Market value of acquired lands has to be ascertained.

P.D. Dinakaran, J.

The appeal is preferred by the Government against the order of the learned District Judge, Udhagamandalam in LAOP. No.13 of 1989, dated 9.5.1996.

2.1. The lands of an extent of 11.32 acres situated in Survey Nos.1106/4A3, 1106/4B1, 1106/4C2 of Udhagamandamam were acquired by the Government for housing a Dairy Complex at Udhagamandalam. The notification under Section 4(1) of the Land Acquisition Act, 1894 was gazetted on 15.12.1980.

2.2. The Land Acquisition Officer passed an award fixing the market value of the acquired land at Rs.50,000/- per acre. Not accepting the compensation awarded by the Land Acquisition Officer, the claimants sought for reference under Section 18 of the Act for enhancement.

2.3. The Sub Court, Udhagamandalam, by order dated 26.9.1983 in O.P.No.38 of 1981, after considering the evidence, both oral and documentary, awarded compensation at the rate of Rs.5 lakhs per acre to the claimants, Kasim Sait, Ahmed Sait, Ali Sait, who are arrayed as respondents 20 to 22 herein. In so far as other claimants are concerned, the Sub Court did not grant any relief.

2.4. Aggrieved by the order of the Sub Court, the Government filed an appeal before this Court in A.S.No.388 of 1994 and this Court, by judgment dated 11.8.1988, set aside the award passed by the Sub Court and remanded the matter for fresh disposal. Accordingly, the matter was taken on file by the District Court, Udhagamandalam and renumbered as L.A.O.P.No.13 of 1989. The District Court, Udhagamandalam (for short, "the Reference Court"), by judgment dated 9.5.1996, fixed the amount of compensation at Rs.2,40,000/- per acre besides awarding compensation for trees and crops standing therein. Questioning the same, the Government has preferred the present appeal.

3. It is not in dispute that the lands in question were acquired for housing a Dairy Complex at Udhagamandalam and the claimants have not filed any appeal against the judgment of the Reference Court fixing the compensation at Rs.2,40,000/- per acre. It is the Government which has come forward with this appeal questioning the quantum.

4. The point for consideration that arises in this appeal is whether the Reference Court is justified in awarding a sum of Rs.2,40,000/- as compensation in respect of the lands acquired.

5. It is seen that the Land Acquisition Officer took into consideration 20 sale deeds, besides, the five sale deeds produced by the claimants. On the basis of the sale deed dated 18.9.1978, which is found as Item No.8 in the list of documents filed by the appellant, the Land Acquisition Officer fixed the market value at Rs.50,000/- per acre.

6.1. Before the Reference Court, several instances of sales were pressed into by both the parties. The claimants filed six documents, viz., Exs.A-1 to A-7, whereas the Government filed 38 documents, viz., Exs.B-1 to B-38.

6.2. The Reference Court rejected the sale deeds filed by the claimants on the ground that they related to the purchase of lands as well as buildings and the lands sold were of small extent. Out of 20 documents produced by the Government, as found in the list enclosed in the typed-set of papers, the reference Court took into consideration only two sale deeds, namely, Item Nos.8 and 20.

6.3. It is true that the sale deed in Item No.8 (Ex.B-2) was the basis for the Land Acquisition Officer to fix the compensation at Rs.50,000/- per acre, however, the Reference Court disagreed with the market value as found in Ex.B-2 on the ground that the sale consideration was fixed at a lower price since the purchaser happened to be a cultivating tenant as also a servant to the seller. The Reference Court took into account the sale deed in Item No.20 dated 23.3.1979 and came to the conclusion that the lands acquired would fetch a sum of Rs.3 lakhs per acre. Considering the sale deed in Item No.20 as well as the sale deed in Ex.B-8, the Reference Court fixed the amount of compensation at Rs.2,40,000/- per acre.

7. Mr.V.Ravi, le