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AHSANUL HODA versus STATE OF BIHAR

Citation: [2013] 8 S.C.R. 312 · Decided: 01-07-2013 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
[2013] 8 S.C.R. 312 
AHSANUL HODA 
v. 
STATE OF BIHAR 
(Civil Appeal No.5311 of 2012) 
JULY 1, 2013 
[G.S. SINGHVI AND SUDHANSU JYOTI 
MUKHOPADHAYA, JJ.] 
Land Acquisition Act, 1894 - Acquisition of land -
C Compensation - High Court reduced compensation awarded 
to claimant-appellant, by fixing lower market rate of the land 
and set aside the part of the order passed by the Reference 
Court granting Rs.10,0001- towards damages of standing 
crops- Justification -
Held: On facts, not justified -
D Determination of market value by High Court was not based 
on any evidence but on mere presumption and surmises -
High Court set aside compensation towards damages of 
standing crops by wrongly placing reliance on the statement 
of an Officer of the State (OP-W-1 ), who was posted elsewhere 
E at the time of acquisition of the land - Order passed by the 
High Court set aside and the award passed by the Reference 
Court restored. 
The High Court, vide the impugned order, reduced 
the compensation awarded to the claimant-appellant, by 
F fixing lower market rate of the land and set aside the part 
of the order passed by the Reference Court granting 
Rs.10,000/- towards damages of standing crops. 
The appellant challenged the judgment passed by 
G the High Court on the grounds: (i) determination of market 
value was not based on any evidence but on mere 
presumption and surmises; and (ii) that the High Court 
wrongly relied on the statement of OP-W-1, who was 
posted elsewhere at the time of acquisition of the land. 
H 
312 
AHSANUL HODA v. STATE OF BIHAR 
313 
Allowing the appeal, the Court 
HELD: 1. This Court in number of cases has taken 
judicial notice of the fact that there is a steady increase 
in the market value of the land and has also adopted the 
procedure for determining the increased market value 
and relied upon the transaction at a given rate per year. 
[Para 16] [319-C] 
General Manager, Oil and Natural Gas Corporation 
Limited vs. Rameshbhai Jilvanbhai Patel and Another (2008) 
A 
B 
14 SCC 745: 2008 (11) SCR 927; SardarJoginderSingh vs. 
C 
State of Uttar Pradesh and Another (2008) 17 SCC 133 -
relied on 
2. Mere reliance made by a Court on sale deeds of 
smaller residential area for determination of market value 
0 
of larger agricultural area will not render the 
determination illegal until and unless it is shown that the 
determination was not proper. [Para 19] [320-D-EJ 
Haridwar Development Authority vs. Raghubir singh and 
Others (2010)11 SCC 581: 2010 (2) SCR 201 - relied on. 
E 
3. In the instant case, as the sale-deeds relied upon 
by the Reference Court (Ext.1 and Ext.11b) were in 
relation to smaller plots, deduction of 37% was made by 
the Reference Court and thereafter, by allowing 
appropriate 10% increase in the value of the land from 
the date of the sale deeds upto the date of Notification 
under Section 4 of the Act, the Reference Court arrived 
F 
at a figure of Rs.250/- per decimal. The High Court while 
arriving at figure of Rs. 100/- per decimal considered only 
G 
the fact that the sale deeds relied upon were in relation 
to smaller plots and those sale deeds(Ext.1 and Ext.1/b) 
were related to homestead land and hence fixed Rs. 
10,0001- per acre as compensation. It completely failed to 
consider the increase in price of land and the deduction 
H 
314 
SUPREME COURT REPORTS 
[2013] 8 S.C.R. 
A made by the High Court is nearly 75% which is not in 
accordance with law. As Ext.1 and Ext.1/b which were 
related to smaller area, were the only sale deeds available 
for comparison, the same were relied upon by the 
Reference Court, but the High Court erred completely in 
s disregarding the said sale-deeds and thus arrived at a 
finding of Rs.100/- per decimal as market value on mere 
presumption and surmises. The High Court also 
committed error in holding that the sale deeds (Ext.1 and 
Ext.1/b) relate to homestead land. No citation was found 
c in Ext.1 showing the land as homestead land. On the 
other hand Ext.1/b specifically cites that the land is an 
agricultural land for which the annual revenue rent of 
Rs.25 is payable. [Paras 20, 21] [320-F-H; 321-A-B, D-E] 
4. The High Court disregarded the evidence adduced 
D by the claimants in its entirety without any reason; 
however, it relied on evidence of an officer of the State 
(OP-W-1) and set aside the compensation in relation to 
the standing crops. The Reference Court has clearly 
recorded in its order that the said State Office

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