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ANJANI MOLU DESSAI versus STATE OF GOA & ANR.

Citation: [2010] 14 S.C.R. 997 · Decided: 07-12-2010 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Case Partly allowed

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Judgment (excerpt)

[2010] 14 (ADDL.) S.C.R. 997 
ANJANI MOLU DESSAI 
v. 
.. 
A 
STATE OF GOA & ANR. 
(Civil Appeal No. 8042 of 2004) 
DECEMBER 7, 2010 
[R. V. RAVEENDRAN AND A.K. PATNAIK, JJ.] 
LAND ACQUISITION ACT, 1897: 
B 
ss. 23, 23-(1-A), 23(5) and 28 - Acquisition of land -
c 
Compensation - Comparable sale transactions - Averaging · 
method - Explained - Held: Legal position is that even where · 
there are several exemplars with reference to similar lands, 
usually the highest of the exemplars, which is a bona fide 
transaction, will be considered - Where, however, there are . 0 
several sales of similar lands whose prices range in a narrow 
bandwidth, the average thereof can be taken, as representing 
the market price - But where the values disclosed in respect 
of two sales are markedly different, it can only lead to an 
inference that they are with reference to dissimilar lands or . E 
that the lower value sale is on account of under-valuation or 
other price depressing reasons - Consequently, averaging 
can not be resorted to - In the instant case, the Land 
Acquisition Collector was not justified in averaging the sale 
prices under the two sale deeds, as the second sale deed was 
F 
not in regard to a comparable land and ought to have been 
excluded from consideration - As regards valuation of the 
land on the basis of the first sale deed, the Land Acquisition 
Collector rightly held the market price of the acquired land, 
at Rs. 43.80 per sq.m. - He also rightly allowed a cumulative 
increase of 14.5% per annum as the acquired lands were in 
G 
an urbanisable area with readily available structural facilities 
- Thus, the market value of the orchard lands would be Rs. 
57.50 per sq.m. and Rs. 51.50 per sq. m. for other irrigated 
997 
998 SUPREME COURT REPORTS [2010) 14 (ADDL.) S.C.R. 
A lands - Land owners shall also be entitled to additional 
amount u/s 23 (1A) at 12% per annum, solatium at 30% u/s 
23 (25) on the compensation amount and interest @ 9% per 
annum for one year and 15% thereafter till the date of deposit . 
u/s 28. 
B 
Land Acquisition· - Compensation - Valuation of land -
Deductions towards development costs - Land Acquisition 
Collector making a deduction of 45% towards development 
cost - Held: Not justified - It is well settled that deduction for 
development cost has to be made only where the value of a 
C small residential/commercial/industrial plot of land in a 
developed layout is made the basis for arriving at the market 
value of a nearly large tract of undeveloped agricultural iand 
- Where the lands sold under the relied upon sale deed and 
the acquired lands both are of similar nature (as in the instant 
D case where both are orchard lands) the question of making 
any deduction towards development cost to arrive at the cost 
of 'undeveloped land' would not arise. 
Sri Rai M. Vijayalakshmanna Rao Bahadur, Ranee of 
E Vuyyur Vs. The Collector of Madras, 1969 (1) MLJ 45; State 
of Punjab Vs. Hans Raj (1994) 5 SCC 734 - referred to. 
F 
Case Law Reference: 
1969 (1) MLJ 45 
(1994) 5 sec 734 
referred to 
referred to 
para 13 . 
para 13 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
8042 of 2004. 
G 
From the Judgment & rder dated 03.08.2004 of the High 
Court of Bombay at Goa in First Appeal No. 37 of 2001. 
· 
H 
Ohruv Mehta, Rajesh Kumar, Sarv Mitter, Sriram Krishna, 
Parikshit Singh Shekhawat (for Mitter & Co.) for the Petitioner. 
ANJANI MOLU DESSAI v. STATE OF GOA & ANR. 
999 
Pallav Shishodia, Sunaina Dutta, Nishtha Kumar, Suchitra A 
Ati.JI Chitale for the Respondents. 
The Order of the Court was delivered by 
R.V. RAVEENDRAN J. 1. An area of 3,65,375 sq.m. of 
land in Balli Village, Quepem Taluk, Goa was acquired for 
B 
laying the New Broad Gauge line for Konkan Railway in 
pursuance of preliminary notification dated 27.6.1991 
(published on 30.7.1991) and final declaration dated 4.11.1991. 
The acquisition included parts of survey Nos. 45/1, 45/5, 45/6, 
51/1 and 51/2 of Balli village measuring 60343 sq.m. (for short C 
the 'acquired lands') belonging to the appellant. The Land 
Acquisition Collector, by his Award dated 7.12.1993, awarded 
compensation at the rate of Rs.12/- per sq.m. for bharad . 
(orchard) lands and Rs.6/- per sq.m. for irrigated (paddy) lands. 
The Reference Court and the High Court affirmed the said 
Q 
· valuation by rejecting the reference and appeal by the 
appellant. The refusal to increase the compensation is under 
challenge in this appeal by special leave. Th

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