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Karnataka High Court
EXECUTIVE ENGINEER (ELECTRICAL), O AND M division, KARNATAKA ELECTRICITY BOARD (NOW KPTCL), GADAG - Appellant
Versus
THE ASSISTANT COMMISSIONER AND LAND acquisition OFFICER, GADAG - Respondent
Decided On : 03-16-05
M.F.A. : 2451 of 2001
EMINENT DOMAIN
Compensation - Court s duty - Should attempt reasonably and adequately to compensate the loss sustained by a person as a consequence of compulsory acquisition of his property.
[S. R. Nayak and S. B. Majage, JJ]: No man Can be deprived of his land except on payment of compensation and the person who is deprived of his land is entitled to be compensated to the fun of value of the deprivation caused. The Court should also remember that it awards compensation cumulatively under all possible heads only once for deprivation of the land and injurious affection and there is no scope for an afterthought in the matter of claims to compensation. Therefore, failure of the Court to award just and fair compensation results in perpetual injustice to the person deprived of his land.
Cases Referred: AIR 1988 SC 943 ; 1995 (6) Kar LJ 130; 1992 (4) Kar LJ 428 (DB): ILR 1992 Kar 3740 (DB); 1995 (6) Kar LJ 686; MFA Nos. 1409/2003 & Connected Cases D.D. 14-8-2003; AIR 1981 P & H 163; AIR 1998 SC 1028; All ACC 2002(1) SC Vol 24; AIR 2003 SC 202; AIR 2001 SC 1117; AIR 1998 SC 781; ILR 2003 KAR 1143 (SC); 2002 (1) LACC 537 (DB).
Market value
Land Acquisition Act, 1894 - Section 24 - Determination - Factors to be considered by courts.
[S. R. Nayak and S. B. Majage, JJ]: The Parliament itself, to avoid injustice to the persons whose lands are acquired, in Section 24 of the Act, has enacted factors which should go into the decision-making while determining the market value and fixation of compensation. The Court, therefore, should be alive to the factors mentioned in Section 24 of the Act and keep them at the back of the mind. Further, the Court, in assessing the market value, should balance plus factors such as smallness of area of the land acquired, proximity to road, frontage on road, vis-à-vis land acquired etc., as well as minus factors such as largeness of area, situation in the interior at a distance from the road, remoteness from developed locality and any other disadvantageous factor which would deter a purchaser - and then evaluate all those relevant plus and minus factors in terms of price variation as a prudent purchaser would do.
Market value
VALUATION - Market value - Meaning - Market Value is what the price which a willing vendor might reasonably expect to obtain from a willing purchaser.
Market value
WORDS AND PHRASES - Market value -What is fair and just or reasonable market value is always a question of fact depending on the nature of the evidence circumstances and probabilities in each case. The market value of the land acquired should be fixed not only by reference to the use to which it was put on the date of publication of Section 4(1) notification, but also by reference to the uses to which it is reasonably capable of being put in the future. All its existing advantages and its potential possibilities when laid out in its most advantageous manner, should be taken into account while fixing the market value. The Court can also take into account any special circumstances, apart from the methods of valuation traditionally adopted, in order to arrive, as nearly as may be, at an estimate of the market value.
Market Value
Land Acquisition Act, 1894 - Section 23(1) - Determination of - Market Value is what the price which a willing vendor might reasonably expect to obtain from a willing purchaser - Court can rely upon transactions which would offer a reasonable base - Price paid in sales proximate in time would supply best piece of evidence - Absence of - Price paid for a land possessing similar advantages in the neighbourhood in or about the time of notification would supply data to assess market value.
[S. R. Nayak and S. B. Majage, JJ]: What is fair and just or reasonable market value is always a question of fact depending on the nature of the evidence circumstances and probabilities in each case. The market value of the land acquired should be fixed not only by reference to the use to which it was put on the date of publication of Section 4(1) notification, but also by reference to the uses to which it is reasonably capable of being put in the future. All its existing advantages and its potential possibilities when laid out in its most advantageous manner, should be taken into account while fixing the market value. The Court can also take into account any special circumstances, apart from the methods of valuation traditionally adopted, in order to arrive, as nearly as may be, at an estimate of the market value.
Cases Referred: AIR 1988 SC 943; 1995 (6) Kar LJ 130; 1992 (4) Kar LJ 428 (DB): ILR 1992 Kar 3740 (DB); 1995 (6) Kar LJ 686; MFA Nos. 1409/2003 & Connected Cases D.D. 14-8-2003; AIR 1981 P & H 163 ; AIR 1998 SC 1028 ; All ACC 2002(1) SC Vol 24; AIR 2003 SC 202 ; AIR 2001 SC 1117; AIR 1998 SC 781 ; ILR 2003 KAR 1143 (SC); 2002 (1) LACC 537 (DB).
