IMPORTANT POINT
Acquisition of land – Quantum of compensation – Determination of prevalent market value of acquired land is not an algebraic formula and that cannot be determined in a precise or an accurate manner – Some amount of guess work is always permissible.

JUDGMENT :

PANKAJ MITHAL, J.

1. Heard Mr. Neeraj K. Kaul, learned senior counsel appearing for the appellants and Ms. Deepanwita Priyanka, learned counsel appearing for the respondents.

2. The land of the appellants, Survey No. 179/3 having an area of 0-98-14 sq. mt. situate in Village Ranoli, Taluka and District Vadodara, Gujarat was acquired by the Government of Gujarat for a public purpose and for the benefit of Gujarat Industrial Development Corporation.¹ [‘GIDC’ for short]

3. The notification proposing to acquire the aforesaid land under Section 4 of the Land Acquisition Act² [Hereinafter referred to as ‘the Act’] was published on 24.07.1989 which was followed by the final Declaration under Section 6 of the Act dated 18.07.1990 to acquire the said land. The Special Land Acquisition Officer³ [Hereinafter referred to as the ‘SLAO’] in exercise of powers under Section 11 of the Act vide award dated 25.02.1992 offered compensation @ Rs. 11 per sq. mt. The appellants were not satisfied with the above offer/award and as such preferred a Reference under Section 18 of the Act. The Reference Court vide its judgment, order and award dated 31.12.2011 passed in Land Reference Case No. 2303 of 1992 enhanced the compensation to Rs. 30 per sq. mt. in place of Rs. 11 per sq. mt. offered by the SLAO. The appellants were still not satisfied and as such they preferred First Appeal No. 670 of 2012 under Section 54 of the Act before the High Court. The said appeal has been dismissed by the order impugned dated 14.08.2015.

4. Assailing the judgment and order of the High Court, two broad submissions have been advanced before us. The first is that there was ample evidence before the courts below to award higher compensation at least up to Rs. 450/- per sq. mt. and in this connection much reliance has been placed upon the allotment of land of Plot No. 7/1 by the GIDC itself for establishing a petrol pump in the year 1988. Secondly, the courts below have not considered the existence of a large number of fruit bearing trees, particularly that of lemon and the income derived therefrom has not been taken into account.

5. Learned counsel for the respondents submitted that the compensation as determined by the SLAO is just and proper, at least there is no justification for enhancement of the compensation as awarded by the Reference Court. Therefore, High Court rightly dismissed the appeal.

6. The main plank of the appellants for enhancement of compensation is based on the allotment letter dated 07.06.1988 (Exhibit 120) pertaining to Plot No. 7/1 admeasuring 1900 sq. mt. situate nearby the acquired land. The said plot of land was allotted by the GIDC to M/s Dhanlaxmi Automobiles for establishing a petrol pump @ Rs. 450/- per sq. mt. The said allotment was on lease whereas the land of the appellants was a freehold land and as such at the time of acquisition its value was not liable to be below Rs. 450/- per sq. mt.

7. No doubt, the aforesaid Plot No. 7/1 was within the proximity of the GIDC area and was hardly about a kilometre away from the land of the appellants but it was for commercial purposes whereas the land of the appellants, which may have had the potential of becoming a developed area, was in reality, an agricultural land.

8. The letter of allotment of the said Plot No. 7/1 dated 07.06.1988 is on record. It reveals that the land for the purposes of petrol pump was first allotted on 18.07.1984 at a tentative price of Rs. 70/- per sq. mt. with 25% of the frontage charges. Originally, the area of land allotted was 25000 sq. mt. but finally only 1900 sq. mt. was allotted with the condition that the allottee will accept the price whatever is fixed by the GIDC. The GIDC w.e.f. 25.03.1988 revised the premium prices of the lands in Ranoli Industrial Estate to Rs. 180/- per sq. mt. Accordingly, the actual premium price of the said Plot No. 7/1 was worked out and was realised from the allottee.

9. The aforesaid allotment letter clearly reveals that the land of Plo