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2009 Supreme(SC) 1395

2009(6) Supreme 135
SUPREME COURT OF INDIA
S.B. Sinha and Cyriac Joseph, JJ.
Attar Singh and another — Appellants
versus
Union of India and another —Respondents
Civil Appeal No. 7203 of 2004
Decided on : 04-08-2009

Advocates Appeared:
For the Appellants :B.S. Jain, Ajay Veer Singh, Ms. Mamta Jain, Dr. (Mrs.) Vipin Gupta, Manish Raghav, Somvir Singh Deswal, M.P. Shorawala, Advocates.
For the Respondents:S.P. Singh, Sr. Adv., Krishna Kumar, Ms. Rekha Pandey, Ms. Asha G. Nair, Ms. Gargi Khanna, Sanjeev Kumar Bhardwaj, Mrs. Anil Katiyar, Advocates.

IMPORTANT POINT
Even if the entire land is of one village one standard for determining the market value should not be applied.

Headnote:Land Acquisition Act,1894 – Acquisition of lands of appellant-Award passed by Land Acquisition Collector fixing market value at the rate of Rs.5,800/- per;Rs.4,800/- per bigha; and Rs.2,400/- per bigha respectively – On application thereagainst Reference Court assessed the fair market value of the acquired land at Rs.9,750/- perbigha – Appeals thereagainst seeking enhancement of compensation for acquisition of their lands at the rate of Rs.27,750/- per bigha. on plea that in a Lok Adalat Settlement, the market value of similarly situated land was fixed at Rs.22,000/- per bigha at the instance of the Union of India, pursuant whereto a Division Bench passed a decree on the said basis – High Court however, on the basis of its earlier decision, assessed the fair market value at Rs.11,500/- per bigha – Appeals – On what basis said settlement in Lok Adalat was arrived at was not known – Details of the land with regard to location,nature, advantages and dis-advantages pertaining thereto are absent- In absence of any detailed particulars showing the similarity of the land and/or the respective advantages and dis-advantages pertaining thereto said settlement had rightly not been made the basis for determining market value of land – No contention had been raised that High Court in passing impugned judgment failed to take into consideration the well settled legal principles – Appeals having no merit dismissed. (Paras 14 to 17)

       Facts of the Case :

        1. On Acquisition of lands of appellant, Award was passed by Land Acquisition Collector fixing market value at the rate of Rs.5,800/- per;Rs.4,800/- per bigha; and Rs.2,400/- per bigha respectively.On application thereagainst, Reference Court assessed the fair market value of the acquired land at Rs.9,750/- perbigha.. Appeals thereagainst were filed seeking enhancement of compensation for acquisition of their lands at the rate of Rs.27,750/- per bigha. on plea that in a Lok Adalat Settlement, the market value of similarly situated land was fixed at Rs.22,000/- per bigha at the instance of the Union of India, pursuant whereto a Division Bench passed a decree on the said basis. High Court however, on the basis of its earlier decision, assessed the fair market value at Rs.11,500/- per bigha. .

        2. Present appeals have been filed against said order of High Court.

       Findings of the Court :

        On what basis said settlement in Lok Adalat was arrived at was not known. Details of the land with regard to location,nature, advantages and dis-advantages pertaining thereto are absent.In absence of any detailed particulars showing the similarity of the land and/or the respective advantages and dis-advantages pertaining thereto said settlement had rightly not been made the basis for determining market value of land.No contention had been raised that High Court in passing impugned judgment failed to take into consideration the well settled legal principles. Appeals having no merit were dismissed

       Result : Appeals dismissed.

       

JUDGMENT

S.B, Sinha, J.—

1. Appellants were owners of agricultural lands situated in village Jharoda Kalan, New Delhi. The subject matter of these appeals is a Notification dated 14th July, 1982 issued by the Union of India expressing its intention to acquire the land in the said village

2. The Land Acquisition Collector made an award on 10th August, 1983 categorizing the acquired lands in three categories, i.e. ‘A’, ‘B’ and ‘C’ and fixed the market value thereof at the rate of Rs.5,800/- per; Rs.4,800/- per bigha; and Rs.2,400/- per bigha respectively.

3. The awardees not being satisfied with the said award filed applications for reference before the District Collector. References having been made, the Reference Court vide its Award dated 22nd July, 1987 assessed the fair market value of the acquired land at Rs.9,750/- per bigha.

4. Still not satisfied, the appellants preferred appeals before the High Court seeking enhancement of compensation for acquisition of their lands at the rate of Rs.27,750/- per bigha.

5. Before the High Court a contention was raised that in a Lok Adalat Settlement, the market value of similarly situated land was fixed at Rs.22,000/- per bigha at the instance of the Union of India, pursuant whereto a Division Bench passed a decree on the said basis.

6. A Division Bench of the High Court by its order dated February 28, 2003, however, on the basis of its earlier decision, assessed the fair market value at Rs.11,500/- per bigha.

7. Learned counsel appearing on behalf of the appellants submitted that in a matter of this nature, the High Court having regard to the claim of the appellants, namely Rs.27,750/- per bigha should have awarded compensation at least @ Rs.22,000/- which was fixed as the fair market price for lands similarly situated.

8. The principal question which, therefore, arises for consideration is as to whether any agreement entered into by and between the holders of the lands and the Union of India in a Lok Adalat should have formed the basis for determination of the amount of compensation in respect of the lands which are said to be similarly situated.

9. It does not appear that before the High Court, the particulars of the matter which was settled in the Lok Aalat had been produced. Before us only an order sheet dated 5th November, 1992 passed in R.F.A. No.891 of 1987 has been produced, which reads as under :-

“Before the Lok Adalat, the parties agreed that the market price of the acquired land is Rs.22,000/- per bigha. In view of the settlement made before the Lok Adalat, we fix the market price of the land at Rs.22,000/- per bigha. The appellant shall be entitled to increased compensation under Section 23(1A) of the Land Acquisition Act, 1894 as amended by 1984 Act. The appellant shall also be entitled to solatium at 30% per annum and interest at the rate of 9% per annum for the first year and at the rate of 15% per annum thereafter till payment. The Supreme Court has already decided the matter regarding the payment of interest and, therefore, the question of award of interest need not await the decision of the Supreme Court as suggested by the Lok Adalat. The appeal is allowed with costs.”

10. It is now a well settled principle of law that determination of the market value of the land acquired indisputably would depend upon a large number of factors including the nature and quality thereof. The norms which are required to be applied for determination of the market value of the agricultural land and homestead land are different. In given cases location of land and in particular, closeness thereof from any road or high-way would play an important role for determination of the market value wherefor belting system may in appropriate cases may be resorted to. The position of the land, particularly in rainy season, existence of any building etc. also plays an important role. A host of other factors including development in and around the acquired land and/or the potentiality of development






































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