The State Of H.P. & Another vs Dula Ram (Since Deceased) Thorough His … on 7 May, 2026

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    Himachal Pradesh High Court

    The State Of H.P. & Another vs Dula Ram (Since Deceased) Thorough His … on 7 May, 2026

    Author: Sushil Kukreja

    Bench: Sushil Kukreja

    1 Neutral Citation No. ( 2026:HHC:15247 )

    IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

    SPONSORED

    RFA No. 380 & 381 of 2008

    .

    Reserved on:24.04.2026

    Decided on:07.05.2026

    1. RFA No. 380 of 2008:

    The State of H.P. & another ….Appellants.

    Versus
    Dula Ram (since deceased) thorough his LRs.

    …Respondent(s).

    of

    2. RFA No. 381 of 2008:

    The State of H.P. & another ….Appellants.

    Versus
    Budhi Singh (since deceased) thorough his LRs.

                      rt                            ...Respondent(s).
    
        Coram:
    

    The Hon’ble Mr. Justice Sushil Kukreja, Judge.
    Whether approved for reporting?1
    _________________________________________________

    For the appellants/State: Mr. Balvinder Singh Ballu, Deputy
    Advocate General.

    Respondents in RFA No. 380 of 2008 ex parte.

    For proposed LRs No. 1(a) to

    1(d) in RFA No. 381 of 2008:

    Mr. Ganesh Barowalia, Advocate.

    Sushil Kukreja, Judge.

    Since both these appeals are the offshoots of

    award, dated 27.06.2008, passed by learned Additional District

    Judge-II, Kangra at Dharamshala (hereinafter referred to as

    “the learned Reference Court”), the same are taken up together

    and being disposed of by a common judgment.

    1 Whether reporters of Local Papers may be allowed to see the judgment?

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    2 Neutral Citation No. ( 2026:HHC:15247 )

    2. The appellant/State of H.P. & another, who were

    respondents before the learned Reference Court, preferred the

    .

    instant appeals under Section 54 of the Land Acquisition Act

    (for short “the Act”) against award dated 27.06.2008, passed by

    learned Reference Court, whereby the petitioners, i.e., Dulo

    Ram and Budhi Singh, who were petitioners/claimants before

    of
    the learned Reference Court (hereinafter referred to as

    “petitioners/claimants”) were granted enhanced compensation,
    rt
    with a prayer that the instant appeals be allowed and the

    impugned award be set-aside.

    3. The facts giving rise to the instant appeals are that

    the land of petitioner-Dulo Ram, comprised in Khasra No.

    958/381/1, measuring 0-02-11 hectares and that of petitioner-

    Budhi Singh, comprised in Khasra No. 382, 383, 391,

    measuring 0-03-55 hectares, situated in Mohal Kandreth,

    Mauza Ichhi, Tehsil Dharamshala, District Kangra, H.P., was

    acquired for construction of Mastpur-Icchi Road, vide

    notification dated 30.12.1995, issued under Section 4 of the

    Act, which was also published in daily news paper.

    Subsequently, notification under Sections 6 and 7 was issued

    on 15.05.1996, which was also duly published in daily

    newspaper. Consequently, possession of total land measuring

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    3 Neutral Citation No. ( 2026:HHC:15247 )

    0-21-00 hectares was taken under Section 8 of the Act and it

    was acquired with description of Kulhi Awal measuring 0-13-69

    .

    hectares, Banjar Kadeem, measuring 0-00-88 hectares,

    khadeter measuring 0-02-42 hectares, Charagah Durkhtan,

    measuring 0-01-22 hectares and Gair Mumkin Rasta

    measuring 0-02-79 hectares. Thereafter, the Land Acquisition

    of
    Collector, passed the award and granted compensation

    @Rs.1,17,039/- per hectare on the basis of market value

    alongwith
    rt
    other statutory benefits and total award of

    Rs.2,29,046/- was passed on 26.06.1998.

