Officer-Cum-L.A.O. Vs. Shaik Azam Sahem Etc.Etc.  INSC 61 (13 January
IN THE SUPREME COURT
OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 8984-8985 OF 2003
REVENUE DIVISIONAL OFFICER-CUM- L.A.O. ... APPELLANT Versus [with C.A. No.
8733-8736/2003, C.A. No. 8987-9001/2003, C.A. Nos. 108-115/2009 (@ SLP (C) Nos.
4463-4470/2004), C.A. Nos. 116-121/2009 (@ SLP (C) Nos. 12200-12205/2007) C.A.
No. 130/2009 (@ SLP (C) Nos. 12215/2007), C.A. Nos. 122-129/2009 (@ SLP (C)
S.B. SINHA, J.
granted in Special Leave Petition (Civil) Nos. 4463-4470 of 2004, 12200-12205
of 2007, 12215 of 2007 and 12206-12213 of 2007.
appeals by special leave involving common questions of law and fact were taken
up for hearing together and are being disposed of by this common judgment.
basic fact of the matter is not in dispute.
2 A notification
under Section 4(1) of the Land Acquisition Act, 1894 was issued (hereinafter
referred to for the sake of brevity as, "the said Act") expressing
the intention of the State to acquire land to the extent of 87 Acres 96 cents
situated in Pasupula and B. Thandrapadu villages for the purpose of
establishing a Post Graduation Centre of Sri Krishna Devaraya University.
of the said 87 Acres 96 cents of land, we are concerned only with 25 acres of
land of which respondents were owners. The Land Acquisition Officer made an
award on or about 20.12.1995 fixing the market value of the lands at the rate
of Rs.15,000/- per acre for the lands situated in B. Thandrapadu village and
Rs.16,000/- per acre for the lands situated in Pasupula village.
with the quantum of compensation awarded by the Land Acquisition Officer, the
respondents sought for reference from the Collector before the Civil Court in
terms of Section 18 of the said Act.
The learned Principal
Senior Civil Judge, Kurnool by a judgment and award dated 28.03.2001 enhanced
the market value thereof from Rs.15,000/- to Rs.90,000/- per acre for the lands
situated in B. Thandrapadu 3 village and from Rs.16,000/- to Rs.1,00,000/- per
acre for the lands situated in Pasupula village. Appeals and cross-objections
were filed thereagainst by the parties hereto.
reason of judgments and orders dated 18.3.2002 and 28.3.2003, a Division Bench
of the Andhra Pradesh High Court enhanced the market value of the land to
Rs.1,90,000/- per acre uniformly for the lands situated in both the villages.
thereto are, thus, before us.
High Court in support of its judgment, inter alia, relied upon a registered
deed of sale dated 12.11.1987, which was marked as Exhibit B-3 whereby and
whereunder four cents of land was sold for a sum of Rs.10,000/-. On that
premise, it was contended that the value of the land per acre would be
Rs.2,50,000/-. The High Court furthermore relied on its earlier judgment and
order passed in A.S. No. 1095 of 1996 (Exhibit B-6) wherein market value of the
lands acquired therein was fixed at the rate of Rs.2,70,000/- per acre.
In respect of the
land covered by Exhibit B-6, a notification under Section 4(1) of the Act was
issued on 30.06.1992 for the purpose of 4 establishing Bharat Gas Power
Station. It was noticed that the lands which were acquired for the said Bharat
Gas Power Station being situated at a distance of about 8 kilometers from
Kurnool Town whereas the acquired lands were situated about 4-5 kilometers away
from Kurnool Town.
It was stated:
"As can be seen
from Ex.B6, this court has fixed the rate of compensation at Rs.2,70,000/- and
the notification was issued in June 1992 whereas in the present cases notification
was issued in May 1995. In such an event, if escalation is given at 10% on the
value fixed by this Court, it would be around Rs.3,24,000/- per acre. Let us
test the value from the other angle. Ex. B3 is a small extent of 4 cents and
the purchase took place in the year 1997. The reference court correctly
observed that as the purchase was made about 7 years earlier to the
notification, the purchase was not made with a view to have an undue advantage
of higher compensation. As per Ex. B3 the value per acre is Rs.4,00,000/- if
10% escalation is given for 7 years, the same comes to Rs.6,80,000/- and even
if we take 60% of the amount by keeping in view the small extent sold under
Ex.B3 and also giving discount for developmental activities, it would be Rs.2,72,000/-
per acre. Therefore, we follow the safest method for arriving at the
compensation with reference to Ex.B6 which is in an extent of 27 and the area
covered by the batch of appeals is also almost same, and the notification was
issued for 87.96 cents, granting of escalation by deduction 40% of the amount
and fixing the 5 compensation at Rs.1,90,000/- would be just and reasonable.
