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High Court Of Delhi
BHOLA NATH - Appellant
Versus
UNION OF INDIA - Respondent
Decided On : 08/21/1998
LAND ACQUISITION - COMPENSATION - MARKET VALUE - POTENTIAL VALUE - LOCATION - DEVELOPMENT POTENTIAL - LEASE DEEDS - AUCTION RATES - CATEGORIZATION OF LAND - INTEREST - SOLATIUM - SECTION 4, 6, 18, 23, 28, 34 - LAND ACQUISITION ACT, 1894
Fact of the Case:
The appellants challenged the compensation awarded by the Collector for their land acquired for planned development of Delhi. The Collector had categorized the land into three categories and awarded compensation @ Rs. 84/- per sq. yard against the appellants' claim of Rs. 5,000/- per sq. yard. The Addl. District Judge enhanced the rate to Rs. 175/- per sq. yard.
Finding of the Court:
The court held that the land had great potential value as a building site due to its level surface, rocky strata, proximity to prestigious commercial and industrial complexes, and large size. The court relied on lease deeds for commercial plots in the Nehru Place area and applied an annual increment of 12% for a period of five years to reach the market value as of the date of notification under section 4 of the Act. The court rejected the categorization of land into different categories and fixed the market value at Rs. 2,000/- per sq. yard.
Issues: 1. Whether the land had potential value as a building site and how to determine its market value? 2. Whether interest should be awarded from the date of dispossession or from the date of notification under section 4 of the Act? 3. Whether solatium should be awarded and whether interest should be allowed on solatium?
Ratio Decidendi: 1. The court held that the land had great potential value as a building site due to its level surface, rocky strata, proximity to prestigious commercial and industrial complexes, and large size. The court relied on lease deeds for commercial plots in the Nehru Place area and applied an annual increment of 12% for a period of five years to reach the market value as of the date of notification under section 4 of the Act. The court rejected the categorization of land into different categories and fixed the market value at Rs. 2,000/- per sq. yard. 2. The court held that the appellants were entitled to interest @ 6% per annum from the date of their dispossession till the date of payment of compensation, as per the mandatory provision of section 34 of the Land Acquisition Act. 3. The court held that the appellants were entitled to solatium @ 15% on the enhanced amount of compensation, but rejected the claim for interest on solatium.
Final Decision: The court allowed the appeal, set aside the award of the Collector and the judgment of the Addl. District Judge, and fixed the market value of the acquired land at Rs. 2,000/- per sq. yard. The appellants were also awarded interest @ 6% per annum from the date of dispossession and solatium @ 15% on the enhanced amount of compensation.
( 1 ) THIS appeal under section 54 of the Land Acquisition Act (hereinafter referred to as the Act) is directed against the judgment dated 27th September, 1980 passed by the learned Addl. District Judge, Delhi in a reference under section 18 of the Act. The land subject matter of the present appeal falls within the revenue estate of village Bahapur, Delhi. As per notification published on 3rd June, 1966 in the Official Gazette of Delhi (Ex. P-3), village Bahapur,ceased to be a rural area. A notification under Section 4 of the Act for acquiring the lands subject matter of the present appeal for public purposes, namely, planned development of Delhi was issued on 30th June, 1978. The declaration under section 6 of the Act was issued on 9th February, 1979. Award with respect to the acquired land was announced by the Land Acquisition Collector-on 25th June, 1979. The Collector had categorised the land into three categories, namely, Block A, Block Band Block C. The land of the appellants in the present appeal falls within Block A and the Collector awarded compensation @ Rs. 84/- per sq. yard as against the claim of the appellants before the Collector @ Rs. 5,000/-per sq. yard.
( 2 ) IN the reference under section 18 of the Act, the learned Addl. District Judge enhanced the rate from Rs. 84. 00 per sq. yard fixed by the Collector to Rs. 175. 00 per sq. yard. Not satisfied with the decision of the Addl. District Judge, the appellants have approached this Court by way of the present appeal. The appellants originally claimed in this appeal that they be awarded compensation @ Rs. 575. 00 per sq. yard. However, as a result of amendments allowed by this Court, the appellants have laid a claim for compensation @ Rs. 3,000. 00 per sq. yard and have paid the requisite court fee on that basis.
( 3 ) THE emphasis from the side of the appellants in the present case is on the potential value of their land because of its situation and location. According to the appellants, the land is adjacent to important and prestigious commercial centres of Delhi. The Okhla Industrial Area is on one side while the Nehru Place District Commercial Centre is on the other side. It is a well-known fact which was accepted by the learned Addl. District Judge also in the impugned judgment that Nehru Place Commercial Complex was envisaged as the largest commercial complex in Asia and the land subject matter of the present appeal is hardly about 300 sq. yards from the said Centre. The well-known Mata Ka Mandir at Kalkaji is almost next doors to the land in dispute. About the location of the land, there is a report of thetehsildar of the area on record which is Ex. RW-2/1. This report gives the boundaries of the land subject matter of the present appeal as under:-
"north: Parking place of Kalkaji temple and Okhla Industrial Area. South: Vacant land and Nehru place at a distance of about 300 Metres. East: Kalkaji temple. West: Vacant land upto Ring Road. "
( 4 ) THE Tehsildar admitted in his report that the vicinity of the land in dispute comprises of Okhia Industrial Estate and Nehru Place. The learned Addl. District Judge also had occasion to personally inspect the site. His inspection note is on record. He prepared a rough sketch of the land from locational point of view. This is what he had to say about the land in his inspection note:-
"the land in dispute is in two pieces ABCD and S. T. U. V. ABCD is somewhat more than 1/3rd of the total land. In this, in a portion, the storage tank exists and at point W, there is an Old Dharamshala sort of construction. Between the two pieces of land, i. e. Between ABCD and STUV, there is road leading to Kalkaji temple. The main portin of the land opens on the main road leading from Nehru Place, The land STUV is practically levelled with a slope of about 10 decrees. Opposite this land beyond main Road, there is park of D. D. A. The land in dispute is rocky. About 250 to 200 yards away from this land, there is Nehru Place. At
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