SURINDER AHUJA & ANR. v. STATE OF PUNJAB & ANR.
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Judgment
2026 INSC 1068 REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.3800-3803 OF 2026
SURINDER AHUJA & ANR. ...APPELLANTS
VERSUS
STATE OF PUNJAB & ANR. …RESPONDENTS
WITH CIVIL APPEAL NOS.3804-3820 OF 2026 CIVIL APPEAL NOS.3821-3827 OF 2026 CIVIL APPEAL NOS.3828-3834 OF 2026 CIVIL APPEAL NOS.3835-3840 OF 2026 CIVIL APPEAL NOS.3841-3846 OF 2026
JUDGMENT
SHEEL NAGU, J.
1. These civil appeals filed under Article 136 of the
Constitution of India assail common order passed by
Single Bench of the High Court of Punjab and Haryana
at Chandigarh, rendered on 29.03.2019, whereby the
High Court changed the quantum of compensation from
Signature Not Verified the award of Reference Court in the manner shown in Digitally signed by JATINDER KAUR Date: 2026.09.29
Table 1.3. (infra). 17:39:21 IST Reason:
Page 1 of 50
1.1 We have heard Sh. Ajay Tewari, Senior Advocate for the
appellants and Sh. Sanjay Hedge, Sr. Advocate on behalf
of respondents. Though 195 appeals and 5 cross-
objections were filed by landowners as well as State
before the High Court, but limited number of
landowners are before this Court in these 47 appeals.
The details of which are given below: -
CA No.3800-03/2026 RFA Nos. 3133, 3134 of 2008; RFA Nos.203, 204 of 2009 (qua village Karni Khera) (Distt – Fazilka – Punjab) CA No.3821-27/2026 RFA Nos.3821 to 3827 of 2008 (qua village Odian) (Distt – Fazilka – Punjab) CA No.3828-34/2026 RFA Nos.3256 to 3262 of 2008 (qua village Odian) (Distt – Fazilka – Punjab) CA No.3841-46/2026 RFA Nos.2691, 2695, 2696, 2698 to 2700 of 2007 (qua village Alamshah) (Distt – Fazilka – Punjab) CA No.3835-40/2026 RFA Nos.3660-62, 3664-66 of 2008 (qua village Alamshah) (Distt – Fazilka – Punjab) CA No.3804-20/2026 RFA Nos.224, 226, 230, 234, 235, 2742 of 2007 RFA Nos.610 to 618, 759, 3663 of 2008 (qua village Odian, Kotha, Awa, Salem Shah, Alamshah) (Distt – Fazilka – Punjab)
1.2 Further, these 47 civil appeals pertain to parcels of land
acquired in Village Karni Khera, Village Odian, Village
Awa, Village Kotha, Village Alamshah, and Village Salem
Shah, all in Distt–Fazilka (Punjab), for the public
Page 2 of 50
purpose of constructing Aspal Extension Drain (Ditch
Canal), comprising length of 18.42 Kms. and width
ranging from 264 to 340 feet.
1.3 The acquisition proceedings commenced with issuance
of notifications under Section 4 of Land Acquisition Act,
1894 (herein after referred to as “the Act of 1894”), on
November 14, 2000, and November 24, 2000, followed
by a declaration under Section 6 of the Act of 1894 on
March 2, 2001. Subsequently, the Land Acquisition
Collector (SDM), Fazilka, announced the final award on
August 6, 2001, fixing uniform market rates across the
project area but awarding nil compensation for
severance charges. This inter alia became a point of
dispute as landowners contended that the drain
bifurcated their holdings into unusable fragments.
Different heads of compensation given to six villages as per
LAC, Reference Court and High Court are detailed in tabular
illustration as follows: -
[Table 1.3] S. Village Land LAC Award Reference High Court Award No. Name Acquired (06.08.2001) Court Award (29.03.2019) (In for Chahi (Enhancement respect to
Page 3 of 50
(in Nehri Land in respect to Irrigated Land Acres) (Irrigated Irrigated Land and Severance Land) & Severance Charges) (per acre) Charges) • No • Severance • Fixed Severance charges Severance Charges were charges @40% awarded at • Tubewell different Compensation rates as for shown displacement below @ Rs. • Solatium 50,000/- @30% (for • Solatium fruits, @30% on kothas and market value tubewells)
1. Karni 50.21 Rs. 13.11.2007: Rs. 3,19,000/- Khera 2,25,000/- Enhanced to Rs. 5,00,000/- + Severance charges @ 50% Fruit Bearing Trees Damage Award: Receipt: Surinder Ahuja & Vikramaditya (C.A. 3800-3803 of 2026) – Land Acquisition Collector Award – Rs. 1,01,139.50/- to each; Reference Court Award – Rs. 9 lakh (946 trees) while High Court reduced it to Rs. 5,38,300/- (for 280 trees as pleaded before Reference Court)
2. Odian 51.01 Rs. 17.12.2007: Rs. 2,99,000/- 2,25,000/- Enhanced to Rs. 5,00,000/- + Severance charges @50%
3. Awa 33.14 Rs. 11.10.2007: Rs. 3,39,000/- 2,25,000/- Rs. 3.0 lac (Highway) / Rs. 2.56 lac (Interior). + Severance charges @10%
4. Kotha 15.76 Rs. 11.10.2007: Rs. 3,39,000/- (Katha) 2,25,000/- Enhanced to Rs. 2,56,000/- + Severance charges @10%
5. Alamshah 31.88 Rs. 10.01.2008: Rs. 3,19,000/- 2,25,000/- Enhanced to Rs. 5,00,000/- + Severance charges @50%
Page 4 of 50
6. Salem 46.26 Rs. 18.07.2007: Rs. 2,99,000/- Shah 2,25,000/- Sustained LAC rate (No Enhancement) + Severance charges @10%
2. We have heard the learned counsel for rival parties at
length and have perused the records in detail.
3. We would first like to discuss the reasons assigned for
award of various components of compensation by Land
Acquisition Collector, the Reference Courts and
thereafter the High Court, as follows: -
3.1. Land Acquisition Collector award dated 06.08.2001
A. Market Value: The market value of irrigated land
acquired in respect of the six above-said villages was
assessed by the Land Acquisition Collector to be
Rs.2,25,000/- per acre based on recommendation of the
Committee constituted by Irrigation Department of
Punjab vide letter dated 17.07.2001. The LAC rejected
the landowners’ objection and demands for enhanced
compensation as they failed to produce any
documentary evidence to substantiate their claims.
