2003 Supreme(Kar) 865
Karnataka High Court
SHARANAMMA - Appellant
Versus
ASSISTANT COMMISSIONER AND LAND ACQUISITION OFFICER, SEDAM, GULBARGA DISTRICT - Respondent
Decided On : 10-17-03
M.F.A. : 3207 of 2001
K.P.ASHOK KUMAR, V.N.Madhava Reddy
Headnote:Computation of market value by comparison with sale of land adjacent to the land acquired
LAND ACQUISITION ACT, 1894 - Sections 4(1) and 54(1)- Enhancement of compensation -comparison made to a sale transaction of a land close to the bus stand of the town -acquired land one km away from, area around fully developed -comparison justified -4-1/2 years gap between the sale transaction and section 4(1) notification -8% appreciation allowed -40% reduction made from the amount of sale -Reference Court differentiating between agricultural and non-agricultural land -owner restricting his claim to Rs.1,30,680 -held, even if conversion fee is deducted regarding agricultural land, it would not be less than Rs.1,30,680/- -awarded the amount accordingly.
[S. R. Nayak & Ram Mohan Reddy, JJ.] - In Ex.P-8. 11 guntas of land comprised in Survey No. 150/B of Chincholi town was purchased by P.W-3 from one Smt. Nagamma, by name, for Rs. 15,000/- under a registered sale deed dated 08-04-1986. It is true that even according to the appellant the said 11 guntas of land is situated by the side of bus stand in Chincholi town. P.W-1, the owner of the acquired land has also submitted that the acquired land is 1 K.m. away from the land covered by Ex. P-8 in his cross - examination. But there is sufficient credible evidence on record to show that the acquired land is also highly potential and it is surrounded by number of Government offices, hospital etc., There is absolutely no argument before the court on behalf of the State that the potentiality spoken to by the witness, P.W-1 in his evidence is incorrect. Although the time gap is 4 1/2 years, the court was persuaded to allow appreciation only with regard to 4 years at 8%. Thus by the time Section 4(1) Notification was issued, there was 32% appreciation in the market-value of the acquired land and 32% of 1,81,800/- would come to Rs. 58,176/-. Thus the market-value of the one acre of land on the date of Section 4(1) Notification would be Rs. 2,39,976.
Cases Referred : AIR 1988 SC 943; 1995(6) Kar.L.J 130; 1992(4) Kar.L.J 428 (DB); ILR 1992 Kar 3740 (DB); 1995(6) Kar.L.J 686.
( 1 ) THE owner of the acquired land not being satisfied with the compensation awarded by the Civil Court has filed this appeal calling in question the legality and validity of the judgment and award dated 24th March, 2001 passed in LAC No. 551 of 1994 on the file of the Court of the Additional Civil Judge (Senior Division) at Gulbarga (for short, 'the Civil Court' ). By the impugned award the Civil Court has awarded compensation at the rate of Rs. 61,000/- per acre for 3 acres 10 guntas of converted land and at the rate of Rs. 43,000/- per acre with regard to 1 acre 20 guntas of agricultural land.
( 2 ) THE facts of the case in brief are as follows: the State acting through the respondent-Land Acquisition Officer (for short, 'the LAO'), and in exercise of eminent domain power acquired 1 acre 20 guntas of land comprised in Survey No. 12/1/1b and 3 acres 10 guntas of converted land in Survey No. 12/2/2b both situate in Chandapur Village in chincholi Taluk, Gulbarga District (for short, 'the schedule land') for a public purpose, to wit, for construction of Mini Vidhana Soudha and hospital buildings by issuing Section 4 (1) notification dated 22-1-1990 under the provisions of the Land Acquisition Act, 1894 (for short, 'the Act' ). The LAO after conducting award enquiry passed an award on 30-9-1992 determining the market value at the rate of Rs. 15,000/- per acre with regard to non-agricultural land and at the rate of Rs. 8,000/- per acre with regard to agricultural land, by placing reliance on sales statistics. The owner of the acquired land not being satisfied with the rate of compensation awarded by the lao sought reference of her claim under Section 18 of the Act for more compensation and on such reference being made, the Civil Court placing reliance on Ex. P. 8 sale document dated 8-4-1986 by the impugned award determined the market value at the rate of Rs. 61,000/- per acre with regard to non-agriculture land and at the rate of Rs. 43,000/- per acre with regard to agricultural land. The owner of the acquired land still not being satisfied with the quantum of compensation has approached this Court by way of this appeal. 2-A. We have heard Sri Madhava Reddy, learned Counsel for the appellant and Sri K. P. Ashok Kumar, learned Additional Government advocate for land acquisition. Sri Madhava Reddy would contend that no exception could be taken for the Civil Court to place reliance on Ex. P. 8 sale document for determination of the market value. The Civil Court has seriously erred in law in making deduction at 2 tires in arriving at the market value of the acquired land as on the date of Section 4 (1) notification. Sri madhava Reddy would also contend that in determining the market value the civil Court has not appreciated the high potentiality of the acquired land which could be compared to the land covered by Ex. P. 8 sale deed. Sri madhava Reddy would also contend that there is an error apparent on the face of the award inasmuch as the Civil Court has not at all allowed appreciation in the market value for a period of 4 years while determining the market value of the acquired land. The learned Government Advocate for land acquisition, on the other hand, at the threshold, would highlight that the land covered by ex. P. 8 sale deed cannot be compared to the acquired land for the simple reason that the land covered by Ex. P. 8 is just adjacent to a bus stand situated in the Chincholi, whereas the acquired lands are situate in Chandapur Village 1 k. m. away from the bus station. In that view of the matter, according to the learned Government Advocate, the Civil Court was justified in deducting 50% from the value fetched for the land covered by Ex. P. 8 on that count itself. Learned Government Advocate would also support the action of the civil Court in further deducting 33% and 53% respectively in determining the market value in the case of non-agricultural land and the agricultural land. In sum and substance the a