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2015 Supreme(SC) 68

SUPREME COURT OF INDIA
H.L. Dattu, CJI., A.K. Sikri, Arun Mishra, JJ.
Patel Jathabhai Punajbhai – Appellants
Vs.
North Gujarat University & Anr. – Respondents
CIVIL APPEAL NO.474 OF 2013 WITH C.A. No. 475/2013; C.A. No. 476/2013; C.A. No. 477/2013; C.A. No. 478/2013; C.A. No. 482/2013; C.A. No. 483/2013; C.A. No. 484/2013; C.A. No. 485/2013; C.A. No. 487/2013; C.A. No. 514/2013; C.A. No. 515/2013; C.A. No. 517/2013; C.A. No. 518/2013; C.A. No. 519/2013; C.A. No. 520/2013; C.A. No. 521/2013; C.A. No. 522/2013; C.A. No. 523/2013; C.A. No. 526/2013; C.A. No. 527/2013; C.A. No. 528/2013; C.A. No. 529/2013; C.A. No. 1339/2013; and S.L.P. [C] Nos.16925-16936/2013.
Decided On : 28-01-2015

Headnote:(a) Land Acquisition Act, 1894 – Section 23 and 24 – Area falling in third group of matters – Area around acquired land already developed – High Court correctly determining rate per sq. m on the basis of sale instances and averaging the same – Deducting 30% for agricultural land and adding 10% for time lapse and further deducting 10% for the area being large chunk – Finally averaging on basis of sale-deeds for first and fourth group of matters – Not proper – Only 30% deduction for development etc. should have been considered – No further deduction required – Award at the rate of Rs.100/- per sq m held appropriate. (Para 7, 8)

       (b) Land Acquisition Act, 1894 – Section 11 and 18 – Petition for enhancement of compensation – No appeal or cross-objection filed against order passed by Reference court – In absence of challenge to order of Reference court, High Court rightly declining to enhance compensation. (Para 11)

       Facts of the case:

       Land was acquired for the purpose of campus of North Gujarat University.

       The award was passed on 21.9.1990 determining the price from Re.1/- to Rs.5/- per sq.m.

       On a reference being made under section 18 of the Act, the Reference Court determined the compensation at Rs.109.30 per sq.m. for the agricultural land and Rs.184/- per sq.m. for non-agricultural land.

       On appeal, the High Court has reduced the compensation, determining the compensation for agricultural land at the rate of Rs.60/- per sq.m. and for non-agricultural land at the rate of Rs.78/- per sq.m.

       Finding of the Court:

       Impugned judgment cannot be sustained.

       Result: Appeals partly allowed. SLP dismissed.

JUDGMENT

ARUN MISHRA, J.

1. The appeals arise out of the third group of matters wherein a common judgment and order dated 7.8.2012 has been passed by the High Court of Gujarat at Ahmedabad, determining the compensation for agricultural land at the rate of Rs.60/- per sq.m. and for non-agricultural land at the rate of Rs.78/- per sq.m. situated at village Samalpati and Matarwadi of Taluka Patan acquired vide notification dated 23.5.1987 issued under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act') for the purpose of campus of North Gujarat University. The modified notification under Section 4 had been issued on 13.8.1987. The award was passed on 21.9.1990 determining the price from Re.1/- to Rs.5/- per sq.m. On a reference being made under section 18 of the Act, the Reference Court determined the compensation at Rs.109.30 per sq.m. for the agricultural land and Rs.184/- per sq.m. for non-agricultural land. On appeal, the High Court has reduced the compensation, as aforesaid. Aggrieved thereby, the claimants have come up in appeals before us.

2. The main question for our consideration is : what would be the compensation to be awarded on the date of notification under section 4 of the Act.

3. It is not in dispute that around the land in question, development has already been made. Nearby to the land in question are colleges like Polytechnic, Arts, Science and Commerce. On the Eastern side of the land is the State Highway Deesa-Patan-Chanasma-Viramgam and on Southern side of the road is the road to enter Patan city. Railway station is also nearby. On the Western side in the nearby area are bus stand, T.V. relay centre, Telephone and telegraph head office.

4. In short, the land is surrounded by housing societies, industrial zone, offices, college campus, roads, bus service, other transport facilities and marketing facilities. G.I.D.C. is hardly 500 meters away from the acquired land which forms part of Municipal area, hence, it was contended that the area is virtually a part of Patan Municipality for all purposes. The agricultural land possesses high potentiality to be used for residential and commerce purposes. The High Court has found out that the area touches the extended limits of Patan city. Reliance has been placed on Ex. D-87 and D-88, the sale-deeds of the area at 500 metres of distance where the land was sold on 10.12.1985 at the rate of Rs.239.20 per sq.m., after applying 10% increase on the date of notification under Section 4, the market value of non-agricultural land comes to Rs.275.08 per sq.m. and on the strength of sale-deed Ex. D-88, the price would come to Rs.184.04 per sq.m. It was also submitted that the highest consideration fetched in the exemplar sale-deed ought to have been taken into consideration for determining the just compensation.

5. Per contra, adequate compensation has been worked out. The High Court has rightly reduced the compensation as determined by the Reference Court considering the fact that the land acquired was a large chunk of land.

6. In the instant case, the Land Acquisition Officer, Reference Court as well as the High Court, in the peculiar facts and circumstances of the case, have determined the compensation on the basis of price of the land at per sq.m. The area in question is not within the municipal limits but adjacent to the extended limits of Patan municipality. The fact that various educational institutions, houses, railway station, bus stands and other offices are in close vicinity and the entire land has the potentiality like that of non-agricultural land on the date of notification under Section 4 of the Act, is not disputed.

7. In the appeals, we are concerned with the third group of matters. The High Court has found that comparable sale instances in the third group of matters are in the shape of sale-deed Ex. 45, 46 and 47. The price per square meter comes to Rs.118.34, Rs.119.47 and 104.93. The lands which were sold were non-agricultural land. The




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