Reference Date For Land Compensation Is Jan 1, 2014 For Pending Awards: Allahabad HC

Acquisition proceedings initiated under the old regime that remained pending on the date the new land acquisition law took effect must now utilize January 1, 2014, as the benchmark date for determining market value to ensure fair compensation. The Allahabad High Court has reinforced the principle that while such acquisitions do not lapse, the computation of awards must align with the beneficial provisions of the modern statutory framework to prevent constitutional arbitrariness.

A bench comprising Justice Siddhartha Varma and Justice Kunal Ravi Singh heard a writ petition challenging the non-declaration of an award for lands acquired in Saharanpur. The petitioners sought a declaration that the acquisition had lapsed or, in the alternative, that compensation be determined under the new 2013 law.

Judicial Clarification on Compensation Reference Date

The Allahabad High Court observed that despite the U.P. Avas Evam Vikas Parishad depositing over ₹20 crore with the Special Land Acquisition Officer (SLAO), the final award had not been declared for over a decade. The central dispute was whether the compensation should be based on the 2004 notification date or the 2013 Act's enforcement date. The Bench observed that "In the instant case also, admittedly, the acquisition proceedings were not finalized before 01.01.2014 as no award was declared by the Parishad by that time. The award has been declared, as noted above, on 27.02.2024 and, therefore, in our opinion, the Competent Authority should have determined compensation as per the provisions of the New Act, 2013 by treating the reference date as 01.01.2014, i.e. the date of enforcement of the New Act"

The Allahabad High Court directed the State respondents to redetermine the amount of compensation regarding plot concerned in village Mavi Khurd, within a period of three months from the date of production of certified copy of this order. It further clarified that the admissible amount shall be distributed further within a period of 2 months from the date of quantification of the compensation.

Background

The petitioners’ lands in Saharanpur were notified for acquisition in 2004 under Section 28 of the U.P. Avas Evam Vikas Parishad Adhiniyam, 1965, followed by a Section 32 notification in 2010. However, the SLAO failed to declare the final award despite the Parishad depositing the estimated compensation. The petitioners argued that since the Land Acquisition Act, 1894 was repealed, any award made post-2014 must follow the Right To Fair Compensation And Transparency In Land Acquisition, Rehabilitation And Resettlement Act, 2013. The Allahabad High Court relied on Hem Chandra Vs. State of U.P. and others, which was recently upheld by the Supreme Court in Hem Chandra Vs. State of U.P. and others, to hold that the transition to the new Act is necessary to maintain parity. Similar views were echoed in M/s Bir Hotels Pvt. Ltd. Vs. State of U.P. and other, Ishwari Prasad Sharma and another vs. State of U.P. and others, and Jainex Developers Pvt. Ltd. Vs. State of U.P. and others, confirming that the date of reference for compensation in such cases is the date the new Act was enforced. The Allahabad High Court concluded that the earlier determination based on the 2004 notification was legally unsustainable.

Case Details:
Case No.: WRIT – C No. - 9903 of 2023
Case Title: Dilshad Ali and 5 others Versus State of U.P. and 3 others
Appearances:
For the Petitioner(s): Ajay Kumar Singh, Ashish Kumar Singh, Shreya Gupta
For the Respondent(s): Avneesh Tripathi, C.S.C., Nipun Singh, Vineet Pandey

Source: 2026 CaseBase(ALL) 1359