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1994 Supreme(SC) 119

SUPREME COURT OF INDIA
(BEFORE K. RAMASWAMY AND N. VENKATACHALA, JJ.)
JAWAJEE NAGNATHAM
Versus
REVENUE DIVISIONAL OFFICER, ADILABAD, A.P. AND OTHERS
Civil Appeal Nos. 1920-21 of 1989{From the Judgment and Order dated 29-10-1982 of the Andhra Pradesh High Court in Appeal No. 44 of 1981 & W.P. No. 6031 of 1979}, decided on January 25, 1994
Advocates appeared
A.K. Ganguli, Senior Advocate (T.V.S.N. Chari, Nikhil Nayyar and Ms Promila Choudhary, Advocates, with him) for the Appellant;
R. Venugopal Reddy, Senior Advocate (G. Prabhakar, Advocate, with him) for the Respondents.

Headnote:Land Acquisition Act. 1894, Sec. 23 and Sec. 47A of the Stamp Duty Act, 1899-enhancement of compensation claimed on the basis of Basic Valuation Register maintained for collection of stamp duty is not statutory for determination of compensation-the function of the court in awarding compensation under the Acts is to ascertain the market value of the land at the date of notification u/s 4(1)-out of the methods of valuation the price paid within a reasonable time in bonafide transactions of purchase of the lands acquired or lands adjacent to the lands acquired and possessing similar advantages is generally accepted as the best-sec. 47 A conferred no express power to the Govt. to determine the market value of lands prevailing in a particular area, it can not form any basis to determine the market value of the acquired land u/s 23 of the Act-AIR 1959 SC 429, (1972)3 SCR 208, (1991)4 SCC 195, (1989)3 Andh. LT 677, (1992) 1 Andh LT 49, (1988)2 Andh. LT 306, (1992) 1 Andh. LT 591, (1993) 4 SCC 245, (1985) 1 Mad LJ 116 referred and discussed. (Paras 4 & 5)

ORDER

1. The appellant is the owner of 18 gunthas of land, i.e., 2178 sq. yards, situated in Ward No. 5, Block No. 7 in Adilabad Municipality of A.P., which was proposed for acquisition under notification issued under Section 4(1) of the Land Acquisition Act and published on April 17, 1975, for a public purpose. The Land Acquisition Officer awarded compensation on the basis of letting value. On reference under Section 18, the Additional District Judge, Adilabad in his award and decree enhanced the market value to Rs 75 per sq. yard. Not having been satisfied, the appellant filed the appeal in the High Court and claimed Rs 300 per sq. yard. The High Court by the impugned judgment and decree dated 29-10-82{AIR 1983 AP 155}, dismissed the appeal.

2. Shri A.K. Ganguli, the learned Senior Counsel for the appellant contended that the High Court having accepted that the acquired lands were situated in the heart of the municipal area; the State Bank of Hyderabad and the Andhra Bank were located on the eastern and western sides across the roads; Gandhi Chowk Market and Ambedkar Chowk Market also existed on the National Highway towards Nagpur each at a distance of 200 yards from the land; two cinema theatres were situated at a distance of 50 to 60 yards from the acquired site; three cooperative consumers stores were situated at a short distance of 10 yards from the acquired land; the Basic Valuation Register showed that for stamp duty the Revenue Authorities had fixed the market value in commercial area at Rs 300 (on complaints being reduced to Rs 250) and for residential area Rs 75 per sq. yard, it should have seen that the land had a very high market value. The Revenue Authorities themselves having determined market value in that area at Rs 300 per sq. yard for purposes of stamp duty, unless the respondent produced contra-evidence, which was not done, the Basic Valuation Register formed foundation to determine the market value of acquired land at Rs 300. The fixation of market value at Rs 75 per sq. yard was unjust and arbitrary. It is also contended that the appellant is entitled to interest at 6% under the Act. The State Act has no application to and the owner cannot be discriminated in payment only at the rate of 4%, while other land acquired for Central Government would get interest at the rate of 6%.

3. Having given anxious consideration to the contentions we find them to be without force. Though the District Court fixed the market value at the rate of Rs 75 per sq. yard, the State did not file any cross-objection or appeal. So the need for the High Court to go into the question whether fixation of the market value at Rs 75 per sq. yard was high did not arise. The High Court held that the post-notification sale deeds were not admissible as none of the persons connected with them were examined to establish the genuineness of the sales or of similarity of the lands acquired and those covered in the sale transactions. It also rejected the agreements of sales finding them to be those fabricated to inflate the market value. We cannot find fault with the approach made by the High Court in the facts and circumstances of the case. The sales claimed to be comparable were rightly not acted upon.

4. The High Court found that Basic Valuation Register had no evidentiary value, in that it had no statutory basis. Therefore, the entries in the Basic Valuation Register cannot form the basis to enhance the market value. The contention of Shri Ganguli, as stated earlier was that the Basic Valuation Register, prepared in official capacity by Revenue Department having been acted upon to collect stamp duty and registration charges at Rs 300 per sq. yard for commercial use, the Government cannot ask the court to adopt different standards to award market value under Section 23(1). Having regard to the fact that the lands are situated in commercial area of the busy town, the appellant is entitled to the market value at Rs 300 per sq. yard, Firstly, the conte



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