A post-notification sale deed can be relied on to determine the market value of the acquired land if there is no evidence that the land value was affected after the publication of the notification under Section 4 of the Land Acquisition Act.

Headnote:
LAND ACQUISITION ACT - SECTION 18 - REFERENCE TO DISTRICT JUDGE - SALE DEEDS AS EVIDENCE OF MARKET VALUE - POST NOTIFICATION TRANSACTION - ONUS OF PROOF.
Fact of the Case:

The State of West Bengal acquired 1.35 acres of land belonging to the Union Club of Purulia. The Land Acquisition Collector classified the land as Bastu I and Bastu II land and awarded compensation at the rate of Rs. 9,800/- and Rs. 7,800/- per acre, respectively. The respondent, being aggrieved, filed an application for reference to the District Judge under Section 18 of the Land Acquisition Act.
Finding of the Court:

The District Judge found that there was no distinction between Bastu I and Bastu II land and that the acquired land was Bastu I land. He relied on a post-notification sale deed (Exhibit 4c) to determine the market value of the land and awarded compensation at the rate of Rs. 24,000/- per acre.
Issues: 1. Whether a post-notification sale deed can be relied on to determine the market value of the acquired land? 2. Whether the onus of proof lies on the respondent to prove that the Collector's valuation was erroneous and inadequate?
Ratio Decidendi: 1. A post-notification sale deed can be relied on to determine the market value of the acquired land if there is no evidence that the land value was affected after the publication of the notification under Section 4 of the Land Acquisition Act. 2. Where the Collector does not disclose the basis for his valuation, the onus of proof on the claimant is negligible and only slight evidence is required to discharge the said onus.
Final Decision: The judgment and award of the District Judge were affirmed, and the appeal was dismissed.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

A post-notification sale deed can be relied upon to determine the market value of the acquired land if there is no evidence that the land value was affected after the publication of the notification under Section 4 of the Land Acquisition Act [judgement_subject].
The Court's primary consideration is whether the post-notification transaction reflects the true market value, which depends on whether the land's value was impacted by the notification. If there is no evidence of such impact, the sale deed is admissible [judgement_act_referred].
The onus of proof regarding whether the land value was affected after the notification lies with the party opposing reliance on the post-notification sale deed. However, if the land valuation conducted by the Collector does not disclose the basis for their valuation, the claimant's burden to prove inadequacy becomes minimal, requiring only slight evidence to establish that the Collector's valuation was insufficient [judgement_act_referred].
In the absence of evidence indicating that the notification affected land values in the locality, post-notification sales of similar land close to the date of notification can be considered valid indicators of market value [judgement_act_referred].
The Court may reject sale deeds that are not comparable or that lack a clear connection to the land in question, especially if they are not relied upon by the Collector or if their circumstances suggest they are not indicative of market value [judgement_act_referred].
When the Collector has not relied on certain sale transactions or has not provided a reasoned basis for their valuation, the Court can consider such transactions as less relevant or inadmissible for determining market value [judgement_act_referred].
The valuation made by the Collector, when not supported by disclosed grounds or basis, results in a negligible onus on the claimant to prove the valuation's inadequacy. In such cases, only slight evidence is needed to establish that the valuation was insufficient [judgement_act_referred].
Ultimately, the Court can determine the market value based on the evidence, including reliable sale transactions, and is not bound solely by the Collector's valuation. The Court's own assessment may lead to a different valuation if justified by the evidence [judgement_subject].

Please let me know if you need further analysis or assistance.

M. M. DUTT, J.

( 1 ) THIS appeal has been preferred by the State of West Bengal against the award dated August 24, 1964, of the learned District Judge. Purulia, under Section 18 of the Land Acquisition Act (hereinafter referred to as the Act ).

( 2 ) THE appellant State of West Bengal acquired 1. 35 acres of land appertaining to certain plots belonging to the respondent, the Union Club of Purulia. The relevant notification under Section 4 of the Act was published on September 4, 1952 and the declaration under Section 6 of the Act was published long thereafter on February 2, 1961.

( 3 ) THE Land Acquisition Collector classified the land as Bastu I land and Bastu II land. He valued the Bastu I land at Rs. 9,800/- per acre and the Bastu II land at Rs. 7,800/- per acre. On the basis of the said rates the Land Acquisition Collector made an award of Rupees 15,313. 40 as compensation for the land acquired. Being aggrieved by the said award of the Collector, the respondent made an application for a reference to the District Judge under Section 18 of the Act.

( 4 ) BEFORE the learned District Judge the respondent claimed compensation at the rate of Rs. 1,000/- per cotta. In support of their claim for compensation at the said rate, the respondent relied on certain sale deeds marked as Exhibits 4 to 4d. The learned District Judge could not place reliance on these sale transactions excepting the transaction evidenced by Exhibit 4c which is a sale deed dated February 23, 1953. The appellant also filed certain sale deeds marked as Exhibits A to A (7 ). The learned District Judge, however, rejected all these documents relied on by the appellant. The learned District Judge came to the finding that there was no distinction between Bastu I land and Bastu II land as made by the Land Acquisition Collector. According to the learned District Judge the acquired land was Bastu I land and no portion of it was Bastu II land. After considering the evidence of the witnesses of the parties and relying on the sale deed Exhibit 4c, the learned District Judge came to the conclusion that the acquired land should be valued at the rate of Rs. 24,000/- per acre. Upon these findings, the learned District Judge awarded compensation to the respondent in respect of the acquired land at the rate of Rs. 24,000/- per acre plus the usual statutary allowance under Section 23 (2) at the Act. Hence this appeal by the State of West Bengal.

( 5 ) THE finding of the learned District Judge that the acquired land is Bastu I land, has not been challenged by Mr. Das Gupta, learned Advocate for the appellant. He, however, strenuously Urged that the sale deed Exhibit 4c being a post notification transaction should not be relied on in determining the market value of the acquired land. It was submitted by Mr. Das Gupta that under no circumstance a post notification transaction could be a proper indicia for ascertaining the market value of the land. We are, however, unable to accept the said contention of Mr. Das Gupta. Under Section 23 (1), the Court has to determine the market value of the land. One of the methods of valuation is the price paid, within a reasonable time, in bona fide transactions of purchase of land acquired, or of the land adjacent to the land acquired having similar advantages. Such transactions of sale indicate the price of the land acquired on the date of the notification. The Court has to consider whether or not any particular transaction of sale affords a fair criterion of the market value of the land acquired. There is no rule that a Post notification transaction of sale of land similar to the acquired land cannot be looked into. If in considering a post notification sale, the Court finds that after the publication of the notification the price of the lands in the locality has been affected, in that case, it will not be proper for the Court to rely on such a transaction of sale, for it will not be of any guide for the determination of the market value of

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1971 Supreme(Cal) 252

HIGH COURT OF CALCUTTAA. K. MUKHERJI, M. M. DUTTSTATE OF WEST BENGAL - AppellantVersusSECRETARY, UNION CLUB, PURULIA - RespondentA. F. O. D. 798 Of 1965Decided On : DECEMBER 09, 1971

A post-notification sale deed can be relied on to determine the market value of the acquired land if there is no evidence that the land value was affected after the publication of the notification under Section 4 of the Land Acquisition Act.

Cases Referred (1)

HIGH COURT OF CALCUTTA
A. K. MUKHERJI, M. M. DUTT
STATE OF WEST BENGAL - Appellant
Versus
SECRETARY, UNION CLUB, PURULIA - Respondent
A. F. O. D. 798 Of 1965
Decided On : DECEMBER 09, 1971