In Brief
A partnership firm's land was acquired for the Hiwra Dam project. The land included 0.80 hectares of non-agricultural land (sugar factory) and 1.44 hectares of cultivable land. The appellants challenged the High Court's 40% deduction for development costs, which reduced their compensation. The Supreme Court partly allowed the appeal, affirming the land value at Rs. 6.90 per sq.ft. but reducing the development cost deduction from 40% to 20%, reasoning that irrigation projects require less infrastructure than housing layouts. The Court also enhanced compensation for electrical installation costs and upheld awards for machinery, civil works, and loss of business. The modified total compensation was significantly increased, with the balance amount payable to the appellants along with statutory benefits.
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