Page 5 of 50
B. Compensation for fruit-bearing trees: Fruit-bearing
trees were standing only on acquired land at village
Karni Khera. The LAC adopted and relied entirely on the
assessment report submitted by the field staff of the
State Horticulture Department and awarded
Rs.1,01,139.50/- each to Sh. Surinder Kumar and Sh.
Vikram Aditya, without specifying the material for
arriving at the said figure.
C. Severance charges: The LAC did not award any
compensation for severance.
D. Solatium: Solatium was awarded @ 30% on market
value as per the statutory mandate under Section 23(2)
of the Act of 1894.
E. Tubewell compensation: The LAC awarded varied
sums for tubewells and hand pumps physically standing
within the acquired channel boundary. In Village Karni
Khera, Surinder Ahuja was awarded Rs. 5,643/- under
drip spray infrastructure. In Village Odian, landowners
received Rs. 4,559/- per tubewell. In Alam Shah, it
varied from 4848/- to 10567/- per tubewell. In Awa, it
Page 6 of 50
varied from 4559/- to 12320/- per tubewell. The LAC
relied on the field staff report in Form Nos. 1 and 2 while
granting tubewell compensation.
3.2 The award of the Reference Court dated 13.11.2007:-
A. Market Value: The market value of the above-
mentioned six villages as determined by the Reference
Court is as follows: -
a) Karni Khera: The market value was enhanced to
Rs.5,00,000/- per acre.
b) Odian: The market value was enhanced to
Rs.5,00,000/- per acre.
c) Awa: The market value was enhanced to
Rs.3,00,000/- per acre (for lands adjacent to the
highway) and Rs.2,56,000/- per acre (for lands
situated in the interior portion).
d) Kotha: The market value was enhanced to
Rs.2,56,000/- per acre.
e) Alamshah: The market value was enhanced to
Rs.5,00,000/- per acre.
Page 7 of 50
f) Salem Shah: The market value was maintained at
Rs.2,25,000/- per acre.
Reason assigned by the Reference Court for awarding
the above compensation was based on the collective
suburban potential, strategic geographic location, and
demonstrable commercial value of the acquired lands.
To justify the enhancement of the market value, the
Reference Court vide different orders for different
villages, structured its reasoning under three primary
heads:
i. Expansion of Urban Limits and Strategic
Infrastructure Proximity
The Reference Court observed that the boundaries
of the acquired villages lay in immediate proximity to the
municipal limits of Fazilka (ranging between 2 to 2.5 km),
with key city hubs such as the main marketplace. The
urban expansion of Fazilka was spreading directly toward
these lands.
Additionally, the lands lie directly along or near present-
day National Highway 7 (Highway connecting Fazilka
Page 8 of 50
(Punjab) to Mana (Uttarakhand)), which was historically
designated as National Highway No.10 (the main Delhi-
to-Sulemanki Road), and key railway tracks, placing
them in the immediate vicinity of prominent regional
landmarks like BSF Headquarters and M.R. College. This
strategic geographical layout proved the lands possessed
clear, undeniable suburban potential.
ii. Official “Special Village” Classification and
Enhanced Registration Rates
The Court placed significant reliance on testimony
of Tehsil Registration Clerk (PW - 2) and official Collector
records that proved that these lands fell within a 5 km
radius of the municipal limits and were formally classified
under the District Collector’s list of "Special Villages".
Due to this prime classification, the State itself levied an
urban registration rate of 9% stamp duty on land
transactions in these villages, as opposed to the standard
rural rate of only 5% to 6% applied to distant agricultural
lands.
Page 9 of 50
iii. Evidentiary Parity and Temporal Appreciation
from Sultanpur Benchmark
Reference Court highlighted that for adjoining lands
in Village Sultanpur acquired in May 1996 for the
similar project i.e. Sludge Drain, the Deputy
Commissioner of Ferozepur had fixed a market value of
Rs. 5,00,000/- per acre via letter Ex. PW - 7/1. As these
neighboring lands sat on the same road, only 1 km
away, and shared identical agricultural potential, the
Reference Court ruled that landowners could not be
discriminated against by receiving a rate lower than Rs.
5,00,000/- per acre.
B. Compensation for fruit-bearing trees: Reference Court
awarded Rs. 9,00,000/- to co-owners Sh. Surinder
Kumar and Sh. Vikram Aditya, placing its reliance on
the expert scientific evaluation report (Ex. P-18) proved
by Horticulture Consultant Prem Nath Babbar (PW - 4),
determining the per tree rate at Rs. 1,922.50 for a
cumulative total of 946 fruit trees (comprising 464 Malta
orange trees physically uprooted during the initial
Page 10 of 50
construction of the drain in 2002, alongside 482 Malta
trees subsequently lost in 2005 due to the complete
disruption of the Israeli-pattern drip irrigation system
and subsequent soil alkalinity caused by forced reliance
on unsuitable tubewell water). However, for this purpose
a ceiling of Rs. 9,00,000/- as a lump-sum compensation
was quantified to avoid burdening the State exchequer.
The Reference Court reasoned that because the ordinary
land valuation had already been enhanced from the
Land Acquisition Collector's uniform rate of Rs.
2,25,000/- per acre to Rs. 5,00,000/- per acre, the
progressive growers of Village Karni Khera, whose high-
yielding orchard land possessed exceptional commercial
potential, were justly entitled for enhanced orchard
damages far exceeding the meager Rs. 1,01,139.50 each
initially awarded by the Land Acquisition Collector
based on report of field staff vide Form Nos. 1 and 2.
C. Severance charges: Severance charges qua village
Karni Khera, Alamshah and Odian were awarded @ 50%
of market value, while for villages Awa, Kotha and Salem
Page 11 of 50
Shah @ 10% of market value. Reason assigned by the
Reference Court for award of severance charges was
based on the Deposition of Sub Divisional Officers of the
Drainage and Irrigation Departments which revealed
that the drain in question is at least 100 feet wide with
depth of 10 to 15 feet (extending up to 20 feet in certain
reaches) and the side banks being 10-12 feet high
(approx.) with no accessibility to cross the drain except
by 7 to 8 feet wide bridges situate 2 kms. apart which
could not bear the weight of combine harvesters or
loaded agricultural trolleys.
