SUPREME COURT OF INDIA
C.A.Vaidialingam : S.M.Sikri : V.Bhargava
State Of U.P.
Versus
Ram Swarup
Case No. : 756 , 759 of 1967
Date of Decision : 2/20/70
Land Acquisition Act – Constitution of India, 1950 – Article 133 – Acquisition of land – Sale Deeds – Compensation – Appeals by State of Uttar Pradesh have been filed in this court on basis of certificate granted by High court of Allahabad under Article 133(1)(a) of Constitution in respect of proceedings arising out of acquisition of land of the various respondents under the Land Acquisition Act – Seven plots of land with an area of 84,2092 sq. ft. in the city of Lucknow were acquired for public purpose – Land is situated by the side of Murtaza Hussain Road – Originally, the land belonged to the respondents in Civil – Respondents in the other three Civil are transferees from these respondents – Those transfers were made by sale-deeds executed after the intention of the government about the acquisitions had become known to the respondents in view of steps taken for survey in November, 1955 – Sale-deeds have, however, been recognised by the courts and the compensation in respect of the areas covered by the sale-deeds has been granted to the purchasers – These sale-deeds were not accepted as exemplars by any of the courts for determining the compensation payable for the land acquired – Held, High court reduced the average rate worked out on the basis of the sale-deeds at Rs. 3.27 to Rs. 3.00 on the basis that, after demolition of the constructions, the broken bricks available may represent benefit to such an extent as would cover price of that land at Rs. 27.00. per sq. ft – This decision, if at all, is favourable to the appellant inasmuch as it ignores the fact that, inorder to get those broken bricks for use, the purchasers would have to spend money on labour required to dig out the existing constructions – In any case, the appellant can make no grievance at all that the High court has ignored any deduction which should legitimately have been made in working out the rate. – Court cannot say that the High court committed any error in holding that an area of only 1,000.00 sq. ft. out of the first belt and 25 per cent. of the land in the second belt should be left out for construction of roads, lanes, etc – Court is also unable to accept that there is no principle which requires that, in calculating the market price of the land, account must be taken of the actual expenditure which will be incurred on construction of roads and lanes – That will be part of the development later which will naturally enhance the price of the land – None of the points raised on behalf of the appellant for challenging the decree passed by the High court has any force – Appeals Dismissed
V. BHARGAVA, J.
(1) THESE appeals by the State of Uttar Pradesh have been filed in this court on the basis of certificate granted by the High court of Allahabad under Article 133(1)(a) of the Constitution in respect of proceedings arising out of acquisition of land of the various respondents under the Land Acquisition Act (hereinafter referred to as "the Act"). Seven plots of land with an area of 84,2092 sq. ft. in the city of Lucknow were acquired for public purpose. The land. is situated by the side of Murtaza Hussain Road. Originally, the land belonged to the respondents in Civil No. 756 of 1967. The respondents in the other three Civil are transferees from these respondents. Those transfers were made by sale-deeds executed on 6/12/1955, after the intention of the government about the acquisitions had become known to the respondents in view of steps taken for survey in November, 1955. The sale-deeds have, however, been recognised by the courts and the compensation in respect of the areas covered by the sale-deeds has been granted to the purchasers. These sale-deeds were not accepted as exemplars by any of the courts for determining the compensation payable for the land acquired.
(2) THE Land Acquisition Officer awarded a sum of Rs. 31,534.50 P. for the whole of the area acquired, valuing it at the rate of Annas-/6.00 per sq. ft. Thereupon, the respondents moved applications under S. 18 of the Act and, references were made to the District Judge. These references came for decision under S. 23 of the Act before the Civil Judge who exercised delegated powers as District Judge under the Act. Before the Civil Judge, reliance was placed by the respondents, in order to prove the fair amount of compensation, on two sale-deeds Ex-s. 1 and 2 executed by Dr. K. S. Nigam in favour of Smt. Ram Lali and Nand Kishore Avasthi on 13/09/1956 and 10/10/1956, respectively. In the saledeed Ext. 1, an area of 784 sq. ft. was sold for a sum of Rs. 2,700.00 while, in the other sale-deed Ext. 2, an area of 990 sq. ft. was sold for a sum of Rs. 3,000.00. The Civil Judge also held that Dr. Nigam had made certain constructions before transferring these plots to Smt. Ram Lali and Nand Kishore Avasthi. These constructions consisted of foundations for construction of walls and of some of the walls constructed up to a very small height. These two plots adjoined another third plot belonging to Dr. Nigam. According to the evidence of Dr. Nigam, which was accepted, a sum of Rs. 4,000.00 was spent on the constructions in all the three plots, so that the Civil Judge held that a sum of Rs. 1,333.00 was spent on constructions in each of these two plots which were the subject-matter of the sale-deeds Exts. 1 and 2. He treated the sale consideration as including value of the constructions to the extent of Rs. 1,333.00 and, afterdeducting these amounts from the sale price, he worked out the average rate of the land sold by Dr. Nigam at Rs. 1.75 P. per sq. ft. He also took into account the fact that the two plots sold by Dr. Nigaro were abutting the main Murtaza Hussain Road and were 32 ft. wide from the edge of the road. Consequently, in working out the valuation of the land acquired which had much larger area, he divided the land into two belts. The first belt of a width of 50 ft. was considered by him to be comparable with the land sold by Dr. Nigam and hence, he applied the rate of Rs. 1.75 P. per sq. ft. to this land. The rest of the land was treated as being in a second belt away from the road and he reduced the rate for working out its compensation in the proportion of 7: 4, so that he valued the rest of this land at R. 1.00 per sq. ft. Further, he deducted from the whole area 25 per cent. in making the valuation as being land required for providing amenities, such as roads, lanes, parks, etc. The total amount awarded between all the respondents by the Civil Judge on this basis was Rs. 71,844.00.
(3) THE respondents appealed to the High c
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