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1979 Supreme(Pat) 292
PATNA HIGH COURT
Hari Lal Agrawal and Chaudhary Sia Saran Sinha JJ.
Jute And Gunny Brokers Private Ltd., And Another
Versus
State Of Bihar
Appeal from Original Decree No. 11 of 1966 ; 24 of 1966 ;
Decided On : DECEMBER 21, 1979
The market value of land acquired for public purposes is to be determined by taking into account its potential value, subject to the limitations provided in Sec.24 of the Land Acquisition Act, 1894.
Headnote:
LAND ACQUISITION - Compensation - Market value of land - Determination - Factors to be considered - Potential value of land - Compensation for surface tube-well.
Fact of the Case:
177.91 acres of land, undisputedly, agricultural lands producing crops, except 92-1/2 decimals of land which contained orchard, were acquired by the State of Bihar for the construction of quarters for the gazetted and non-gazetted Government servants of the State of Bihar for which notification under Sec. 4 of the L. A. Act was issued on 18-12-1957 and delivery of possession in respect of the lands acquired were effected on 19-3-1958.
Finding of the Court:
The market value of the lands acquired on the date of notification under Sec. 4 of the L. A. Act is fixed in round figures at Rs. 10,100.00 per acre instead of the amount of Rs. 8,350.00 per acre fixed by the Land Acquisition Judge and their market value is determined accordingly.
Issues: 1. Whether the Land Acquisition Judge erred in law in not taking into account the potential value of the lands in question? 2. Whether the Land Acquisition Judge erred in law in not allowing compensation for the surface tube-wells existing on plot No. 46?
Ratio Decidendi: 1. The land is not to be valued merely by reference to the use to which it is being put at the time at which its value has to be determined, namely, the date of notification under Sec. 4 of the L. A. Act, but also by reference to the uses to which it is reasonably capable of being put in the future subject of course to the limitations provided in Sec.24 of the L. A. Act. 2. In the absence of satisfactory evidence to substantiate the claim for compensation for the surface tube-well, the Land Acquisition Judge's decision to award a sum of Rs. 300.00 as the cost incurred for removal of the same is upheld.
Final Decision: Appeals allowed in part. Judgement and decree of the court modified accordingly. No order as to costs.
CHAUDHARY SIA SARAN SINHA, J.
1. First Appeals 11 to 24, each of the year 1966, arise out of a common judgement dated 21-8-1965 of the learned special Land Acquisition Judge II, Patna, by which he disposed of 185 land acquisition cases. All these 185 land acquisition cases arose on references being made under Sec.18 of the Land Acquisition Act, 1894 (Act 1 of 1894). Two of the several awardees were Jute and Gunny Brokers Private Limited, referred to the impugned judgement as Birla Company and M/s. Surajmal Mohta and Company (hereinafter referred to as the company). These two awardees are appellants before this court, the Birla Company being appellants in First Appeals I1, 12, 13, 14, 17, 18, 23 and 24 and the company being the appellants in First Appeals 15, 16, 19, 20, 21 and 22. All the above 185 land acquisition cases were tried analogously, the awardees having adduced common evidence, both oral and documentary. With the consent of the counsel for the parties and for the sake of convenience and brevity all these appeals have also been heard together and are being disposed of by this judgement.
2. 177.91 acres of land, undisputedly, agricultural lands producing crops, except 92-1/2 decimals of land which contained orchard, were acquired by the State of Bihar for the construction of quarters for the gazetted and non-gazetted Government servants of the State of Bihar for which notification under Sec. 4 of the L. A. Act was issued on 18-12-1957 and delivery of possession in respect of the lands acquired were effected on 19-3-1958. These lands, though situate in three different villages, namely; Dhakanpura, Sherullahpur and Sekhpura, are in one continuity running east to west. The eastern portion of the acquired lands are situated in village Dhakanpura while its middle portion in village Sherullahpur and the western portion in village Sekhpura. These lands lie to the north of the Bailey Road which goes even beyond Danapur though they are at some distance from this road intervened by P. W. D. quarters, the land belonging to the State Government as also to the public.
3. Compensation for all these lands was awarded by the Collector at a flat rate of Rs. 5790.00 per acre which approximately comes to Rs. 180.00 per katha, as against the claim of the appellants that they were worth about Rs. 2,000.00 per katha. On a consideration of the evidence and for reasons stated in the impugned judgement, the Land Acquisition Judge allowed compensation at a flat rate of Rs. 8350.00 per acre which, undisputedly, comes to near about Rs. 261/- per katha. As against the claim of the appellants for interest from the date of delivery of possession, interest at the rate of 6 per cent per annum was allowed to the appellants over the excess compensation determined by the impugned judgement with effect from 27-2-1959, the date when the order staying the further proceedings of the land acquisition cases was vacated by the State Government.
4. Undisputedly, there was an orchard on about 92-1/2 decimals of the acquired lands which had been valued by the Land Acquisition Officer (O.W. 2) at Rs. 3226.25. holding that the amount of Rs. 3226.25 was based on imaginary figure, the court below allowed compensation at the rate of Rs. 8350.00 per acre for the 92-1/2 decimal of land containing orchard also. There were certain wells on the disputed land and in one of the wells on plot No. 854 was fitted a boring. Certain compensation was allowed by the Collector for these wells and they were approved by the Trial Judge. However, as regards the boring, he allowed the appellants only a sum of Rupees 300.00 as cost for taking out the machinery of the boring. Lastly, the Land Acquisition Judge allowed statutory compensation to the awardees including the appellants at the rate of 15 per cent over the excess amount of compensation allowed by him.
5. By relying upon certain oral and documentary evidence, out of the mass of such evidence, the judgement of the Land Acq
