The duty to assess reasonable compensation, the willingness of an informed buyer to offer the price, and the positive and negative factors to be considered for determining the market value.

K.K.Sasidharan, J

These Land Acquisition appeals involving common questions of fact and law were taken

up for consideration together and are being disposed of by this common judgment.

2. These appeals relate to the Land Acquisition Proceedings that commenced as per Section 4(1) notification dated 11. 1997 and 12. 1997 and published in the Gazette on 12. 1997 and 13. 1997 respectively.

3. The extent of property acquired as per the relevant notifications are as follows:

a) Notification dt.11. 1997 -- 55.89 Acres

b) Notification dt.12. 1997 -- 51.75 Acres

4. The details of the land acquisition Original Petitions and the related appeals and Cross Objections and the compensation awarded by the Land Acquisition Officer as well as by the Reference Court and the findings recorded after remand are detailed in the tabular columns below.

Table

5. The factual matrix as projected in L.A.O.P. No.32/2002 corresponding to A.S.No.727/2003 is extracted below as background facts.

A.S.No.727/99 (LAOP 32/02)

At the instance of the Tamil Nadu Housing Board an extent of 6.33 acres of land was acquired from the claimants as per Section 4(1) notification dated 12. 1997. The acquisition was for the purpose of putting up residential houses for the Tamil Nadu Housing Board. The Land Acquisition Officer, upon consideration of documents, determined the market value of the property at Rs.50,000/-per acre even though the land owners have claimed a sum of Rs.50/-per sq.ft. Aggrieved by the award of the Land Acquisition Officer, proceedings under Section 18 of the Land Acquisition Act was initiated. Before the Reference Court the claimants contended that the acquired property is situated very near to Erode-Perundurai as well as Sennimalai Road junction. It was further contended that the residential colonies like Anna Nagar, Sri Nagar, Bharathi Nagar, Rail Nagar, Jeeva Nagar, Subramania Nagar, Kalaignar Karunanidhi Nagar, etc., are all in the vicinity. The property was having potential value for housing as well as for business purposes. There are also Arts Colleges, Womens College, Kongu Higher Secondary School, St.Joseph Clinic,hospitals and other infrastructural facilities in the area. A sum of Rs.50/- per sq.ft was claimed as compensation.

6. In the counter filed by the Housing Board as well as by the Land Acquisition Officer before the Reference Court, it was contended that market value was arrived at on the basis of document No.2290/96 dated 7. 1996, which showed the sale value at Rs.50,000/- per acre. According to the Land Acquisition Officer 64 documents registered during the relevant period was verified and document No.50 alone was retained. It was only on the basis of the said document the market value was determined which according to them reflects the correct value as on the date on which Section 4(1) notification was issued.

7. Before the Reference Court, the claimants have marked documents relating to survey No.871/2 dated 21. 1985 wherein an extent of 1344 sq.ft. of land was sold at the rate of Rs.17.11 Per sq.ft., sale deed dated 112. 1988 relating to the property having an extent of 1200 sq.ft. in survey Nos.732 and 733 which shows the value at Rs.15/-per sq.ft., and another document dated 30/12/1988 executed by one M.Damodaran in favour of Mr.N.Ardhanareeswaran wherein an extent of 1200 sq.ft. was sold at the rate of Rs.10.67 per sq.ft. They have also marked the following documents in support of their plea that the market rate was very high in the area during the time of acquisition.

8. The witnesses examined on the side of the claimants have also highlighted the importance of the locality, the potential of the land, income which have they have been receiving from the land as well as the locational advantages of the property.

9. The Reference Court on a consideration of Ex.C.18 marked on the side of the claimants was of the opinion that the value of property in the area has gone up to Rs.65/- per sq.ft. The Reference Court also render