R.F.A. No.1523 of 1999 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH R.F.A. No. 1523 of 1999 Date of decision: September 19, 2008 1 R.F.A. NO. 1501 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Mukhtiar Singh and others ....Respondents 2 R.F.A. NO. 1502 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Joginder Singh and another ....Respondents 3 R.F.A. NO. 1503 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Gurdev Singh and others ....Respondents 4 R.F.A. NO. 1504 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Gram Panchayat Vill. Jassi Pau Wali Tehsil and Distt. Bathinda and others ... Respondents 5 R.F.A. NO. 1505 of 1999 The Bhatinda Interegarated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Bant Singh and others ....Respondents 6 R.F.A. NO. 1506 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Mrs.. Surinder Anand and others ....Respondents 7 R.F.A. NO. 1507 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Ramesh Kumar and others ....Respondents 8 R.F.A. NO. 1508 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Badal Singh and others ....Respondents R.F.A. No.1523 of 1999 [2] 9 R.F.A. NO. 1509 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Gurbachan Singh and others ....Respondents 10 R.F.A. NO. 1510 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Jit Singh and others ....Respondents 11 R.F.A. NO. 1511 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Smt. Jaswinder Kaur and others ....Respondents 12 R.F.A. NO. 1512 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Milkhi Ram and others ....Respondents 13 R.F.A. NO. 1515 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Gurjant Singh and others ....Respondents 14 R.F.A. NO. 1516 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Darbara Singh and others ....Respondents 15 R.F.A. NO. 1517 of 1999 The Bhatinda Interegrated Co-Operative Cotton spinning & Ginning Mills Ltd. ....Appellant Vs Rachhpal Singh and others ....Respondents 16. R.F.A. No. 1523 of 1999 The Bhatinda Interegrated Co-operative Cotton Spinning & Ginning Mills Ltd. ..... Appellant Vs Sh. Sudharshan Kumar .... Respondent 17 R.F.A. NO. 2642 of 1999 Gurjant Singh and another ....Appellants Vs State of Punjab and others ....Respondents R.F.A. No.1523 of 1999 [3] 18 R.F.A. NO. 2643 of 1999 Darbara Singh and others ....Appellants Vs State of Punjab and others ....Respondents 19 R.F.A. NO. 2644 of 1999 Badal Singh ....Appellant Vs State of Punjab and others ....Respondents 20 R.F.A. NO. 2645 of 1999 Gurbachan Singh and another ....Appellants Vs State of Punjab and others ....Respondents 21 R.F.A. NO. 2646 of 1999 Gurtej Singh and others ....Appellants Vs State of Punjab and others ....Respondents 22 R.F.A. NO. 2647 of 1999 Jaswinder Kaur and others ....Appellants Vs State of Punjab and others ....Respondents 23 R.F.A. NO. 2648 of 1999 Bant Singh and others ....Appellants Vs State of Punjab and others ....Respondents 24 R.F.A. NO.3476 of 1999 Ramesh Kumar ....Appellant Vs State of Punjab and others ....Respondents 25 R.F.A. NO.562 of 2000 Rachhpal Singh and another ....Appellants Vs State of Punjab and another ....Respondents Present: Mr. Rajiv Atma Ram, Senior Advocate with Mr. Puneet Kansal, Advocate for the Bhatinda Interegrated Cooperative Cotton Spinning & Ginning Mills Ltd. Mr. Mukant Gupta, Advocate for Mr. P.C.Singhal, Advocate for the land owners. ... Rajesh Bindal J. This order will dispose of a bunch of 25 cases arising out of the same acquisition. R.F.A. Nos. 1501, 1502, 1503, 1504, 1505, 1506, 1507, 1508, 1509, R.F.A. No.1523 of 1999 [4] 1510, 1511, 1512, 1515, 1516, 1517, 1523 of 1999 have been filed by Bhatinda Interegrated Co-operative Cotton Spinning & Ginning Mills Ltd. (for short, `the Spinning Mill') for reduction in the amount of compensation awarded to the land owners. R.F.A. Nos. 2642, 2643, 2644, 2645, 2646, 2647, 2648, 3476 of 1999 and 562 of 2000 have been filed by the land owners seeking enhancement of the compensation awarded by the learned Court below. However, the facts have been extracted from R.F.A. No.1523 of 1999. Briefly, the facts are that the Punjab Government vide notification No. 26(3)88-II(IV)/10031 dated 6.6.1988 issued under Section 4 of the Land Acquisition Act, 1894 (for short, `the Act') acquired land measuring 297 kanals 1 marla situated in the revenue estate of Jassi Pau Wali for public purpose, namely, establishment of Bhatinda Integrated Cooperative Cotton Spinning and Ginning Mills Ltd. (for short, `the Spinning Mill'). The same was followed by a notification under Section 6 of the Act on 8.6.1988. The Land Acquisition Collector (for short, `the Collector') vide award dated 5.10.1989 determined the value of the land at Rs. 25,000/- per acre. Dissatisfied with the award of the Collector, the land owners raised objections which were referred to the learned Court