Therefore, we have taken the course of resorting to 40% of the amount as the
land acquired was for the University Buildings, wherein internal roads have to
be laid and other open spaces have to be left out. Thus, keeping in view the
above facts, we feel that granting compensation at Rs.1,90,000/- is just and
R. Sundarvardhan, learned Senior Counsel appearing on behalf of appellant would
i. As this Court in
Civil Appeal No. 5206-5228 of 1997 (A.P. Industrial Infrastructure Corporation
Limited vs. G. Mohan Reddy & ors.) interfered with the judgment and order
passed in A.S. No. 1095 of 1996 and batch to hold that the market value of the
land in question should be fixed at Rs.1,35,000/-, Rs.90,000/- and Rs.70,000/-
per acre for different survey nos.
on the premise that
the situation of the land keeping in view their distance from the National
Highway play a vital role as the land which is near the Highway would
definitely get a 6 higher price than the land which is away therefrom, the
impugned judgment cannot be sustained.
ii. Exhibit B-3 being
the registered sale deed dated 12.11.1987 could not have been relied upon as
only 4 cents of land was the subject matter of transfer in terms thereof
whereas the notification had been issued for acquisition of land measuring 87
Acres 96 cents.
K. Amareswari, learned Senior Counsel appearing on behalf of the respondents,
on the other hand, would contend:
i. It is not correct
to contend that an exemplar in terms whereof only a small portion of land had
been transferred can never be taken into consideration.
ii. Keeping in view
the fact that the market rate in terms of Exhibit B-3 would come to
Rs.2,50,000/- per acre, even if 50 per cent is deducted there from, the market
value may be determined at Rs.1,25,000/- to which increase therein at the rate
of 10 per cent per year should be added and as the lands in question were
acquired on 5.5.1994, that is, 7 years after the 7 said deed of sale was
executed, the market value thereof would come to Rs.2,12,500/- per acre.
iii. So far as the
judgment of this Court passed in Civil Appeal No. 5206-5228 of 1997 (A.P.
Industrial Infrastructure Corporation Limited vs. G. Mohan Reddy & ors.) is
concerned, the notification therein having been issued on or about 30.6.1992
whereas the notification in the instant case having been published on 5.5.1994,
no reliance can be placed thereupon as admittedly the lands were situated 8
kilometers away from the National Highway whereas the lands in question are
situated only 4 kilometers away from the Highway.
of market value of a land acquired in terms of the provisions of the said Act
depends upon a large number of factors; the first being the nature and quality
of the land, i.e., whether agricultural land or homestead land. Apart from
nature and quality of land in the event the agricultural lands are acquired the
other factors relevant therefor are also required to be considered, namely, as
to whether they are irrigated or non- irrigated, extent of facilities available
for irrigation, location of the land, 8 closeness thereof from any road or
highway, the evenness of land, its position in different seasons particularly
in rainy season, existence of any building or structure as also the development
in and around the area. A host of other factors will also have a bearing on
determining the valuation of land.
mode and manner in which determination of such valuation are to be carried out
would also depend upon the facts and circumstances of each case, namely,
whether any deed of sale executed in respect of similarly situated land near
about the date of issuance of notification under Section 4 (1) of the Act is
available, or in absence of any such exemplars whether the claim can be
determined on yield basis or in case of an orchard on the basis of the number
of fruit bearing trees and the yield therefrom.
other important factor which also should be borne in mind is that it may not be
safe to rely only on an award involving a neighbouring area irrespective of the
nature and quality of the land. For determination of market value again, the
positive and negative factors germane therefor should be taken into
consideration, as laid down by this Court in Viluben Jhalejar Contractor vs.
State of Gujarat [(2005) 4 SCC 789], namely:
Negative factors (i) Smallness of size (i) Largeness of area (ii) proximity to
a road (ii) situation in the interior at a distance from the road (iii)
frontage on a road (iii narrow strip of land with very ) small frontage
compared to depth (iv) Nearness to developed area (iv) lower level requiring
the depressed portion to be filled up (v) regular shape (v) Remoteness from
developed locality (vi) Level vis-`-vis land under (vi) Some special
disadvantageous acquisition factors which would deter a purchaser (vii Special
value for an owner of ) an adjoining property to whom it may have some very
determination of the market value of the land, we may notice that the town of
Kurnool is the District Headquarter of Kurnool district.
