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1974 Supreme(MP) 81

Madhya Pradesh High Court
A. P. SEN,M. L. MALIK
P.R. Modi - Appellant
Versus
Collector, Durg - Respondent
Decided On : 08/16/1974

Advocates:
K.P. Munshi and Y.K. Munshi, for Appellant; M.V. Tamaskar, Govt. Advocate, for Respondent.

Headnote:(1) Land Acquisition Act, 1894 - Ss. 23 & 4 - market value - calculation of - legal evidence should be produced - assessment of evidence.

       If the claimant relied on any transaction indicating a fair business deal, the onus was on him to prove the transaction by examining the parties thereto or those who had personal and direct knowledge about it. Such direct evidence has its relevance two fold: (i) to prove the consideration actually paid and (ii) that the transaction was between a prudent purchaser and a willing vendor, and that the price paid was the normal market rate prevailing then. A reference to index of sales obtained from the Registration Office or to revenue records noting the changes, would avail nothing to the claimant. AIR 1969 Gujarat 270 relied on. [Para 6

       The proceedings before the Land Acquisition Officer are not judicial. He need not adhere to the strict rules of evidence.

       But once the matter comes before a Court, market value has to be proved by legal evidence. 1964 JLJ 288 referred to. [Para 6

       The usual evidence that comes before the Court in proof of market value can be put in the three categories: (i) opinion of the experts, (ii) price paid within 8 reasonable time in a bona fide transaction of purchase or sale of land possessing similar advantages; in particular earlier purchase or sale of the part of the land sought to be acquired, or land in close proximity furnishes the best evidence, and (iii) a number of years purchase of the actual or immediate prospective profits of the land acquired. [Para 9

       In assessing evidence, it is not open to the Court to look into and rely on documents not properly proved. It is only on admissible and legal evidence that the Court must act. It may also be stated that in considering the evidence, the Court will not be bound to accept the statement of witnesses only because they have not been effectively cross examined or evidence in rebuttal has not teen adduced. The Judges are not computers. In assessing the value to be attached to oral evidence, they are bound to call into aid their experience of life. As Judge of fact it was open to the appellate Judge to test the evidence placed before him on the basis of probabilities”. AIR 1969 SC 255, AIR 1967 SC 465 and AIR 1938 PC 98 relied on. [Para 10

       (2) Land Acquisition Act, 1894 - Ss. 13 and 4 - market value - previous sales - only genuine sales are to be relied on.

       It should be made clear that only those sales could be relied upon as were genuine sales and indicated proper market value. A forced sale, an accommodation sale, fancy price paid by a purchaser for a particular land, sales involving speculation or entered into with the knowledge of the acquisition proceedings just to push up the prices, but unrelated to the prevailing market conditions, have all to be discarded. An honest transaction between parties after taking into account the market conditions is the real criterion, AIR 1969 Guj 276 and AIR 1958 Kerala 166 relied on.

       The speculation must enter into the market value. Nevertheless, the transactions tendered in proof of the market rate should be genuine transactions, in the sense that they are between willing purchasers and willing sellers having regard to the prevailing market conditions. A deliberate attempt to boost up the prices on the eve of acquisition of the land by fictitious and unreal sale transactions is not what the proposition contemplates. 1973 JLJ 848 and AIR 1959 Bom. 520 referred to. [Para 16

       (3) Land Acquisition Act, 1894 - S. 23 - market value - increase in potential value - guesswork is permissible.

       In determining the increase in potential value, the Court could act on no mathematical formula. The Court has to act on ordinary guess work which is permissible. AIR 1959 Mad. 462 relied on. [Para 26

Judgement

MALIK, J. : - These appeals and forty-eight more are directed against the order ofthe First Additional District Judge, Durg, made in connected references under Section 18 of the Land Acquisition Act. We propose to deal all the appeals together and the judgment delivered in these appeals shall be read as judgment in all the appeals.

2. The lands are situated in mouza Kasaridih, in tahsil and district Durg. The preliminary notification under Section 4 of the Land Acquisition Act was published on 27-10-1960 for acquisition of 24.37 acres. The notification under Section 6 of the Act was issued on 29-1-1964. It was detected that Khasra Nos. 839 and 959/14 measuring. 30 acres were inadvertently omitted from the notification and a fresh notification for acquisition of those Khasra numbers had, therefore, to be issued under Sec. 4 on 12-9-1963. Notification under Section 6 in respect thereof, is dated 8-10-1963.

3. On further verification, it was brought to light that Khasra No. 827/2 area 07 acres was notified in excess and should be left out. It was also found that an area of 4.24½ acres out of the notified area was covered by houses and the proposal was not to acquire the land which was built upon. This area was, therefore, to be deleted. The total area for acquisition thus worked out to 20.33½ acres. Out of this area 3.43 acres was such land as was permitted to be diverted to non-agricultural purposes, though in fact, the land continued to be under plough or was Padti (waste land).

4. Persons (recorded land holders) affected by acquisition were 46, out of which 39 filed their claim statements before the Land Acquisition Officer. They claimed compensation at the rate varying between Rs. 1.50 to Rs. 5/-per square foot. They, however, adduced no evidence before the Land Acquisition Officer nor did they file any record of income they derived from their respective lands.

5. The Land Acquisition Officer determined the award on the basis of multiple of 1069 per rupee rental. This is how he worked out the multiple. He had before him the index of sales which took place within 3 years prior to the acquisition. They were in all 325. He left out of consideration 208 sales which did not appear to him bona fide and for fair price. They were transacted by industrialists and businessmen at fancy prices. The transactions indicated, according to him, systematic disposal of small plots at house building site rates though the land was, in fact, used for agriculture and was not developed and diverted for the use as a building site. The Land Acquisition Officer picked out 117 representative sales, determined the rental on basis of up-to-date classification of soil, divided the consideration of those 47 sales by the rental so worked out, and found the multiple of 1069 per rupee rental. The total compensation worked out to Rs. 38307.85 Nps. for 20.35½ acres. Allowing 15% solatium for compulsory acquisition which came to Rs. 5896.05 Nps., the award was made for Rs. 45203.90 Nps. Over and above this amount, the Land Acquisition Officer offered to pay 10 % for the potential value. The land had certain existing advantages, and possibilities of being used as a building site, which he took notice of. For trees and wells upon the land, the Land Acquisition Officer determined Rs. 1504.20 Nps. as the compensation.

6. The Additional District Judge who heard the references under Section 18 of the Land Acquisition Act, was of the view that the multiple worked out by the Land Acquisition Officer was an arbitrary figure, and that the Land Acquisition Officer was wrong in eliminating 208 recent sales, which were mostly for building purposes. According to the learned Judge, the land acquired was suitable for construction of buildings; there was demand for house-sites; the acquired land fell within the municipal limits of Durg town; the Bhilai Steel Plant was at a distance of 8 miles from the Kasaridih abadi and its sector 9 almost a mile and half away, had its impa































































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