value.
Justice Kukreja remarked that: “Therefore, in view of the very small gap between the date of issuance of the notification and the date of execution of the sale deed, while assessing the market value of the land, no cumulative rate of increase can be granted”
The land of the appellants, located in the village of Kandaghat, was acquired by the State of Himachal Pradesh for the construction of a road. The notification under Section 4 of the Land Acquisition Act, 1894, was issued on 15 February 2000.
Initially, the compensation awarded by the Land Acquisition Collector varied, ranging from ₹17,50,000 per bigha to ₹84,000 per bigha.
Aggrieved, the landowners sought reference under Section 18, and the Reference Court enhanced compensation to a flat rate of ₹1,40,000 per bigha, along with statutory benefits.
Still dissatisfied, the appellants filed appeals before the High Court under Section 54 seeking enhancement to ₹5,00,000 per bigha.
The appellants contended that the Reference Court did not consider that the land's proximity was near to industrial area and a national highway, and it failed to determine the correct market value.
Case Name: Bhagwan Dutt & others v/s State of H.P. & others
Case No.: RFAs No.853 of 2012 & 149 of 2021
Date of Decision: 06.11.2025
For the appellants: Mr. P.S. Goverdhan, Senior Advocate, with Mr. Rakesh Thakur, Advocate
For the Respondents: Mr. Balvinder Singh Ballu, Deputy Advocate General.