    4. The petitioners/claimants, feeling aggrieved, filed

    reference petitions under Section 18 of the Act before the

    learned Reference Court for enhancement of the compensation

    amount and sought higher compensation at the rate of

    Rs.3,00,000/- per kanal, including enhancement of interest.

    The learned Reference Court, after considering all the material,

    passed the impugned award, dated 27.06.2008, whereby the

    petitioners/claimants were held entitled for enhanced

    compensation at the rate of Rs.19,23,076/- per hectare for the

    acquired land alongwith other statutory benefits. Hence, the

    instant appeals preferred by the appellants/State against the

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    4 Neutral Citation No. ( 2026:HHC:15247 )

    impugned award with a prayer that the appeals be allowed and

    the impugned award be set-aside.

    .

    5. The learned Deputy Advocate General for the

    appellants/State contended that the impugned award is wrong,

    illegal and against the material placed and proved on record

    and the learned Reference Court gravely erred in assessing the

    of
    market value @ Rs.19,23,076/- per hectare. He further

    contended that impugned award is based on surmises,
    rt
    conjectures and hypotheses, thus the same is liable to be set-

    aside. He also contended that the learned Reference Court

    had grossly misread and mis-appreciated the oral as well as

    documentary evidence on record and cogent evidence was

    ignored. Lastly, he prayed that the impugned award be set-

    side by allowing the instant appeals.

    6. Conversely, learned Counsel for proposed LRs No.

    1(a) to 1(d) in RFA No. 381 of 2008, supported the impugned

    award and contended that the impugned award does not suffer

    from any legal infirmity and the same has been passed by the

    learned Reference Court after properly appreciating the facts

    and law. He prayed that the instant appeals, being without

    merits, be dismissed.

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    5 Neutral Citation No. ( 2026:HHC:15247 )

    7. I have heard the learner Deputy Advocate General

    for the appellants/State, learned counsel for proposed LRs No.

    .

    1(a) to 1(d), in RFA No. 381 of 2008 and carefully examined

    the entire records.

    8. As per the settled principle of law, compensation for

    the land acquired has to be determined at market value. Market

    of
    value is the price that a willing purchaser would pay to a willing

    seller for the property having due regard to its existing condition
    rt
    with all its existing advantages and its potential possibilities

    when led out in most advantageous manner excluding any

    advantage due to carrying out of the scheme for which the

    property is compulsorily acquired. The determination of market

    value is the prediction of an economic event viz. a price

    outcome of hypothetical sale expressed in terms of

    probabilities. For ascertaining the market value of the land, the

    potentiality of the acquired land should also be taken into

    consideration. Potentiality means capacity or possibility for

    changing or developing into state of actuality.

    9. In Mehta Ravindrarai Ajitrai (deceased) through

    his heirs & LRs & others v. State of Gujarat (1989) 4 SCC

    250, the Hon’ble Supreme Court held that the market value of a

    property for the purpose of Section 23 of the Act is the price at

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    6 Neutral Citation No. ( 2026:HHC:15247 )

    which the property changes hands from a willing seller to a

    willing purchaser, but not too anxious a buyer, dealing at arms

    .

    length. The relevant portion of the aforesaid judgment reads as

    under:

    “4. ……….The market value of a piece of property for purpose
    of Section 23 of the Land Acquisition Act is stated to be
    the price at which the property changes hands from a
    willing seller to a willing, but not too anxious a buyer,
    dealing at arms length. Prices fetched for similar lands

    of
    with similar advantages and potentialities under bona fide
    transactions of sale at or about the time of the preliminary
    notification are the usual and, indeed the best, evidences
    of market value.”