below. On consideration of the material placed before the Court below, the market value of the land was determined at Rs.1,12,000/- per acre vide award dated 27.2.1999. It is this award of the learned Court below which is impugned in the present set of appeals. On the one hand, the Spinning Mill is aggrieved against the award claiming that the compensation determined by the learned Court below is on higher side and deserves reduction, whereas the land owners are in appeal claiming further enhancement in the compensation. Learned counsel for the Spinning Mill submitted that the learned Court below had gone wrong in rejecting the evidence led by it in the form of certified copies of sale deeds produced as Ex. R.1 to R.9 and R.11 showing the value of the land in the vicinity merely on the ground that the vendors and the vendees had not been produced. Relying upon the judgment of Hon'ble the Supreme Court in Cement Corporation of India Ltd. etc. v Purya and others, JT 2004(8) SC 327, the submission is that once certified copy of the sale deed is produced, the same is admissible as such in evidence and the vendor and the vendee are not required to be produced. Further, the submission is that the learned Court below had gone wrong in awarding 12% annual increase on the consideration money in sale deed (Ex. A.W.6/C) dated 24.5.1979 vide which 43 kanals 13 marlas of land was purchased by a party for setting up of a spinning mill. The submission is that the annual increase at such a high percentage could not be R.F.A. No.1523 of 1999 [5] granted unless there is evidence on record to show trend in the increase of prices. Reliance has been placed upon Ranvir Singh v. Union of India, AIR 2005 SC 3467. Further submission is that even after granting annual increase of 12%, still while calculating the compensation the Court below had gone wrong in arriving at a figure of Rs. 1,50,000/- per acre and thereafter applying a cut of 25%, finally determining the value of the land at Rs. 1,12,000/- per acre. To substantiate the plea, reference has been made to sale deed Ex. A.W.6/C where the consideration was of Rs. 50,000/- per acre after granting annual increase of 12% for a period of nine years, the value thereof will come to Rs. 1,04,000/- per acre and if cut of 25% is applied, the value of the land will come to Rs. 78,000/- per acre as against Rs. 1,12,000/- per acre awarded by the learned Court below. On the issue as to whether there was increasing trend of the prices in the land during that period, the submission is that Punjab was going through the phase of terrorism during those days and on that account there was fall in the prices of the property, as compared to what was there in the year 1979 and in fact, there was no buyer as such. On the other hand, learned counsel appearing for the land owners submitted that sale deed Ex. A.W.6/C produced by the land owners showing the value of the land at Rs. 50,000/- per acre for a transaction entered into on 24.5.1979 is in fact, the best piece of evidence as the same forms part of the land acquired. Reference has been made to Special Deputy Collector and another v. Kurra Sambasiva Rao and others, AIR 1997 SC 2625 to submit that sale transaction forming part of the acquired land is the best piece of evidence. He further referred to another sale deed Ex. CY dated 4.5.1981 showing an average price of Rs. 1,17,600/- per acre, though the property involved in this sale deed is one kanal 14 marlas, but the situation thereof is just three killas away from the acquired land. As far as the location, potential and the trend in the prices of the land is concerned, reference has been made to the statements of the land owners where it is stated that there are number of factories and other establishments situated in the vicinity of the land acquired which is situated at the crossing. The same is abutting the road on three sides. The entire area even beyond the acquisition boundary of the land in question was being developed at a good pace. The Cantonment was just 200/300 meters away from the acquisition boundary across the Railway Line, acquisition of which was carried out in the year 1974. The municipal limits of the city of Bhatinda is just situated at a distance of 200 karams from the acquired land. Referring to the statement of A.W.3- Bant Singh, R.F.A. No.1523 of 1999 [6] the submission is that the land for Cantonment was acquired 19/20 years back and for the acquisition thereof, the compensation was paid at the rate of Rs. 18/- per square yard up to the depth of 500 yards from the Railway Line and thereafter Rs. 8/- per square yard as per the judgment of Hon'ble the Supreme Court. In his statement A.W.4- Vijay Kumar, Halqa Patwari Patti Mehna stated that Bhatinda Cantonment is at a distance of 200/300 yards from the acquired land and that Municipal Octroi Post is at a distance