P&H : Upholds Decree Against HUDA’s Enhanced Compensation; Orders Recalculation Across All Allottees, Refund With 9% Interest

punjab-haryana
⚖️ Order Date: 04 May 2026
Headnotes

Haryana Urban Development (Disposal of Land and Buildings) Regulations, 1978, Reguls.2(b), 10 - Demand notice - Enhanced compensation - Enhanced compensation is required to be distributed proportionately over the entire developed area of scheme including residential and commercial components exclusion of commercial areas and sector roads - Loading...

Haryana Urban Development Authority Act, 1977, S.50 — Bar of jurisdiction of civil Court - Where demand raised by authority is arbitrary and without factual or legal foundation,  jurisdiction of civil Court is not barred. (Para17) 

Haryana Urban Development (Disposal of Land and Buildings) Regulations, 1978, Reguls.2(b), 10 - Demand notice - Enhanced compensation - Authority’s subsequent calculation showing no dues and Estate Officer’s affidavit confirming transfer and absence of outstanding amount reinforce the conclusion that impugned demand lacked sustainability. (Para 18)

Haryana Urban Development (Disposal of Land and Buildings) Regulations, 1978, Reguls.2(b), 10 - Demand notice - Enhanced compensation -Refund with interest  - Authority directed to re-compute enhanced compensation strictly in accordance with law by proportionately distributing burden over all categories of allottees, including commercial and residential...


Facts of the Case

P&H : Upholds Decree Against HUDA’s Enhanced Compensation; Orders Recalculation Across All Allottees, Refund With 9% Interest

 High Court dismissed HUDA’s second appeal challenging concurrent decrees that set aside an enhanced compensation demand raised on a residential allottee in Karnal. Justice affirmed that such compensation must be spread proportionately across the entire developed sector, including commercial areas, and cannot be loaded solely on residential plot-holders.

The case arose from a 1990 demand notice issued to the plaintiff, a transferee of a residential plot. Citing the 1978 Regulations and allotment conditions, HUDA sought Rs 20,119.65 towards enhanced land acquisition compensation, with a stipulation of 15% interest for non-payment. The plaintiff challenged the notice as arbitrary and based on a flawed...

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