    10. In Atma Singh (Dead) through LRs & others vs.
    rt
    State of Haryana & another, (2008) 2 Supreme Court Cases

    568, the Hon’ble Supreme Court held that the market value is

    the price that a willing purchaser would pay to a willing seller

    for the property having due regard to its existing conditions

    with all its existing advantages and its potential possibilities

    when led out in most advantages manner, excluding any

    advantage due to carrying out of the scheme for which the

    property is compulsorily acquired. In considering market

    value, disinclination of the vendor to part with his land and the

    urgent necessity of the purchaser to buy should be

    disregarded. The question whether a land has potential value

    or not, is primarily one of the facts depending upon its

    condition, situation, user to which it is put or is reasonably

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    capable of being put and proximity to residential, commercial

    or industrial areas or institutions. The existing amenities like,

    .

    water, electricity, possibility of their further extension, whether

    near about town is developing or has prospect of development

    have to be taken into consideration. The relevant portion of

    the aforesaid judgment reads as under:

    of
    “4. ……The expression “market value” has been the
    subject-matter of consideration by this Court in
    several cases. The market value is the price
    that a willing purchaser would pay to a willing
    rt seller for the property having due regard to its
    existing condition with all its existing
    advantages and its potential possibilities when
    led out in most advantageous manner excluding
    any advantage due to carrying out of the

    scheme for which the property is compulsorily
    acquired. In considering market value
    disinclination of the vendor to part with his land
    and the urgent necessity of the purchaser to
    buy should be disregarded. The guiding star
    would be the conduct of hypothetical willing

    vendor who would offer the land and a
    purchaser in normal human conduct would be
    willing to buy as a prudent purchaser in normal
    human conduct would be willing to buy as a
    prudent man in normal market conditions but

    not an anxious dealing at arm’s length nor
    façade of sale nor fictitious sale brought about
    in quick succession or otherwise to inflate the

    market value………….

    5. For ascertaining the market value of the land,
    the potentiality of the acquired land should also

    be taken into consideration. Potentiality means
    capacity or possibility for changing or
    developing into state of actuality. It is well
    settled that market value of a property has to be
    determined having due regard to its existing
    condition with all its existing advantages and its
    potential possibility when led out in its most
    advantageous manner. The question whether a
    land has potential value or not, is primarily one
    of fact depending upon its condition, situation,
    user to which it is put or is reasonably capable
    of being put and proximity to residential,
    commercial or industrial areas or institutions.

    The existing amenities like water, electricity,
    possibility of their further extension, whether
    near about town is developing or has prospect

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    8 Neutral Citation No. ( 2026:HHC:15247 )

    of development have to be taken into
    consideration………….”

    11. For ascertaining market value of the acquired land,

    .

    the Court can no doubt rely upon such sale transactions, which

    would offer a reasonable basis to fix the price, for which

    purpose, a sale transaction relating to a smaller parcel of land

    can be considered for the purpose of assessing the market

    of
    value in respect of a large tract of land, after making appropriate

    deductions such as for development of land, for providing space
    rt
    for roads, sewers, drains, expenses involved in formation of a

    layout, lump- sum payments, as well as for the waiting period

    required for selling the sites that would be formed and other

    expenses involved therein, but before doing so, the evidentiary

    value of such a sale deed is required to be carefully scrutinized.

    As held in the case of Land Acquisition Officer vs. Nookala

    Rajamallu reported as (2003) 12 SCC 334, in order to adopt

    the price reflected in the sale deed, the following conditions are

    required to be met:

    “9. It can be broadly stated that the element of
    speculation is reduced to a minimum if the
    underlying principles of fixation of market value
    with reference to comparable sales are made:

    (i) when sale is within a reasonable time of
    the date of notification under Section
    4(1)
    ;

    (ii) it should be a bona fide transaction;

    (iii) it should be of the land acquired or of the
    land adjacent to the land acquired; and

    (iv) it should possess similar advantages

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    9 Neutral Citation No. ( 2026:HHC:15247 )

    10. It is only when these factors are present,
    it can merit a consideration as a
    comparable case (see Special Land
    Acquisition Officer v. T. Adinarayan Setty

    AIR 1959 SC 429).”

    .