The Reference Court observed that this massive man-
made (Ditch Canal) barrier cut the landowners'
contiguous holdings into small, fragmented, and
isolated parcels, leaving large portions of their
unacquired land on the opposite bank of the canal
completely inaccessible for cultivation. Applying
established High Court precedents such as State of
Punjab v. Mohan Lal1 and Smt. Bindu Garg v. State
Footnotes
Page 12 of 50
of Haryana,2 which mandate compensation when
acquisition renders remaining land unviable for
cultivation, the Reference Court held that the
landowners were entitled to substantial damages on
account of severance, awarding 50% of the market value
of the unacquired land in villages like Karni Khera,
Odian, and Alam Shah, and 10% to 20% in other village
batches to mitigate this permanent agricultural
hardship.
D. Solatium: Reference Court awarded statutory solatium
@ 30% on the enhanced market value of the land as well
as on auxiliary assets such as tubewells, kothas, and
standing trees considering the reason that trees and
structures are legally attached to the earth and thus fall
within the statutory definition of 'land' under Section
3(a) of the Act of 1894, making them eligible for statutory
benefits.
E. Tube well Compensation: The Reference Court Award
dated 13.11.2007 (Karni Khera), 17.12.2007 (Odian),
2 1999 (2) PLR 794
Page 13 of 50
and 10.01.2008 (Alam Shah), enhanced tubewell
compensation to a uniform sum of Rs. 1,00,000/- per
tubewell. Reference Court relied upon official demand
letter Ex. P-33 (SDO, PSEB requiring Om Parkash to
deposit Rs. 18,689/- as electrical line-shifting fees) and
electricity passbooks (Ex. P 8–P 10).
And in the Reference Court Award dated 22.09.2006
(Odian), 20.02.2007 (Alam Shah), and 11.10.2007 (Awa
& Kotha), the Court rejected private valuer reports (Ex.
– P 37–P 39 estimating tubewells at Rs. 70,000/- to Rs.
75,000/-) as biased. Reference Court held that electric
motors and diesel engines are reusable assets that can
be uninstalled and shifted to other plots. It enhanced
compensation to a modest Rs. 10,000/- per tubewell
and for some landowners, upheld the LAC field valuation
forms.
3.3. The impugned order of the High Court dated
29.03.2019 was as follows: -
A. Market Value: The market value of the irrigated land
acquired in respect of the six above-said villages was
Page 14 of 50
modified by the High Court in a standardized but graded
manner as follows: -
a. Karni Khera: The market value was reduced from
Rs. 5,00,000/- per acre to Rs. 3,19,000/- per acre.
b. Odian: The market value was reduced from Rs.
5,00,000/- per acre to Rs. 2,99,000/- per acre.
c. Awa: The market value was enhanced from Rs.
3,00,000/- (for highway-facing) and Rs. 2,56,000/-
(for interior portion) to a standardized rate of Rs.
3,39,000/- per acre.
d. Kotha: The market value was enhanced from Rs.
2,56,000/- per acre to Rs. 3,39,000/- per acre.
e. Alamshah: The market value was reduced from Rs.
5,00,000/- per acre to Rs. 3,19,000/- per acre.
f. Salem Shah: The market value was enhanced from
Rs. 2,25,000/- per acre (maintaining the LAC rate)
to Rs. 2,99,000/- per acre.
Reason assigned by the High Court for modifying the
market value was founded upon a radial spatial pricing
model, which rejected the flat-rate enhancements made
Page 15 of 50
by the Reference Court and recognized that agricultural
land potentiality decreases proportionally with distance
from urban growth hubs and proximity to the
international border. The High Court structured its
reasoning under these primary heads:
i. Adoption of the Radial "Hub-and-Spoke" Spatial
Model and Median Formula
The High Court designated Village Awa and Village
Kotha as the central hub of the acquisition project
because of their proximity to the municipal limits of
Fazilka town. To determine the base market rate at this
central hub, the Court adopted a balanced median
formula:
• First Component (Ex. P1): It took Karni Khera sale
deed Ex. P1 (9 marlas sold for Rs. 20,000/- in July 1998,
working out to Rs. 3,55,520/- per acre). It applied a 5%
cumulative annual increase for the two-year lag to the
November 2000 Section 4 notification under the Act of
1894 (yielding Rs. 3,91,960/- per acre) and applied a
Page 16 of 50
20% cut for smallness, resulting in Rs. 3,13,568/- per
acre.
• Second Component (Awa Collector Rate): It took the
1996 Collector rate of Rs. 3,00,000/- per acre fixed for
Village Awa's sludge carrier project. Applying a 5%
cumulative annual increase over the four-year lag, the
value worked out to Rs. 3,64,651/- per acre.
• The Median Base: The High Court took the average
median of these two components (Rs. 3,13,568/- + Rs.
3,64,651/- divided by 2), which yielded Rs. 3,39,109/-,
rounded off to Rs. 3,39,000/- per acre as the peak rate
for Awa and Kotha.
• The Radial Step-Down: Moving away from the Awa-
Kotha central hub, the Court applied a flat Rs. 20,000/-
per acre reduction per village tier to reflect the
diminishing commercial and urban potential of the
interior lands.
Page 17 of 50
ii. Rejection of the Sultanpur Municipal Landmark
and Indo-Pak Border Security Discount
The High Court rejected the Reference Court’s
reliance on the 1996 Sultanpur benchmark (Rs.
5,00,000/- per acre under Ex. PW - 7/1). It held that
Sultanpur sat entirely within the municipal limits of
Fazilka and was highly urbanized, whereas the acquired
lands were strictly rural agricultural holdings.
Furthermore, the Court highlighted that villages like
Salem Shah, Mauzam, and Alamshah lay in close
proximity to the Indo-Pak international border, which
historically suffered from the installation of military
landmines, wartime shelling, and Pakistani blockages of
watercourses, thereby justifying a lower baseline market
value due to security-depressed agricultural pricing.
B. Compensation on fruit- bearing trees: The High Court
reduced the compensation for fruit-bearing trees from
the Reference Court's Rs. 9,00,000/- lump sum to Rs.
5,38,300/- strictly limited to the orchard in Village Karni
Khera.
Page 18 of 50
The reasoning assigned by the High Court was that the
Reference Court committed a grave legal error by
expanding the compensation scope to 946 trees. The
High Court held that in their original reference petition
under Section 18 of the Act of 1894, the landowners had
explicitly claimed damage for only 280 trees (246 Malta
orange plants and 34 Guava plants) standing on the
acquired strip. No amendment to the claim petition was
ever sought. It is settled in law that evidence cannot be
led beyond pleadings and therefore, making oral claims
as regards 482 trees lost on unacquired land in 2005
due to drip-irrigation damage, was held to be legally
inadmissible.
