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2005 Supreme(Kar) 195

Karnataka High Court
Judges : S.R.Nayak,S.B.Majage
EXECUTIVE ENGINEER (ELECL) (O AND M) DIVISION, KARNATAKA ELECTRICITY BOARD - Appellant
Versus
ASSISTANT COMMISSIONER AND LAND ACQUISITION OFFICER - Respondent
M. F. A 3431 Of 2001
Decided On : 03/16/2005

The main legal point established in the judgment is the need for fair and reasonable compensation for uprooted agriculturists and the importance of balancing plus and minus factors in assessing market value.

Headnote:

Land Acquisition - Market Value - Sections 23 to 25 of the Land Acquisition Act, 1894 - The court discussed the principles governing valuation of lands acquired for non-agricultural purposes, the factors to be considered, and the methods of valuation traditionally adopted. The court also emphasized the need for fair and reasonable compensation for uprooted agriculturists and the importance of balancing plus and minus factors in assessing market value.

Fact of the Case:

19 acres 24 guntas of land within the limits of Gadag-Betgeri Municipality was acquired for a public purpose. The Civil Court awarded compensation at the rate of Rs. 3,79,260/- per acre, which was contested by the beneficiary and the owners of the acquired land.

Finding of the Court:

The court found that the market value fixed by the Civil Court was excessive and unreasonable, and it fixed the market value of the acquired land at the rate of Rs. 6,79,935/- per acre.

Issues: The main issue was whether the market value fixed by the Civil Court was excessive or unreasonable and what was the correct market value of the acquired land as on the date of Section 4 (1) Notification.

Ratio Decidendi: The court emphasized the need for fair and reasonable compensation for uprooted agriculturists and the importance of balancing plus and minus factors in assessing market value. It also discussed the principles governing valuation of lands acquired for non-agricultural purposes and the factors to be considered in determining compensation.

Final Decision: The court dismissed the appeals filed by the beneficiary and allowed the appeals filed by the owners of the acquired land. It fixed the market value of the acquired land at the rate of Rs. 6,79,935/- per acre and upheld the awards made by the Court below.

S. R. NAYAK, J.

( 1 ) THE beneficiary as well as the owners of the acquired land being aggrived 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, 3429, 3430 and 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, ware-house etc, by issuing Section 4 (1) Notification dated 15. 09. 1994. The land in Survey No. 395 is phoded in favour of four brothers and they are the claimants in LAC Nos. 1 of 1997, 2 of 1997, 3 of 1997 and 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 marked 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 '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 Land Acquisition Office. The State of Karnataka and land acquisition officer the 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 Advocat would support the contentions of Sri Rudra Gowda. Sri Gangi Reddy, learned Counsel for the owners, per cont























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