IMPORTANT POINT
Acquisition of land – Brochure issued by Development Authority of fully developed plots cannot form basis for award of compensation for acquisition of undeveloped lands.

JUDGMENT :

HEMANT GUPTA, J.

1. These appeals arising out of judgment dated 29.6.2017 are being taken up for decision together. Civil Appeal Nos. 5006-5010 of 2022 are filed by the Union of India to reduce the amount of compensation from Rs. 19 per square feet and also challenging the grant of compensation for the entire land owned by the Company - Sagar Maize Products Limited¹ [for short the ‘Company’] who is owner of 2.038 hectares in Village Maksi. Civil Appeal No. 5031 of 2022 is preferred by the Company claiming enhancement of compensation of the acquired land to Rs. 40/- per square feet.

2. The Company purchased an area of 0.361 hectares of Survey Nos. 1927/2, 1928/2 and an area of 1.317 hectares of Survey No. 1929 on Ujjain Road in Village Maksi in the year 1986-87. After purchase of the land, the Company got permission to convert the agricultural land to use for industrial purposes and has also started civil work for installation of the factory for which certain pillars were raised.

3. A notification under Section 4 of the Land Acquisition Act, 1894² [for short the ‘Act’] was published on 9.3.1990 for the purpose of acquisition of 6.500 hectares of land situated in Village Maksi and 0.700 hectares of land situated in Village Jhokar, total 7.200 hectares of land for Dewas - Maksi Railway Line. The notification under Section 6 of the Act was published on 8.6.1990.

4. The land measuring 0.244 hectares of land owned by the Company was actually acquired for the railway line comprising in Survey No. 1929. The Company has laid the claim before the Land Acquisition Collector as under:

5. The Land Acquisition Collector passed an award on 2.6.1992 awarding a compensation of Rs. 30,000/- per hectare i.e. @ Rs. 5/- per square feet as the market value of the land acquired. In addition thereto, the land owner was awarded a compensation of Rs. 72,320/- on account of expenditure incurred on construction of 40 pillars, 19 situated within a periphery of 30 meters from the proposed railway line and other 21 lying outside the 30 meters periphery, apart from the statutory benefits.

6. Aggrieved by the determination of the market value of the land acquired, the land owners including the Company sought reference under Section 18 of the Act. The Reference Court awarded a compensation of Rs. 40/- per square feet for the land acquired and also for the entire land of the Company admeasuring 2.038 hectares on the ground that the un-acquired land cannot be utilized for the purpose intended to be used by the Company.

7. Such compensation was arrived at by the Reference Court on the basis of statement of PW-11 Pawan Damade, Manager working with Madhya Pradesh Housing Development Board. He deposed that an advertisement (Ex.P/23) for the sale of residential plots @ Rs. 45/- per square feet was issued by the Board in the year 1984. He also stated that the value of commercial plots was Rs. 50/- per square feet. The Reference Court held that the sale price of the residential plot was @ Rs. 45/- per square feet in the year 1984, but the sale price of the residential plot included some other charges, therefore, the Reference Court determined Rs. 40/- per square feet as the market value.

8. In respect of 26,325 square feet land for laying of the railway line, the Reference Court awarded compensation of Rs. 10,53,000/-. For the remaining land of 1,93,077 square feet, the Reference Court held that it is not possible to establish the industry as the railway line passes through Survey Nos. 1928 and 1929. It was held that the distance of 30 meters is required from the railway line for development work, hence as no construction work co