2010 Supreme(SC) 253

2010 (2) Supreme 553
SUPREME COURT OF INDIA
R V Raveendran and K S Radhakrishnan, JJ.
G. Prema — Appellant
versus
The Special Tahsildar, Tirupattur — Respondent
Civil Appeal No. 2705 of 2010
[Arising out of Special Leave Petition (C) No.29135/2008]
Decided on : 23-03-2010

IMPORTANT POINT
In urban areas or lands with potential for development, a cumulative increase of 10% to 15% would be appropriate.

Headnote:Land Acquisition Act,1894- Acquisition of 1.43 acres and 5.07 acres of lands belonging to appellant for purpose of providing house sites for weaker sections- Land Acquisition Officer determined the compensation for the said agricultural lands at Rs.30,000/-per acre by his award - Reference Court by its judgment and award increased the compensation to Rs.4,17,600/- per acre. relying on a sale deed Ex. A1-On appeals thereagainst High Court held that it would be more appropriate to rely upon Ex. A2 and reduced the compensation from Rs.4,17,600/- to Rs.1,62,500/- per acre-Appeals thereagainst on plea that High Court committed an error in relying on Ex. A2 as it was nearly 3 years prior to the acquisition and there was a steep increase in the value of land during that period and that Ex. A1 relating to a nearby land, was more appropriate for determining compensation as it was a sale much nearer to the date of acquisition-Held both the sale deeds were relevant- Ex. A1 was nearer in time and the plot though small was also near to the acquired lands-Ex. A2 related to a part of the acquired lands nearly three years prior to preliminary notification- Hence held proper to rely upon both the sale transactions by making appropriate adjustments-The land was acquired for making housing sites for weaker sections which also shows their potential for development-However, as what had been acquired was a larger tract of land and Ex. A1 related to a very small piece of land, held that a deduction of 60% towards development cost would be appropriate- On deducting 60% towards development cost from Rs.533,610/- per acre market value for a larger tract of land would be Rs.213,440/- per acre- If Ex. A2 is taken as the basis, as there is a gap of three years between the date of Ex. A2 and the date of preliminary notification, market price would be worked out in 1989, by providing appropriate yearly increase- Having regard to the situation and potential, providing a cumulative increase of 12% for 3 years over the base rate of Rs.1250/- disclosed by Ex.A2 would be appropriate- If so done, the market price would work out to be Rs.1,756/- per cent or Rs.175,600/- per acre- By averaging the two prices, market value assessed at Rs.194,520/- per acre- Value of land increased from Rs.162,500 to Rs.195,000/- per acre-Appeals allowed in part. (Paras 5 to 8)

       Facts of the Case :

        1.43 acres and 5.07 acres of lands belonging to appellant were acquired herein in the instant case for purpose of providing house sites for weaker sections. Land Acquisition Officer determined the compensation for the said agricultural lands at Rs.30,000/-per acre by his award . Reference Court by its judgment and award increased the compensation to Rs.4,17,600/- per acre. relying on a sale deed Ex. A1.On appeals thereagainst High Court held that it would be more appropriate to rely upon Ex. A2 and reduced the compensation from Rs.4,17,600/- to Rs.1,62,500/- per acre.

        2. Present appeals have been filed against said order of High Court. Plea that High Court committed an error in relying on Ex. A2 as it was nearly 3 years prior to the acquisition and there was a steep increase in the value of land during that period and that Ex. A1 relating to a nearby land, was more appropriate for determining compensation as it was a sale much nearer to the date of acquisition.

       Findings of the Court :

        Held both the sale deeds were relevant- Ex. A1 was nearer in time and the plot though small was also near to the acquired lands-Ex. A2 related to a part of the acquired lands nearly three years prior to preliminary notification- Hence held proper to rely upon both the sale transactions by making appropriate adjustments. The land was acquired for making housing sites for weaker sections which also shows their potential for development. However, as what had been acquired was a larger tract of land and Ex. A1 related to a very small piece of land, held that a deduction of 60% towards development cost would be appropriate. On deducting 60% towards development cost from Rs.533,610/- per acre market value for a larger tract of land would be Rs.213,440/- per acre- If Ex. A2 is taken as the basis, as there is a gap of three years between the date of Ex. A2 and the date of preliminary notification, market price would be worked out in 1989, by providing appropriate yearly increase. Having regard to the situation and potential, providing a cumulative increase of 12% for 3 years over the base rate of Rs.1250/- disclosed by Ex.A2 would be appropriate. If so done, the market price would work out to be Rs.1,756/- per cent or Rs.175,600/- per acre. By averaging the two prices, market value assessed at Rs.194,520/- per acre. Value of land also increased from Rs.162,500 to Rs.195,000/- per acre.

       Result : Appeals allowed in part.