Ratan Lal
Gupta & Ors Vs. Union of India [1995] INSC 714 (21 November 1995)
Ramaswamy,
K. Ramaswamy, K. Paripoornan, K.S.(J)
CITATION:
1996 SCC (7) 3 JT 1995 (9) 105 1995 SCALE (6)698
ACT:
HEAD NOTE:
O R D
E R
The
application for substitution is allowed.
Notification
under Section 4(1) of the Land Acquisition Act, 1874 (for short `the Act')
acquiring, land admeasuring about 5.29 acres (28 bighas) comprised in Khasra
No.351/305/162 etc, situated in Yaquatpur, Delhi for the planned development (was published in the Union Gazette on February 4, 1964). The Compensation at Rs.5,000/-
per bigha together with 15% solatium and interest @ 6%. The Additional District
Judge by his award and decree dated August 5, 1969, determined the compensation at the
rate of Rs.30/- per square yard. On further appeal under Section 54 of the Act,
the learned single Judge determined market value at Rs.78/- per sq. yard,
deducted Rs.7/- for development charges, fixed the land available as per the
lay out at 78.45% of the land areas saleable for plots. The learned Judge
further held that market value for undeveloped area was Rs.23/- per square yard
while for the developed area in Greater Kailash Part-I, the market value come
to Rs.39.34 per square yard.
On
application of the average, the learned Judge fixed the market value at Rs.40/-
per square yard. On Letters Patent Appeal, the Division Bench in the impugned
judgment and decree dated August 26,1981
dismissed the appeal. Thus this appeal by special leave.
Shri Mukul
Mudgal, learned counsel appearing for the claimants, contended that the learned
single Judge having found that a sum of Rs.7/- per square yard would be
required for development charges of the saleable land of 78.45% as per the lay
out, committed an error of law in fixing average price of developed and
undeveloped land at Rs.40/- per square yard. Having determined the market value
at 78/- per square yard and having deducted an amount towards development
charges and also determined the saleable plots of land at 78.45% of the land,
he committed an error of law for further reducing the market value. Thus the
learned single Judge has applied wrong principle of law warranting
interference.
The
question, therefore, is what would be the correct market value that could be
fixed as compensation of the land in question. It is seen that strong reliance
was placed before the Reference Court on the sale transaction relating to
developed area and undeveloped area. In the undeveloped area, the market value
was Rs.23/- per square yard and in the developed area, the market value was
Rs.39.34 per square yard. It is seen that the High Court found these lands
connected with developed roads.
It has
been repeatedly held by a catena of decisions of this Court that when the
market value is to be determined on the basis of small plots of land the same
price cannot be expected to be realised when a large track of land is offered
to a willing purchaser by a willing vendor. When lay out has been obtained and
the land is situated in a developed area, though sale relating to small plots
of lands were produced before the Court, on recording a finding that such sales
are genuine and not intended to inflate the market value of the land, this
Court held that necessary directions should be given in determining the true
market value based on resalable price at a future date.
It is
an admitted fact that the lands in question are in undeveloped area though
adjacent to the developed area, viz, Greater Kailash-I. The average price given
by the Court also does not appear to be correct. In Administrator General of West Bengal vs.Collector. Varanasi (AIR 1988 SC 943) in paragraph 6,
this Court had laid the principle of deduction of 53%, when small plots of land
were found to be of genuine sale and situated in a potentially developed area
as a wholesale price.
In Hasanali
Khanbhai and Sons & Ors. vs. State of Gujarat [(1995) 5 SCC 422] this Court
also considered all the earlier cases and held that the small extents of land
sold in plots, would not furnish the sole basis to fix same price offered by
them. Therefore, the deduction of 60% of the value per square yard by the High
Court was upheld by this Court. It is seen that since the lands in question are
situated in undeveloped area, though adjacent to the road, it would take long
time for realisation of potentialities as they would require further
development. Considered from this prospective, the price of the developed area
cannot be adopted ipso facto as the basis to determine compensation to these
lands. Considering the facts that the land required development and having
deducted 78.45% land which was required for building purposes, we think that
proper market value would be Rs.50% per square yard. The appellants, therefore,
are entitled to be compensated at that rate with interest at the rate of 6% on
the enhanced compensation from the date of taking possession till the date of
deposit into the Court. The claimants also are entitled to solatium @ 15% on
the enhanced compensation.
The
appeal is allowed but, in the circumstances, without costs.
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