IMPORTANT POINT
When the land under acquisition was purchased by the land owner only a year back and sale deed was available, the consideration amount of the very land should be the basis for determination of its market value.

Judgment :-

Dalveer Bhandari, J.

We are disposing of Civil Appeal Nos.3332 to 3334 of 2001 by this judgment. The facts of these appeals are identical. For the sake of convenience, the facts are being taken from Civil Appeal No.3332 of 2001. Appellants land measuring 1 acre 32 guntas in Survey No.32/1 at Henjagondanahalli village was acquired pursuant to the preliminary notification published on 20.5.1997.

The Land Acquisition Officer had granted compensation at the rate of Rs.17,500/- per acre. The Reference Court on appeal enhanced the amount from Rs.17,500/- to Rs.2,17,800/- per acre. This amount was calculated at the rate of Rs.5/- per square feet. The Karnataka Housing Board aggrieved by the said judgment preferred appeal before the High Court of Karnataka. The Division Bench of the Karnataka High Court while taking into consideration all the facts reduced the amount of compensation from Rs.2,17,800/- to Rs.1,30,680/- per acre. This amount of compensation has been calculated at the rate of Rs.3/- per square feet. In the impugned judgment, the High Court has mentioned that the claimant-appellant herein himself had purchased the land in question on 24.3.1986 for Rs.45,000/- which is based on calculation at the rate of Rs.1.75 per square ft.

The preliminary notification under section 4(1) of the Act was issued a year later i.e. 20.5.1987. The appellant relied on the sale deeds executed subsequently and that too for smaller pieces of lands meant for housing sites being Ex.P.2 and that of 1990. The High Court in the impugned judgment has rightly observed that Ex.P.2 cannot be taken into consideration particularly keeping in view that the sale deed in respect of this very acquired land which was effected only a year ago in 1986 itself was available as a ready basis for determining the market value of the land.

The High Court in the impugned judgment observed that after giving reasonable deductions towards development charges, the market rate can be safely taken as Rs.3/-per square feet since this price was even suggested for the lands in question even by the respondent - Housing Board to the claimant-witness. The High Court granted compensation at the rate of Rs.3/-per square feet. The compensation in this case worked out to be Rs.1,30,680/-per acre. The High Court also observed that the appellant - land owner will also be entitled to other statutory benefits and interest as per the provisions contained under sections 23 and 28 of the Act.

The fact is that this very land was purchased by the appellant a year ago i.e. on 24.3.1986 for Rs.45,000/- and for the same land the High Court gave compensation of Rs.1,30,680/- per acre only after a year. In our considered opinion, the view which has been taken in the impugned judgment is in consonance with the settled legal position. The High Court has taken into consideration all the relevant facts in granting compensation. The High Court was fully justified in giving due weightage to the fact that the sale deed of 1986 in respect of this very acquired land was available and the same ought to be the basis for determining the market value of the land.

Learned counsel for the respondent placed reliance on the case of Bangaru Narasingha Rao Naidu & Ors. v. Revenue Divisional Officer, Vizianagaram (1980) 1 SCC 575. In this case, this Court observed that the best evidence of the market value of the acquired land is afforded by transactions of sale in respect of the very acquired land.

In the case of Special Tehsildar Land Acquisition, Vishakapatnam v. A. Mangala Gowri (Smt.) (1991) 4 SCC 218, this Court observed as under:

"The market value postulated in Section 23(1) of the Act designed to award just and fair compensation for the lands acquired. The word "market value" would postulate price of the land prevailing on the date of the publication of the notification under Section 4(1).

The acid test that for determining the market value of the land, the price which a willing vendor might reasonabl