Fair Compensation To Land Losers Is Matter Of Justice, Award Must Reflect Road Access & Locational Advantages: J&K&L High Court
LIVELAW NEWS NETWORK
23 Feb 2026 3:00 PM IST
Emphasising that land acquisition compensation cannot be determined in a mechanical manner divorced from realities on the ground, the High Court of Jammu & Kashmir and Ladakh has held that it is ultimately in the interest of justice that land losers are awarded fair compensation, taking into account accessibility to roads, locational advantages and surrounding development.
Underscoring that courts must ensure a just and realistic assessment of market value based on evidence and settled legal principles Justice M A Chowdhary accentuated that it is ultimately in the interest of justice that land losers are awarded fair compensation, taking into account accessibility to roads, locational advantages and surrounding development.
The Court made these observations while enhancing compensation payable to landowners whose land was acquired for construction of a Government Degree College at Thanamandi.
The case arose out of the acquisition of 38 kanals and 10 marlas of land situated at District Rajouri. The acquisition process was initiated in August 2005 on the request of the Higher Education Department for establishment of a Government Degree College.
The Collector Land Acquisition assessed compensation at ₹1.50 lakh per kanal, which the landowners accepted under protest. Seeking enhancement, the landowners moved a reference under Section 18 of the Land Acquisition Act. The Reference Court partly allowed the claim and enhanced the compensation to ₹3.00 lakh per kanal along with statutory benefits. Dissatisfied even with this enhancement, the landowners approached the High Court.
Counsel for the appellants, Mr. M.I. Sherkhan, Advocate, argued that the acquired land fell within municipal limits of Thanamandi, was abutting the Thanamandi–Shahdra Sharief Road and possessed substantial commercial and agricultural potential. It was submitted that the land was plain, fertile and located near Army establishments, educational institutions and other important structures.
It was contended that the Reference Court failed to properly appreciate the oral evidence of landowners, Patwaries and the Tehsildar, as well as registered sale deeds of the years 2005 and 2006, which reflected rates ranging from about ₹3.33 lakh to ₹6.00 lakh per kanal. According to the appellants, the prevailing market value was much higher and the compensation awarded remained unjust.
Court's Assessment:
After examining the entire evidence on record, the High Court found that the Reference Court had erred in not giving due weight to the oral and documentary evidence led by the landowners. The Court noted that even the revenue officials had acknowledged that the land was situated along a road, within municipal limits, near Army headquarters and educational institutions, and had both productive and commercial value.
Rejecting the State's emphasis on distance from the district headquarters, the Court observed,
“Distance from one place to another is immaterial, particularly in the face of the commercial value of the place where the land has been acquired.”
Relying on settled Supreme Court jurisprudence, the High Court reiterated that the comparable sales method is the preferred and most reliable method for determining market value. Sale deeds executed around the time of acquisition, relating to land in the vicinity and possessing similar advantages, provide the best guidance for valuation, the court underscored.
The Court further observed that while abnormally high or low sale instances must be discarded, averaging of prices is permissible where several comparable transactions of the same locality and period are available, in order to arrive at a fair and reasonable market value.
Spotlighting the underlying objective of land acquisition law, the bench explained,
“Ultimately, it is in the interest of justice for the land losers to be awarded fair compensation. All attempts should be taken to award fair compensation to the extent possible on the basis of their accessibility to different kinds of roads, locational advantages, etc.”
Taking note of two comparable sale deeds indicating rates of approximately ₹3.33 lakh per kanal and ₹6.00 lakh per kanal, the High Court assessed the just and fair market value by taking their mean. The compensation was accordingly fixed at ₹4.67 lakh per kanal.
The findings of the Reference Court were set aside, and the landowners were held entitled to compensation at the enhanced rate of ₹4,67,000 per kanal, along with 15% compulsory acquisition charges (Jabrana) and 6% simple interest from the date possession of the land was taken, after adjusting the amount already received.
Case Title: Mumtaz Ahmad Vs Collector Land Acquisition Rajouri
Citation: 2026 LiveLaw (JKL)