Applying the rate of Rs. 1,922.50 per tree strictly to the
pleaded 280 trees, High Court reduced the quantum of
compensation from Rs. 9,00,000/- to Rs. 5,38,300/-
under this head.
C. Severance Charges: The High Court modified the
severance charges, awarding a uniform rate of 40% of
the market value of the acquired land across all villages.
Page 19 of 50
The reasoning assigned by the High Court was that
while the Aspal Extension Drain (measuring 130 to 150
feet in width with banks rising up to 12 feet) physically
split and bifurcated the agricultural holdings, the site
plans proved that the drain alignment ran at a
"considerable distance" from the village settlements
(abadis).
The Court rejected the erratic and inconsistent
severance rates awarded by the Reference Courts
(ranging from 10% to 50%) and corrected a major legal
error: severance charges must be calculated as a
percentage of the acquired land’s value, not on the value
of the remaining unacquired land.
Placing direct reliance on the Division Bench judgment
in Tehal Singh v. State of Punjab through Collector
Land Acquisition Drainage Circle Patiala,3 the High
Court ruled that since the severed land was not on the
abadi side and the drain was constructed beyond it,
3 1987 RRR 495
Page 20 of 50
Clause (2) of the Tehal Singh (supra) formula applied,
which mandates 40% compensation.
D. Solatium: The High Court reduced the solatium
benefits, restricting them strictly to 30% on the
enhanced market value of the land only under Section
23(2) of the Act of 1894. The reasoning assigned by the
High Court was twofold:
i. Correction of Clerical Error: The High Court set
aside the Reference Court's erroneous direction in
the relief clauses of Karni Khera, Odian, and
Alamshah awarding "50% solatium" on the
unacquired land. It clarified that this was a clerical
and typographical slip where the word "solatium"
was mistakenly substituted for "severance charges”
which the Reference Court had intended to grant at
ii. No Solatium on Auxiliary Assets: The High Court
set aside the Reference Court's award of 30%
solatium and 12% additional interest on auxiliary
Page 21 of 50
structures (kothas, tubewells) and fruit-bearing
trees.
Placing reliance on the landmark Supreme
Court ruling in State of Punjab v. Amarjit Singh,4 the
High Court held that additional amounts under Section
23(1A) and solatium under Section 23(2) of the Act of
1894 are payable only on the market value of the land
determined under the first factor of Section 23(1) of the
Act of 1894. They are strictly not payable on damages or
expenses awarded under the second to sixth factors of
Section 23(1) of the Act of 1894 (which explicitly covers
trees, crops, structures, and severance damages).
E. Tubewell Compensation: The High Court modified all
Reference Court awards across the 11 acquired villages.
The High Court set aside the Rs. 1,00,000/- per tubewell
enhancement granted by ADJ Sodhi as well as the lower
Rs. 10,000/- rates, standardizing tubewell displacement
compensation across the board to a flat sum of Rs.
50,000/- per tubewell. Furthermore, the High Court
4 (2011) 4 SCC 734
Page 22 of 50
held that landowners are not entitled to statutory
benefits under Section 23(1A) (12% p.a. additional
interest) or Section 23(2) (30% solatium) of the Act of
1894 on tubewell, structure, tree, or severance awards,
restricting solatium and Section 23(1A) of the Act of
1894 benefits strictly to the bare land market value.
4. FINDINGS
For the sake of adjudication, this Court frames 5
substantial issues, which are:
Issue 1 – Whether the High Court was justified in
modifying the market value of the acquired land to
graded radial rates ranging from Rs. 2,99,000/- to Rs.
3,39,000/- per acre based on distance from the
municipal limits and proximity to the international
border?
Issue 2 - Whether the High Court was correct in
restricting the compensation for fruit-bearing trees
strictly to the 280 standing trees located on the acquired
land portion and declining compensation under Section
Page 23 of 50
23(1) of the Act of 1894, for the 482 fruit-bearing trees
lost on the remaining unacquired land?
Issue 3 – Whether the High Court was correct in
reducing the severance charges from 50% of the value of
the unacquired land to a uniform rate of 40% of the
value of the acquired land by applying Clause (2) of the
Tehal Singh (supra) formula?
Issue 4 - Whether statutory solatium under Section
23(2) and additional interest under Section 23(1A) of the
Act of 1894 are legally payable on auxiliary assets, such
as standing fruit-bearing trees, tubewells, and kothas,
or if such benefits are strictly restricted to the market
value of the bare land only?
Issue 5 – Whether the High Court was legally right,
correct, and justified in modifying the tubewell
compensation to a standardized flat displacement sum
of Rs. 50,000/- per tubewell across all contiguous
villages, and in strictly excluding statutory solatium
[30% u/s 23(2) of the Act of 1894] and additional
interest [12% p.a. u/s 23(1A) of the Act of 1894] from
Page 24 of 50
being calculated on tubewell and auxiliary asset
compensation?
5. DETERMINATION ON ISSUE 1: MARKET VALUE
5.1. The statutory mandate of Section 23(1) of the Act of
1894 states that the Court must determine
compensation based on:
“First the market-value of the land at the date of the publication of the notification under section 4, sub-section (1)”.
To ascertain fair market value under this section, the
Court must evaluate both positive potentiality factors—
such as proximity to developed urban centers, access to
national highways, and surrounding institutional
expansions—and also negative factors, while ensuring
that contiguous tracts of land acquired for a unified
public purpose under the same scheme are awarded
consistent, non-discriminatory compensation.
5.2. Spatial Contiguity, Project-Wide Parity, and the
Erroneous Rejection of the Sultanpur Benchmark
(Ex. PW - 7/1)
Page 25 of 50
5.2.1. We find that the Reference Court, in Para 15 of its
award, correctly relied upon the Village Sultanpur
baseline (Ex. PW - 7/1). Reference Court’s reasoning was
well- founded and are reproduced below:
“The perusal of the file shows that the Collector did not consider the fact that the land of village Sultanpur was acquired for sludge carrier water and the land acquired vide that award was of the same quality and situated on the same road and the compensation at the rate of Rs. 5 lacs were awarded vide letter dated 24.5.1996 Ex. PW - 7/1. The present land has been acquired on 6.8.2001 after gap of five years from the date of earlier award. It is well known fact that prices of the land appreciate every year considerable and during the five years and prices of the land situated on the same road might have increased many-folds. So, the Collector vide impugned award in the present case dated 6.8.2001 should not have granted compensation at the rate below Rs. 5 lacs per acre, though the prices of the land in the year 2001 might have increased at least above Rs. 8 lacs per acre. ... Hence the compensation is enhanced from Rs. 2,25,000/- per acre to Rs. 5 lacs per acre which is reasonable, fair and just compensation.”
