Case: State of Madras Vs. A.M. Nanjan and Another

The land in question was acquired for the purpose of a hydro electric scheme at Kundah. A Notification under section 4(1) of the 5` Land Acquisition Act, 1894, was duly published on May 1, 1957. This land was purchased by the respondents father by a sale deed (Ext. B-l) of February 22, 1951, for a consideration of Rs. 4218/4/ from the Nilgiris Wattle Plantations Limited. The rate at which this purchase was made was Rs. 230/- per acre. The Collector awarded compensation at the rate of Rs. 500/- per acre. On a reference at the instance of the claimants (respondents herein) the Subordinate Judge raised the compensation to Rs. 1800/- per acre. The State as well as the claimants appealed to the High Court against the judgment and decree of the Subordinate Judge. By a common judgment the High Court dismissed t he States appeal and partly allowed the claimants appeal by raising the rate of compensation to Rs. 3000/- per acre. That is how the two appeals are filed by the State with certificate from the High Court.

Court's reasoning:
We are unable to accept the submission that the awards in question cannot be taken as safe-guides in the matter of determination of compensation. As a matter of facts these awards given by the Collector are at least relevant material and may be in the nature of admission with regard to the value of the land on behalf of the State and if the land involved in the awards is comparable land in the reasonable proximity of the acquired land, the rates found in the said documents would be a reliable material to afford a basis to work upon for determination of the compensation on a later date. The awards, therefore, cannot be dismissed as inadmissible for the purpose of determination of theare satisfied after examination of the evidence and the documents that having regard to the location, advantages and facilities of the land and to the admitted rise of price of land between the years 1951 and 1957, it cannot be said that the High Court was far wrong in raising the compensation to Rs. 3000/- per acre in this case. We are also satisfied that the High Court has not departed from any well recognised principles in determining the compensation