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2010 Supreme(Mad) 518
High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE R. BANUMATHI & THE HONOURABLE MR. JUSTICE M.M. SUNDRESH
The Special Tahsildar (LA-II) Tamil Nadu Housing Board Schemes, Chennai
Versus
Jeganatha Naicker & Others
A.S.Nos.399 to 405 of 2004; 859 to 864 of 2002; 727 & 728 of 2004; 225 to 227 of 2006 & 159 of 2007
Decided on: 10-02-2010
For the Appellant: M. Ravi, Special Government Pleader.
For the Respondents:N. Damodaran, K. Balaram Naidu, R. Mahalingam, S. Baskaran Claimants, D. Veerasekaran Housing Board, Advocates.
The main legal point established in the judgment is the determination of market value and deduction towards development charges in land acquisition cases.
Headnote:
Compensation - Land Acquisition - Sec.4(1) notification - Sec.6 declaration - Market value determination - Deduction towards development charges - [Compensation] - [Land Acquisition] - [Sec.4(1), Sec.6, Land Acquisition Act] - The court discussed the determination of market value of acquired lands, principles for determination of market value, and deduction towards development charges. The court emphasized the potentiality of the acquired lands, their location in a developed area, and the need for suitable deduction towards development charges. The court confirmed the market value of the land at Rs.4,125 per cent with 30% solatium and additional interest. The Appellant was directed to deposit the balance compensation amount along with solatium and accrued interest within eight weeks.
Fact of the Case:
The Appeals concerned the enhancement of compensation for lands acquired for Ambattur Neighbourhood Scheme. The Awards were passed in 1985, 1986, and 1989, and the Appeals related to the acquisition of lands in respect of the scheme. The main contention was the determination of market value and the deduction towards development charges.
Finding of the Court:
The Court found that the acquired lands were in a developed area and had potential value for being used as house sites. It confirmed the market value of the land at Rs.4,125 per cent with 30% solatium and additional interest. The Appellant was directed to deposit the balance compensation amount along with solatium and accrued interest within eight weeks.
Issues: The main issues were the determination of market value, deduction towards development charges, and the potentiality of the acquired lands.
Ratio Decidendi: The court emphasized the potentiality of the acquired lands, their location in a developed area, and the need for suitable deduction towards development charges. It applied the principles for determination of market value and deduction towards development charges as established in various Supreme Court decisions.
Final Decision: The Court confirmed the market value of the land at Rs.4,125 per cent with 30% solatium and additional interest. The Appellant was directed to deposit the balance compensation amount along with solatium and accrued interest within eight weeks.
R. Banumathi, J.
Challenge in these batch of Appeals is enhancement of the compensation of Rs.4,571/- per cent in respect of the lands acquired for Ambattur Neighbourhood Scheme.
2. Though, all the Appeals arise out of different Award and Land Acquisition Original Petitions, Appeals relate to acquisition of lands in respect of Ambattur Neighbourhood Scheme, all the Appeals were heard together and disposed of by this Common Judgment.
3. Under various Awards large extents of lands comprising 79.23 acres of wet and 62.83 acres of dry and manavari were acquired for Ambattur Neighbourhood Scheme. Sec.4(1) notification was issued in 1975 and after publication of Sec.6 declaration, Awards were passed.
4. Land Acquisition Officer had taken 464 sales for statistics and divided the sale deeds into seven groups. Land Acquisition Officer has taken the sale deed dated 211. 1973 in which 0.22 cents of Dry land was sold in S.No.561/8 for Rs.12,000- and another sale deed of the same date [211. 1973], 0.11 cents in the same S.No.561/8 was sold for Rs.6,000/-. Based upon the same, Land Acquisition Officer formed an opinion that the acquired lands are of the same tharam and classification. Opining that the lands are situated in the developed locality and that under data sale deeds land was sold as house sites, Land Acquisition Officer fixed the market value at Rs.545/- per cent. Land Acquisition Officer has also awarded 30% solatium, 12% of additional market value per annum from the date of 4(1) notification to the date of Award or taking possession which ever is earlier.
5. On objection raised by the land owners regarding quantum of compensation, Sec.18 reference was made. Both Land Acquisition Officer and Claimants adduced oral and documentary evidence. Learned trial Court has taken Ex.C1 sale deed [13. 1973] in which 3672 sq.ft. in S.No.600 was sold for Rs.38,500/-. Taking Ex.C1 sale deed [13. 1973] as comparable sale, Court enhanced the market value to Rs.4,571/- per cent. Court has observed that Ex.C1 sale deed [13. 1973] pertaining to S.No.600 was of the year 1973, two years prior to acquisition and based upon the said sale deed dated 13. 1973[Ex.C1], Court enhanced the market value of acquired lands to Rs.4571/- per cent and also ordered 30% solatium, 12% of additional market value, interest at 9% for one year from the date of possession for a period of one year and thereafter interest at the rate of 15% p.a. till the date of realisation.
6. Details of Award, Survey Numbers, extent, Compensation awarded by Land Acquisition Officer, Enhancement by lower Court are as follows:- A.S.Nos. LAOP Nos. Award No. S.Nos. & Extent Amount awarded by LAO Rs. Enhancement by Reference Court Rs. 399/2004
81/1995
4/1989 dt.30.12.89
481/1 - 0.61 Cents 481/2 - 0.53 Cents 492 - 0.66 Cents
1,61,651/-
8,26,610/-
400/2004
37/1997
5/1989 dt.30.12.89
497 - 0.48½ Cents
40,895/- 2,21,693.50 401/2004 36/1997 5/1989 dt.30.12.89 522/1 - 0.25 Cents 522/2 - 0.15 Cents 37,134/- 1,82,840/- 402/2004 38/1997 5/1989 dt.30.12.89 499 - 1.25 Acres 1,05,399/- 5,71,375/- 403/2004 191/2001 4/1989 dt.30.12.89
494 - 1.21 Acres 1,04,579/- 5,53,091/- 404/2004 83/1995 4/1989 dt.30.12.89
534/1 - 1.03 Acres 541 - 1.31 Acres
1,97,306/-
10,69,614/- 405/2004
82/1995
6/1989 dt. 30.12.89
563/3 - 1.06 Acres
563/4 - 0.40 Cents
1,23,106/-
6,67,366/-
727/2004
15/1986 2/1985 532/2 - 1.08 Acres
89,010/-
4,93,668/-
728/2004 183/1987 3/1986 535 - 0.76 Cents 64,736.40 3,47,396/- 859/2004 216/1987 468/4 - 0.03 Cents 2,521.85 13,713/- 860/2004 264/1987 561/4 -0.85 Cents 565/2 - 0.90 Cents 565/3 - 0.45 Cents 566/5A1- 0.20 Cents 2,19,716.75 10.97,040/- 61/2004265/1987 2/1986 dt.12.09.86 566/5A2 566/5B - 1.60 Acres 1,38,933.30 7,31,360/- 862/2004 27/1986 1/1985 dt. 012. 85 572/7 -4.79 Acres 1,201.45 21,89,509/- 863/2004 208/1987 4/1986 dt.23.09.86 513/1 -0.57 Cents 48,552.30 2,60,547/- 864/2004 209/1987 9/1986 dt.23.09.86 497/1 - 1.49½ Acres 1,27,343.30 6,83,365/-2
