2010 Supreme(SC) 204

2010 (2) Supreme 234
SUPREME COURT OF INDIA
P. Sathasivam and H.L. Dattu, JJ.
Thakur Kuldeep Singh (D) Thr. L.R. & Ors. — Appellants
versus
Union of India & Ors. — Respondents
Civil Appeal No. 8636 of 2002
Decided on : 8-03-2010

IMPORTANT POINT
Merely on the basis of ‘circle rate’, market value for acquired lands cannot be fixed but, at the same time, the locality and the prevailing circumstances are relevant for determining the real value of the land.

Headnote:Land Acquisition Act, 1894- Section 23(1-A) - Appeals against judgment of High Court whereby High Court allowed appeal of the claimants enhancing the compensation payable to them for acquiring their land @ Rs.3000/- per sq. yds. along with solatium @ 30% and interest @ 9% p.a.-Appellants-claimants have preferred Appeal praying for Rs.6000/- per sq. yd. and respondents-Union of India filed Appeal against enhancement of compensation by High Court from Rs.550/- per sq. yd.to Rs. 3000/- per sq. yd- Evidence of PW-2,Power of Attorney holder of appellants that acquired plot was located in midst of commercial properties, had commercial potentiality and for similar properties, rates in locality were not less than Rs.6,000/- per sq. mtr.- PW-2 also highlighted that plot was located within the developed commercial hub of Karol Bagh having all facilities- As rightly observed by High Court, Reference Court overlooked the evidence on record that after the property was purchased by appellants in 1961, considerable development in and around the area had taken place-No dispute that the acquisition proceedings started in the year 1983 i.e. after a period of 22 years from date of 4 (1) notification - On going through the location as found in the Government Map, assertion of PW-1, an officer of the Government, PW-2, Power of Attorney of appellants, various activities in and around the plot and considering the fact that the Land Acquisition Collector relied on the three property transactions relating to 1980-81, 1981-82 and 1982-83 and not nearer to the date of notification under Section 4 (1) i.e. 09.05.1983 and also of the fact that even on the date of notification the very same hospital i.e. Joshi Memorial Hospital was running on land, held that even if ‘circle rate’ was eschewed, amount determined by High Court was just, reasonable and acceptable- In the absence of additional material, no reason found to increase market value as claimed by the claimants-appellants-Appeals filed by claimants as well as Union of India dismissed. (Paras 15 to 17)

        Land Acquisition Act, 1894- Sections 23,24-Compensation-Principles for Determination of - While fixing compensation, it is the duty of the Land Acquisition Collector as well as the Court to take into consideration the nature of the land, its suitability, nature of the use to which the lands are sought to be acquired on the date of notification, income derived or derivable from or any other special distinctive feature which the land is possessed of, the sale transactions in respect of land covered by the same notification are all relevant factors to be taken into consideration in determining the market value- It is equally to consider the suitability of neighbourhood lands as are possessed of similar potentiality or any advantageous features or any special characteristics available- The Land Acquisition Collector as well as the Court should always keep in their mind that the object of assessment is to arrive at a reasonable and adequate market value of the land- While doing so, imagination should be eschewed and mechanical assessment of evidence should be avoided- More attention should be on the bona fide and genuine sale transactions as guiding star in evaluating the evidence- The relevant factor would be that of the hypothetical willing vendor would offer for land and what a willing purchaser of normal human conduct would be willing to buy as a prudent man in normal market conditions prevailing in the open market in the locality in which the acquired lands are situated as on date of notification under Section 4(1) of the Act. (Para 6)

       Facts of the Case :

        Present Appeals have been filed against judgment of High Court whereby High Court allowed appeal of the claimants enhancing the compensation payable to them for acquiring their land @ Rs.3000/- per sq. yds. along with solatium @ 30% and interest @ 9% p.a.Appellants-claimants have preferred Appeal praying for Rs.6000/- per sq. yd. and respondents-Union of India filed Appeal against enhancement of compensation by High Court from Rs.550/- per sq. yd.to Rs. 3000/- per sq. yd.

       Findings of the Court :

        Evidence of PW-2,Power of Attorney holder of appellants that acquired plot was located in midst of commercial properties, had commercial potentiality and for similar properties, rates in locality were not less than Rs.6,000/- per sq. mtr. PW-2 also highlighted that plot was located within the developed commercial hub of Karol Bagh having all facilities. As rightly observed by High Court, Reference Court overlooked the evidence on record that after the property was purchased by appellants in 1961, considerable development in and around the area had taken place. No dispute that the acquisition proceedings started in the year 1983 i.e. after a period of 22 years from date of 4 (1) notification. On going through the location as found in the Government Map, assertion of PW-1, an officer of the Government, PW-2, Power of Attorney of appellants, various activities in and around the plot and considering the fact that the Land Acquisition Collector relied on the three property transactions relating to 1980-81, 1981-82 and 1982-83 and not nearer to the date of notification under Section 4 (1) i.e. 09.05.1983 and also of the fact that even on the date of notification the very same hospital i.e. Joshi Memorial Hospital was running on land, held that even if ‘circle rate’ was eschewed, amount determined by High Court was just, reasonable and acceptable. In the absence of additional material, no reason was found to increase market value as claimed by the claimants-appellants. Appeals filed by claimants as well as Union of India were dismissed.

       Result : Appeals dismissed.