[2009) 14 (ADDL.) S.C.R. 163

;...

CHARAN DASS (DEAD) BY L.RS.

A v.

H.P. HOUSING AND URBAN DEVELOPMENT AUTHORITY

AND ORS. (Civil Appeal No. 2213 of 2001)

SEPTEMBER 7, 2009 - B

[D.K. JAIN AND ASOK KUMAR GANGULY, JJ.]

Land Acquisition Act, 1894: c - ss.23, 24 - Compensation - Market value of acquired land - Methodology of determination - Discussed - Interference of Court with the award of compensation - Scope of - Held: Is limited - It is only in cases where it is found that

-<-- the authorities below, including High Court, either applied ' D wrong principles or omitted to consider relevant factors affecting valuation, that interference is warranted - On facts, there is no infirmity in approach of High Court in relying on location of land and sale deeds for enhancing market value , of acquired lands - No interference called for on that account.

Compensation for acquired land - Development charges

- Deduction on account. of - Appropriate deduction -:-

Determination of.

In these appeals, appellant challenged the order of F High Court by which the amount of compensation awarded by the District Judge in reference under Section 18 of Land Acquisition Act was reduced. High Court held that the sale deeds filed by the respondent-Housing Board were relevant exemplars for ascertaining the G market value of the land in question. Having determined the market value of the acquired land, the Court noted the evidence of Assistant Architect (RW4) wherein he had deposed that only 41.4% of the total area was used for

163 H

A construction and the remaining area was to be used for services like roads, pathways, green spaces etc. On the basis of the sad evidence, the High Court made a deduction of 40% from the market value of the land determined by it. Aggrieved appellants-landowners filed s these appeals.

Partly allowing the appeals, the Court

HELD: 1.1. Section 15 of the Land Acquisition Act mandates that in determining the amount of C compensation, the Collector shall be guided by the provisions contained in Sections 23 and 24 of the Act.

Section 23 provides that in determining the amount of compensation to be awarded for the land acquired under the Act, the Court shall, inter alia, take into consideration D the market value of the land at the date of the publication of the Notification under Section 4 of the Act. The Section contains the Jist. of positive factors and Section 24 has a list of negatives, vis-a-vis the land under acquisition, to be taken into consideration while determining the amount E of compensation. One of the principles for determination of the market value of the acquired land would be the price that a willing purchaser would be willing to pay if it is sold in the open market at the time of issue of Notification under Section 4 of the Act. But finding direct F evidence in this behalf is not an easy task and, therefore, the Court has to take recourse to other known methods for arriving at the market value of the land acquired. One of the well accepted methods adopted for ascertaining the market value of the land in acquisition cases is the G sale transactions on or about the date of issue of Notification under Section 4 of the Act. But here again finding a transaction of sale on or a few days before the said Notification is not an easy exercise. In the absence of such evidence contemporaneous transactions in respect of the lands, which have similar advantages and H

CHARAN DASS (DEAD) BY L.RS. v. H.P. HOUSING 165

AND URBAN DEVELOPMENT AUTHORITY •

~- disadvantages is considered as a good piece of evidence A , for determining the market value of the acquired land. It

needs little emphasis that the contemporaneous transactions or the comparable sales have to be in respect of lands which are contiguous to the acquired land and are similar in nature and potentiality. Again, in B the absence of sale deeds, the judgments and awards passed in respect of acquisition of lands, made in the same village and/or neighbouring villages can be accepted as valid piece of evidence and provide a sound basis to work out the market value of the land afte~ c

~ suitable adjustments with regard to positive and negativ~ factors enumerated in Sections 23 and 24 of the Act.

~ Undoubtedly, an element of some guess work is involved , in the entire exer~_ise, yet the authority charged with the

~ duty to award compensation is bound to make an estimate judged by an objective standard. [Para 10) [174- D

C-G; 175-A-D]

Special Tehsi/dar Land Acquisition, Vishakapatnam v.

