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2010 (6) Supreme 538
SUPREME COURT OF INDIA
Dr. Mukundakam Sharma and Anil R. Dave, JJ.
Chaturbhuja Modi & Ors. — Appellants
versus
State of Orissa & Anr. — Respondents
Civil Appeal No. 940 of 2004
Decided on : 11-8-2010
Facts of the Case :
Land of appellants measuring 2.429 acres was acquired herein in the instant case. Land Acquisition Officer assessed market value of land at the rate of Rs.75,000/- per acre.On reference Civil Judge enhanced compensation to Rs. 1,50,000/- per acre.On Appeal, High Court enhanced compensation for the acquired land to Rs. 3,00,000/- per acre.
2. Present appeal has been filed against said order.
Findings of the Court :
Exhibit 2 showed that a very small piece of land measuring only Ac. 0.003 decimals was soldat the rate of Rs. 9, 00,000/- per acre indicating its highly inflated value, which was established even when compared with Exhibit 1.Sale of such a tiny piece of land must have been for some specific object.The land which was acquired in the instant case being a large tract of land, measuring Ac. 2.429 decimals Exhibit 2 could not be put up as a safe guide and basis for determining the market value of the present acquired land. Again value shown in Exhibit 1 could not be assessed as the value of acquired land for the reason that said land which was sold under Exhibit 1 was a very small piece of land, whereas acquired land being a large tract of land. Where large tracts of land are required to be valued, valuation in transactions withregard to small plots is not to be taken as the real basis for determining the compensation of large tracts of land. Where the market-value of large block of land is determined on the basis of sale transactions for smaller property, appropriate deduction has to be made for making allowance for the loss of the acquired land required to be used for internal development such as construction of roads, drains, sewers, open spaces and the expenditure involved in providing other amenities like water, electricity etc. The extent of area required to be set apart has to be assessed by the Court having regard to the shape, size and situation of the concerned block of land. After giving some variations and discount, High Court fixed the rate of the land at Rs. 3, 00,000/- per acre, which in the light of evidence on record, appeared to be just and proper. Appeal having no merit was dismissed.
Result : Appeal dismissed.
JUDGMENT
Dr. Mukundakam Sharma, J. —
1. This appeal is directed against the judgment and order dated 12.09.2002 passed by the High Court of Orissa at Cuttack. The appellant and the State filed three appeals before the High Court against the judgment and order dated 16.04.1998 passed by the learned Civil Judge (Senior Division), First Court, Cuttack in L.A. Case No. 3 of 1995. The said appeal arose out of a land acquisition proceeding pertaining to the land of the appellants - claimants herein.
2. A notification under Section 4(1) of the Land Acquisition Act was published on 09.12.1982, proposing to acquire land of the appellants measuring 2.429 acres covered under Khata No. 581 of Mouza - Bahar Bisinabar for construction of additional building, office, garage and staff quarters of Orissa State Financial Corporation, Cuttack. The Land Acquisition Officer assessed the market value of the land at the rate of Rs. 75,000/- per acre. The appellants - claimants sought for a reference to the learned Civil Judge as envisaged under Section 18 of the Land Acquisition Act, and the Ld. Judge after receiving evidence adduced by the parties, enhanced the compensation to Rs. 1,50,000/- per acre. The appellants - claimants being dissatisfied with the aforesaid determination of compensation, filed an appeal before the High Court, claiming a higher compensation at the rate of Rs. 12, 50,000/- per acre. After appreciation of the evidence available on record and relying primarily on the sale consideration in Exhibit 1, dated 06.10.1982, the High Court enhanced the compensation for the acquired land to Rs. 3,00,000/- per acre and also held that the appellants should be entitled to other statutory benefits as available under the Act.
3. The appellants, still aggrieved, filed the present special leave petition in this Court in which leave was granted after which the appeal is listed for hearing. We took up the appeal for hearing during the course of which we heard learned counsel appearing for the parties who have painstakingly taken us through the evidence on record in support of their contentions.
4. This appeal is filed to prove and establish that the acquired land is situated in the heart of the Cuttack City and close to the National Highway No. 5. The land was acquired for construction of additional building of O.S.F.C. for accommodation of office etc. At the time of acquisition, other commercial establishments like a cinema hall, hotel, etc. had already come up near about the acquired land. The learned Civil Judge as well the High Court found that the acquired land is not on the side of National Highway No. 5 but the same is not very far away from the said Highway. It is also on record that the acquired land is a low-lying land and remains water- logged round the year. But the said fact could not belie the fact that the acquired land had great potential value. In order to assist the Courts to properly assess and determine the fair and reasonable market value, the parties adduced evidence, both oral and documentary.
5. In this appeal, the parties have adduced limited evidence to establish their case. The records indicate that the appellants had filed two certified copies of the registered sale deeds, namely Exhibits 1 and 2, which were of course exhibited without objection from the respondent. Sale deeds were produced on behalf of the respondent - State and Land Acquisition Officer also, and they were exhibited as Exhibit B to B/3 but the same were marked as such with objection. Exhibit 1, which was produced by the appellants herein, is a certified copy of the registered sale deed dated 04.10.1982. Under the aforesaid sale deed, a total land of Acre 0.0070 decimals in Baharbisinabar was sold for Rs. 40,000/- i.e. at the rate of 22,500/- per gunth or Rs. 5,50,000/- (approximately) per acre.
6. The other sale deed relied upon by the appellants - claimants is Exhibit 2, which is a certified copy of registered sale deed dated 17.04.1982 by which lan
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