Market value
Land Acquisition Act, 1894 - Sections 23 and 24 - Market value - Determination of large extent of land acquired - No reliance can be placed on sale deeds or awards involving smaller lands - Absence of transactions involving larger lands - Those of smaller lands can be relied upon, subject to deductions.
[S. R. Nayak and S. B. Majage, JJ]: Although it is true that in determining the market value of a large extent of land, no reliance can be placed on sale deeds or awards involving smaller extents of lands provided that sale deeds involving conveyance of larger extent of land which are comparable in point of time and locus are available, the Civil Court can certainly place reliance on sale deeds involving conveyance of smaller extents of land which are comparable in terms of time and locus for the determination of the market value of a larger extent of land, of course, subject to deductions etc., towards development if there are no comparable sale deeds involving conveyance of larger extents of land. Thus, there is no hard and fast rule that under no circumstance, the Civil Court can rely upon the sale deeds involving smaller extents of land for determination of the market value of larger extents of land though such sale deeds are comparable in terms of time and locus.
( 1 ) THE beneficiary as well as the owners of the acquired land being aggrieved by the awards passed by the Civil Court, have preferred these appeals under Section 54 of the Land Acquisition Act, 1894 (for short, 'the Act' ). M. F. A. Nos. 2451, 2453, 2457 and 2461 of 2001 are by the beneficiary, whereas M. F. A. Nos. 3428 to 3431 of 2001 are by the owners of the acquired land.
( 2 ) 19 acres 24 guntas of land comprised in R. S. No. 395 which is situate within the limits of Gadag-Betgeri Municipality was acquired for a public purpose, to wit, for the purpose of installation of electricity power transmission station at Gadag, building KEB office, warehouse etc. , by issuing Section 4 (1) Notification dated 15-9-1994. The land in survey No. 395 is phoded in favour of four brothers and they are the claimants in LAC Nos. 1 to 4 of 1997 and each block measures 4 acres 36 guntas. The Land Acquisition Officer after conducting award enquiry placing reliance on sales statistics awarded the compensation at the rate of Rs. 60,000/- per acre vide his order No. LAQSR-1/94-95, dated 15-11-1996. The owners of the acquired land being aggrieved by the said award sought reference of their claims to the Civil Court for enhanced compensation by making necessary applications under Section 18 of the act. The Civil Court on such reference placing reliance on Ex. P. 5 sale deed fixed the market value of the acquired land at the rate of Rs. 3,79,260/- per acre. Hence, these appeals by the Karnataka Electricity board (now Karnataka Power Transmission Corporation Limited) who is the beneficiary of the acquisition and hereinafter shortly referred to as 'the beneficiary' contending that the compensation fixed by the Civil court is excessive and unreasonable, whereas, in the appeals preferred by the owners of the acquired land, it is contended that what is awarded by the Civil Court is totally inadequate and unreasonable and it does not reflect the correct market value of the acquired land as on the date of Section 4 (1) Notification. The owners of the acquired land in their appeals have sought for compensation at the rate of Rs. 31,000/- per gunta.
( 3 ) SINCE all the appeals are directed against the same judgment of the civil Court, we have clubbed all these appeals, heard together and they are being disposed of by this common judgment. We have heard Sri B. Rudra Gowda, learned Counsel for the beneficiary and Sri G. Gangi reddy, learned Counsel for the owners and Sri K. P. Aso Kumar, learned government Advocate for the State of Karnataka and the Land acquisition Officer. The State of Karnataka and Land Acquisition officer have not preferred any appeal against the judgment and awards of the Civil Court.
( 4 ) IT is contended by Sri Rudra Gowda that the acquired land is a dry agricultural land and only Ragi and Jowar are grown in the said land and, therefore, the Civil Court is not justified in awarding compensation at the rate of Rs. 3,79,260/- per acre. In doing so, Sri Rudra Gowda would contend, the Civil Court has ignored several binding judgments of the Supreme Court which deal with determination of the market value of the acquired land. It was also contended by Sri Rudra Gowda that the civil Court ought not to have placed reliance on Ex. P. 5 sale deed under which a small bit of 1 gunta 2 annas of land was conveyed. Be that as it may, it was contended that the Civil Court ought to have deducted 65% towards developmental charges. It was also contended that Ex. P. 5 document could never be regarded as a comparable sale document to determine the market value of 19 acres 24 guntas of land. It was contended by Sri Rudra Gowda that the market value fixed by the Land acquisition Officer based on statistical data is quite reasonable and fair. Sri K. P. Aso Kumar, learned Government Advocate would support the contentions of Sri Rudra Gowda. Sri Gangi Reddy, learned Counsel for the owners, per contra, would contend that the compensation awarde
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