A. Manga/a Gowri (Smt.) (1991) 4 SCC 218; Special Deputy Collector & Anr. v. Kurra Sambasiva Rao & Ors. (1997) 6 E

SCC 41; Manipur Tea Co. Pvt. Ltd. v. Collector of Hai/akandi

(1997) 9 SCC 673; Smt. Tribeni Devi & Ors. v. Collector of Ranchi & Vice Versa (1972) 1 SCC 480; Bhagwathu/a Samanna & Ors. v. Special Tahsildar & Land Acquisition Officer, Visakhapatnam Municipality, Visakhapatnam (1991):

1 F 4 sec 506 Viluben Jhalejar Contractor (Dead) by LRs. v. I

State of Gujarat (2005) 4 SCC 789; Atma Singh (Dead) through LRs. & Ors. v. st8fn of Haryana & Anr. (2008) 2 sec 568; Shim/a Deve/opm nt Authority & Ors. v. Santosh Sharma (Smt) & Anr. (1997) 2 SCC 637; Shaji Kuriakose & G

~· Anr. v. Indian Oil Corporation Ltd. & Ors. (2001) 7 SCC 650, referred to.

1.2. The comparable sales instances of similar lands in the neighbourhood at or about the date of Notification H

' /y' A under Section 4( 1} of the Act are considered to be the best evidence for determining the market value of the acquired "' land to arrive at a fair estimate of the amount of compensation payable to a land owner. Nevertheless, while ascertaining compensation, it is the duty of the B Court to see that the compensation so determined is just and fair not only to the individual whose property has been acquired but also to the public which is to pay for it. [Para 13] [178-8-C]

2. The scope of interference with the award of compensation is very limited. It is only in cases where it is found that the authorities below, including the High Court, either applied wrong principls or omitted to take 1 into consideration the relevant factors affecting-valuation, J that interference is warranted. If the judgment of the High

\. '- D Court reveals that it has taken into consideration the

.,,_

relevant factors prescribed by the Act, in appeal'i.mder Article 133 of the Constitution of India, its assessment of the fair market value of the acquired land should not be disturbed. [Paras 14 and 15] [178-D-G] E Thakur Kamta Prasad Singh (Dead) by LRs. v. State of Bihar (1976) 3 SCC 772; Food Corporation of India through --i_ its District Manager, Faridkot, Punjab & Ors. v. Makhan Singh & Anr. (19~2} 3 sec 67, relied on.

3. Bearing in mind the location of the land, subjectmatter of the said sale-deeds, it is difficult to hold that the ,..

exemplars .rlied upon by the High Court were irrelevant for delermi.ning the market value of the acquired lands.

G There is no legal or factual infirmity in the approach. of the High Court in ascertaining the market value of the lands to interfere with finding of the High Court on that account. [Para 17]. [179-H; 180-A-C]

4. It is well settled that it is not in every case that H

CHARAN DASS (DEAD) BY L.RS. v. H.P. HOUSING 167

AND URBAN DEVELOPMENT AUTHORITY

.k deduction towards development charges has to be made A when a big chunk of land is acquired for housing colonies etc. Where the acquired land falls in the midst of an already. developed land with amenities of roads, electricity etc. deduction on this account may not be warranted. At the same time, where all civic and other ·~ amenities are to be provided to make it suitable for building purposes or under the local building regulations setting apart of some portion of the lands for providing common facilities is mandatory, an appropriate deduction may be justified. Having regard to the relevant facts and c circumstances of the case, including the location of the

~· acquired land, a deduction of 30% towards development

t charges from the market value of land as arrived by the High Court, would meet the ends of justice. Besides, they

~ will also be entitled to statutory amounts in terms of D Section 23(1A) of the Act; solatium at 30% on the market value of the land in accordance with Section 23(2) of the Act and interest as stipulated in Section 28 of the Act. [Paras 19, 21 and 22] [180-E-F; 181-C-E]

Case Law Reference: E

(1991) 4 sec 218 referred to Para 5

(1997) 6 sec 41 referred to Para 5

(1997) g sec 673 referred to Para 5 F

(1972) 1 sec 480 referred to Para 7

(1991) 4 sec 506 referred to Para 7

c2005) 4 sec 789 referred to Para 8 G c2ooa) 2 sec 568 referred to Para 8

(1997) 2 sec 637 referred to Para 8

A c2001) 1 sec sso referred to Para 11 __),._

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2213 of 2001.