5.2.2. The High Court, however, rejected this baseline under
Para 50 of its impugned judgment on the grounds that
Sultanpur was within municipal limits of Fazilka town
while Karni Khera was essentially rural in nature. This
classification ignores the land acquisition jurisprudence
regarding project – wide parity. The acquired lands in
Karni Khera are located a mere 1.5 km from Sultanpur
Page 26 of 50
on the exact same road, acquired for identical public
purpose of integrated drainage project.
5.2.3. In Ali Mohammad Beigh and Others v. State of
Jammu & Kashmir,5 the Supreme Court established
the doctrine of parity in project-wide acquisitions, when
the lands are more or less situated nearby and when the
acquired lands are identical and similar and the
acquisition is for the same purpose, it would be
improper to discriminate between the landowners
unless there are strong reasons, which are missing
herein. Moreover, the High Court disregarded the
deposition of the State's own witness, SDO Irrigation
(RW-1), who conceded that the urban abadi of Fazilka
town was actively expanding directly toward the
acquired land of Karni Khera. In Union of India v.
Harinder Pal Singh and Others,6 this Court reinforced
this contiguity principle:
“15. We have carefully considered the submissions made on behalf of the respective parties and we see no justification to interfere with the decision of the Division Bench of the Punjab and Haryana High Court which, in our view, took a pragmatic approach in fixing the market value
5 (2017) 4 SCC 717 6 (2005) 12 SCC 564
Page 27 of 50
of the lands forming the subject-matter of the acquisition proceedings at a uniform rate. From the sketch plan of the area in question, it appears to us that while the lands in question are situated in five different villages, they can be consolidated into one single unit with little to choose between one stretch of land and another. The entire area is in a stage of development and the different villages are capable of being developed in the same manner as the lands comprised in Kala Ghanu Pur where the market value of the acquired lands was fixed at a uniform rate of Rs 40,000 per acre. The Division Bench of the Punjab and Haryana High Court discarded the belting method of valuation having regard to the local circumstances and features and no cogent ground has been made out to interfere with the same.
16. In our view, in the absence of any contemporaneous document, the market value of the acquired lands of Village Kala Ghanu Pur which were acquired at the same time as the lands in the other five villages was correctly taken to be a comparative unit for determination of the market value of the lands comprising the lands forming the subject- matter of the acquisition proceedings under consideration…….”
5.3. Strategic Highway Frontage (NH-10), Suburban
Development Potential, and the Misapplication of
the "Smallness Cut"
5.3.1. The High Court also erred in applying a 20% deduction
for "smallness" on the rural sale exemplar (Ex. P-1)
under Para 45 of its judgment:
“There is also a difference of two years between the sale deed and the notification dated 14.11.2000 and therefore even if the benefit of cumulative increase is given for the period of two years @ 5%. The market value would work out to ₹ 3,91,960/- per acre on which a cut would have to be applied for smallness also. The market value would come to ₹ 3,13,568/- after giving a 20% cut.”
Page 28 of 50
This mechanical reduction directly overlooked the
Reference Court’s factual findings regarding the
suburban potential of the land as recorded in Para 15:
“As per site plan Ex. P29, the land of the present petitioners is situated at a distance of half kilometer from the land earlier acquired vide award dated 24.5.1996; secondly, the land of the petitioners is towards the abadi of the Fazilka and this fact has been admitted by RW1 Bakhshish who has also admitted that the Abadi of Fazilka is extended towards the acquired land. It is well settled that the land situated near the Abadi of town fetches more price than the agricultural land situated in rural area. ... So the acquired land has potentiality being developed as urban land being used for commercial and industries purposes.”
The acquired tracts in Karni Khera directly abut
present-day National Highway 7 (NH 7- Highway
connecting Fazilka (Punjab) to Mana (Uttarakhand)) –
historically designated and referred to in Annexure P-7
of IA 145497 of 2019 as National Highway 10 (the Delhi-
to-Sulemanki Road), making them premium, high-
yielding, and fully developed suburban orchard plots.
In Udho Dass v. State of Haryana and Others,7 this
Court pointed out that, while dealing with the question
of the potential value of land, the existence of highways,
public roads, layouts of building plots or developed
Footnotes
Page 29 of 50
residential extensions in the vicinity or proximity of the
acquired land must be taken into consideration.
This Court in Udho Dass (supra) also recognized that
cumulative annual increases in prime northern areas
often vastly exceed nominal rates:
“18. ….The 12% per annum increase which had often been found to be adequate in matters relating to compensation, hardly did justice to those land owners whose lands had been taken away and the increase was even at times up to 100% a year for land which had the potential of being urbanized and commercialized….”
5.3.2. Furthermore, the record reveals that major institutions,
including the BSF Headquarters and M.R. College, were
operating in the immediate vicinity. In Bhagwathula
Samanna and Others v. Special Tahsildar and Land
Acquisition Officer, Visakhapatnam,8 this Court has
held that where the acquired area is already surrounded
by fully functional institutional and commercial
establishments, the imposition of a development cut is
legally impermissible as the land has already achieved
its suburban potential and even in the vast area there
may be land which is fully developed having all
8 AIR 1992 SC 666; (1991) 4 SCC 506
Page 30 of 50
amenities and situated in an advantageous position. If a
smaller area within the large tract is already developed
and suitable for building purposes and has in its vicinity
roads, drainage, electricity, communications, etc., then
the principle of deduction simply for the reason that it
is part of the large tract acquired may not be justified.
5.4. Arbitrary Nature of the Radial "Hub-and-Distance"
step-down pricing model and Internal Spatial
Contradictions
5.4.1. The High Court implemented an abstract mathematical
step-down formula under Paras 43 and 51 of its
impugned judgment that are reproduced below:
“43….Though the Land Acquisition Collector has granted a uniform rate of compensation but it would be apparent that the distances as such from Fazilka town are different and therefore the land which is situated in the villages away from the town would not command the same amount of potential of market value... It is but natural that the land which is falling closer to the border would be cheaper in comparison to the land which is situated closer to the municipal limits of Fazilka and similarly, the land which is away from the municipal limits of Fazilka on the other side would also not command the same amount of premium.”
“51…..Resultantly, this Court reduces the market value @ ₹ 20,000/- per acre for each village as it goes away from the center from village Awa and Kotha as the potentiality decreases.”