The acquired lands
are situated about 4 kilometers away from the said town abutting National
Highway No. 18. The lands in question have been held to 10 have the requisite
potential value as building site as also for constructing industrial complexes.
The learned Reference Judge noticed that there are educational institutions
like Pulla Reddy Engineering College, Don Bosco School, St. Mary's Residential
School etc. surrounding the acquired lands.
G. Pulla Reddy
Engineering College is said to be situated just on the other side of the road
of the lands acquired. As on the date of acquisition, it was found that the
vicinity surrounding the land was well developed.
a big chunk of lands, namely, 87 Acres 96 cents were acquired for the purpose
of establishing an institution known as Sri Krishna Devaraya University. The
award of the Land Acquisition Collector was accepted by most of the persons.
Only the respondents before us objected thereto.
lands are situated in two different villages. The plan showing the location of
the land vis-`-vis the National Highway No. 18 had not been placed before us.
From the award of the learned Reference Judge, it appears that the lands
situated in Pasupula village are better placed than the lands situated in B.
Thandrapadu village. Such a distinction had also been kept in 11 mind not only
by the Land Acquisition Collector but also by the Reference Court.
agree with the judgment of this Court in Civil Appeal No. 5206- 5228 of 1997
(A.P. Industrial Infrastructure Corporation Limited vs. G. Mohan Reddy &
ors.) that the market value of the land would also depend upon the situation
the said formula, if we rely on Exhibit B-3, the market value of the land in
question would come to about Rs.1,25,000/- per acre. It is, however, not
possible to agree with the submissions of Mrs. Amareswari that we should
determine the market value only on that basis upon addition of 10 per cent
enhancement of the market value each year. It must be bear in mind that the
lands in question were agricultural lands whereas the lands which were the
subject matter of the said deed of sale was a homestead land, thus, some
amount, therefore, will have to deducted towards the development cost.
while comparing the market value of developed lands with that of undeveloped
lands, the court has to make suitable deductions towards the cost of
12 We, however, may
notice that this Court, at different times, has spoken in different voices.
In P.S. Krishna and
Co. Pvt. Ltd. v. The Land Acquisition Officer, (Deputy Collector) Hyderabad
[(1991) 2 SCALE 1186], this Court refused to interfere with the judgment of the
High Court which had given a deduction of 20% towards development charges.
Recently, a Division Bench of this Court in Mummidi Apparao v. Nagarjuna
Fertilizers and Chemicals Ltd. [2008 (16) SCALE 226] did not interfere with the
decision of the High Court which had given a direction for deduction of 50% as
development charges. However, we are not oblivious of the fact that this Court
had observed in Viluben Jhalejar Contractor (D) v. State of Gujarat [(2005) 4
"28. In Hasanali
Khanbhai & Sons v. State of Gujarat [(1995) 5 SCC 422] and Land Acquisition
Officer v. Nookala Rajamallu (2003) 12 SCC 334: (2003) 10 SCALE 307 it has been
noticed that where lands are acquired for specific purposes deduction by way of
development charges is permissible.
29. We are not,
however, oblivious of the fact that normally one-third deduction of further
amount of 13 compensation has been directed in some cases. (See Kasturi v.
State of Haryana [(2003) 1 SCC 354], Tejumal Bhojwani v. State of U.P., [(2003)
10 SCC 525], V. Hanumantha Reddy v. Land Acquisition Officer & Mandal R.
Officer (2003) 12 SCC 642, H.P. Housing Board v. Bharat S. Negi (2004) 2 SCC
184 and Kiran Tandon v. Allahabad Development Authority and Anr. (2004) 10 SCC
the facts and circumstances of the present case, one-third deduction, in our
opinion, should be made towards development costs for the lands situated both
in Pasupala village as also B. Thandrapadu village.
Keeping in view the
fact that the lands are abutting National Highway and near the district town,
where a large number of educational institutions have come up, 10 per cent
escalation per year has to be added. Thus, Rs. 1,41,666.66 per acre may be
fixed for the lands in Pasupala village.
The lands in another
village B. Thandrapadu Village being situated away from the NH 18, another 10
per cent from the amount fixed for the lands in Pasupala village must be
deducted. Thus, Rs. 1,27,499.99 per acre may be fixed for the lands in B.
We have adopted the
same method which had been adopted by the Reference Judge inasmuch as the
Reference Judge had fixed market value 14 for the lands situated in Pasupala
village at Rs. 1,00,000/- per acre and Rs.90, 000/- per acre in respect of B.
appeals are allowed to the aforementioned extent. No costs.
[Lokeshwar Singh Panta]
[B. Sudershan Reddy]