From the Judgment & Order dated 7.6.1999 of the High B Court of Himachal Pradesh at Shimla in RF.A No. 199of1997.

WITH

I C.A. No. 2214, 2215, 2216-'2220, 2221-2227, 2228 of 2001 c & 2090-2101 of 2004.

Chandra Prakash Pandey, Naresh K. Sharma, Atul

'11'1 Sharma, Sarojanand Jha, M.A. Chinnasamy, Y. Prabhakara Rao for the appearing parties,

D The Judgment of the Court was deHvered by ~

D.K. JAIN; J. 1. This bateh of appeals arises from the final. judgment and order dated 7th June, 1999 rendered by the High Court of Himachal Pradesh at Shimla in twenty Regular First

E Appeals as also final judgment and order dated 14th August, 2003 delivered by the said High Court in twelve cognate Regular First Appeals wherein the former order has been relied upon. By the impugned order, while allowing the appeal preferred by the Himachal Pradesh Housing Board (hereinafter referred to as "the Housing Board"), the High Court has reduced F the amount of compensation awarded by the District Judge in Reference under Section 18 of the Land Acquisition Act, 1894 (for short "the Act").

2. Material facts common to all the appeals and relevant

G for the purpose of disposal of these appeals, are as follows:

The State of Himachal Pradesh, respondent No.2 in Civil + Appeal No.22.13 of 2001, intended to acquire land of the appellants at Shoghi, about 12 K.M. from the capital of the ..

A- State at Shimla, for construction of a Housing Board Colony.

A Accordingly, a Notification under Section 4 of the Act was

\ issued and published in the Himachal Pradesh Gazette on 6th _.

November, 1990. The quality of the lands involved in the acquisition fell in different categories. The Land Acquisition -Collector, respondent No.3 herein, by his Award dated 3rd B August, 1994 assessed the market value of the acquired land and announced his Award by which compensation at the rate of Rs.32,073/- per Bigha in respect of Bakhal Awai, Rs.24,288/

- per Bigha for Bakhal Doem and Rs.7,785/- per Bigha for Ghasani Banjar Kadeem was awarded to the appellantsc landowners.

3. Not being satisfied, the appellants filed Reference Applications before the District Judge under Section 18 of the

,., Act claiming compensation at Rs.22,00,000/- per Bigha, inter D ' - alia, on the ground that the market value of the acquired land was much more than what was awarded by respondent No.3.

Vide his order dated 22nd June, 1996, the District Judge found the evidence adduced by the appellants (Exts. PW2/B and PW2/A) to be reliable. However, he found the exemplars filed by the Housing Board (RW3/A and RX), to be irrelevant for E ascertaining the market value of the lands. Accordingly, he

),_ determined the market value of the acquired land at Rs.2 lakh • per Bigha for all kinds of lands irrespective of their quality and classification. In addition thereto, the District Judge awarded Statutory interest and solatium to the appellants. Similarly, vide F his order dated 22nd March, 1997, the District Judge again found the evidence adduced by the appellants in the form of two sale deeds to be reliable. Accordingly, relying on his earlier order dated 22nd June, 1996 (Ex.PZ), he awarded the same compensation to the appellants.

