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1982 Supreme(AP) 530

Andhra Pradesh High Court
Judges : K.RAMACHANDRA RAO, T.LAKSHMI NARAYANA REDDY
Government Of A.P.THROUGH SPECIAL DEPUTY COLLECTOR, LAND ACQUISITION (INDUSTRIES), HYDERABAD - Appellant
Versus
SOHAN LAL - Respondent
Decided On : 12-24-82

The potentiality of the land for industrial use should be taken into consideration in determining the market value.

Headnote:

LAND ACQUISITION - COMPENSATION - MARKET VALUE - DETERMINATION - POTENTIONALITY OF LAND FOR INDUSTRIAL USE - RELEVANT FACTORS - CONSENT LETTERS - GENUINENESS - RELIABILITY - CAPITALISATION METHOD - APPLICABILITY - PRICE FETCHED FOR SMALL PLOTS - RELEVANCE - ENHANCEMENT OF COMPENSATION - CLAIM STATEMENT - FILING BEFORE LAND ACQUISITION OFFICER - NECESSITY.

Fact of the Case:

The Government acquired lands for the establishment of an Industrial Development Area. The Land Acquisition Officer awarded compensation at the rate of Rs. 4000/- per acre for dry lands, Rs. 5000/- for black cotton soil land and Rs. 6000/- for wet land. On references made under Section 18 of the Land Acquisition Act, the market value of the land was fixed at varying rates from Rs. 6000/- to Rs. 10,000/- for dry land, Rs. 11,000/- to Rs. 11,500/- for black cotton soil land ; and Rs. 8000/- to Rs. 14,000/- for wet land. The Government challenged the enhancement of compensation by the Civil Court.

Finding of the Court:

The Court held that the potentiality of the land for industrial use should be taken into consideration in determining the market value. The Court also held that the consent letters obtained from the pattedars were genuine and reliable and could be considered in fixing the market value. The Court further held that the capitalisation method was not applicable in the instant case as the evidence with regard to the income of the yield was vague. The Court also held that the price fetched for small plots of land cannot be taken into consideration in fixing the market value when large extents of lands are acquired. The Court further held that the claimant was entitled to claim enhancement of compensation as he had filed a claim statement before the Land Acquisition Officer.

Issues: 1. Whether the potentiality of the land for industrial use should be taken into consideration in determining the market value? 2. Whether the consent letters obtained from the pattedars were genuine and reliable and could be considered in fixing the market value? 3. Whether the capitalisation method was applicable in the instant case? 4. Whether the price fetched for small plots of land can be taken into consideration in fixing the market value when large extents of lands are acquired? 5. Whether the claimant was entitled to claim enhancement of compensation?

Ratio Decidendi: 1. Yes, the potentiality of the land for industrial use should be taken into consideration in determining the market value. 2. Yes, the consent letters obtained from the pattedars were genuine and reliable and could be considered in fixing the market value. 3. No, the capitalisation method was not applicable in the instant case as the evidence with regard to the income of the yield was vague. 4. No, the price fetched for small plots of land cannot be taken into consideration in fixing the market value when large extents of lands are acquired. 5. Yes, the claimant was entitled to claim enhancement of compensation as he had filed a claim statement before the Land Acquisition Officer.

Final Decision: The Court partly allowed the appeal and set aside the finding of the lower Court fixing the market value for the land acquired at the rate of Rs. 8/- per sq. yard and fixed the market value at Rs. 10,000/- per acre. The directions with regard to solatium and interest given by the lower Court were confirmed.

RAMACHANDRA RAO, J.

( 1 ) THESE appeals are preferred against the Judgments rendered in 14 batches of references made under Section 18 of the Land Acquisition Act (hereinafter called the Act ). In all these batches of appeals, the Land acquisition Officer awarded compensation at the rate of Rs. 4000/- per acre for dry lauds, Rs. 5000/- for black cotton soil land and Rs. 6000/- for wet land. On references made under Section 18 of the Act in 10 batches of original Petitions, the market value of the land was fixed at varying rates from Rs. 6000/- to Rs. 10,000/- for dry land, Rs. 11,000/- to Rs. 11,500/- for black cotton soil land ; and Rs. 8000/- to Rs. 14,000/- for wet land. In one other batch, the market value was fixed at Rs. 15,000/- per acre. In two other batches, the market value was fixed on square yard basis i. e. , at rs. 6/- per square yard in one batch and at Rs. 8/- per square yard in another batch. The Government has preferred these appeals challenging the enhancement of the compensation by the Civil Court ; whereas in some of the appeals, the claimants have preferred Cross Objections claiming further enhancement of compensation. The earliest of the references was decided on 21-10-1978 in O. P. No. 34/1976, by the Additional District judge, Medak at Sangareddy, wherein both the claimants and the Government had adduced elaborate evidence, both oral and documentary, for determining the market value of the lands as on the date of the notification. It may be mentioned that notification under Section 4 (1) of the Act, was made for equisition of the lands in question, between 6-7-1974 and 11-12-1974 in all the cases, except in tvvo matters where the notification was made on 2-9-1976 and 23-9-1976. There is no dispute between the parties with regard to the location of the lands. In all these cases, a requisition was sent by the Managing Director of the Andhra Pradesh ladustrial Infrastructure corporation Limited, Hyderabad, for acquisition of the lands in three villagesramachandrapuram, Pa cancheru and Bandlaguda in Sangareddy taluk of Medak District, for the establishment of an Industrial development Area, and an extent of nearly 725 acres was notified for acquisition under different notifications. The lands in all these cases are either dry chalka lands or black cotton dry lands, and in some cases wet lands. The lands are situate on the National Highway No. 9 from hyderabad to Bombay. This area started developing as an Industrial Area with the establishment of the factory of Bharat Heavy Electricals Limited in 1961-62. Subsequently when subsidy for industries in the backward areas was announced by the Central Government, the three villages in question in medak District, which adjoin the city and situate along the National highway with an easy access to the city, began to develop into an industrial estate in 1964. Out of the lands acquired for the Bharat Heavy Electricals limited, a portion was assigned to the International Crops Research institute for Semi Arid Tropics, (for short, ICRISAT ). The lands in ramachandrapuram now under the occupation of Bharat Heavy Eleetricals limited and ICRISAT, are to the south of the National Highway.

( 2 ) PATANCHERU and Bandlaguda villages, are to the north of the national Highway, but the lands in the said villages are situate o n bothsides of the National Highway. To the south of the highway, there are the regional Poultry Farm and other poultry farms, Manjira Water Works and other Industrial Concerns, like Hume Pipe Company, Pratap Steels, Asian wire Rope Company and several other industries. There is no dispute that the land in question, has immense potential for development as an Industrial area. Both the Government Pleader as well as the learned counsel appearing for the several claimants, have contended that the potentiality of the land for the establishment of industries, should be taken into consideration in determining the market value of the same.

( 3 ) WE shall take up eac
































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