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1989 Supreme(SC) 396

SUPREME COURT OF INDIA
M.H. KANIA AND KULDIP SINGH, JJ.
Mehta Ravindrarai Ajitrai (deceased by L.Rs.) and others, Appellants
Versus
State of Gujarat, Respondent.
Civil Appeal No. 2169 of 1970
Decided on 8-8-1989.

Advocates:
B.K.MEHTA, Bhushan B.Oza, G.A.SHAH, K.L.Hathi, M.N.SHROFF, U.A.RAMA

Headnote:

Constitution of India,1950 – Article 136 - Land Acquisition Act, 1894 – Section 4(1) and 23-1 – Land - Appellants before court are heirs and legal representatives of original claimant - Appellants are heirs and legal representatives of original claimant and appellants are the heirs and legal representatives of original claimant - Acquisition was in respect of an area admeasuring acres and 1 guntha belonging to claimant (Original) and area belonging to claimants (Original) - Lands are on outskirts of City - Acquisition forms part of a larger acquisition for construction of an industrial estate - Preliminary notification under S. 4(l) of Land Acquisition Act, 1894 was published - Claimants made their claims before Land Acquisition Officer who classified lands as superior of Bagayat type of agricultural land and awarded compensation at the rate which would come to about 0.48, p. per square yard - This award was not accepted by claimants and they made a reference which came up for hearing before learned Civil Judge, Senior Division - Evidence of some instances of sale was led before learned Civil Judge by respective parties but he did not rely upon any of the instances proved before him - He considered general situation of lands and held that on evidence it was shown that lands had a considerable building potentiality and the Land Acquisition Officer was in error in so far as he did not take that potentiality into account – Held, In court view, the only comparable instance on basis of which market value at the time of S. 4 notification in respect of acquired land can be determined is sale proved by the sale deed and the preceding agreement for sale in respect of land sold which was entered into about five months after the notification - Price thereunder is sum per square yard - From that price certain deductions have to be made on, account of various factors which have been enumerated earlier such as the rise in prices of land after the acquisition and so on - Taking into account all these factors including situation and potentialities of acquired land, it appears to us that it would be proper to fix the market value of the acquired land at sum per acre which comes to about per square yard and court direct accordingly - Decree passed by Civil Judge, Senior Division will be amended accordingly - Respondent will pay to appellant one half of the costs of the appeal in this Court - There will be no change as far as the rest of the order is concerned - Order accordingly.

JUDGMENT

KANIA, J. :— This is an appeal by special leave granted by this Court under Art. 136 of the Constitution. The appeal arises out of land acquisition proceedings.

2. The appellants before us are the heirs and legal representatives of the original claimants. Appellants Nos.1(a) to 1(c) are the heirs and legal representatives of original claimant No. 1 and appellants Nos. 2(i) to 2(ii) are the heirs and legal representatives of original claimant No. 2.

3. The acquisition was in respect of an area admeasuring 15 acres and 1 guntha belonging to claimant No. 1(Original) and area admeasuring 6 acres and 25 gunthas belonging to claimants Nos.1 and 2 (Original). The lands are situated in the Bhavnagar District and are on the outskirts of the Bhavnagar City and adjoining the Bhavnagar Rajkot Road. The acquisition forms part of a larger acquisition for the construction of an industrial estate at Bhavnagar. The preliminary notification under S. 4(l) of the Land Acquisition Act, 1894 was published on August 6, 1956. The claimants made their claims before the Land Acquisition Officer who classified the lands as superior of Bagayat type of agricultural land and awarded compensation at the rate of Rs. 2,200 per acre which would come to about 0.48, p. per square yard. This award was not accepted by the claimants and they made a reference which came up for hearing before the learned Civil Judge, Senior Division, Bhavnagar. The evidence of some instances of sale was led before the learned Civil Judge by the respective parties but he did not rely upon any of the instances proved before him. He considered the general situation of the lands and held that on the evidence it was shown that the lands had a considerable building potentiality and the Land Acquisition Officer was in error in so far as he did not take that potentiality into account. The learned Civil Judge considered the general situation of the land under acquisition and the potential value of the same for building purposes and fixed the rate of compensation at Rs. 4,400 per acre which had come to about 0.90 p. per square yard. Being dissatisfied, the claimants preferred an appeal against the decision of the learned Civil Judge, Bhavnagar to the High Court of Gujarat. The Division Bench of the High Court, which disposed of the appeal, took the view that the valuation fixed by the learned Civil Judge was justified and dismissed the appeal. This appeal is directed against the said decision of the High Court.

4. We do not feel called upon to enter into a detailed scrutiny of the evidence led by the parties before the learned Civil Judge. The main instance relied upon by the claimants was by way of an agreement to sell dated January 21, 1957 and a sale deed dated April 2, 1957 in respect of the sale of 42552 square yards of land out of survey No. 333, 2 which is adjoining the land with which we are concerned which forms part of survey No. 331. the land sold under this instance was known as "Kesarbagh" and was sold to Mahalaxmi Mills Limited by Prince Nirmalkumarsinghji. The rate at which it was sold works out to Rs. 3 per square yard. On the basis of this instance. the claimants had made their claim at Rs. 3 per square yard before the Land Acquisition Officer. The High Court inter alia rejected this instance on the basis that the contents of the sale deed were not properly proved. However. after an order for remand made by this Court on August 25. 1981 evidence has been led regarding this sale and the sale deed has been duly proved by the evidence of one Dharamdas, a Director of Mahalakshmi Mills Limited, the purchaser, and the vendor Prince Nirmalkumarsinghji. It was marked originally as Exhibit 87 and after the evidence on remand as Exhibit 152. The evidence shows that this land was just adjacent to the land of the purchaser. Mahalaksmi Mills Limited. The agreement of sale is dated January 21, 1957 and the conveyance or sale deed is dated April 2, 1957 as aforestated. The price has be







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