4. Being aggrieved with the amount of compensation determined by the District Judge, the Housing Board preferred Regular First Appeals to the High Court under Section 54 of the Act, praying for setting aside the judgments of the District H

170 SUPREME COURT REPORTS [2009] 14 (ADDl!..) S.C.R.

A Judge dated 22nd June, 1996 and 22nd March, 1997. The _)... challenge to thesaid judgments was on diverse grounds, including that the two sale deeds relied upon by the District ' Judge pertained to two very small pieces of land having a double storied shop; one sale instance was in respect of one B biswa of land sold four months after Notification under Section 4 in the present case; the evidence of Gursaran, one of the claimants, who had appeared to prove the sale deed in respect of the land with a double storied shop lacked truthfulness and l

in some references the compensation awarded was in excess c of the land owned by the claimants.

5. Vide order dated 7th June, 1999, the High Court accepted the appeals filed by the Housing Board. Relying on the decisions of this Court in Special Tehsildar Land Acquisition, Vishakapatnam vs. A. Mangala Gowri (Smt.)1, "' D "' Special Deputy Collector & Anr. vs. Kurra Sambasiva Rao & "- Ors. 2 and Manipur Tea Co. Pvt. Ltd. vs. Collector of Hailakand1"3, wherein broad parameters, to be kept in view while determining the market value of the la_nd acquired for public purpose have been laid down, the High Court concluded E that as compared to H1~ sale instances relied upon by the appellants viz., Ext. PW2/B and Ext. PW2/A, the sale deeds filed by the Housing Board viz., RW3A (again marked as 1- / RWSA), RW4A and RX were relevant exemplars for .... ascertaining the market valueof the land in question. The High '\

F Court observed as follows:

" ... we find on record in these cases that there are only three relevant sale deeds which are marked Exhibits PW2/A, PW2/B, RX and RY. Sale deed Ex.PW2/B is

G dated 22.1.1990 in respect of which vendee PW-Gursaran (RW5) has been examined by both the parties who is also one of the claimants in the claim petitions. He purchased r-

(1991) 4 sec 218: AIR 1992 SC 666.

(1997) s sec 41.

H 3.

(1997) 9 sec 673.

A. 2 biswas of land from Piara Singh on 22.1.1990 for a A consideration of Rs.99,500/-. On this land there was a _.. double storeyed shop. This witness also purchased another piece of 0-1 biswas of land through sale deed Ex.PW2/A, for a consideration of Rs.30,000/- from Satish Balooni and the value of this land comes to Rs.6 lacs per B bigha. The second sale deed was executed after notification issued on 6.11.1990 and, therefore, the market

} value of that sale deed cannot be taken into consideration for determination of the acquired land. The three sale deeds relied upon by the appellant-Board are marked RX, c RW3/A, again marked RW5/A and RY (RW4/A) pertaining to the year 1988-89 in respect of sale and purchase of the land in Shoghi Bazar by the vendors and vendees. To prove sale deed Ex.RW3/A (RW5/A) RW-Gursaran was

__I >- examined (who appeared as his own witness in the claim D -----...

petition), the vendee purchased 1-0 bigha of land in the year 1988-89 for a consideration of Rs.11,000/- from one Ranjit Lal. One Shiv Ram sold 0-12 biswas of land to PW- Sanjiv Goel and his brother Ajay Kumar in the year 1988- 89 for a consideration of Rs.48,000/- and the said land E was purchased by vendee for the purpose of setting up of

\.. steel industries. PW-Prem Kumar purchased two biswas of land from Vishwa Nath for a consideration of Rs.48,000/ • -, copy of which was marked Ext. RX and again RW4/A. . From the perusal of these sale deeds it is clear that they pertain to 1-1 /2 or 2 years prior to the issue of notification F

under Section 4 of the Act. The duty of the court is to keep at the back of its mind that the object of assessment is to arrive at reasonable and adequate market value of the land and in that process, though some guesswork is involved, and mechanical assessment of the evidence should be G

-.+ avoided."

