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High Court of Punjab and HaryanaRFA/3085/2003disposed of

Budhram & ORS. v. State Of Haryana & ORS.

2026-04-02Mr. Justice Harkesh Manuja12 pages

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In our view, the learned Single Judge did not commit any error by relying upon sale transaction Exhibit P1 for the purpose of fixing market value of the acquired land. Undisputedly, that sale transaction was between two corporate entities and the entire sale price was paid through bank drafts. It is also not in dispute that the land which was subjectmatter of Exhibit P1 is situated at village Naharpur Kasan and is adjacent to the acquired land. The Corporation and the State Government did not adduce any evidence to prove that the land sold vide Exhibit P1 was overvalued with an oblique motive of helping the land owners to claim higher compensation. Therefore, we do not find any justification to discard or ignore sate deed Exhibit P1. The refusal of the learned Single Judge to rely upon other sale

7 transactions in which sale price of the land was shown as Rs. 7 lakhs per acre also does not suffer from any legal infirmity %& '(

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Now, we are left with sale instance recorded in Ex.P1. It pertains to village Bahala. Said village Bahala and village Naya Gaon where suit land is situated, are abutting to each other as stated by PW1 and PW2 and admitted by RW1 and RW2. Potentiality of land of both these villages is same as admitted by RW2, who is Patwari. Said sale deed Ex.P1 is proved by two of the executants/vendor PW1 and PW2 and they have proved the sale consideration as mentioned therein." '''    

   



   



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56 064. It is a settled principle of law that lands of adjacent villages can be made the basis for determining the fair market value of the acquired land. This principle of law is qualified by clear dictum of this Court itself that whenever direct evidence i.e. instances of the same villages are available, then it is most desirable that the court should consider that evidence. But where such evidence is not available court can safely rely upon the sales statistics of adjoining lands provided the instances are comparable and the potentiality and location of the land is somewhat similar. The evidence tendered in relation to the land of the adjacent villages would be a relevant piece of evidence for such determination. Once it is shown that situation and potential of the land in two different villages are the same then they could be awarded similar compensation or such other compensation as would be just and fair.

65. The cases of acquisition are not unknown to our legal system where lands of a number of villages are acquired for the same public purpose or different schemes but on the commonality of purpose and unite development. The parties are expected to place documentary evidence on record that price of the land of adjoining village has an increasing trend and the court may adopt such a price as the same is not impermissible. Where there is commonality of purpose and common development, compensation based on statistical data of adjacent villages was held to be proper. Usefully, reference can be made to the

10 judgments of this Court to the cases of Kanwar Singh & Ors. v. Union of India [JT 1998 (7) SC 397] and Union of India v. Bal Ram & Anr. [AIR 2004 Supreme Court 3981]

66. In this regard we may also make a reference to the judgment of this Court in the case of Kanwar Singh & Ors. v. Union of India [AIR 1999 Supreme Court 317] , where sale instance of the adjacent villages were taken into consideration for the purpose of determining the fair market value of the land in question and their comparability, potential and acquisition for the same purpose was hardly in dispute. It was not only permissible but even more practical for the courts to take into consideration the sale statistics of the adjacent villages for determining the fair market value of the acquired land."

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