Page 31 of 50
5.4.2. By contrast, the Reference Court relied on transaction-
based local evidence. In Para 12 (page 103), the
Reference Court observed:
“PW - 2 Subash Arora, Registration Clerk Tehsil Office Fazilka has proved the copies of the rates for the year 2004-2005 fixed by the Deputy Commissioner, Ferozepur for registration of the sale deeds for the Sub Division Fazilka as Ex. P11 and Ex. P12. He has deposed that as per Ex.P12 village Karni Khera falls in the list of Special villages. He has further deposed that the land of village Karni Khera falls within 5 km Radius of Municipal areas of Fazilka and as such registration charges are being charged at the rate of 9% which are urban rate of registration.”
5.4.3. By ignoring this transaction-based local evidence and
imposing an abstract mathematical reduction, the High
Court’s radial step-down model created an artificial,
legally unsustainable disparity between a contiguous
tract of land acquired under a single notification. This
mechanical fragmentation directly violates the landmark
principle reaffirmed by this Court in Krishan Kumar v.
State of Haryana,9 which held:
“18. a) A fundamental principle in land acquisition jurisprudence is that lands with similar locational and developmental potential must be compensated equitably unless clear, objective distinctions justify otherwise... … Arbitrary differentiation in compensation, based on superficial considerations, necessarily violates settled constitutional principles of fairness and equality.”
9 (2025) 5 SCR 2853: (2025 INSC 638)
Page 32 of 50
This Court in Krishan Kumar (supra) further cautioned
against letting administrative or revenue classifications
dictate different valuations, for contiguous tracts:
“19…..Artificial boundaries created for administrative convenience cannot be allowed to obstruct the application of the fundamental principle of fairness.”
5.4.4. Pertinently, the High Court's reliance on General
Manager, ONGC Ltd. v. Rameshbhai Jivanbhai
Patel10 and Manoj Kumar v. State of Haryana11 was
misplaced. In Manoj Kumar (supra), this Court noted:
“The awards and judgment in the cases of others not being inter parties are not binding as precedents. Recently, we have seen the trend of the Courts to follow them blindly probably under the misconception of the concept of equality and fair treatment. ... As per situation of a village, nature of land its value differ from the distance to distance even two to three-kilometer distance may also make the material difference in value. Land abutting Highway may fetch higher value but not land situated in interior villages.”
5.4.5. Some of the acquired lands here were not interior
agricultural lands but prime highway-facing orchards
with immense urban potential. Additionally, the radial
model created severe physical anomalies. Under this
formula, Village Sabuana (10 km away from the border)
was penalized with a depressed rate of Rs. 2,79,000/-
10 (2008) 14 SCC 745 11 (2018) 2 RCR (Civil) 815
Page 33 of 50
per acre, whereas Village Alam Shah (directly on the
border at 1.5 km) was awarded Rs. 3,19,000/- per acre.
This highlights the arbitrary nature of the radial model.
5.4.6. In the light of these findings, we hold that the High Court
misdirected itself in modifying the market value of the
acquired lands to graded radial rates ranging from Rs.
2,99,000/- to Rs. 3,39,000/- per acre. To maintain full
constitutional parity and non-discrimination as
mandated in Krishna Kumar (supra) the Reference
Court’s determination of Rs. 5,00,000/- per acre was
legally and factually correct, as it was grounded in
project-wide contiguity, suburban potentiality (validated
by the 9% urban stamp duty rate), and established 1996
Sultanpur benchmark (Ex. PW - 7/1). Accordingly, the
uniform market value of Rs. 5,00,000/- per acre across
all contiguous villages under challenge stands fully
restored.
6. DETERMINATION ON ISSUE 2: COMPENSATION FOR
FRUIT-BEARING TREES
Page 34 of 50
6.1. We now turn to the question of whether the High Court
was correct in restricting the compensation for fruit-
bearing trees strictly to the 280 standing trees (246
Malta orange and 34 Guava plants) physically located
on the acquired land portion.
6.2. We find that the High Court's restriction of orchard
compensation to the 280 pleaded trees is legally and
procedurally correct. In reference under Section 18 of
the Act of 1894, the reference petition stands as the
"plaint" and strictly defines the scope of the dispute. In
their original reference petition instituted on September
20, 2002 (LA Case No. 70), the landowners explicitly
pleaded orchard damages strictly limited to 280 trees
standing on the acquired strip. Although the claimants
subsequently led oral evidence to allege that an
additional 482 Malta trees on the unacquired land dried
up in 2005 due to the destruction of the Israeli-pattern
drip irrigation system. However, the landowners never
amended their petition filed under Section 18 of the Act
Page 35 of 50
of 1894 to include these additional 482 trees for
claiming damages.
6.3. It is a settled principle of civil law that evidence cannot
be led beyond pleadings. As established by this Court in
Bachhaj Nahar vs. Nilima Mandal,12 a Court cannot
make out a new case, decide an issue that does not arise
from pleadings. The Reference Court thus committed a
grave error in awarding lump-sum compensation of
Rs.9,00,000/- for 946 trees. In the absence of a formal
amendment to the reference petition, the claimants'
compensation must be restricted to the 280 pleaded
trees. Using the scientifically accepted "Nijjar Formula"
rate of Rs.1,922.50/- per tree, the compensation qua
trees is thus correctly restricted to Rs.5,38,300/- by the
High Court in the impugned order.
7. DETERMINATION ON ISSUE 3 – SEVERANCE AND
DAMAGES FOR PHYSICAL BIFURCATION
Footnotes
Page 36 of 50
7.1. We now divert towards the issue as to whether the High
Court was correct in reducing severance charges from
50% to 40% of the value of acquired lands.
7.2. Under Section 23(1) of the Act of 1894, the Court is
statutorily mandated to determine the compensation
amount based inter alia on:
“...thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of severing such land from his other land;”.
7.3. We find that the High Court committed a fundamental
legal error under Section 23(1) Thirdly of the Act of 1894,
by shifting the baseline of calculation from the
unacquired remaining land to the acquired land portion.
In the case of lead claimant Surinder Ahuja in Village
Karni Khera, the State physically acquired 79 Kanals
and 2 Marlas of land for the construction of the Aspal
Extension Drain. This narrow acquisition, in a strip,
severely impacted and bifurcated the remaining 249
Kanals and 17 Marlas of unacquired land of the same
claimant. By calculating the 40% severance charges on
the narrow-acquired strip rather than on the extensive
Page 37 of 50
unacquired remaining holdings, the High Court's
formula considerably reduced the compensation due,
leaving the landowners uncompensated for the
permanent loss of utility across the vast majority of their
fragmented estate. This directly violates the rule laid
down in Smt. Tribeni Devi v. Collector of Ranchi,13
where this Court held that when a portion of land is
acquired and a large portion is left behind, the physical
separation inherently causes a severe diminution in the
value of the land that is left out, for which separate,
robust severance compensation must be allowed.
