IMPORTANT POINT
The provisions of the Land Acquisition Act, as amended by the 1984 Act relating to determination and payment of compensation, would be payable to acquisition of land for the purposes of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965.

Headnote:(i) Land Acquisition (Amendment) Act, 1984-Sections 23(1A), 23(2) and 28-Applicability of 1984 Act to acquisitions for the purpose of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965-Whether the land owner is entitled to payment of compensation and interest in accordance with provisions of Sections 23 and 28, as amended by the 1984 Act?-(Yes)-Interpretation of provisions of Section 55 of the Adhiniyam-Nagpur Improvement Trust case, 1973 (3) SCR 3 : Relied on.
       Held : In view of the construction placed by us on the provisions of Section 55 of the Adhiniyam that the provisions of the L.A. Act, as amended by the 1984 Act relating to determination and payment of compensation, would be applicable to acquisition of land for the purposes of the Adhiniyam, it is not necessary to deal with the submission that if the provisions of the 1984 Act are held to be not applicable in the matter of acquisition of land for the purposes of the Adhiniyam the provisions of the L.A. Act, as applicable under the Adhiniyam, would be void on the ground of repugnance under Article 254 of the Constitution. (Para 21)
       Further held that if the provisions of the Adhiniyam are so construed as to mean that the provisions of the L.A. Act, as they stood on the date of enactment of the Adhiniyam, would be applicable to acquisition of land for the purpose of the Adhiniyam and that the amendments introduced in the L.A. Act by the 1984 Act relating to determination and payment of compensation are not applicable, the consequence would be that the provisions of the L.A. Act, as applicable under the Adhiniyam, would suffer from the vice of arbitrary and hostile discrimination. Such a consequence would be avoided if the provisions of the Adhiniyam are construed to mean that the provisions of the L.A. Act, as amended by the 1984 Act, relating to determination and payment of compensation would apply to acquisition of land for the purposes of the Adhiniyam. There is nothing in the Adhiniyam which precludes adopting the latter construction. On the other hand, the provisions of the Adhiniyam show that the intention of the Legislature, while enacting the Adhiniyam, was to confer the benefit of solatium @ 15 by modifying Section 23(2) in the Schedule, which benefit was not available under the provisions of the L.A. Act as it was applicable in the State of Uttar Pradesh at the time of enactment of the Adhiniyam. It cannot, therefore, be said that the intention of the Legislature, in enacting the Adhiniyam, was to deny to the landowners the benefits relating to determination and payment of compensation which would be available to them under any amendment made in the L.A. Act after the enactment of the Adhiniyam. We are, therefore, of the opinion that on a proper construction of Section 55 of the Adhiniyam it must be held that while incorporating the provisions of the L.A. Act in the Adhiniyam the intention of the Legislature was that amendments in the L.A. Act relating to determination and payment of compensation would be applicable to acquisition of lands for the purposes of the Adhiniyam. This means that the amendments introduced in the L.A. Act by the 1984 Act relating to determination and payment of compensation, viz., Section 23(1-A) and Sections 23(2) and 28 as amendment by the 1984 Act would be applicable to acquisitions for the purposes of the Adhiniyam under Section 55 of the Adhiniyam. (Para 20)
       (ii) Land Acquisition Act, 1894-Section 4(1)-Market value of lands - Notification dated 27.8.1983-Area of land acquired is more than 200 acres-It lies within municipal limits of the city-LAO determined market value at Rs. 30/- per sq. yd.-Civil Court fixed market value at Rs. 150/- per sq. yd. and made a deduction of 10 for development-High Court fixed the value of the acquired land at Rs. 110/- per sq. yard placing reliance on one of the exemplers submitted by land owners which was in respect of an area of 260 sq. yards showing a price of Rs. 110/- per sq. yard-Whether the determination of the market value by the High Court is justified?-(Yes)-Deduction of one third of the price towards cost of development for the housing scheme involving construction of roads and other amenities is proper.
       Held : The High Court has pointed out that admittedly, the acquired land was not developed and it may only have the potentiality of development to be used as building sites and while facilities for drainage, electricity supply, water supply and pucca road are available in those developed areas, the land which is acquired measuring more than 200 acres does not have such advantages. The High Court was, however, of the view that as the acquired land is within the municipal limits and is surrounded by developed area with buildings and pucca roads and other facilities and has the advantage of road passing by the side, it has potentiality of developing though it cannot be treated to have similar advantages as the land in the developed areas. The High Court has also taken note of the fact that the entire acquired area was used for the purpose of agriculture even in 1983 when the surrounding areas had already developed. In the light of aforesaid circumstances the High Court held that the rates available for land in developed area could not be adopted for determination of market value of the acquired land though they can be used for guidance to determine the market value by taking note of other circumstances as available on record. Referring to the exempler dated February 24, 1983 relied upon by the land owners in respect of a plot measuring 260 sq. yards which reflected a rate of Rs. 110/- per sq. yard, the High Court has stated that the said land was below 4 to 5 ft. of road level and that in the absence of any material as to any other disadvantage, this disadvantage of a piece of land could be given due weight to hold that such small strips of an area of 260 sq. yards in the acquired land would also have to be valued at the rate of Rs. 110/- per sq. yard. The High Court, therefore, fixed the value of the acquired land at Rs. 110/- per sq. yard. As regards the development charges, the High Court held that normally when a big area in acquired for housing project and rate for small strip of land having equal advantage is available this Court normally provides for deduction of one third from the rate and, therefore, it would not be unreasonable to deduct one third from Rs. 110/- to arrive at the market value. The High Court has, therefore, fixed the market value of the acquired land at Rs. 73/- per sq. yard. (Para 22)
       As regards the grievance of the land owners regarding the determination of the market value of the acquired land, we are of the view that no case is made out for interference with the said determination by the High Court. In fixing the value of the acquired land at Rs. 110/- per sq. yard the High Court has placed reliance on one of the exemplers submitted by the land owners which was in respect of an area of 260 sq. yards showing a price of Rs. 110/- per sq. yard. We do not find any ground to interfere with the said determination by the High Court fixing the value at Rs. 110/- per sq. yard. (Para 25)
       The direction about deduction of one third of the said price towards cost of development for the housing scheme involving construction of roads and other amenities is in consonance with the various decisions of this Court. (Para 26)

