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SUPREME COURT OF INDIA
B.L.Hansaria : K.Ramaswamy
Kummariveeraiah
Versus
State Of A.P.
Case No. : 4021 of 1995
Date of Decision : 2/28/95
Advocates Appeared: Reddy D.Bharathi : Reddy D.Prakash
Land Acquisition Act, 1894 - Section 4 – Acquisition of Land – Claim of compensation - Learned counsel in his usual thorough preparation and persuasive advocacy contended that though all sale deeds are of small extents, since the lands are situated within the municipal limits, the sale transactions furnish the basis to determine the compensation as claimed at and they cannot be rejected as being of small extents - He placed strong reliance on sale deed relating to the land in question and sale deeds, relating to the lands in - High court after consideration of the entire evidence held thus – Held, IT is then contended that suitable deduction may be made to the value determined on basis of and compensation be determined on that basis. We find the application of that principle also would be fraught with injustice and needless burden on the State Exchequer. First, it is to be ascertained whether the document is a genuine document. If it is found to be so it is required to be examined under what circumstances the document came to be executed and the special advantageous feature for which the sale came to be made. Whether the land under acquisition possesses the same special advantages? In case it is found that the documents are genuine and the acquired land possessed of the same or similar special advantageous features, then reasonable price is required to be determined by giving suitable deduction depending upon the extent of land covered by the sale transaction and the acquired land. When a large extent of land is available for house sites and commands market for sale in bits, then a prudent owner as a part of normal human conduct, would get a layout prepared and sanction obtained from the competent authority and would offer the plots for sale. Similarly, it must be shown that land is situated in a developing area etc. When such evidence is adduced, it is required to be considered on the touchstone of potentiality of the land, human conduct and probabilities. If the court finds that the land possessed those potentialities and could be purchased as house site, then only suitable deduction need to be made considering the relative extent of the land covered by the sale/sales and the land under acquisition. True market value is required to be determined, then it must not be on feats of imagination. Since such evidence was not brought on record, the evidence of sale transactions render little assistance to determine market value of the acquired lands. Moreover, the two colonies are in slum area. So, but for the acquisition, there would be no scope for development - IT being a pure appreciation of evidence-on-record, we do not find any error of law committed by the Subordinate Judge or High court in not relying upon sale deeds. It is next contended that the witness has stated that the land purchased under side of the acquired land and the Subordinate Judge and High court were not right in their conclusion that the witness did not mention the nearness of the land. So, the error is required to be corrected – Petition dismissed
(1) THIS petition arises from the judgment and decree of the High court of A. P. dated 20/12/1993, in Appeal No. 2698 of 1987 and the counter-appeal filed by the State. The land to the extent of 69 acres and 25 gunthas situated in Bhongir Municipality in Nalgonda District of Andhra Pradesh, was acquired to provide house sites. The notification under Section 4(1 of the Land Acquisition Act, 1894 (1 of 1894 (for short "the Act") was published in the District Gazette, as amended by the local amendment on 4/3/1985. The possession thereof was taken on 27/3/1985 dispensing with the inquiry under Section 5-A. The Land Acquisition Officer (for short "the LAO") in his award dated 27/3/1985 determined the compensation to the lands varying between Rs 6,000.00 to Rs. 10,000.00 per acre. Though petitioners claimed at the rate of Rs. 40.00 per sq. yd., on reference under Section 18, the Subordinate Judge, Bhongir, determined the compensation at Rs. 10.00 per sq. yd., deducted Rs. 3.00 towards developmental expenditure, and fixed the market value at Rs. 7.00 per sq. yd. Dissatisfied therewith, the petitioner as also the State filed the appeals in the High court.
(2) THE High court after appreciation of documentary sale deeds and oral evidence relied on by the petitioners held that fixation of compensation by the reference court was fair and reasonable. Accordingly, dismissed both the appeals of the claimants as well as the State.
(3) LEARNED counsel, Shri Prakash Reddy, in his usual thorough preparation and persuasive advocacy contended that though all the sale deeds are of small extents, since the lands are situated within the municipal limits, the sale transactions furnish the basis to determine the compensation as claimed at Rs. 40.00 per sq. yd. and they cannot be rejected as being of small extents. He placed strong reliance on Ex. A-2, sale deed relating to the land in question dated 12/2/1985 and sale deeds, Exs. A-9, A-11 and A-17, etc., relating to the lands in the neighbourhood. The High court after consideration of the entire evidence held thus:
"EX. A-2, which was strongly relied on by Shri Prakash Reddy, is dated 12/2/1985 in respect of 400 sq. yds. situated in one of the acquired survey numbers. The sale consideration is Rs. 16,000.00 and it works out to Rs. 40.00 per sq. yd. It was pointed out by Shri Krishna Koundinya that the vendor of the land covered by Ex. A-2 is none else than the 5th claimant and the sale was on 12/2/1985, which was just a few days prior to the publication of the notification under Section 4(1 of the Act on 4/3/1985. Therefore, the said sale cannot form the basis for fixing the market value of a large extent of the land in question. Ex. A-4, which is a sale deed dated 13/12/1982, is in respect of a very small extent of 140 sq. yds. of land sold for Rs. 7,000.00 . Neither the vendor nor the vendee has been examined. Ex. A-5 sale deed covers an extent of 700 sq. yds. sold for Rs. 15,000.00 . The sale transaction took place on 23/2/1985, which was a few days prior to the notification. Ex. A-6 relates to the land situated in S. No. 1063 and the sale was on 28/2/1985 just prior to the notification. Ex. A-7 relates to a small extent of 167 sq. yds. of land situated in S. Nos. 121 and 123 and pertains to Ward no. 1 in Hasnabad area. Exs. A-9 to A-11 relate to S. Nos. 1041, 1075 and 1056 and they do not form part of the survey numbers of the acquired land and are situated in Hasnabad area and they too do not provide any useful guidelines for fixing the market value of the lands in question. Exs. A-13 and A-14 also relate to the sale of small extents of lands in Kisan Nagar and there is no evidence to show the distance between Kisan Nagar and the acquired lands. An extent of 35 sq. yds. was sold under Ex. A-17 and the sale was on 13/3/1985, just prior to the notification. The sale included a small extent of 35 sq. yds. with basement for Rs. 40,000.00 and it is not possible to rely on thi
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