7.4. Moreover, the High Court mechanically applied Tehal
Singh v. State of Punjab through Collector Land
Acquisition Drainage Circle Patiala,14 which states:
“11…. (2)Where the severed land is not the abadi side of the village, and S.Y.L. Canal is being constructed beyond it and it is two acres or less in area, compensation for severance shall be 40% of the market value of the land so acquired. … ”
The High Court erred in treating it as a geometric rule of
thumb based on distance from the village abadi. In doing
13 (1972) 1 SCC 480 14 1987 RRR 495
Page 38 of 50
so, the High Court herein completely ignored the
physical reality of the infrastructure on record. The
State's own witness, SDO Irrigation (RW-1), admitted in
cross-examination that:
“...the width of the drain is about 100 feet, and its depth is 10 to 15 feet and the side banks of the drain are 10 to 12 feet high approximately and it is not possible to cross the drain without the bridge.”.
In Para 52 of its judgment, the High Court itself recorded
the SDO's admissions:
“The SDO's evidence who appeared as RW 1 in the cases would show that the width of drain is 130 ft. and the sides of the banks are also between 15 to 30 ft and the height was of 50ft average. Resultantly, the landowners would but obviously, feel difficulty in approaching the other side, though it has come on record that bridges had also been provided which are also at a distance of 2 km apart. The bridges also are not of those capacity which would allow the heavy machinery to cross over as it has come on record that the bridge leading to village Odian was 7 ft. width the capacity of 9 tonnes and combine harvester etc. could not cross the same.”
7.5. The physical barrier of the Aspal Extension Drain—
measuring 100 to 130 feet in width with banks up to a
minimum of 10 feet extending to 30 feet constitutes an
insurmountable gap, because modern mechanized
farming machinery (such as tractors and combine
harvesters) cannot physically cross a 7-feet bridge, the
Page 39 of 50
unacquired remaining land on the opposite bank was
left in a state of absolute, practical isolation.
7.6. This Court has long recognized that rendering
unacquired land inaccessible constitutes a constructive
total loss of its agricultural utility. In Walchandnagar
Industries Ltd. v. State of Maharashtra and
Another,15 this Court considered that when an
acquisition destroys the functional integrity of a
landowner's remaining system, the State is liable to
compensate for the actual loss of utility of the
remaining, unacquired infrastructure.
7.7. By ignoring facts, the High Court misapplied the Tehal
Singh (supra) precedent. The drain's massive physical
barrier and the inaccessibility of the severed piece of
land rendered the unacquired land partially unusable.
7.8. The High Court’s decision to reduce severance charges
to a flat 40% of the acquired land’s value is legally and
factually unsustainable. Under Section 23(1) of the Act
of 1894 the damage caused due to severance damage is
15 (2022) 5 SCC 71
Page 40 of 50
explicitly designed to compensate for the diminution in
value of the unacquired remaining land. The Reference
Court’s award of 50% of the value of the unacquired land
was fully justified. Accordingly, the Reference Court's
50% severance award on the unacquired land is hereby
restored.
7.9. Accordingly, to uphold the constitutional mandate of
Krishan Kumar (supra) and restore project-wide parity
across all contiguous revenue estates, the High Court’s
decision to reduce severance charges to a flat 40% of the
acquired lands’ value is set aside. The Reference Court’s
award of 50% severance charges calculated on the
market value of the unacquired remaining land is hereby
fully restored across all villages under challenge.
8. DETERMINATION ON ISSUE 4: ENTITLEMENT TO
STATUTORY SOLATIUM AND ADDITIONAL
BENEFITS ON AUXILIARY ASSETS
8.1. We now move to the issue of whether statutory solatium
under Section 23(2) and additional interest under
Section 23(1A) of the Act of 1894 are legally payable on
Page 41 of 50
auxiliary assets (standing trees, tubewells, kothas, and
severance charges).
The statutory scheme of Section 23 provides that
additional interest under Section 23(1A) and solatium
under Section 23(2) of the Act of 1894 are related strictly
to the market value of the land determined under
Section 23(1) First Clause of the Act of 1894.
8.2. The Reference Court, in Para 19 of its award, erred by
treating auxiliary assets as equivalent to primary land
value for the purpose of granting statutory benefits. The
Reference Court relied on the High Court precedent of
Improvement Trust, Jind v. Narinder Kumar,16 to
hold that:
“Claimants are entitled to 30% solatium on compensation amount of trees etc.—Trees are included in the definition of land as defined under Section 3 (a)—Compensation amount for trees will be deemed to be market value of land.”
This approach directly contravenes the definitive ruling
of this Court in State of Punjab v. Amarjit Singh,17
which inter alia lays down thus: -
16 1990 (1) RRR 437 17 (2011) 4 SCC 734
Page 42 of 50
“The additional amount under Section 23(1-A) and solatium under Section 23(2) are both payable only on the market value determined under Section 23(1) of the Act and not on any other amount. Solatium under Section 23(2) is not payable on the additional amount nor additional amount under Section 23(1-A) payable on solatium. Solatium and additional amount are also not payable on the damages/expenses that may be awarded under second to sixth factors under Section 23(1) of the Act.”
8.3. The standing trees fall under Section 23(1) second factor
of the Act of 1894, severance damages fall under third
factor, and tubewells/kothas fall under fourth or fifth
factors. Thus, these factors constitute separate and
independent auxiliary heads of damage rather than land
market value under the first factor. As per ratio laid
down in Amarjit Singh (supra), these factors are
strictly excluded from attracting statutory solatium and
additional interest.
8.4. The High Court was therefore correct and legally
justified in Para 62 of its judgment, where it held:
“It is made clear that landowners would not be entitled for benefits of Section 23(1A) and 23(2) on account of the amount awarded for severance, fruit trees, tubewells and structures in view of the judgment of the Apex Court in State of Punjab vs. Amarjit Singh (2011) 4 SCC 734. In the same, it was held that Section 23(1) refers to the market value of the land on the date of publication of the notification which is the relevant factor. Additional amounts are payable only on the market value determined and not on the other amounts which are to be kept in mind while determining the compensation which pertained to
Page 43 of 50
the damage sustained to taking of any standing trees or crops on the land or severance etc. Resultantly, the second to the sixth factors were excluded as such for the above- said benefits.”