    12. In Union of India vs. Pramod Gupta (dead) by

    LRs & others, 2005 (12) SCC 1, the Hon’ble Supreme Court

    held that the best method, as is well-known, would be the

    amount which a willing purchaser would pay to the owner of the

    of
    land. In the absence of any direct evidence, the Court,

    however, may take recourse to various other known methods.

    rt
    Evidence admissible therefor inter alia would be the sale

    deeds, judgments and awards passed in respect of acquisitions

    of lands made in the same village and/or neighboring villages.

    Such a judgment/award in the absence of any other evidence

    like deed of sale, report of the expert and other relevant

    evidence would have only evidentiary value. The relevant

    portion of the aforesaid judgment reads as under:

    “24. While determining the amount of compensation

    payable in respect of the lands acquired by the
    State, the market value therefor indisputably has to
    be ascertained. There exist different modes therefor.

    25. The best method, as is well known, would be the
    amount which a willing purchaser would pay to the
    owner of the land. In absence of any direct
    evidence, the court, however, may take recourse to
    various other known methods. Evidences
    admissible therefor inter alia would be judgments
    and awards passed in respect of acquisitions of
    lands made in the same village and/or neighboring
    villages. Such a judgment and award, in the
    absence of any other evidence like the deed of sale,
    report of the expert and other relevant evidence
    would have only evidentiary value.”

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    10 Neutral Citation No. ( 2026:HHC:15247 )

    13. In the instant case, the petitioners/claimants had

    produced sale deed, Ex. AW-2/A, dated 08.07.1994, whereas

    .

    the respondents (appellants herein)had produced on record

    average value of land Ex RW-1/A, for the year 1995-96 and

    tendered in evidence copies of sale deeds, Ex. RA, dated

    08.03.1995, Ex. RB, dated 21.11.1995 and Ex. RC, dated

    of
    14.01.1995.

    14. The perusal of Ex. AW-2/A clearly shows that it was
    rt
    executed on 08.07.1994 vide which 11 marlas of land, situated

    in Revenue Estate Mangrehd Mauza Ichhi Tehsil and District

    Kangra, H.P., was sold for Rs.40,000/-. Sale deed, Ex. RA,

    dated 08.03.1995, was executed for Rs.18,000/-, whereby 0-

    02-81 hectares of land was sold. Through sale deed, Ex. RB,

    dated 21.11.1995, 0-00-53 hectares of land was sold for

    Rs.500/- and in sale deed, Ex.RC, dated 14.02.1995, land

    measuring 0-00-97hectares of land was sold for Rs.6000/- and

    the land involved in all the aforesaid sale deeds, Exs. RA, RB

    and RC was situated in Mauza Tika Ichhi Khas.

    15. It is a settled law that where there are various sale

    deeds, then highest of the sale exemplars has to be taken into

    consideration and not by averaging of different types of sale

    transactions. In State of Punjab & another vs. Hans Raj

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    (dead) by LRs Sohan Singh & others, (1994) 5 SCC 734, the

    Hon’ble Supreme Court has held as under:

    .

    “4. Having given our anxious consideration to the

    respective contentions, we are of the considered view
    that the learned Single Judge of the High Court
    committed a grave error in working out average price
    paid under the sale transactions to determine the
    market value of the acquired land on that basis. As the

    method of averaging the prices fetched by sales of
    different lands of different kinds at different times, for
    fixing the market value of the acquired land, if followed,
    could bring about a figure of price which may not at all
    be regarded as the price to be fetched by sale of

    of
    acquired land. One should not have, ordinarily recourse
    to such method. … … … … …”

    16. In Anjani Molu Dessai vs. State of Goa &
    rt
    another, (2010) 13 SCC 710, the Hon’ble Supreme Court has

    held as under:

    “20. The legal position is that even where there are several
    exemplars with reference to similar lands, usually the
    highest of the exemplars, which is a bona fide
    transaction, will be considered. Where however there

    are several sales of similar lands whose prices range in
    a narrow bandwidth, the average thereof can be taken,
    as representing the market price. But where the values
    disclosed in respect of two sales are markedly different,
    it can only lead to an inference that they are with

    reference to dissimilar lands or that the lower value sale
    is on account of under-valuation or other price
    depressing reasons. Consequently averaging cannot be

    resorted to. We may refer to two decisions of this Court
    in this behalf.

