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2015 Supreme(All) 1592

ALLAHABAD HIGH COURT
BEFORE : SUDHIR AGARWAL AND BRIJESH KUMAR SRIVASTAVA-II, JJ.
POWER GRID CORPORATION OF INDIA LTD. ....Appellant
Versus
M/s. GARG FAMRS AND OTHERS ....Respondents
(First Appeal Nos. 837, 838, 839 and 840 of 2003, decided on 12th August, 2015)

Advocates:
Counsel :
Piyush Bhargava for the Appellant; C.S.C. for the Respondents.

Headnote:Land Acquisition Act, 1894—Sections 4 (1), 6 and 54—Acquisition of land—Establishing a Public Sector Corporation—Market value—Determination of—Payment of—Enhancement of—Land acquired belong to former—Award passed by S.L.A.O. determining market value, enhanced by Reference Court—Several sale-deeds executed before issuance of notification of higher rate—Held, market rate decided by Reference Court not illegal—Reference Court taken a balanced and equitable view in matter and impugned awards warrant no interference. [Paras 30 to 35]

       Result; Appeal Dismissed.

       

JUDGMENT

By the Court.—These four appeals have come up at the instance of the Power Grid Corporation Ltd., (hereinafter referred to as the ‘appellant’) who is aggrieved by award/judgment dated 24.12.2002 passed by Sri Umesh Chandra, IInd Additional District Judge, Court V Ghaziabad adjudicating 14 Land Acquisition References (hereinafter referred to as ‘L.A.Rs’) including L.A.Rs No. 515 of 1994, 514/1994, 519/1994 and 518/1994.

2. These appeals have been preferred under Section 54 of Land Acquisition Act 1894 (hereinafter referred to as ‘Act 1894’),assailing market value determined by Reference Court for the purpose of payment of compensation at the rate of Rs. 52/- per sq. yard.

3. For the purpose of establishing office of appellant, a Public Sector Corporation, created for being engaged in the activities of distribution and transmission of electrical energy to various Electricity Boards, National Thermal Power corporation (hereinafter referred to as the ‘N.T.P.C.’) sought to acquire 102-13-6 Bigha land in village Naanu and 69-15-1 Bigha land in vilage Mandola, Pargana Loni, District Ghaziabad. The N.T.P.C. made proposal for establishing 400KV sub-Station and Staff quarters. The State Government initiated acquisition proceedings and issued notification under Section 4(1) of Act 1894 on 25.2.1988.Notification under Section 6 (1) of Act 1894 was published on 15.8.1988. Possession of land was taken on 7.12.1988. Special Land Acquisition Officer, Ghaziabad (hereinafter referred to as ‘S.L.A.O.’) made award dated 9.8.1990 determining market value at the rate of Rs. Rs. 20/- per sq. yard. Besides, it also directed for payment of solatium, interest for different period as per the provisions of Act 1894.

4. Aggrieved there-against, tenure holders filed applications for making reference under Section 18 of Act 1894 to District Judge, Ghaziabad for determining market value under Section 23, pursuant whereto, impugned award has been passed by Court below. Market value has been enhanced to Rs. 52/- per sq. yard.

5. Learned counsel for appellant submitted that the aforesaid market value determined by Reference Court is excessive, unreasonable and unjust, therefore the award of S.L.A.O should be restored.

6. From the impugned award we find that Reference Court has relied upon an earlier Award dated 4.12.2000 passed in L.A.R. No. 512 of 1991, wherein market value of acquired land was determined at the rate of Rs. 52/- per sq. yard and the said award pertains to same acquisition proceedings. Copy of award dated 4.12.2000, whereby 36 L.A.Rs were adjudicated by Sri R.P.Shukla, Vth Additional District Judge, Ghaziabad has been placed on record, which shows that there were several sale-deeds executed before notification dated 26.3.1988 under Section 4(1) of Act 1894 showing that land was transferred by sale in the aforesaid two villages at the rate of Rs. 65/- per sq. Yard and there was no reason to reject those documents. Following aforesaid exemplars, 20% reduction was allowed and thereafter he determined market value at the rate of Rs. 52/- per sq. yard.

7. Moot question for consideration before this Court is “whether market value determined at Rs. 52/- per sq. yard is just, valid and in accordance with law”.

8. Before considering the aforesaid question on merits, it would be appropriate to consider various principles laid down by this Court from time to time in the last more than half century, relevant for determining market value.

9. In Chimanlal Hargovinddas v. Special Land Acquisition Officer, (1988) 3 SCC 751, the Court has said that a reference is like a suit which is to be treated as an original proceeding. The claimants is in the position of a plaintiff who has to show that the price offered for his land in the Award is inadequate. However, for the said purpose the Court would not consider the material, relied upon by Land Acquisit





























































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