In land acquisition for public infrastructure, market value should be based on credible guideline values as of the crucial date rather than stray sale deeds, and developmental charges are generally impermissible deductions for mandatory road formation projects.

COMMON JUDGMENT

1.These appeals have been preferred by The Special Tasildhar (Land Acquisition) Unit IV, Chenai and the Member Secretary, Chennai Metropolitan Development Authority, Chennai, challenging the Judgment and Decree in a batch of Land Acquisition Original Petitions dated 02.07.2021 on the file of the Principal District Court at Tiruvallur.

2. The land of the respondents had been acquired for the purpose of laying the Outer Ring Road by the Second appellant/Chennai Metropolitan Development Authority in Thiruninravur Village. The notification issued under Section 4(1) of the Land Acquisition Act, 1894 for acquisition of an extent of 1.88.0 Hectares of land was published on 20.03.2007. The land of the respondents was also included in the notification issued under Section 4(1) of the Land Acquisition Act, 1894. Thereafter, an enquiry was conducted and the Land Acquisition Officer fixed the market value at Rs.43/- per sq.ft. equivalent to Rs.18,731/- per Cent. It was based on a data land which was situated adjacent to the acquired land and having similar advantages.

3. The respondents along with other land owners filed a batch of Writ Petitions challenging the award of the Land Acquisition Officer on the ground that the Land Acquisition Officer had no power to pass an award. The Writ Petitions were dismissed. Thereafter, Writ Appeals were filed and the following order was passed.

“8.In view of the submissions made by the learned Additional Advocate General, this Court directs the appellants to vacate the houses on before or 15.06.2017, so as to enable the respondents to form Outer Ring Road under Chennai City Outer Ring Road Project. As assured, the Government is directed to pay the fair compensation to the appellants.

9.Accordingly, these Writ Appeals are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.”

4. But however, in spite of such assurance, fair compensation was not paid.

Thereafter, the Writ Appeals were reopened on being mentioned by the respondents. On 12.06.2017, the following order was passed.

“....

(iii) While considering the appeals for enhancement of compensation, the Reference Court is directed to take the guideline st value as on 1 January, 2014, for the purpose of fixing the market value of the land and for arriving at a just and fair compensation.”

5. As against the said order, the first appellant herein filed Special Leave Petition in S.L.P. Diary No.17541 of 2019 along with application to condone the delay. That was dismissed on 29.07.2019.

6.Thereafter, the respondents filed Land Acquisition Original Petitions before the Principal District Court at Tiruvallur. The Tribunal allowed the Original Petitions by holding that the crucial date for fixation of market value would be 01.01.2014 and relied on a sale deed marked as Ex.P1 in Document No.14922/2013 dated 09.12.2013 for an extent of 2300 sq.ft and awarded compensation as per Ex.P1 market value, and fixed it at Rs.2,300/- per sq.ft. with 20% deduction towards the developmental charges. The final award amount was fixed at Rs.1,840/- per sq. ft with 30% solatium.

7. Challenging that particular award, the present appeals have been filed.

8. It had been contended by the learned Additional Advocate General, that the Tribunal had misdirected itself in determining the market value on the basis of the Ex.P1 Sale deed which was a stray document. It had bee