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1958 Supreme(Cal) 195

HIGH COURT OF CALCUTTA
P. N. MUKHERJEE, P. K. SARKAR
STATE OF WEST BENGAL - Appellant
Versus
BIBHUTI BHUSAN CHATTERJEE - Respondent
A. F. O. O.  10  Of  1953
Decided On : JULY 11, 1958

Advocates Appeared:
AMARENDRA NATH GUPTA, CHOUDHARI, NIRMAL CHANDRA CHAKRAVARTY, SATINDRA NATH ROY

The value of land acquired for a public purpose should be determined without taking into account any increase in the value of the remaining land of the owner due to the use to which the acquired land will be put.

Headnote:

LAND ACQUISITION - VALUATION OF LAND - STRIP OF LAND - PART OF BIGGER PLOT - VALUATION AS PART OF BIGGER PLOT - DEDUCTION FOR LARGENESS OF SIZE AND LESSER AMENITIES - BENEFIT OF WIDENING OF LANE - NOT TO BE SET OFF AGAINST VALUE OF ACQUIRED LAND - COSTS AND INTEREST - PROPORTIONATE COSTS AND INTEREST AT 6% PER ANNUM.

Fact of the Case:

The State acquired a strip of land measuring 6 ft. wide by the side of a public lane for widening the lane. The claimants, who owned the land, were dissatisfied with the Collector's award and applied for a reference to the Land Acquisition Judge. The Land Acquisition Judge enhanced the Collector's award, and the State appealed. The claimants filed a cross-objection seeking further enhancement.

Finding of the Court:

The court held that the acquired strip should be valued as part of the claimants' c. s. plot No. 658, taking into account the value of the said plot to the owner with all its existing advantages and all its possibilities and potentialities. The court also held that the benefit of widening of the lane should not be set off against the value of the acquired land.

Issues: 1. Whether the acquired strip should be valued as a separate entity or as part of the claimants' c. s. plot No. 658? 2. Whether the benefit of widening of the lane should be set off against the value of the acquired land?

Ratio Decidendi: 1. The court held that the acquired strip should be valued as part of the claimants' c. s. plot No. 658, taking into account the value of the said plot to the owner with all its existing advantages and all its possibilities and potentialities. The court reasoned that the acquired strip was not the only land belonging to the claimants at the site, and that it should be valued as part of the bigger plot. 2. The court held that the benefit of widening of the lane should not be set off against the value of the acquired land. The court relied on Section 24 (6) of the Land Acquisition Act, which provides that the value of the land acquired shall be determined without taking into account any increase in the value of the remaining land of the owner due to the use to which the acquired land will be put.

Final Decision: The court allowed both the appeal and the cross-objection in part. The court reduced the land value awarded by the Land Acquisition Judge from Rs. 2,500/- per katta to Rs. 2,000/- per katta, with corresponding reduction in the statutory allowance. The court also awarded interest at the statutory rate of 6% per annum and proportionate costs to the claimants.

P. N. MOOKERJEE, J.

( 1 ) THIS is the State's appeal, arising out of a Land Acquisition proceeding. The acquired land is a strip 6 ft. wide by the side of a public lane (Ganesh Banerjee Lane) in Dhakuria and the acquisition is on behalf of the Municipality for widening that lane. The strip stretches in length along Ganesh Banerjee Lane which adjoins, it on the west and its width (6 ft.) abuts on the main thoroughfare Sarat Ghose Garden Road which is to its adjacent north. It measures 3 kattas, 10 chittaks and 30 sq. ft. and it forms part of c. s. plot No. 658 (of mouza Dhakuria) which has an area of 41 acre and belongs to the claimants-respondents.

( 2 ) THE relevant notification under Section 4 of the Land Acquisition Act is dated the 27th February, 1947. It was published in the Calcutta Gazette on the 16th March, 1947. Statutory declaration under Section 6 of the Act was made on the 23rd February, 1948, and it was published in the Calcutta Gazette on the 26th February, 1948. The Collector gave his award on the 27th October, 1948, valuing the land at Rs. 1,000/- per katta, and for trees etc. he awarded Rs. 40/- and his total award, including the usual statutory allowance at 15 per cent. , came up to Rs. 4,262-10-8p.

( 3 ) THE claimants were not satisfied and they applied for a reference to the learned Land Acquisition Judge. That reference was duly made and it was registered as Land Acquisition Case No. 56/49 (v) of the Court of the Special Land Acquisition Judge at Alipore. This valuation reference was eventually heard by Sri M. L. Chakraverty who enhanced the Collector's award to Rs. 10,646-4-11p, the actual enhancement being Rs. 5,383-10-3p (including statutory allowance), the price of land having been fixed by the learned Land Acquisition Judge at Rs. 2,500/- per katta. Aggrieved by this enhancement, the State of West Bengal has preferred the present appeal. The claimants-respondents have filed a cross-objection with a view to get further enhancement. 3. The short point that arises in the appeal is as to the proper value of the acquired land. That is also one of the questions in the claimants' cross-objection which seeks, further, enhancement of the award for costs and interest as made by the learned Land Acquisition Judge.

( 4 ) AS to valuation of land, we have to decide a point of principle and then determine the quantum in the light of that principle and upon the evidence in the case. The point of principle is of first impression and of some importance. It is argued by the State that the strip being 6 ft. wide it should be valued on the basis of valuation of similar strips and, as a strip 6 ft. wide cannot constitute a building site, in valuing it, the standard of valuation of building plots cannot be of any assistance. The claimants, on the other hand, contend that the strip should be valued, taking into account its value to the owner with all its existing advantages and all its possibilities and potentialities, that is, as part of the best plot at the site or in the neighbourhood. We do not think that either of the above two views is correct. In our opinion, both appear to lean towards extremes and the true view would be that the acquired strip would be valued as part of the claimants' c. s. plot No. 658 taking into account its (that is, the c. s. plot's) value to the owner with all its existing advantages and all its possibilities and potentialities. If the acquired strip had been the only land, belonging to the claimants at the site, and not part of a bigger plot, belonging to them, the State's argument would have been unanswerable. If, on the other hand, the said strip had been part of the best plot at the site or in the neighbourhood, the claimants' contention ought to have been accepted. Neither the one nor the other, however, represents the actual situation. The acquired strip is part of c. s. plot No. 658, belonging to the claimants, and it should, accordingly, be valued as such taking into account, as we







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