Sale Deeds Executed After Acquisition Notice Cannot Be Used To Inflate Land Value: HP High Court

The Himachal Pradesh High Court has held that sale deeds executed after the issuance of the acquisition notification could not be used for determining market valueThe Court remarked that only sale deeds executed before acquisition notification could be relied upon for assessment of fair market value and the sale deeds executed later are often for the purpose of showing increased land prices. Justice Romesh Verma remarked that: “The documents and exhibited sale deeds… are subsequent to the issuance of notification… the possibility of these sale-deeds being for the purpose of inflating the price cannot be ruled out.” The dispute arose when the State acquired land in District Hamirpur, for the construction of a water supply scheme. The notification for land acquisition was issued in 1999 and thereafter in 2002 award was passed for fixing of compensation rates. Aggrieved from the land acquisition award, the landowners filed a reference petition under Section 18 seeking enhancement of market value which was increased. Challenging the enhanced market value, the State approached the High Court, contending that the reference petition was time barred as it was filed 9 years after the award. In response the landowners contended that they became aware of the land acquisition in December 2005 and filed reference in february 2006. The Court remarked that the limitation period for filing reference petition begins from the day affected party gets to know about the essential contents of the award, not from the date the award is passed. Further the Court observed that: “No evidence of any sort has been led by the State to establish that the respondents were having actual or constructive knowledge about the award.”Thus, the Court upheld the reference court's award and dismissed both the State's appeal and the landowners cross-objections. Case Name: Secretary (IPH) & ors. v/s Mangak Devi (died and deleted) & ors.Case No.: RFA No. 233/2017 and C.O. No. 24/2022Date of Decision: 07.11.2025For the appellants: Mr. J.S. Guleria, Dy. A.G. For the Respondents: Mr. Bhuvnesh Sharma, Sr. Advocate with Mr.Shekhar Badola and Mr. Parv Sharma, Advocate for respondents No.2 to 4, 5(a), 5(b), 6(a) and 6(b).Click Here To Read/Download Order

Sale Deeds Executed After Acquisition Notice Cannot Be Used To Inflate Land Value: HP High Court

Mehak Aggarwal

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