    21. In M. Vijayalakshmamma Rao Bahadur v. Collector,

    (1969) 1 MLJ 45 (SC), a three-Judge Bench of this Court
    observed that the proper method for evaluation of
    market value is by taking the highest of the exemplars
    and not by averaging of different types of sale
    transactions. This Court held:

    “It seems to us that there is substance in the first
    contention of Mr. Ram Reddy. After all, when the
    land is being compulsorily taken away from a
    person, he is entitled to say that he should be
    given the highest value which similar land in the
    locality is shown to have fetched in a bona fide
    transaction entered into between a willing
    purchaser and a willing seller near
    about the time of the acquisition. It is not disputed
    that the transaction represented by Exhibit R-19
    was a few months prior to the notification under

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    12 Neutral Citation No. ( 2026:HHC:15247 )

    section 4, that it was a bona fide transaction and
    that it was entered into between a willing
    purchaser and a willing seller. The land comprised
    in the sale deed is 11grounds and was sold at
    Rs.1,961 per ground. The land covered by Exhibit-

    .

    27 was also sold before the
    notification, but after the land comprised in

    ExhibitR-19 was sold. It is true that this land was
    sold atRs.1,096/- per ground. This, however, is
    apparently because of two circumstances. One is
    that betterment levy at Rs.500 per ground had to

    be paid by the vendee and the other that the land
    comprised in it is very much more extensive, that
    is about 93 grounds or so. Whatever that may be,
    it seems to us to be only fair that where sale deed,
    pertaining to different

    of
    transactions are relied on behalf of the
    Government, that representing the highest value
    should be preferred to the rest unless there are
    strong circumstances justifying a different course.
    In any case we see no reason why an average of
    two sale deeds should have been taken in this
    rt
    case.”

    22. In State of Punjab v. Hans Raj, (1994) 5 SCC 734, this

    Court held:

    “4. Having given our anxious consideration
    to the respective contentions, we are of the
    considered view that the learned single Judge of
    the High Court committed a grave error in working

    out average price paid under the sale transactions
    to determine the market value of the acquired land
    on that basis. As the method of averaging the
    prices fetched by sales of different lands of
    different kinds at different times, for fixing the

    market value of the acquired land, if followed,
    could bring about a figure of price which may not
    at all be regarded as the price to be fetched by

    sale of acquired land. One should not have,
    ordinarily recourse to such method. It is well
    settled that genuine and bonafide sale
    transactions in respect of the land under

    acquisition or in its absence the bona fide sale
    transactions proximate to the point of acquisition
    of the lands situated in the neighborhood of the
    acquired lands possessing similar value or utility
    taken place between a willing vendee and the
    willing vendor which could be expected to reflect
    the true value, as agreed between reasonable
    prudent persons acting in the normal
    market conditions are the real basis to determine
    the market value.”

    23. Therefore, we are of the view that the averaging of
    the prices under the two Sale Deeds was not justified.
    The Sale Deed dated 31.1.1990 ought to have been
    excluded for the reasons stated above. That means
    compensation for the acquired lands had to be fixed
    only with reference to the Sale Deed dated30.8.1989

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    relied upon by the Land Acquisition Collector which will
    be Rs.57.50 per sq.m. As the said market value has been
    fixed with reference to comparable bharad land with
    fruit trees, the question of again separately awarding
    any compensation for the trees situated in the acquired

    .

    land does not arise.”

    17. In the case on hand, since sale deed, Ex. AW-2/A,

    is the highest of the exemplars, therefore, in view of the

    aforesaid judgments, the sale deed, Ex. AW-2/A has to be

    of
    taken into consideration for determining the market value of the

    land under acquisition. As observed earlier, sale deed, Ex.

