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2014 Supreme(SC) 241

SUPREME COURT OF INDIA
DR. B.S. CHAUHAN AND J. CHELAMESWAR, JJ.
BHULE RAM – Appellant
VERSUS
UNION OF INDIA & ANR. – Respondents
Civil Appeal No. 6251 of 2010
With
RAJA RAM & ORS. – Appellants
VERSUS
UNION OF INDIA & ANR. – Respondents
Civil Appeal No. 4620 of 2009 and CA Nos.4622, 4624, 4623/2009, SLP(C) Nos.18981, 18982, 18983 and 18984/2008
Decided on : 28-3-2014

IMPORTANT POINT
Principles for determining compensation for acquisition discussed.

Headnote:(a) Land Acquisition Act, 1894 – Section 23 – Market value – Determination – Market value of land is to be assessed at the time of notification under Section 4 – Market value is the value to the owner and not the value to the new owner – Fair and reasonable compensation – Price of a willing buyer to be paid to the willing seller – To be assessed taking into consideration user of the land and its unique features or potentialities, if any. (Para 7)

       AIR 1939 PC 98; AIR 1980 SC 1870 – Relied upon

       (b) Land Acquisition Act, 1894 – Section 23 – High Court awarding compensation as per appellant’s demand without arguments – Land in question situated 6 km away from Mathura Road – Appellant relying sale deeds pertaining to developed lands on Mathura Road – Award liable to be set aside. (Para 19, 20)

       AIR 1976 SC 2219; AIR 2010 SC 2322; (2010) 13 SCC 398; AIR 2011 SC 2458; AIR 2005 SC 2214; AIR 2011 SC 781; (2011) 12 SCC 646; AIR 2012 SC 2709; (2010) 15 SCC 412; AIR 2013 SC 3654; AIR 1991 SC 2048; (2010) 15 SCC 60; AIR 2013 SC 3452; (1994) 4 SCC 595; (1997) 9 SCC 628 – Relied upon

       RFA No.416 of 1986 dated 6.10.1986; 91 (2001) DLT 602 1986 – Distinguished

       Facts of the case:

       This case relates to determination of market value of acquired land.

       Finding of the Court:

       Impugned judgment has to be sustained.

       

JUDGMENT

Dr. B.S. Chauhan, J.-

This appeal has been filed against the judgment and order dated 8.12.2009 passed by the High Court of Delhi at New Delhi in Land Acquisition Appeal No. 154 of 2007 by which the High Court has assessed the market value of the land @Rs.6,51,000/- per acre modifying the award under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as the ‘Act’) under which the land had been assessed @Rs.5,99,850/- per acre. The appellant claimed that his land ought to have been assessed @Rs.10,00,000/- per acre.

2. Facts and circumstances giving rise to this appeal are that:

(A) Land comprised in Khasra Nos. 752(4-16), 753(4-16), 765(4-16), in all 24 bighas, in which the appellant had 1/3rd share and Khasra Nos. 757 (6-15), 758(4-17) and 761(4-16), in all 16 bighas 8 biswas (full share), situated in revenue village Aali, Delhi, stood notified under Section 4 of the Act for the purpose of construction of Ash Pond at Badarpur Thermal Power Station on 16.10.1992 alongwith a huge tract of land belonging to other persons in different villages.

(B) In respect of the said land, a declaration under Section 6 of the Act was made on 23.3.1993. The award under Section 11 of the Act was made on 6.6.1994 assessing the market value of the land of the appellant @Rs.4,65,000/- per acre.

(C) Aggrieved, the appellant preferred a reference under Section 18 of the Act and the Reference Court made the award dated 10.1.2007 assessing the market value of the land @Rs.5,99,850/- per acre with other statutory benefits.

(D) Appellant preferred appeal under Section 54 of the Act before the High Court claiming further enhancement contending that his land ought to have been assessed @Rs.10,00,000/- per acre. The High Court disposed of the appeal vide impugned judgment and order dated 8.12.2009 assessing the market value of the land @Rs.6,51,000/- per acre placing reliance on other judgments in appeal before the High Court.

Hence, this appeal.

3. Ms. Shobha, learned counsel appearing for the appellant and Ms. Priya Hingorani, learned counsel appearing in other connected appeals have raised serious issues that the land ought to have been assessed at the rate on which the land covered by the same notification under Section 4 of the Act in the neighouring village have been assessed. Therefore, the appeal deserves to be allowed.

4. Appeal is opposed by Mr. Puneet Taneja and Ms. Rachna Srivastava, learned counsel appearing for the respondents submitting that the market value of the land of the appellant cannot be assessed on the basis of compensation paid in the adjacent village for the reason that the land is not similar in any circumstance, either in quality or geographical situation/location, and thus, there is nothing on record on the basis of which it can be held that the appellant is entitled for the same compensation which had been given to other claimants in different villages. Thus, the appeal is liable to be dismissed.

5. We have considered the rival submissions made by learned counsel for the parties and perused the record.

6. The scheme of the Act is that every man’s interest is to be valued rebus sic stantibus, just as it occurs at the time of the notification under Section 4(1). Thus, the assessing authority must take into consideration various factors for determining the market value, but exclude the advantages due to the carrying out of the purpose of acquisition and remote potentialities. It is the duty of the claimant that he must produce the relevant evidence for determining the market value while filing his claim under Section 9 of the Act at least before the trial court or before the reference court for the reason that the appellate court may not permit the party to adduce additional evidence in appeal.

7. The market value of the land is to be assessed as per Section 23 of the Act. Valuation of immoveable property is not an exact science, nor it can be determined like algebraic problem, as it abounds in uncert


























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