6. lnter-alia,. observing that there is sufficient oral and documentary evidence on record to determine the fair, reasonable and adequate market value of the acquired land, H

"' A the High Court finally determined the market value of the land .)... as under: ' .._

"The value of the land purchased by the three vendees, namely, Prem Kumar, Gursaran and Sanjiv Goel

B who are also claimants in some of the claim petitions and the prices ofthe lands purchased by them about 1-1/2 or 2 years prior to the acquisition of the land involved in the present cases after calculation and divided by three would --{_

come to Rs.1,03,667/- per big ha. Applying the guesswork c of the escalation of the price between the year 1988-89 on 6.11 ~1990, we determine the market value of the acquired lands on the basis of these sale deeds at Rs.1,50,000 per big ha."

Thus, according to the High Court, the market value of the ·;( - D acquired lands as on the date of issue of Notification under Section 4 of the Act was Rs.1,50,000/- per Bigha. Having so determined the market value of the acquired land, the Court noted the evidence of Mr. A.K. Gupta, Assistant Architect (RW4) wherein he had deposed that only 41.4% of the total area

E was being used for cont:-uction and the remaining area was to be used for services like roads, pathways, green spaces etc.

On the basis of the said evidence, the High Court made a :) . ' deduction of 40% from the market value of the land determined "":' by it at Rs.1,50,000/- per Bigha. Thus, the compensation r- F payable to the land owners for the land acquired was determined at Rs.90,000/- per Bigha. The compensation awarded by the District Judge was accordingly modified to that extent, maintaining solatium and Statutory interest awarded by him. The High Court also noticed certain discrepancies in the

G judgment of the Reference Court in granting compensation for lands in excess of what were actually owned by the claimants. "'t- Aggrieved by the said judgments, the appellants-landowners are before us in these appeals.

7. Learned counsel appearing on behalf of the appellants, H

CHARAN DASS (DEAD) BY L.RS. v. H.P. HOUSING AND 173

URBAN DEVELOPMENT._A.UTHORITY [D.K. JAIN, J.]

Aled by Mr. Atul Sharma, challenged the finding of the High Court A that the exemplars/sale instances filed by the appellants and relied upon by the District Judge were not relevant for ascertaining the market value of the subject lands. It was argued that since Ext. RX, adduced by way of evidence by the Housing Board, was not proved, the High Court committed a patent B illegality in relying on the same. Placing reliance on the decisions of this Court in Smt. Tribeni Devi & Ors. vs. ,. Collector of Ranchi & Vice Versa 4 and Bhagwathula

Samanna & Ors. vs. Special Tahsildar & Land Acquisition Officer, Visakhapatnam Municipality, Visakhapatnam 5 , c learned counsel contended that the High Court failed to apply correct principles for reducing the market value ofthe land by 40% on account of non-availability of the land for construction, of houses. It was asserted that the basis of deduction being -y the end use of the land and not the nature of the land or the D comparable land, there should have been no deduction from the market value of the land determined by the High Court.

8. Per contra, learned counsel appearing on behalf of the Housing Board, supported the view taken by the High Court.

Controverting the stand of the appellants that sale deed (RX) E could not be relied upon as the same had not been proved by .._the Housing Board, learned counsel submitted that in the light of Section 51 A of the Act, a certified copy of the sale deed (RX), registered under the Registration Act, 1908 could be accepted as evidence of the transaction recorded therein and, F therefore, the High Court did not commit any illegality in placing

reliance on it. Learned counsel also contended that the High Court was justified in making deduction at the rate of 40% by applying the principles of law laid down by this Court in Viluben Jha/ejar Contractor (Dead) by LRs. vs. State of Gujaraf.6, Atma G -4Singh (Dead) through LRs. & Ors. vs. State of Haryana &

(1972) 1 sec 480.

(1991) 4 sec 506.

(2005) 4 sec 789 .

' '

.174

SUPREME COURT REPORTS (2099] 14 (ADDL.) S.C.R. • A Anr. 7 and Shim/a Development Authority & Ors. vs. Santosh

_J..

