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2021 Supreme(SC) 568

SUPREME COURT OF INDIA
M.R. SHAH, A.S. BOPANNA, JJ.
MANMOHAN LAL GUPTA (DEAD) THRU LRS. - APPELLANT
VERSUS
MARKET COMMITTEE BHIKHI & ORS. - RESPONDENTS
CIVIL APPEAL NO.9207 OF 2012
DECIDED ON : 20-09-2021

Advocates appeared:
For the Appellant(s) : Mr. Mansoor Ali, AOR
For the Respondent(s): Mr. Jagjit Singh Chhabra, AOR Mr. Saksham Maheshwari, Adv. Mr. Kuldip Singh, AOR Ms. Ranjeeta Rohatgi, AOR

IMPORTANT POINT
Acquisition of land – Old sale-deeds cannot be determinative of assessment of market value of land under acquisition.

Headnote:

Land Acquisition Act, 1894 – Section 18 – Acquisition of land – Quantum of compensation – Assessment of market value of land – When different items of property in different survey number were acquired for same purpose of establishing market yard and since all lands had road passing beside it, a common determination of market value was appropriate course – High Court was justified in discarding such sale exemplars which were around ten months prior to notification – Determination of market value which would be applicable to all lands which were subject matter of acquisition was to be made when various land owners had also filed their appeals – Determination of common market value which is applicable to all lands as made by High Court is justified – Appeal dismissed. (Paras 9, 12 and 13)

Facts of the Case:

Land, in all measuring 31 acres 1 kanal and 4 marlas was notified for acquisition in order to develop the new grain market. Appellant is assailing judgment dated 15.07.2009 of the High Court of Punjab and Haryana at Chandigarh, passed in RFA No.1586/2005. The said appeal was also included in common judgment passed by the High Court in RFA No.2082/2004 and other analogous appeals. Through said judgment the High Court has determined the market value of the land at Rs.90/per sq. yard plus the other statutory benefits. The said determination of market value amounts to reduction from what has been determined by Reference Court.

Findings of Court:

Such sale exemplars of the very property in question would in a normal circumstance be appropriate if the sale instance is closer to the period of acquisition. In the case which was referred by the High Court the sale instances were around ten months prior to the notification.

Result : Appeal dismissed.

JUDGMENT :

A.S. Bopanna, J.

1. The appellant is before this Court assailing the judgment dated 15.07.2009 of the High Court of Punjab and Haryana at Chandigarh, passed in RFA No.1586/2005. The said appeal was also included in the common judgment passed by the High Court in RFA No.2082/2004 and other analogous appeals. Through the said judgment the High Court has determined the market value of the land at Rs.90/per sq. yard plus the other statutory benefits. The said determination of market value amounts to reduction from what has been determined by the Additional District Judge, Mansa (hereinafter referred to as the ‘Reference Court’). The appellant is therefore claiming to be aggrieved by the judgment impugned herein.

2. The land, in all measuring 31 acres 1 kanal and 4 marlas was notified for acquisition in order to develop the new grain market. The preliminary notification under Section 4 of the Land Acquisition Act, 1894 (for short ‘L.A. Act’) was issued on 30.11.1992. In the total extent notified the land measuring 10 kanals 17 marlas comprised in khewat/khatauni No.123/221 bearing khasra No.1207/2/2, situate in Bhikhi, beside the Highway from Bhatinda to Chandigarh, belonging to the appellant was also included. After following the due process as provided under Section 5A of the L.A. Act, the declaration under Section 6 of the L.A. Act was notified on 24.12.1993. The Land Acquisition Officer (for short ‘LAO’) through the award dated 15.01.1996 determined the market value of Nehri land at Rs.45019/per acre and of Gair mumkin land at Rs.59378/ per acre, plus statutory benefits.

3. The appellant as also several other similarly placed land owners being aggrieved by the market value as determined by the LAO filed their objection and sought reference under Section 18 of the L.A. Act. Accordingly, the consideration for enhancement was referred to the Reference Court, Mansa. In the proceedings before the Reference Court, 18 cases including that of the land belonging to the appellant was taken up for composite consideration. The evidence that was tendered in the lead case of Saroj Rani was taken note and a common determination of the market value was made. In the said process the Reference Court took into consideration the sale deed dated 31.05.1995 and also the sale deed dated 03.06.1996 which were marked as Exhibits A1 and A2 as the sale exemplars. In that light having taken into consideration the location of the property concluded that the market value had not been appropriately fixed by the LAO. In the said process the Reference Court also took into consideration that the lands under the subject acquisition could be categorised as the land which is adjacent to the Highway, the lands that are abutting those lands which are adjacent to the Highway and also the lands which were situate thereafter. The three categories were considered as first, second and third lot. Accordingly, the market value of the land situate in the first lot was determined at Rs.140/per sq. yard, the second lot was determined at Rs.120/per sq. yard and for the third lot the market value determined was Rs.100/per sq. yard. In addition, the statutory benefits were also ordered to be paid.

4. The beneficiary of the acquisition, namely, Market Committee, Bhikhi, District Mansa preferred appeals before the High Court, among which RFA No.1586/2005 pertained to the appellant herein. In the said appeal the beneficiary of acquisition had assailed the enhancement of market value made by the Reference Court. Certain land owners had also preferred cross appeals seeking further enhancement of the compensation among which RFA No.2053/2004 was the appeal filed by the appellants herein seeking enhancement of the market value.

5. The High Court having clubbed the appeals, on consideration was of the opinion that the reliance placed by the Reference Court on the sale deeds which were at Exhibits A1 and A2 was not justified, inasmuch as, the said sale deeds were relating to transac

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