    AW-2/A, was executed 08.07.1994, vide which 11 marlas of
    rt
    land, situated in Revenue Estate Mangrehd Mauza Ichhi Tehsil

    and District Kangra, H.P., was sold for Rs.40,000/-.Therefore,

    in view of the sale deed, Ex. AW-2/A, the market value of the

    land is determined at Rs.18,93,900/- per hectare. However,

    the learned Reference Court had wrongly calculated the market

    value of the acquired land @ Rs.19,23,076/- instead of

    Rs.18,93,900/-per hectare on the basis of sale deed, Ex. AW-

    2/A.

    18. The learned Deputy Advocate General for the

    appellant/State contended that the learned Reference Court

    had erred in not deducting any amount while assessing the

    market value of the land in question. However, this contention

    is devoid of any force as it is a settled law that no deduction will

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    be permissible where the land is acquired for the purpose of

    construction of the road and for laying railway line etc.. In The

    .

    Land Acquisition Collector vs. Bangalu @ Daulat Ram,

    2025 (1) Shimla Law Cases 146, this Court has held as under:

    19. In Nelson Fernandes & others vs. Special Land

    Acquisition Officer, South Goa & others, (2007) 9 Supreme

    of
    Court Cases 447, while dealing with the case where the land

    was acquired for laying a railway line, the Hon’ble Apex Court
    rt
    held that no deduction by way of development charges was

    permissible, as there was no question of any development

    thereof. The relevant portion of the judgment (supra) is as

    under:

    “30. … … that where lands are acquired for
    specific purposes, deduction by way of development
    charges is permissible. In the instant case, acquisition

    is for laying a railway line. Therefore, the question of
    development thereof would not arise.”

    20. Thus, the contention of learned Deputy Advocate

    General cannot be upheld for the reasons firstly, that no

    deduction will be permissible keeping in view the purpose of

    acquisition involved in the instant appeals, secondly, every inch

    of acquired land was put to the same use for which it was

    acquired.

    21. Since in the instant case also the land was acquired

    for the purpose of construction of Mastpur-Icchi Road, no

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    deduction will be permissible. Hence, the market value of the

    acquired land is assessed @ Rs.18,93,900/- per hectare in

    .

    terms of sale deed, Ex.AW-2/A.

    22. The learned Deputy Advocate General for the State

    lastly contended that the learned Reference Court has erred in

    awarding uniform rate for the entire land by ignoring the

    of
    classification and nature of the land. However, this contention

    of the learned Deputy Advocate General is also devoid of any
    rt
    force. It is a settled law that where the entire area is similarly

    situated, the value of the land under acquisition is to be

    assessed as a single unit irrespective of its classification and

    nature ignoring the purpose to which it was being put prior to

    the acquisition, as well as to the one it is likely to be put

    thereafter. In Gulabi & etc. vs. State of H.P., AIR 1998 HP 9,

    it has been held as under:

    “As a result of this discussion it is held that the market value of the
    land on the date of acquisition is Rs.4,000/- per biswa. In this

    context it is further held that the value of the land under acquisition
    is to be assessed irrespective of its classification and nature
    ignoring the purpose to which it was being put prior to the
    acquisition, as well as to the one it is likely to be put thereafter,
    Consequently, the appellants are held entitled to compensation at
    the rate of Rs. 4,000/- per biswa uniformly for all qualities of land
    and it is ordered accordingly. In taking this view, we are guided by
    the judgment of the Hon’ble Apex Court reported in Bhagwathula
    Samanna and others Vs. Special Tahsildar and Land Acquisition
    Officer, Visakhapatnam Municipality, and the relevant abstracts
    from the said judgment are as under (paras 7, 11, 13):–

    “In awarding compensation in acquisition
    proceedings, the Court has necessarily to
    determine the market value of the land as on the
    date of the relevant Notification. It is useful to
    consider the value paid for similar land at the

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    material time under genuine transactions. The
    market value envisages the price which a willing
    purchaser may pay under bona fide transfer to a
    willing seller. The land value can differ depending
    upon the extent and nature of the land sold. A fully

