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2009(6) Supreme 110
SUPREME COURT OF INDIA
S.B. Sinha and Cyriac Joseph, JJ.
Satish & Ors. — Appellants
versus
State of U.P. & Ors. — Respondents
Civil Appeal Nos. 6230-6251 of 2002
with
Civil Appeal Nos .6300, 6301-6321, and 6253-6299 of 2002
Decided on : 16-07-2009
(2004) 8 SCC 270 – Relied upon.
(1997) 10 SCC 128; (1996) 6 SCC 197; (2001) 3 SCC 530 – Referred to.
(1997) 6 SCC 41 – Not correct law.
(b) Indian Evidence Act, 1872 – Section 90A(1) r/w section 51A, Land Acquisition Act, 1894 – All the deeds of sale which have been brought on record subject to the applicability thereof, should have been taken into consideration. (Para 21)
(c) Eminent Domain – It envisages that expropriation of one’s property is permissible if it is in public interest and a reasonable amount of compensation as provided for in a statute is paid to the owner thereof. (Para 21)
(d) Land Acquisition Act, 1894 – Section 23 – Market value of a land would mean a value for which a free seller of a land would transfer his right in the property to a free buyer – Only for this purpose, deeds of sale or other transfers made in respect of similar types of land in the surrounding areas assume significance. (Para 21)
(e) Land Acquisition Act, 1894 – Section 23 – Section 51A – The Collector, the Reference Judge or the High Court without assigning appropriate reasons would not be entitled to discard one deed of sale and rely upon the other – It must be done on some legal principle, rationality and cogent reasons. (Para 23)
(f) Land Acquisition Act, 1894 – Section 23 – Section 51A – Increase of 20% per year can be granted being normal phenomena. (Para 25)
AIR 1990 SC 731 – Relied upon.
(g) Land Acquisition Act, 1894 – Section 23 – Section 51A – When comparable exemplars are brought on record, the one carrying the highest market value amongst them may be followed. (Para 32)
(1993) 3 SCC 63; (2005) 4 SCC 789 – Distinguished.
Facts of the case:
1. On a requisition from NTPC and having regard to the fact that setting up of a thermal power plant was to be treated to be a public purpose within the meaning of provisions of the Land Acquisition Act, 1894, the State of Uttar Pradesh issued a notification in terms of Section 4 thereof.
2. A notification under Section 6 read with Section 17(1) and 17(4) of the Act was also issued by the State.
3. 80% of the amount of compensation was also paid to the appellants by way of advance.
4. Possession of the said lands in question was taken on 16.11.1984.
5. The Collector made an award on or about 24.9.1986.
6. The amount of compensation for the land in question was determined at Rs.64,59,429.63 p.
7. Reference Cases were considered by the Reference Court in two bunches, i.e., (1) Baljit’s Bunch; and (2) Kanti’s Bunch. In the first group consisting of 22 cases, compensation at the rate of Rs.115/- per square yards was awarded as market value of the acquired land irrespective of quality of land recorded in the revenue record. In the second group of references consisting of 25 cases, however, the amount of compensation was determined at the rate of Rs.155/- per square yard.
8. NTPC preferred appeals before the High Court. The landholders did not. It was held that if an increase of 10% per year is added to the rate at which the land was sold, the net rate shall be Rs.63.92 per square yard, i.e., Rs.64 per square yard (in the round figure).
Finding of the Court:
Market value of land depends on many factors.
Result: Civil Appeal Nos. 6230-6251, 6300, 6301-6321 of 2002 allowed with costs and Civil Appeal Nos. 6253-6299 of 2002 dismissed.
JUDGMENT
S.B. Sinha, J.—
1. These appeals, involving similar questions of fact and law, were taken up for hearing together and are being disposed of by this common judgment.
2. National Thermal Power Corporation Ltd. is a Public Sector Undertaking and is engaged, inter alia, in generation of electricity. With an intention to set up a thermal power plant at Sarna, Murad Nagar, District Ghaziabad in the State of Uttar Pradesh and nearby villages, a requisition was sent to the Collector of the District for the purpose of acquisition of some lands belonging to the appellant herein. Pursuant to or in furtherance of the said requisition and having regard to the fact that setting up of a thermal power plant was to be treated to be a public purpose within the meaning of provisions of the Land Acquisition Act, 1894 (hereinafter called and referred to for 1the sake of brevity as ‘the Act’), the State of Uttar Pradesh (the State) on or about 6.9.1984 issued a notification in terms of Section 4 thereof.
3. The lands in question are situated in villages Sarna, Khurrampur, Sultanpur, Jalalpur and Mohiuddinpur. Herein, we are concerned with the lands situated in village Sarna only. The said notification was published in the official Gazette on 8.9.1984. Keeping in view the fact that generation of electricity was of urgent and imminent need, a notification under Section 6 read with Section 17(1) and 17(4) of the Act was also issued by the State on 26.9.1984. The said notification was published in the Gazette published by the State of Uttar Pradesh on 29.9.1984.
4. Notices were issued to the claimants for settlement of their claims in terms of Section 9 of the Act on 27.10.1984. 80% of the amount of compensation, as provided for under Section 17(3A) of the Act, as determined, was also paid to the appellants by way of advance. Possession of the said lands in question was taken on 16.11.1984. The Collector made an award on or about 24.9.1986. The lands in question were classified in two categories, namely, ‘Dakar Doyat Khaki’ and ‘Dakar Doyat Aabi’ purported to be having regard to the nature thereof as also the extent of fertility. Before the Collector, a large number of sale deeds in respect of the lands situated in the said village and/or neighbouring village were produced. A large number of sale deeds were kept outside the purview of consideration by the Land Acquisition Collector for the purpose of making the award on the premise that the consideration therefor had been paid in terms of square yards of land and, thus, the rate would be on higher side.
5. The Collector took into consideration 29 deeds of sale in respect of the areas which were within the Murad Nagar Municipality on the premise that they were more useful and the rate being on the higher side, the same should also be kept out of consideration. He took into consideration only five deeds of sale being No.34, 254, 480, 629 and 635. Out of the said five sale deeds, three deeds of sale being No.480, 629 and 635 were again kept outside the purview of consideration having regard to the distance factor as also the fact that the lands under the said deeds were situated on the other side of the village. So far as sale deed No.34 is concerned, the Collector was of the opinion that the amount of consideration stated therein was deliberately kept low to avoid stamp duty.
6. He took into consideration a deed of sale which was executed on 27.7.1982, i.e., two years prior to the issuance of notification under Section 4 of the Act being sale deed No.254 in respect of Khasra No.1354 and 1355.
7. Yet again, on the premise that the lands were very close to the area of municipality and it was sold at a very low rate, the same also had not been taken into consideration. The only deed of sale which was, thus, considered for the purpose of determination of the amount of compensation was sale deed No.423. It was executed on 2.6.1983. The land transferred by reason thereof admeasured 1 Biswas, 9 Biswan
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