IMPORTANT POINT
In land acquisition cases, the Court, while determining the compensation must sit in the arm chair of a willing and prudent vendee and it is its duty to take all the relevant factors into account.

Headnote:(i) Land Acquisition Act, 1894-Sections 4(1) & 23-Acquisition of Lands of an extent of 235.95 acres of lands-Notification issued in 1987 for planner development of Meerut City-LAO awarded compensation at the rate of Rs. 50/- per sq. yard-Reference Court awarded compensation at the rate of Rs. 240/- per sq. yd.-Appeals-High Court reduced compensation to Rs. 75/- per sq.yd.-Lands in all villages abutting National highway-Lands possessed of immediate potential value as building sites-Whether claimants are entitled to higher compensation then was determined ?-(Yes)-approximate net market value would be Rs.175/- per sq. yard after giving deduction for developmental charges -Award of solatium at 30% on enhanced compensation-Award of interest at the rate of 9% p.a. for one year and 15% p.a. on enhanced compensation-Award of additional amount u/s 23(1-A).
       Held : It is settled legal position that the Court, while determining the compensation must sit in the arm chair of a willing and prudent vendee and put a question whether the market value sought to be determined would be capable to fetch the price that hypothitic he should determine just and adequate compensation for the land acquired. Since none connected with the sale deeds was examined, the sale deeds are inadmissible in evidence though certified copies marked under Section 51-A are available. So, all the sale deeds stand excluded. It is the duty of the Court to take all the relevant factors into account before determination of the compensation. Applying the above acid test, in view of the paucity of evidence, instead of remitting the matter to the reference Court and prolonging the agony of the claimants, we think that the appropriate course would be to base the award of the reference Court in respect of the notification dated April 5, 1980 in which the compensation was determined at the rate of Rs. 70/- per sq. yard and which has become final. That would form the foundation and base to determine the compensation treating that area as a block. That was determined after giving necessary deductions towards developmental charges, as required under law. The belting in this case is not reasonable for the entire lands are situated in well defined and development blocks. The lands are possessed of immediate potential value as building sites. Having regard to that base, the question is : whether the claimants are entitled to higher compensation then was determined? In view of the facts that Meerut City is a fast growing industrial and commercial city and in many a part it is already developed area, there is pressure on the land for the developmental activities, viz., for building and commercial purposes. In fact, under these circumstances, we think that we should taken into account reasonable rise in prices, particularly in view of the gap of several years, we think that the approximate net market value would be Rs. 175/- per sq. yard after giving deduction for developmental charges for the lands situated in Quasimpur Nagla Tashi and the claimants are entitled to the solatium at 30% on enhanced compensation. They are also entitled to interest at the rate of 9% per annum for one year and 15% per annum on enhanced compensation from the date of the taking possession till date of deposit in the Court. In case the land owners are still in possession, they are not entitled to the payment of the interest. Similarly, they are entitled to additional amount under Section 23(1-A) from the date of the notification till date of the award or date of the taking possession, whichever is earlier. (Para 10)
       (ii) Land Acquisition-Compensation claim-Determination of-Court while determining compensation must sit in arm chair of a willing and prudent vendee-When none connected with sale deeds was examined-Sale deeds are inadmissible in evidence though certified copies marked u/s 51-A are available. (Para 10)

ORDER

In case pertaining to the village Dantal, leave confined to the question of interest, stands revoked.

Delay condoned.

We have heard learned counsel on both sides.

2. Leave granted in all the matters except where the appeals are already on record.

3. The notification in respect of the lands of an extent of 235.95 acres of lands situated in village Quasimpur Nagla Tashi was issued on August 14, 1987 under Section 4(1) of the Land Acquisition Act, 1894 (1 of 1894) (for short, the Act ) for planned development of Meerut City. The Land Acquisition Officer awarded compensation, under Section 11, on February 22, 1990 at the rate of Rs. 50/- per sq. yard, On reference under Section 18, the Additional District Judge passed the award and decree dated May 11, 1992 awarding compensation at the rate of Rs. 240/- per sq. yd.

4. Feeling aggrieved by the said judgment, when the Development Authority and the Government filed appeals followed by the cross appeals by the Claimants, the High Court in the Judgment dated January 12, 1995 reduced the compensation to Rs. 75/- per sq. yard. Thus, these appeals.

5. In respect of the lands situated in Mukarabpur Palhera admeasuring 416.5 acres, the notification under Section 4(1) of the Act was published on February 12, 1980. The Land Acquisition Officer in his award dated January 9, 1988 made a belting and awarded compensation for the first belt, i.e., land admeasuring 34.46 acres at the rate of Rs. 30/- per sq. yard and for the second belt, i.e. land admeasuring 368.32 acres, at the rate of Rs. 11.25 per sq.yard. On reference, Additional District Judge awarded compensation for the land admeasuring 33.45 acres falling in first belt at the rate of Rs. 70/- per sq.yard by his award and decree dated May 7, 1990; for the land admeasuring 3.53 acres falling in second belt at the rate of Rs. 37.50 per sq. yard; and for land admeasuring 16.38 acres of the second belt he awarded compensation at the rate of Rs. 70/- per sq. yard. In his another award dated December 18, 1991 for the land admeasuring 1.99 acres covered in the second belt he awarded compensation at the rate of Rs. 100/- per sq. yard. On appeals, the High Court reduced the compensation for the first belting to Rs. 55/- per sq. yard by judgment and decree dated December 20, 1994 and for the second belting at the rate of Rs. 30/- per sq. yard. With regard to 1.99 acres of land falling in the second belt, by second award compensation was reduced to Rs. 65/- per sq. yard by the judgment dated March 20, 1995.

6. In respect of an extent of 105.23 acres of the land situated in village Dantal, the notification under Section 4(1) of the Act was published on June 11, 1985. Possession was taken on June 16, 1985, of an area of 53.5 acres and compensation was awarded for 1.03 acre of land in the first belt at the rate of Rs. 37.5/- per sq. yard and for 52.45 acres of land falling in the second belting at the rate of Rs. 28.13 per sq. yard. On reference, the Additional District Judge granted compensation by award dated 31.10.1990 for 4.94 acres of land of the first belt at the rate of Rs. 75/- per sq. yard and for 20.85 acres of land of the second belt, at the rate of Rs. 70/- per sq. yard by award dated August 28, 1991. By another award of the same date, for the second belt area of 9.66 acres, compensation was awarded at the rate of Rs. 70/- per sq. yard. For the second belt area of 29.81 acres, by the award dated January 8, 1991 compensation was awarded at the rate of Rs. 70/- per sq. yard. For small portion of the second belt area admeasuring 2.45 acres compensation at the rate of Rs. 56.25 per sq. yard was awarded by award dated 31.10.1990. On appeal, the High Court has reduced the compensation to Rs. 70/- per sq. yard in respect of 48.44 acres by the judgment dated February 12, 1995. Thus, these appeals by special leave.

7. We have heard learned counsel on both sides.

We have perused the map produced before us and also the sale deeds filed by the parties an

Click Here to Read the rest of this document

1997 Supreme(SC) 772

IMPORTANT POINTIn land acquisition cases, the Court, while determining the compensation must sit in the arm chair of a willing and prudent vendee and it is its duty to take all the relevant factors into account.

IMPORTANT POINT
In land acquisition cases, the Court, while determining the compensation must sit in the arm chair of a willing and prudent vendee and it is its duty to take all the relevant factors into account.