Point of law:Acquisition of Land – Compensation – Determination of market value - market value of the land. The market value of land has to be assessed on the date of preliminary Notification.

JUDGMENT :

These appeals preferred under Section 54(1) of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act' for short) emanate from judgment dated 26.04.2019 passed by the Reference Court. Since, common issues are involved in these appeals and the appeals arise from the same Judgment, these appeals were heard analogously and are being decided by this common judgment. The facts necessary for decision of these appeals need mention, which are stated infra.

FACTUAL BACKGROUND:

2. First round of acquisition proceeding in respect of land in question commenced in 1964 i.e., 57 years ago. Father of the appellant in M.F.A.No.5511/2019 (hereinafter referred to as 'the Appellant' for short) viz., one B.M.Appareddy was the owner of land measuring 6 acres 28 guntas of Sy.No.15/1 (hereinafter referred to as 'the land in question' for short) situate at Beniganahalli Village, K.R.Puram, Hobli, Bangalore East Taluk. On the death of aforesaid B.M. Appareddy, the land in question devolved on the appellants in M.F.A.No.5511/2019 and the appellant became absolute owner of the land in question. The land in question was needed for a public purpose namely extension of New Government Electrical Factory (NGEF). Thereupon a Notification under Section 4(1) of the Act was issued in respect of land in question and subsequently a declaration under Section 6(1) of the Act was issued on 30.01.1965.

3. An award dated 21.12.1966 was passed in respect of the land in question, which was sought to be acquired for the purposes of NGEF. Though the lands were acquired for the purposes of extension of NGEF, however, same was not utilized for the aforesaid purpose and NGEF became a sick industry, pursuant to which the proceeding were initiated before the board for industrial and financial reconstruction. The Board recommended that NGEF be wound up by filing a winding up petition before the company court. Thereafter the Board initiated winding up proceeding against NGEF by filing a company petition No.154/2002 before this court. The appellant submitted several representations for restoration of land in question. However, the repeated representations of the appellant seeking withdrawal from the proceeding under the Act failed to evoke any response. The appellant thereupon filed a writ petition viz., W.P.No.41924/2003 before this court in which a direction was sought to consider the representations submitted by her. The aforesaid writ petition was disposed of by this court by an order dated 28.11.2003 with the direction to the State Government to consider the representations dated 10.10.2000 and 13.10.2003 expeditiously.

4. The State Government by a Notification dated 28.02.2004 freezed the developmental activities in respect of certain lands which included 2,13,330 square meters of NGEF land, which was intended for acquisition for metro rail project. This court in company petition No.154/2002 by an order dated 03.08.2004 ordered winding up of the NGEF between the period from 27.9.2004 to 12.10.2004 and the assets of the NGEF were taken over by the Official Liquidator in association with secured creditors. The NGEF was considered to be the owner of land measuring 173.7 acres which included the lands of the appellant of Sy.No.15/1. The assets of NGEF were valued by TECSOK (a Government of Karnataka Undertaking) and a valuation report was submitted on 19.09.2005, to the company court in COP No.154/2002. This court by an order dated 18.10.2005 passed in aforesaid company petition permitted sale of assets of NGEF which included the land in question.

5. The Official Liquidator issued an advertisement on 03.11.2005 for sale of the lands. The land measuring 5.875 acres of the land in question was described in lot No.4 of the said advertisement. Sometime in November, 2005, two applications were filed before the company court by the Government of Karnataka seeking a stay of sale of assets and asking for revival by selling the lands of NGEF to Bangalore Metro Rail Corp