SUPREME COURT OF INDIA
H.R. KHANNA IYER, M.H. BEG AND V.R. KRISHNA IYER, JJ.
Mirza Nausherwan Khan and another, Appellants
Versus
The Collector (Land Acquisition) Hyderabad, Respondent.
Civil Appeal No. 2025 of 1968, D/- 26-9-1974.
Hyderabad Land Acquisition Act - Central Land Acquisition Act - Land Acquisition Act – Constitution Of India, 1950 - Article 133 (1) (a) - Land - Compensation - Land, vast in extent, had a building with a plinth area of 3,300 sq. yds - Area in which acquired plot is situate is perhaps an important one in City - After getting expert valuation made of building by Central Public Works Department Engineer, Collector awarded a sum of building, for standing trees and a sum of for a belt of land 50 ft. deep at and for remaining area of 13,258 sq yds - Total figure together with statutory solatium granted by Collector was Rupees 1,99,155.85 - This figure fell far short of ambitious claim of appellant and, when case came before City Civil Court on a reference, there was an enhancement of compensation – Held, Notification produced by appellant, itself shows that around middle rate of interest allowed on Government Securities at relevant time ranged between 3 1/4% and 4 % - Court accepted 3 1/4% as interest on giltedged securities instead of 4%, thus giving some advantage to appellant and there is no warrant for contention that interest on Government bonds was 3% at relevant time - Appellant apparently has sought to mis-read Ex. A-7 – Court is satisfied with valuation of rented portion of house adopted by High Court as correct - Shri Pillai argued in vain for an augmentation of value on potential user of plot for a Cinema House - This story has been factually disbelieved by Courts below and Court cannot reopen matter – Court must also remember that Court below has been indulgent enough to adopt a multiple of 27 despite fact that buildings acquired are over 30 years old - Nor does it come with grace from appellant to contend against belting method since he himself had asked for its application before Collector and trial Court - Appeal dismissed.
Judgement
KRISHNA IYER, J.:- This appeal, by certificate, arises out of land acquisition proceedings under the Hyderabad Land Acquisition Act (Hyderabad Act IX of 1309 Fasli) (hereinafter called the Act, for short) which substantially resembles the provisions of the Central Land Acquisition Act.
2. The Government of Andhra Pradesh acquired a large open area with some buildings thereon by Notification, dated January 3, 1957 with a view to construct Income-tax and Central Excise Offices of Hyderabad. The contest before us is confined to the quantum of compensation and, although Shri Vasudeva Pillai, counsel for the appellants, has pressed his points with persistence, we are unable to disturb the High Court s award.
3. The land, vast in extent, had a building with a plinth area of 3,300 sq. yds. The area in which the acquired plot is situate is perhaps an important one in the City. After getting expert valuation made of the building by the Central Public Works Department Engineer, the Collector awarded a sum of Rs. 41,674/- for the building, Rs. 1,440/ for the standing trees and a sum of Rs. 30,630/- for a belt of land 50 ft. deep at Rs. 15/- per square yard and Rs. 99, 435/ for the remaining area of 13,258 sq yds. The total figure together with statutory solatium granted by the Collector was Rupees 1,99,155.85. This figure fell far short of the ambitious claim of the appellant and, when the case came before the City Civil Court on a reference, there was an enhancement of compensation. Although the learned Additional Chief Judge held that the area was a little less than had been determined by the Collector, the market value of the building was increased nearly four-fold on the basis of a multiple of 25 times the rent fetched. On the other items also some changes were made and, consequentially, the total amount was raised to Rs. 3,31,092/- . The appellant arrived in the High Court asking for more (and the State also appears to have appealed, but is appeal was dismissed and we are not therefore concerned with it).
4. Some measure of good fortune attended the appeal since the High Court altered the multiple from 25 of 27 in fixing the compensation for the building. Otherwise, it substantially affirmed the findings of the trial Court, except that to the advantage of the appellant it restored the area acquired. The net result was the appellant obtained a total sum of Rupees 3, 52,326.65 as compensation.
5. It is thus clear that from the Collector to the Civil Court and on to the High Court, there has been an escalation in the amount of compensation and hopefully, the owner has reached this Court with his appeal under a certificate which he secured under Art. 133 (1) (a) before the recent amendment. We mention this because we are unable to discern any substantial question of law of general importance in counsel s submission or the points outlined in the memorandum of appeal which merits the consideration of this Court.
6. Merely because the claim is large the judgment need not be long and, although the appellant tried to spread the canvas wide, we regard the points deserving of consideration as falling within a narrow compass. The burden of the song has been that Hyderabad has, for historical reason, become a great city and that the land acquired has precious potential value which has not entered the judicial computation at the lesser levels. (By way of aside one may say that socio-economic development of a City may enhance the value of space without any the littlest contribution by its owner and it is, in one sense, unfair that society should pay to an individual a higher price not because he has earned it but because of other development factors. Of course, we are concerned with the Land Acquisition Act as it is and this thought therefore need not be pursued). Counsel has also urged that the land and the building taken together had personality of its own and therefore a special value, missed by the courts below, should be ascribed and the
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