Sharma (Smt) & Anr. 8•

9. Before we enter into the merits of th~ rival contentions, we may notice a few broad principles to .be kept in view while

8 ascertaining the market value of the land for the purpose of determining the amount of compensation payable on acquisition of land for a public purpose.

.....

10. Section 15 of the Act mandates that in determining the amount of compensation, the Collector shall be guided by the c provisions contained in Sections 23 and 24 of the Act. Section 23 provides that in determining the amount of compensation to be awarded for the land acquired under the Act, the Court shall, inter alia, take into consideration the market value of the land at the date of the publication of the Notification under D Section 4 of the Act. The Section contains the list of positive factors and Section 24 has a list of negatives, vis-a-vis the land under acquisition, to be taken into consideration while determining the amount of compensation. As already noted, the first step being the determination of the market value of the land E on the date of publication of Notification under sub-Section (1) of Section 4 of the Act. One of the principles for determination of the market value of the acquired land would be the price that _,(

a willing purchaser wo•1ld be willing to pay if it is sold in the open ~

market at the time of issue of Notification under Section 4 of F the Act. But finding direct evidence in this behalf is not an easy task and, therefore, the Court has to take recourse to other known methods for arriving at the market value of the land acquired. One of the preferred and well accepted methods adopted for ascertaining the market value of the land in -G acquisition cases is the sale transactions on or about the date of issue of Notification under Section 4 of the Act. But here +- again finding a transaction of sale on or a few days before the said Notification is not an easy exercise. In the absence of

(2008) 2 sec 568.

H 8.

(1997) 2 sec 637.

j._ such evidence contemporaneous transactions in respect of the A lands, which have similar advantages and disadvantages is considered as a good piece of evidence for determining the

< market value of the acquired land. It needs little emphasis that the contemporaneous transactions or the comparable sales have to be in respect of lands which are contiguous to the B acquired land and are similar in nature and potentiality. Again,

,4 in the absence of sale deeds, the judgments and awards passed in respect of acquisition of lands, made in the same village and/or neighbouring villages can be accepted as valid piece of evidence and provide a sound basis to work out the c market value of the land after suitable adjustments with regard to positive and negative factors enumerated in Sections 23 and 24 of the Act. Undoubtedly, an element of some guess work is involved in the entire exercise, yet the authority charged with y

( the duty to award compensation is bound to make an estimate D judged by an objective standard.

11. In Shaji Kuriakose & Anr. vs. Indian Oil Corporation Ltd. & Ors.9 , this Court has observed as under:

"It is no doubt true that courts adopt comparable sales E method of valuation of land while fixing the market value )... of the acquired land. While fixing the market value of the acquired land, comparable sales method of valuation is preferred than other methods of valuation of land such as capitalisation of net income method or expert opinion F method. Comparable sales method of valuation is preferred because it furnishes the evidence for determination of the market value of the acquired land at which a willing purchaser would pay for the acquired land if it had been sold in the open market at the time of issue G -+ of notification under Section 4 of the Act. However, comparable sales method of valuation of land for fixing the market value of the acquired land is not always conclusive.

There are certain factors which are required to be fulfilled

9. c2001) 7 sec 650. .H

A and on fulfilment of those factors the compensation can be ....i.. awarded, according to the value of the land reflected in the sales. The factors laid down inter alia are: (1) the sale must ..

be a genuine transaction, (2) that the sale deed must have been executed at the time proximate to the date of issue B of notification under Section 4 of the Act, (3) that the land covered by the sale must be in the vicinity of the acquired land, (4) that the land covered by the sales must be similar to the acquired land and (5) that the size of plot of the land covered by the sales be comparable to the land acquired. c If all these factors are satisfied, then there is no reason why the sale value of the land covered by the sales be not given for the acquired land. However, if there is dissimilarity in regard to locality, shape, site or nature of land between land covered by sales and land acquired, it is open to the

D court to proportionately reduce the compensation for acquired land than what is reflected in the sales depending upon the disadvantages attached with the acquired land". >--

12. Yet again in Viluben Jhalejar Contractor (supra), making reference to a number of cases on the point, it was E observed as follows:

"18. One of the principles for determination of the amount -" of compensatio,., for acquisition of land would be the willingness of an informed buyer to offer the price therefor.