of ½-3/4 kilometers if we go via road. A.W.5- Chander Sekhar, Draftsman stated that there are number of industries situated in the vicinity of the acquired land and even ahead thereof if we move from Bhatinda to Mansa. In fact, the industries were fast developing towards that side. To the similar effect are the statements of other witnesses produced by the land owners. As regards the trend in the prices, reference has been made to the statement of R.W.1-Avtar Singh Quanungo who, in his cross-examination, admitted that the rates of land in Bhatinda as well as adjoining villages have been increasing day by day. In response to the contentions raised by learned counsel for the land owners, learned counsel for the Spinning Mill submitted that the sale transaction (Ex.CY) cannot be relied upon as such as the same was pertaining to a small piece of land measuring one kanal 14 marlas, whereas the acquisition in the present case was of a large chunk of land measuring 297 kanals and 1 marla. Heard learned counsel for the parties and perused the record. As far as the observation made by the learned Court below while rejecting the sale deeds produced by the Spinning Mill on the ground that the vendors and the vendees thereof having not been produced, no reliance can be placed thereon is totally erroneous. As far as the calculations made by the learned Court below of the value of the land considering sale deed (Ex. AW6/C) dated 24.5.1979 granting an annual increase of 12%, the submission of learned counsel for the Spinning Mill carries weight. If 12% annual increase is granted for a period of nine years, the same would be 108% of the value of land taking the base in 1979. The average sale consideration of the sale deed relied upon for the purpose is Rs. 50,000/- per acre (this land is part of the acquired land) and the increase would be Rs. 54,000/- per acre. If the same is added to Rs. 50,000/-, total value as on the date of acquisition would come out to Rs. 1,04,000/- per acre, whereas the learned Court below determined the same at Rs.1,50,000/- per acre. Accordingly, this finding recorded by the learned Court below is erroneous as wrong calculation was made. As far as the sale deeds, referred to by the learned counsel appearing R.F.A. No.1523 of 1999 [7] for the Spinning Mill are concerned, the same are not of much relevance keeping in view the fact that the value depicted therein is less than the award of the Collector and further at a distance from the acquired land. In this factual matrix, now this Court is to determine the value of the land on the date of acquisition considering the material placed on record by the land owners. It is the admitted position on record that the acquired land is situated on a crossing which is having roads on three sides. In fact, part of the land measuring 43 kanals 13 marlas was purchased by the owners thereof for the purpose of setting up of a spinning mill way back in 1979. Reliance on sale deed dated 4.5.1981 (Ex. CY) cannot be placed for determining the fair value of the land in the present case for the reason that the same was pertaining to a small piece of land measuring 1 kanal 14 marlas at a different location out the acquisition boundary close to the road. Keeping in view the entire material on record, I am of the considered view that the sale transaction, though old in time, but forming part of the acquired land, would be the best piece of evidence for determination of fair value of the land. Accordingly, I adopt the same to be the base as was rightly done by the learned Court below, However, the error committed in the impugned award is regarding calculation made while adding 12% annual increase because of time lack between the date of sale vide sale deed (Ex.AW6/C) and the date of notification. The average sale consideration in the aforesaid sale was Rs. 50,000/- per acre. If 12% annual increase is granted thereon, the value would come to Rs. 1,04,000/- by adding Rs. 54,000/- therein for a period of nine years. However, I do not agree with the view expressed by the learned Court below where a cut of 25% has been imposed while relying on the sale transaction pertaining to 43 kanals 13 marlas when the acquired land is 297 kanals 1 marla. As the sale instance is of quite big chunk of land and further the acquired land is surrounded by road on three sides, in my opinion, 15% cut would be reasonable. Accordingly, reducing a sum of Rs. 15,600/- on that count, the value of the land is determined at Rs. 88,400/- per acre. The land owners shall be entitled to all other statutory benefits available under the Act. In view of my above findings, the appeals filed by Bhatinda Integrated Cooperative Cotton Spinning and Ginning Mills Ltd. are partly accepted whereas that of the land owners are dismissed. (Rajesh Bindal) Judge September 19, 2008 mk R.F.A. No.1523 of 1999 [8]