A.S.KRISHNA AND CO. PVT. LTD. versus LAND ACQUISITION OFFICER (DEPUTY COLLECTOR) HYDERABAD

Citation: [1991] SUPP. 2 S.C.R. 375 · Decided: 19-11-1991 · Supreme Court of India · Bench: RANGANATH MISRA · Disposal: Dismissed
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Judgment (excerpt)

A.S.KRISHNA AND CO. PVT. LTD. 
V. 
LAND ACQUISITION OFFICER 
(DEPUTY COLLECTOR) HYDERABAD 
NOVEMBER 19, 1991 
[RANGANATH MISRA, CJ. ANDS.MOHAN, J.] 
Land Acquisition Act, 1894: 
S.4 (1) Compensation-Determination of-Deduction of Develop-
ment cost-Validity of 
Certain plots of land of the appellant were acquired by notifi-
cations dated 12.1.1978, 27.7.1978 and 14.6.1979, issued;l(nder s.4(1) 
of the Land Acquisition Act, 1894. The Land Acquisitfon Officer by 
an order dated 10.6.1982 fixed the market value at Rs. 42,000 .per 
acre with s per cent deduction towards development cost. 
In appellant's appeal the Civil Court fixed the m\lrket value at 
Rs.200 per sq. yard with a deduction of S per cent towards 'the 
development charges. 
On the appeal by the land acquisition o(licer, the High Court 
re-assessed the entire evidence and fixed . the market value at Rs.3 
lakh per acre holding that if a deduction of 20 per cent was allowed, 
the market value would come to Rs.2,40,000 per acre which worked 
out at Rs.SO per sq.yard, and accordingly set aside the judgment 
and decree, and determined the market value at Rs.SO per sq.yard. 
Dismissing the appeals of the appellant-daimant this Court, 
HELD: 1. In fixing the compensation, the High Court 
1did not 
go by the1percentage of ded~ction but kept in view the market value 
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of the land at the time of the notification under s.4(1) of_the Land G 
Acquisition Act, 1894. [p. 377 F) 
2. There was clear material and the High Court accepted it 
that price went up in the area after 1980. The notifications were 
within a range of a year or two from that time. Therefore, the 
valuation after 1980 was not the guideline. [ p. 377 F-G) 
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375 
376 
SUPREME COURT REPORTS 
[1991) SUPP. 2 S.C.R. 
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3. In the instant case, the Collector had adopted a deduction 
of five per cent. The referee Court adopted the deduction at 20 per 
cent and the High Court rejecting the claim of the Advocate Gen-
eral that deduction should be one-third put it at one-fifth. The High 
Court did not go by the percentage of deduction. The appropriate 
market value flied by the High Court per sq. yard was Rs 50 and if 
B 
a· 20 per cent deduction from out . of Rs.3 lakhs per acre was ac-
cepted, it worked that way. The finding of the High Court need not 
be disturbed. [p. 377 E-G] 
c 
CIVIL APPELLATE JUll}SDICTION: Civil Appeal Nos.4538-39 of 
1991. 
From the Judgment and Order dated 23 .3 .1990 of the Hyderabad 
High Court in C.C.A. Nos. 54 & 55 of 1987. 
Ashok K.Gupta for the Appellant. 
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Ms. Suruchi Agrawal and T.V.S.N.Chari for the Respondents. 
The Judgment of the Court was delivered by 
RANGANATH MISRA, CJ. Special leave granted. By notification 
dated 12th January, 1973, under Section 4(1) of the Land Acquisition Act, 
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1894 as modified. by Notification of 27th July, 1978, 26 acres and 26 
gunthas of land lOcated within the Hyderabad DistriCt was notified for 
acquisition for the Bhagyanagar Urban Development Authority. A similar 
notification was published on 14th June, 1979 for acquisition of two acres 
and 29 gunthas. The Land Acquisition Officer made his award for both the 
properties on I 0th June, 1982 fixing the market value at Rs. 42,000 per 
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acre with five per cent deduction towards development cost. Being dissat-
isfied with the awards passed by Land Acquisition Officer, a reference 
was sought and made under section 18 of the Act. The Claimants de-
manded compensation at the rate of Rs. 200 per square yard. The Civil 
Court fixed the market value at Rs.200 per sq.yd. as demanded but di-
rected deduction of 20 per cent towards development charges. The Land 
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Acquisition Officer carried appeals against the escalation of compensation 
and the present appellants preferred cross objections. The High Court re-
assessed the entire evidence and came to hold. 
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"Today the position of the acquired lands is altogether differ". 
ent. It is cominon knowledge that the prices started soaring 
high from 1980 onwards and this part of Hyderabad, namely, 
KRISHNA & CO. v. LAND ACQN. OFFICER [MISRA, CJ.] 
377 
Gaddiannaram started developing from 1980 and today it is 
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undoubtedly one of the important areas in Hyderabad. But we 
must consider the position as it stood in 1978 and 1979. Tak-
ing all the circumstances into account, we think it reasonable 
to fix the market value at Rs. 3 lakhs per acre. The Civil Court 
had given a deduction of 20 per cent towards development 
charges. 
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