    .

    developed small plot in a important locality may
    fetch a higher value than a larger area in an

    undeveloped condition and situated in a remote
    locality. By comparing the price shown in the
    transactions all variables have to be taken into
    consideration. The transaction in regard to smaller

    property cannot, therefore, be taken as a real basis
    for fixing the compensation for larger tracts of
    property. In fixing the market value of a large
    property on the basis of a sale transaction for
    smaller property, generally a deduction is given

    of
    taking into consideration the expenses required for
    development of the larger tract to make smaller
    plots within that area in order to compare with the
    small plots dealt with under the sale transaction.

    The principle of deduction in the land value
    rt
    covered by the comparable sale is thus adopted in
    order to arrive at the market value of the acquired
    land. In applying the principle it is necessary to
    consider all relevant facts. It is not the extent of the

    area covered under the acquisition, the only
    relevant factor. Even in the vast area there may be
    land which is fully developed having all amenities
    and situated in an advantageous position. If
    smaller area within the large tract is already
    developed and suitable for building purposes and

    have 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.

    The proposition that large area of land cannot
    possibly fetch a price at the same rate at which
    small plots are sold is not absolute proposition and

    in given circumstances it would be permissible to
    take into account the price fetched by the small
    plots of land. If the larger tract of land because of
    advantageous position is capable of being used for

    the purpose for which the smaller plots are used
    and is also situated in a developed area with little
    or no requirement of further development, the
    principle of deduction of the value for purpose of
    comparison is not warranted.

    In the instant case it has been satisfactorily shown
    on the evidence on record that the land has
    facilities of road and other amenities and is
    adjacent to a developed colony and in such
    circumstances it is possible to utilize the entire
    area in question as house sites. In respect of the
    land acquired for the road, the same advantages
    are available and it did not require any further
    development. Therefore, no deduction could be
    made on ground, that large tract of land is
    required.”

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    17 Neutral Citation No. ( 2026:HHC:15247 )

    23. In Land Acquisition Officer vs. L Kamalamma

    (1998) 2 SCC 385, H.P. Housing Board vs. Ram Lal &

    .

    others 2003(3) Sim.L.C. 64, Executive Engineer & Anr. vs.

    Dilla Ram Latest HLJ 2008 (HP) 1007), it was held that when

    the entire land acquired belongs to one block, classification of

    the same into different categories is not reasonable. In case

    of
    acquired land is to be used/developed as a single unit for a

    purpose having no relevancy with quality of land, the
    rt
    classification of land completely loses its significance.

    24. In the case on hand also as the land was acquired

    as the single unit for the public purpose, i.e., for construction of

    Mastpur-Icchi Road, therefore, the value of the land under

    acquisition is to be assessed as a single unit irrespective of its

    nature and classification ignoring the purpose to which it was

    being put prior to the acquisition, as well as to the one it is likely

    to be put thereafter Therefore, in view of the aforesaid

    authoritative pronouncements of law, the contention of the

    learned Deputy Advocate General that the learned Reference

    Court has erred in awarding uniform rate for the entire land by

    ignoring the classification and nature of the land deserves to be

    rejected.

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    18 Neutral Citation No. ( 2026:HHC:15247 )

    25. As a result of my aforesaid discussion, it is held that

    the market value of the land on the date of acquisition was

    .

    Rs.18,93,900/- per hectare. Consequently, the appellants are

    held entitled to compensation at the rate of Rs.18,93,900/-per

    hectare uniformly for all qualities of land, irrespective of its

    classification, along with all statutory benefits. Rest of the

    of
    terms of the impugned award shall remain the same.

    26. In view of what has been discussed hereinabove,
    rt
    the appeals, are partly allowed and accordingly disposed of.

    Pending application(s), if any, shall also stand(s)

    disposed of.

    ( Sushil Kukreja )

    Judge
    7th May, 2026
    (virender)

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