JUDGMENT

S.C. Agrawal, J.-

(A) Civil Appeals Nos, 6343/95, 6383/95, 6358/95, 6368/95, 6353/95, 6370/95, 6369/95, 6371/95, 6363/95, 6357/95, 6361/95, 6356/95, 6376/95, 6359/95, 7646/95, 7361/95, 7362/95, 7363/95, 6373/95, 6374/95, 6375/95, 6352/95, 6382/95, 6347/95, 6354/95, 6344/95, 6345/95, 6355/95, 6350/95, 6362/95, 6364/95, 7357/95, 7358/95, 7360/95, 7359/95, 7356/95, 7644/95, 7364/95, 7365/95, 6351/95, 6349/95, 6377/95, 6372/95, 6365/95, 6360/95 and Civil Appeal Nos. 363, 336-362, 335, 364/98 (arising out of Special leave Petition (Civil) Nos. 11170/95, 10512-10538/95, 10147/ 95 and 9549/95)

Leave granted in Special Leave Petitions (Civil) Nos. 11170/95, 10512-10538/95, 10147/95 and 9549/95.

2. These appeals are directed against the judgment of the Allahabad High Court dated December 7, 1994 in appeals arising out of proceedings for acquisition of land in connection with the housing scheme framed by the U.P. Avas Evam Vikas Parishad (hereinafter referred to as the Parishad ) under the provisions of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 (hereinafter referred to as the Adhiniyam ). They raise common questions relating to the applicability of the provisions contained in the Land Acquisition (Amendment) Act, 1984 (hereinafter referred to as the 1984 Act ) to acquisition of land for executing the said scheme. The amendments introduced by the 1984 Act include insertion of sub-section (1-A) in Section 23 and amendment of Sections 23(2) and 28 of the Land Acquisition Act, 1894 (hereinafter to as the L.A. Act ). As a result of the amendments in Section 23(2) and 28 the solatium payable under Section 23(2) has been enhanced from 15 to 30 and the interest payable under Section 28 has been enhanced from 6 and 9 and 15 .

3. The Parishad is a housing and development board established under Section 3 of the Adhiniyam. Under Section 15 of the Adhiniyam one of the functions of the Board is "to frame and execute housing and improvement schemes and other projects". In accordance with the provisions of the Adhiniyam the Parishad framed the "Bhomi Vikas Evam Grihasthan Yojana No. 10 between Meerut-Hapur and Meerut-Delhi Road in Meerut". By notification dated July 23, 1983 (published in the U.P. Government Gazette dated August 27, 1983) issued under Section 28 of the Adhiniyam the Parishad notified the said scheme. The scheme was prepared with a view to solving the acute housing problem in the Meerut city and it covered lands lying in the outskirts of Meerut city. The said notification was followed by Notification dated July 15, 1985 (published in the U.P. Government Gazette dated August 3, 1985) issued under Section 32(1) of the Adhiniyam. The said notification dated July 15, 1985 was in respect of land covering 202.48 acres equivalent to 9,07, 954 sq. yards which was to be acquired under Section 55 of the Adhiniyam whereby the provisions of the L.A. Act, as modified by the schedule to the Adhiniyam, have been made applicable to acquisition of land for the purposes of the Adhiniyam. After the issuance of the said notifications, the Land Acquisition Officer initiated proceedings to determine the compensation to be paid to the land owners whose lands were acquired in accordance with provisions of the L.A. Act as modified under the Schedule to the Adhiniyam. The Land Acquisition Officer determined the market value of the land so acquired at Rs. 30/- per sq. yard and the compensation was offered to the land owners on that basis. The land owners claimed compensation at a higher rate of Rs. 150/- per sq. yard and sought reference under Section 18 of the L.A. Act and thereupon reference were made to the Civil Court for determination of such claims of the land owners. By judgment dated December 12, 1991, the Civil Court, namely, the Additional District Judge, Meerut, determined the market value of the land at Rs. 150/- per sq. yard but he made a deduction of 10 out of it since the land acquired constituted a larg

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1998 Supreme(SC) 89

IMPORTANT POINT The provisions of the Land Acquisition Act, as amended by the 1984 Act relating to determination and payment of compensation, would be payable to acquisition of land for the purposes of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965.

Cases Referred (16)

IMPORTANT POINT
The provisions of the Land Acquisition Act, as amended by the 1984 Act relating to determination and payment of compensation, would be payable to acquisition of land for the purposes of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965.