F It is beyond any cavil that the price of the land which a willing and informed buyer would offer would be different in the cases where the owner is in possession and enjoyment of the property and in the cases where he is not. •

19. Market value is ordinarily the price the property may \ G fetch in the open market if sold by a willing seller

unaffected by the special needs of. a particular purchase. r-

Where definite material is not forthcoming either in the shape of sales of similar lands in the neighbourhood at or about the date of notification under Section 4(1) or H otherwise, other sale instances as well as other evidences

~ .). have to be considered.

20. The amount of compensation cannot be ascertained with mathematical accuracy. A comparable instance has to be identified having regard to the proximity from time angle as well as proximity from situation angle. For determining the market value of the land under acquisition, B

suitable adjustment has to be made having regard to

,)._ various positive and negative factors vis-a-vis the land under acquisition by placing the two in juxtaposition. The positive and negative factors are as uder: c --------------------

Positive factors Negative Factors ----- ------- .,._ D

(i) smallness of size

(i) largeness of area

(ii) proximity to a road

(ii) situation in the interior at a distance from the road E

)..

(iii) frontage on a road

(iii) narrow strip of land

( with very small frontage 4

compared to depth

(iv) nearness to developed

(v) lower level requiring F . area the depressed ·, portion to be filled up

(v) regular shape

(v) remoteness from developed locality G

--1

(vi) level vis-a-vis land under

(vi) some special acquisition disadvantageous factors which would deter a purchaser H

~ A

(vii) special value for an owner -.l ,,

of an adjoining property to

whom it may have some very

special advantage".

13. Thus, comparable sales instances of similar lands inth~ neighbourhood at or about the date of Notification under Section 4(1) of the Act are considered to be the best evidence for determining the market value of the acquired land to arrive

...!._

at a fair estimate of the amount of compensation payable to a c land owner. Nevertheless, while ascertaining compensation, it is the duty of the Court to see that the compensation so determined is just and fair not only to the individual whose property has been acquired but also to the public which is to pay for it. ..

~ D

14. Before examining the correctness of the cases at hand,

----{

in the light of the legal principles enumerated above, it would also be appropriate to keep in view the scope of interference F by this Court in an award granting compensation. It is trite that

the scope of interference in such matters is very limited and it J-

E is only in cases where it is found that the authorities below,

including the High Court, have either applied wrong principles or have omitted to take into consideration the relevant factors -~ affecting valuation, that this Court ould interfere.

!"---

15. The scope of interference by this Court was delineated by this Court in Thakur Kamta Prasad Singh (Dead) by LRs. r

vs. State of Bihar10 wherein it was held that ther~ is an element

of guesswork inherent in most cases involving determination of the market value of the acquired land. If the judgment of the

G High Court reveals that it has taken into consideration the t relevant factors prescribed by the Act, in appeal under Article 133 of the Constitution of India, its assessment of the fair market

value of the acquired land should not be disturbed. t- "

16. The following observations of this Court in Food

H 10. (1976) 3 sec 112.

~ Corporation of India through its District Manager, Faridkot, A Punjab & Ors. vs. Makhan Singh & Anr. 11 are quite apposite:

"This Court as the last Court of appeal, will ordinarily not interfere in an award granting compensation unless there is something to show not merely that on the balance of B evidence it is possible to reach a different conclusion, but that the judgment cannot be supported by reason of a wrong application of principle or because some important point affecting valuation has been overlooked or misapplied. Besides, generally speaking, th~ appellate c court interferes not when the judgment under appeal is not right but only when it is shown to be wrong."

