In this batch of civil appeals filed under Article 136 of the Constitution of India, the Supreme Court partly allowed the appeals filed by landowners, setting aside a 2019 common order of the Punjab and Haryana High Court. The dispute arose from the acquisition of land across six villages in District Fazilka, Punjab, for the construction of the Aspal Extension Drain (Ditch Canal). The Supreme Court held that the High Court erred in adopting an abstract radial “hub-and-spoke” step-down pricing model to reduce land market values based on distance from urban centers. Reaffirming the doctrine of project-wide contiguity and parity, the Court restored the uniform market value of Rs. 5,00,000 per acre determined by the Reference Court. Furthermore, the Court restored the 50% severance charges calculated on the value of remaining unacquired land due to the severe physical barriers created by the massive canal, while upholding the High Court’s restrictions on claiming statutory solatium and additional interest on auxiliary assets like tubewells and fruit-bearing trees.
- Market Value and Rejection of Radial Pricing Model: The Supreme Court set aside the High Court’s radial step-down model (which graded market values from Rs. 2,99,000 to Rs. 3,39,000 per acre) and restored the uniform market value of Rs. 5,00,000 per acre. The Court emphasized project-wide contiguity, noting that artificial revenue barriers or distance-based reductions cannot override the established benchmark of adjacent acquisitions and urban potentiality proven by special village stamp duty classifications.
- Restriction on Fruit-Bearing Trees Compensation: The Court affirmed the High Court’s decision to restrict compensation for fruit-bearing trees strictly to the 280 trees explicitly pleaded in the original reference petition under Section 18 of the Land Acquisition Act, 1894, reaffirming that evidence cannot travel beyond pleadings.
- Restoration of Severance Charges: The Supreme Court corrected the High Court’s fundamental error of calculating severance charges on the narrow acquired strip rather than the remaining unacquired land. Given that the 100-to-130-foot-wide drain with high banks effectively isolated portions of agricultural holdings without adequate heavy-machinery crossings, the Reference Court’s award of 50% severance charges on the unacquired land was fully restored.
- Statutory Benefits on Auxiliary Assets: Affirming the High Court’s approach, the Court ruled that statutory solatium (30% under Section 23(2)) and additional interest (12% per annum under Section 23(1A)) are legally payable exclusively on the market value of the bare land. These benefits are strictly excluded from applying to separate auxiliary components such as standing trees, tubewells, structures, and severance damages.
- Tubewell Compensation and Proof: The Court upheld the standardization of tubewell displacement compensation at a flat rate of Rs. 50,000 per tubewell. It noted that private valuation reports seeking higher amounts were legally unproven because their authors were never examined as witnesses to prove the truth of their contents.
- Directions for Compliance: Official respondents were directed to calculate and disburse any additional compensation owed to the landowners within six months, while any recoverable excess amounts must be recovered only after due notice and opportunity within nine months.
2026 INSC 1068
Surinder Ahuja & Anr. v. State of Punjab & Anr. (D.O.J. 29.09.2026)



