IN THE HIGH COURT OF JHARKHAND AT RANCHI
PRADEEP KUMAR SRIVASTAVA, J.
Saryu Rajak, S/o Budhan Ram – Appellant
Versus
The Deputy Commissioner, Giridih – Respondent
F.A. No. 95 of 2018, F.A. No. 96 of 2018, F.A. No. 98 of 2018
Decided on : 07-12-2023
Land Acquisition - Compensation - Section 54 of the Land Acquisition Act, 1894 - Union of India v. Pramod Gupta (D) by LRs & Ors, Maj. Gen. Kapil Mehra vs Union of India (UOI), Haridwar Development Authority vs. Raghubir Singh & Ors. - Summary of Acts and Sections: Land Acquisition Act, 1894, Section 54 - The court discussed the principles of assessment of fair compensation in case of land acquisition, including the best method for determining compensation, consideration of existing geographical situation and market value of other land in the same locality, and the permissible deduction towards development cost.
Fact of the Case:
The State Government initiated proceedings for the acquisition of land for a project. The appellants sought enhancement of compensation amount, presenting evidence including sale deeds. The court, after considering the evidence and legal guidelines, determined the market value of the acquired land and made a decision on the compensation amount.
Finding of the Court:
The court found that the market value of the acquired land was Rs. 31,000 per decimal, but substituted the 50% deduction with 30% towards development charges, resulting in a confirmed market value of Rs. 21,000 per decimal. The court allowed the appeals and directed the respondents to pay the balance amount of compensation with interest to the appellants within three months.
Issues: The main issue was whether the 50% deduction of the market value of the property only on account of the acquisition of a big chunk of land is justified under the law.
Ratio Decidendi: The court applied the principles of assessment of fair compensation in land acquisition cases, including the determination of market value, consideration of existing geographical situation and market value of other land in the same locality, and the permissible deduction towards development cost.
Final Decision: The appeals were allowed, and the impugned Judgment/Award was modified to confirm the market value of the acquired land at Rs. 21,000 per decimal, directing the respondents to pay the balance amount of compensation with interest to the appellants within three months.
JUDGMENT :
Heard learned counsel for the parties.
2. All the above appeals arising out of common Judgment/Award, hence they are being taken together for hearing and disposal simultaneously. The appellants have preferred present appeals under Section 54 of the land acquisition Act, 1894 for setting aside the judgment dated 22nd December, 2017 in land acquisition reference case nos. 14/15, 15/15 & 16/15.
Background of these cases
3. The State Government through Special Land Acquisition Officer, Tenughat Project, Hazaribagh, vide mutation no. 24/2010-11 initiated proceeding for acquisition of land falling under village Gorhand, P.S. Dhanwar, District-Giridih appertaining to different khatas and plots admeasuring total 4.75 areas for construction of Panchkhero Jalashay Project. These awards prepared in the name of claimants by the special land acquisition officer, Tenughat Project, District Hazaribagh are being shown in the tabular chart as under:-
| Sl. No . | Reference Case no. | Khata/Plot No. | Type of land | Name of Awardee | Award No. | Area | Award value |
| 1. | L.A. Reference Case No. 14/15 | 68/1239 | Tand | Saryu Rajak | 2 | 2.10 acre | 37,22,593- 00 |
| 2. | L.A. Reference Case No.15/15 | 68/167 | Tand | Most. Kebali Devi | 1 | 0.50 acre | 8,86,331.69 |
| 3. | L.A. Reference Case No.16/15 | 68/1239 | Tand | Bhikhi Ram | 3 | 2.15 acre | 38,11.226.2 6 |
The beneficiary have received the above awarded amount under protest, accordingly matter was referred to competent court for settlement of compensation amount.
In order to substantiate their case for enhancement of compensation amount the appellants have examined altogether four oral witnesses and also adduced following documentary evidence.
exhibit 1(a) certified copy of sale deed no. 2065, dated 23.05.2011
exhibit 1(b) certified copy of sale deed no. 2508 dated 14.06.2011,
exhibit 1(c) certified copy of sale deed no. 3864 dated 25.05.2011,
exhibit 1(d) certified copy of sale deed no. 300 dated 25.01.2012,
exhibit 1(e) certified copy of sale deed no. 673 dated 17.04.2012,
4. On behalf of State/opposite party also two oral witnesses were examined and following documents were adduced in favours:
Exhibit (B) Attested photocopy of Collector award
Exhibit (C) Attested photocopy of valuation khatiyan
Exhibit (D) Attested photocopy of letter no.338/210, dated 08/04/2011 of Revenue Department Jharkhand, Ranchi
Exhibit (E) Attested photocopy of estimate
Exhibit (F) Attested photocopy of rate report
Exhibit (G) Attested photocopy of sale chart
5. The learned court below after analyzing and scanning the oral as well as documentary evince adduced in the land acquisition reference case and also taking into consideration the various guidelines propounded by Hon’ble Apex Court in the matter of determination of compensation amount in cases of land acquisition, such as:-Union of India v. Pramod Gupta (D) by LRs & Ors reported in AIR 2005 SC 3708, Maj. Gen. Kapil Mehra vs Union of India (UOI) reported in 2015(2) JLJR 237 S.C. & Haridwar Development Authority vs. Raghubir Singh & Ors. reported in (2010)11 SCC 581 arrived at conclusion that the verge of said 5 sale deeds (exhibit (1) series) comes to Rs. 31,000/-per decimal. It was also observed that as per guidelines through Government letter exhibit (D), if the land is taken for the purpose of project and is of same nature then the flat rate should be given to the awardees. As a matter of caution, the learned court below while deciding the market value of the acquired land has held at para 25 and 26 of the judgment as under:-
Haridwar Development Authority vs. Raghubir Singh & Ors. reported in (2010)11 SCC 581
Kasturi vs. State of Haryana (2003) 1 SCC 354
Maj. Gen. Kapil Mehra & Ors. vs. Union of India (UOI) & Anr. reported in 2015(2) SCC 262
Maj. Gen. Kapil Mehra vs Union of India (UOI) reported in 2015(2) JLJR 237 S.C.
Union of India v. Pramod Gupta (D) by LRs & Ors reported in AIR 2005 SC 3708
The main legal point established in the judgment is the application of principles for the assessment of fair compensation in land acquisition cases, including the determination of market value and pe....
[The determination of compensation for land acquisition must be based on the market value at the time of notification, considering comparable sales and the land's potential, with reasonable deduction....
Court should look into sale instances of smaller pieces of land while applying reasonable element of deduction.
The market value of the acquired land can be determined by considering evidence such as sale deeds and witness testimonies, and making reasonable deductions for developmental costs.
The main legal point established in the judgment is the application of principles for determining the market value of acquired land, including the relevance of purpose of acquisition, deductions for ....
Acquisition of land – Generally, sale instances with respect to small plots/parcels of land are not comparable to a large extent of land for the purpose of determining compensation.
The main legal point established in the judgment is the application of the principles of 'Reduction and Deduction' and valuation of agricultural land in determining just and fair compensation for acq....
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