17. Bearing these principles in mind, we may now advert ,. to the facts of the present case. As noted earlier, in the instant r cases the Reference Court had relied on Exh. PW2/A and D PW2/B to determine the market value of the land. Being the Court of First Appeal, the High Court re-evaluated the entire evidence and found that Exh. RW4/A, RW3/A and sale deed marked RX in respect of pieces of the land purchased by Prem Kumar, Gursaran Singh, Sanjiv Goel who were also claimants E in some of the cases, were the best pieces of evidence to

)... ascertain the market value of the acquired lands. Accordingly, ..... taking the same as the base and applying the formula of '

averages, the High Court enhanced the said average amount on account of escalation of the prices between the year 1980- F 89 as on 6th November, 1990, and determined the market value of the acquired land at Rs.1,50,000/- per Bigha. During the course of hearing we required counsel for the Housing Board to place before us the site plan showing the actual location of the subject lands and the location of the plots, in G respect whereof, the sale-deeds were filed by the Housing Board as well as the land owners. Having bestowed our anxious consideration to the lay out plan vis-a-vis the land in question and bearing in mind the location of the land, subject-matter of

17. (1992) 3 sec 67.

A the said sale-deeds, we find it difficult to hold that the exemplars relied upon by the High Court are.irre_levant for determining the 'market value of the acquired lands. W_e are in agreement with the High Court that the location and the date of sale in the cases, relied upon by the High Court, were relevant for determining the B market value of the acquired land. Having carefully examined the relevant evidence, we are convinced that there is no legal or factual infirmity in the approach of the High Court in ascertaining the.maret value of the lands as.might induce us to interfere with finding of the High Court on that account. As c noted above, unless some glaring infirmity is shown in the assessment of evidence by the High Court, this Court would ordinarily be slow in interfering with the approach of the High Court in that behalf.

18. The next question which now survives for consideration D is whether .the deduction of 40% from the market value determined by the High Court. towards development charges for laying roads etc., is justified?

19. It is well settled that it is not in every case that E deduction towards development charges has to be made when a big chunk of land is acquired for housing_ colonies etc. Where the acquired land falls in the midst of an already developed land with amenities of roads, electricity etc. deduction on this account may not be warranted. At the same time, Vi.{here all civic F and other amenities are to be provided to make it suitable for

building purposes or under the local building regulations setting apart of some portion of the lands for providing common facilities is mandatory, an appropriate deduction may be justified. ·

G 20.

In Special Tehsildar Land Acquisition, Vishakapatnam (supra}, following Tribeni Devi's case (supra}, this Court had observed as under:

"It is to be noted that in building regulations, setting apart H the lands for development of roads, drainage and other

CHARAN DASS (DEAD) BYL.RS. v. H.P. HOUSINGAND181

I I

URBAN DEVELOPMENT AUTHORITY [D.K. JAIN, J.]

4-- amenities like electricity etc. are condition precedent to A \

( approve layout for building colonies. Therefore, based ...

upon the situation of the land and the need for development the deduction shall be made. Where acquired land is in the midst of already developed land with amenities of roads, drainage, ellfctricity etc. then deduction of 1/3 would B not be justified. In the rural areas housing schemes relating to weaker sections deduction of 1/4 may be justified."

.J_ f

21. In the light of the afore-noted parameters, we are of the view that in the instant case having regard to the relevant c facts and circumstances of the case, including the location of

~ the acquired land, a deduction of 30% towards development charges from the market value of land as arrived by the High I

Court, would meet the ends of justice. Accordingly, we hold that the market value of the land for the purpose of payment of '

)-: compensation to the land owners in all these appeals is to be D

asse_ssed at Rs.1,05,000/- per Bigha.

22. In the result, the appeals are partly allowed. The appellants shall be entitled to compensation at Rs.1,05,000/- per Bigha. Besides, they will also be entitled to Statutory E amounts in terms of Section 23(1A) of the Act; solatium at 30%

).... on the market value of the land in accordance with Section .._. 23(2) of the Act and interest as stipulated in Section 28 of the Act.

23. There will, however, be no order as to costs.

D.G.

Appeals partly allowed.