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Karnataka High Court
K.Gopala Gowda - Appellant
Versus
Special Land Acquisition Officer - Respondent
Decided On : 10-07-03
Land Acquisition Act - Market Value Determination - Section 54(1) - [Land Acquisition Act] - [Section 54(1)] - The court determined the market value of the acquired land at the rate of Rs. 6,00,000/- per acre, based on the evidence presented and the potentiality of the land. The court considered various factors and relevant documents, including the Advisory Committee's resolution proposing compensation at the rate of Rs. 10,00,000/- per acre, and a Notification under the Karnataka Stamp Act, 1957 estimating the market value at Rs. 10,00,000/- per acre. The court also highlighted the superior potentiality of the acquired land compared to lands acquired for the International Airport, which were situated further away from the city. The court found the determination of market value at the rate of Rs. 2,25,000/- per acre, based on a sale deed for a different land, to be prejudicial to the appellant-owner.
Fact of the Case:
The acquired land was determined to have a market value of Rs. 6,00,000/- per acre, based on evidence presented and the potentiality of the land. The court considered various factors and relevant documents, including the Advisory Committee's resolution proposing compensation at the rate of Rs. 10,00,000/- per acre, and a Notification under the Karnataka Stamp Act, 1957 estimating the market value at Rs. 10,00,000/- per acre. The court also highlighted the superior potentiality of the acquired land compared to lands acquired for the International Airport, which were situated further away from the city. The court found the determination of market value at the rate of Rs. 2,25,000/- per acre, based on a sale deed for a different land, to be prejudicial to the appellant-owner.
Finding of the Court:
The court found that the market value of the acquired land was determined at the rate of Rs. 6,00,000/- per acre, based on the evidence presented and the potentiality of the land. The court considered various factors and relevant documents, including the Advisory Committee's resolution proposing compensation at the rate of Rs. 10,00,000/- per acre, and a Notification under the Karnataka Stamp Act, 1957 estimating the market value at Rs. 10,00,000/- per acre. The court also highlighted the superior potentiality of the acquired land compared to lands acquired for the International Airport, which were situated further away from the city. The court found the determination of market value at the rate of Rs. 2,25,000/- per acre, based on a sale deed for a different land, to be prejudicial to the appellant-owner.
Issues: The main issue was whether the market value of the acquired land determined by the Civil Court at the rate of Rs. 2,25,000/- per acre was legal and justified, and if not, what shall be the correct market value of the schedule land.
Ratio Decidendi: The court determined the market value of the acquired land at the rate of Rs. 6,00,000/- per acre, based on the evidence presented and the potentiality of the land. The court considered various factors and relevant documents, including the Advisory Committee's resolution proposing compensation at the rate of Rs. 10,00,000/- per acre, and a Notification under the Karnataka Stamp Act, 1957 estimating the market value at Rs. 10,00,000/- per acre. The court also highlighted the superior potentiality of the acquired land compared to lands acquired for the International Airport, which were situated further away from the city. The court found the determination of market value at the rate of Rs. 2,25,000/- per acre, based on a sale deed for a different land, to be prejudicial to the appellant-owner.
Final Decision: The court allowed the appeal in part with costs and determined the market value of the schedule land at the rate of Rs. 6,00,000/- (Rupees Six Lakhs) per acre. In addition, the court directed that the appellant claimant is entitled to all statutory benefits under the Act, in accordance with law. The Advocates fee was fixed at Rs. 3,000/ -.
( 1 ) THIS appeal preferred by the owner of the acquired land under Section 54 (1) of the Land Acquisition Act, 1894, for short, the Act, is directed against the Judgement and Award dated 19. 04. 2001 passed in L. A. C. No. 70 of 1999 on the file of the II Additional City Civil Judge at Bangalore, for short, the Civil Court/determining the market value of the acquired land at the rate of Rs. 2,25,000/- per acre. In this appeal, the Appellant owner has claimed the compensation at the rate of Rs. 8,00,000/- per acre.
( 2 ) THE facts of the case, in brief, are as follows: 2 acres 37 guntas of land comprised in Sy. Nos. 54 and 55 situated in Meenukunte Village, Jala Hobli, Bangalore North Taluk, Bangalore Urban District, which land hereinafter shortly referred to as the schedule land, was acquired by the Karnataka Industrial Areas Development Board - second respondent herein under the provisions of Karnataka Industrial Areas Development Act, 1966, hereinafter shortly referred to as the KIAD Act, for the benefit of the I. T. C. Limited, third respondent herein. The preliminary notification issued under Section 28 (1) of the KIAD Act, was published in the official gazette on 29. 06. 1994 and the final notification under Section 28 (4) of the said Act dated 24. 02. 1995 was published in the official gazette on 28. 02. 1995. The possession of the schedule land was taken over on 16. 01. 1996. The Special Land Acquisition Officer K. I. A. D. , after holding award enquiry, passed the award on 15. 02. 1999 determining the market value at the rate of Rs. l,25,278/- per acre placing reliance on sales statistics. The appellant-owner being aggrieved by the award of the Special Land Acquisition Officer, on 25. 02. 1999, filed an application under Section 18 the Act, seeking reference of his claim for of more compensation for the schedule land at the rate of Rs. 8,00,000/- per acre. The Civil Court, placing reliance on Exhibit-P6 which is a Sale Deed dated 11. 01. 1984, under which 1 acre of land was sold for Rs. 1, 95, 000/- and allowing appreciation in value of the schedule land, determined the market value of the schedule land at the rate of Rs. 2,25,000/- per acre. Hence, this appeal by the aggrieved owner of the schedule land seeking higher rate of compensation.
( 3 ) WE have heard Sri. B. V. Acharya, learned Senior Counsel for the appellant and Sri. S. Vijay Shankar, learned Senior Counsel for the third respondent beneficiary and Sri. Basavaraj. V. Sabarad for Respondent Nos. 1 and 2. Sri. B. V. Acharya would contend that the evidence adduced by the appellant-owner before the Civil Court would justify determination of the market value of the schedule land at the rate of Rs. 8,00,000/- per acre; the Civil Court has seriously erred in brushing aside the recommendation of the Advisory Committee, as also the resolution of the Board offering to pay compensation at the rate of Rs. 10,00,000/- (inclusive of statutory benefits) per acre for the schedule land. According to Sri Acharya, since the Board was a willing buyer and had agreed to buy the schedule land at the rate of Rs. 10,00,000/- per acre, the Civil Court ought to have held that the real market value of the schedule land on the date of preliminary Notification under Section 28 (1) of the KIAD Act as Rs. 10,00,000/- per acre. Sri Acharya was would contend that the Civil Court is not justified in ignoring Exhibit P-16, which is a Notification dated 13. 07. 1996 issued under the Karnataka Stamps Act, 1957 estimating the market-value of the land situated in Meenukunte Village at the rate of Rs. 10,00,000/- per acre for the purpose of registration of instruments and Exhibit P-17 which is the newspaper cutting and which establishes that the market value of the schedule land at the relevant point of time, was about Rs. 10,00,000/- per acre. Sri Acharya would, alternatively contend that the Civil Court is not justified in not placing reliance on Exhibit P-18 on the ground that t
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