8.5. Consequently, the High Court was correct in applying
the ratio laid down in State of Punjab v. Amarjit Singh
(supra) under prevailing land acquisition law. The
precedent of the Punjab & Haryana High Court in
Improvement Trust, Jind (supra) cannot override the
subsequent ruling of the Apex Court in Amarjit Singh
(supra).
8.6. We therefore affirm this portion of the High Court’s
judgment.
9. DETERMINATION ON ISSUE 5: COMPENSATION FOR
TUBEWELLS
9.1. We now turn to the last issue of compensation for the
tubewell. Upon an exhaustive review of the evidence on
record and applicable land acquisition jurisprudence,
the High Court's determination to standardize tubewell
compensation at Rs. 50,000/- flat and excluding the
statutory additions under Sections 23(1A) and 23(2) of
the Act of 1894 is legally correct.
Page 44 of 50
9.2. The Reference Court in Karni Khera committed error in
blindly adopting private valuation reports produced by
PW - 1 Manhool Ram (Ex. P4 to P8) to enhance tubewell
compensation to Rs. 1,00,000/- per tubewell, as the
expert engineer who authored those reports was never
produced in the witness box to depose, prove his reports,
or face cross-examination by the State.
9.3. It is settled that mere marking or tendering of a private
document as an exhibit does not prove the truth of its
contents without examining its author. This Court in S.
Sangeetha & ORS. v. TMT. P. Ponni18 reiterated LIC
v. Ram Pal Singh Bisen19 where it observed:
“25. We are of the firm opinion that mere admission of a document in evidence does not amount to its proof. In other words, mere marking of exhibit on a document does not dispense with its proof, which is required to be done in accordance with law.
31. Under the law of evidence also, it is necessary that contents of documents are required to be proved either by primary or by secondary evidence. At the most, admission of documents may amount to admission of contents but not its truth. Documents having not been produced and marked as required under the Evidence Act cannot be relied upon by the Court. Contents of the document cannot be proved by merely filing in a Court.”
18 (2026 INSC 813) 19 (2010) 4 SCC 491
Page 45 of 50
9.4. Furthermore, mechanical components such as electric
motors, diesel engines, and surface pumps represent
movable property that are not destroyed during
acquisition and thus can be uninstalled, shifted, and re-
used on remaining holdings. Standardizing
compensation at a flat rate of Rs. 50,000/- appropriately
balances private inflation against government
underestimation to arrive at a realistic, uniform
displacement figure across all contiguous revenue
estates.
9.5. Additionally, the High Court correctly set aside the
Reference Court's direction granting 30% solatium
under Section 23(2) and 12% per annum additional
interest under Section 23(1A) of the Act of 1894 on top
of the tubewell awards. As discussed in the previous
issue, it is squarely governed by the binding precedent
of this Court in State of Punjab v. Amarjit Singh
(supra), which laid down that statutory solatium and
additional amounts are not payable on damages or
Page 46 of 50
expenses assessed for standing structures, tubewells, or
severance.
9.6. Accordingly, the High Court’s order standardizing
tubewell compensation at Rs. 50,000/- per tubewell and
denying Section 23(1A) and Section 23(2) of the Act of
1894 statutory additions thereon stand fully affirmed.
10. Before concluding we would like to briefly discuss the
extent of interference permissible under Article 136 of
the Constitution of India. Since Article 136 has been
invoked in all the instant 47 civil appeals, it would be
appropriate to discuss the scope and ambit under the
said Article.
10.1. The landmark decisions of this Court dealing with scope
and ambit of Article 136, especially Pritam Singh vs.
State,20 Dhakeshwari Cotton Mills Limited vs.
Commissioner of Income Tax,21 Delhi Judicial
Services Association vs. State of Gujarat22 and
Kunhayammed and Ors. vs. State of Kerala,23 in one
20 1950 SCC 189 21 AIR 1955 SC 65 22 (1991) 4 SCC 406 23 (2000) 6 SCC 359
Page 47 of 50
voice, lay down that the remedy under Article 136
cannot be sought as a matter of right, but is highly
discretionary in nature. This Article strikes to eliminate
miscarriage of justice rather than to do justice. This
remedy can be denied for various reasons, especially
when only executive action is assailed. This remedy is
also supervisory in nature, and due to non-obstante
clause, it prevails over all other articles in Chapter IV of
the Constitution.
10.2. We have no manner of doubt that the window of
interference under Article 136 is extremely limited and
restrictive; however, in the attending facts and
circumstances herein, we have attempted to remove
injustice or institutional high-handedness wherever it
was found.
11. CONCLUSION
All these 47 Civil Appeals are disposed of in the following
terms: -
11.1. On Market Value (Issue 1): We set aside the High Court’s
radial step-down model and restore the uniform market
Page 48 of 50
value of Rs. 5,00,000/- per acre across the villages
involved in these 47 civil appeals.
11.2. On Fruit-Bearing Trees (Issue 2): We affirm and uphold
the High Court’s restriction of tree compensation strictly
to the 280 pleaded trees (totaling Rs. 5,38,300/-).
11.3. On Severance Charges (Issue 3): We set aside the High
Court’s cap on acquired land and restore the Reference
Court’s award of 50% severance charges calculated on
the market value of the remaining unacquired land.
11.4. On Statutory Benefits (Issue 4): We affirm and uphold
the High Court’s denial of Section 23(1A) and Section
23(2) of the Act of 1894 benefits on auxiliary assets and
thus restrict the payment of solatium interest @ 30%
calculated exclusively on market value.
11.5. On Tube well Compensation (Issue 5): We affirm and
uphold the High Court’s award of Rs. 50,000/- flat per
tube well on account of displacement across all six
villages.
11.6. Let additional compensation be worked out and paid
within six (6) months from the date of communication of
Page 49 of 50
this order, by the official respondents to the landowners
in these 47 civil appeals.
11.7. In case, from any landowners, after re-working the
compensation amount as per this order, any amount
becomes recoverable, then due intimation in writing
shall be given to the respective landowners in these 47
civil appeals, and after affording due and sufficient
opportunity to all concerned, the recovery shall be made
within a period of nine (09) months, from the date of
communication of this order.
11.8. No orders as to costs.
……………………………...J. (DIPANKAR DATTA)
…...………………………...J. (SHEEL NAGU)
NEW DELHI; SEPTEMBER 29, 2026
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