1994 Supreme(P&H) 729
PUNJAB AND HARYANA HIGH COURT
N.C. Jain, J.
Mangat - Appellant
Versus
State of Haryana - Respondent
Regular First Appeal No. 3043 of 1989.
Decided On : 1 September, 1994
For the Appellant :Mr. H.S. Gill, Senior Advocate, Mr. R.A. Yadav, Advocate, Mr. S.D. Bansal, Advocate and Mr. R.K. Jain, Advocate.
For the State of Haryana :H.L. Sibal, Adv. Gen. Haryana with Gulab Singh, Asst. Advocate General, Haryana.
For the Union of India :D.D. Sharma Advocate.
The correct formula for determining the market value of acquired land is to convert the area sold in each relevant sale deed into one acre, calculate the sale price per acre, total up the sale consideration of all the comparable sale deeds, and divide by the number of sale deeds to arrive at the average price per acre.
Headnote:
{'KEYWORD': 'LAND ACQUISITION', 'SUBJECT': 'MARKET VALUE OF ACQUIRED LAND', 'ACT SECTION LIST': 'LAND ACQUISITION ACT, SECTION 18, SECTION 23 (1-A), SECTION 23(2), SECTION 28'}
Fact of the Case:
The State of Haryana sought to acquire 1130 acres of land in village Manesar for setting up a National Security Guards Complex. The Land Acquisition Collector assessed the market value of the land at different rates based on the type of land. The landowners sought references under Section 18 of the Act, and the Additional District Judge assessed the market value at a flat rate of Rs. 59,290/- per acre.
Finding of the Court:
The court found that the Additional District Judge's formula for determining the market value was incorrect. The court held that the correct formula is to convert the area sold in each relevant sale deed into one acre, calculate the sale price per acre, total up the sale consideration of all the comparable sale deeds, and divide by the number of sale deeds to arrive at the average price per acre.
Issues: 1. Whether the Additional District Judge's formula for determining the market value of the acquired land was correct. 2. What is the correct formula for determining the market value of the acquired land?
Ratio Decidendi: The court held that the Additional District Judge's formula was incorrect because it did not take into account the area of the land sold in each sale deed. The court held that the correct formula is to convert the area sold in each relevant sale deed into one acre, calculate the sale price per acre, total up the sale consideration of all the comparable sale deeds, and divide by the number of sale deeds to arrive at the average price per acre.
Final Decision: The court allowed the appeals filed by the landowner-claimants and determined the market value of the acquired land at Rs. 61,400/- per acre. The court dismissed the appeals filed by the Union of India.
N.C. Jain, J. (Oral) - This judgment of mine will dispose of Regular First Appeal Nos. 2997 to 3000, 3015, 3043 to 3059, 3093 of 1989, 149 to 157, 275, 1585, 1586, 1588, 1607 to 1609, 1642, 1649, 1650 to 1652 all of 1990 and 1049 of 1991 filed by the claimants and Regular First Appeal Nos. 4 to 11, 92 to 127, 129 to 131 of 1990 filed by the Union of India as they arise out of common award of the Additional District Judge, dated 30.8.1989.
2. In pursuance of notification dated 22.3.198 under Section 4 of the Land Acquisition Act (hereinafter referred to as the Act), the State of Haryana sought to acquire 1130 acres 5 Kanals 4 Marlas of land situated in village Manesar, Tehsil and District Gurgaon for public purpose, namely setting up of National Security Guards Complex. The Land Acquisition Collector vide his Award dated 28.5.1985 assessed the market value of the acquired land at the following rates :
Chahi Rs. 50,000/- per acre
Magda Rs. 45,000/- per acre
Bhud Rs. 40,000/- per acre
Banjar Rs. 35,000/- per acre
Gair Mumkin Rs. 20,000/- per acre
3. The land-owners sought references under Section 18 of the Act and the Additional District Judge by his award under challenge before this Court has assessed the market value of the acquired land at flat rate of Rs. 59,290/- per acre.
4. The land-owners have claimed enhancement in the amount of compensation by way of filing their appeals, whereas Union of India has sought reduction in the amount of compensation in the appeal filed by it.
5. Before evaluating the acquired land, it is necessary to keep in mind the exact location of the land. The land is situated at a distance of about 15 Kilometers if one goes from Gurgaon to Rewari side on National Highway No. 8 in village Manesar. The exact location of the land which has not been disputed by the counsel for the parties is noticed by the Additional District Judge in paragraph 16 of his judgment which reads as under :
"It has also come in the evidence that although there is no Municipal Committee in village Manesar, but it is situated right on National Highway No. 8. There are schools, banks, a bazar, a power house, residential complex of H.S.E.B., many stone crushers, Krishi Vigyan Kendra, a commercial establishment of the Chemical Division of I.B.P. since 1984 and tap water is also available as there is water supply scheme in Manesar. Although it has not been declared as urban area, it has been fast growing into one since last many years. The acquired chunk of land has the National Highway No. 8 on one side and the roads leading to village Naurangpur and Ninwal on the other sides."
6. Before the Additional District Judge, the landowners produced the following sale-deeds evidencing the sale of as many as four plots in village Manesar which had been depicted as Table I :
S. No. Exhibit No. Date of sale Area sold Sale price
K,M,
1. Ex.RQ 15.3.1985 2,0 Rs. 49000/-
2. Fx-PR 5.12.1984 2,18 Rs. 44,000/-
3. Ex.PS 15.3.1985 2,0 Rs. 49000/-
4. Ex.PT 2.12.1986 2,16 Rs. 1,70,000/-
7. The State of Haryana, produced several sale deeds but the Additional District Judge prepared a chart in Table II by referring to only those sale deeds by virtue of which some pieces of land situated in village Manesar were sold. Table II reads as under :
S. No. Exhibit No. Date of sale Area sold Sale price
1. Ex.R.1 12.3.84 6, 17 Rs. 25715/-
2. Ex.R.2 16.8.94 8, 11 Rs. 49500/-
3. Ex.R.3 18.12.85 1, 1 Rs. 6000/-
4. Ex.R.4 9.12.95 1, 19 Rs. 4000/-
5. Ex.R.5 2.10.94 2, 16 Rs. 15000/-
6. Ex.R.6 20.2.85 2, 17 Rs. 16500/-
7. Ex.R.7 3.12.85 7, 16 Rs. 20000/-
8. Ex.R.8 19.11.85 1, 16 Rs. 6000/-
9. Ex.R.9 13.8.84 5, 14 Rs. 33,000/-
10. ExR.10 6.3.84 0, 71/2 Rs. 500/-
The Additional District Judge after noticing the potentialities of the acquired land, to which reference has been made above and after taking into consideration the sale-deeds mentioned at Sr. Nos. 1 to 3 in Table No. 1 and the sale-deeds listed at Serial Nos.2 to 9 in Table No. 11 has evaluated the acquired land at Rs. 59,2