ATMA SINGH (DIED) THROUGH LRS. & ORS. versus STATE OF HARYANA & ANR

Citation: [2007] 12 S.C.R. 1120 · Decided: 07-12-2007 · Supreme Court of India · Bench: G.P. MATHUR · Disposal: Case Partly allowed

Cited by 7 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

\. 
A 
ATMA SINGH (DIED) THROUGH LRS. & ORS. 
,... 
v. 
STATE OF HARY ANA & ANR 
DECEMBER 7, 2007 
B 
[G.P. MATHUR AND D.K. JAIN, JJ.) 
Land Acquisition Act, 1894: 
c 
ss.4, 23(1-A) and 28-Acquisition of large tracts of land-For 
the purpose of setting up an industry-Market value-Ascertainment 
of-By placing reliance on exemplars of small pieces of land-
.. 
Deduction of 33%from the market value on the ground that exemplars 
forming basis for ascertainment of market value were of small pieces 
D of land-Propriety of-Held: Market value rightly assessed-Market 
value of small pieces of land can be used as a safe guide to determine 
the market value of large tracts of land when exemplars of large pieces 
of lands are not available-In the instant case, acquisition being/or 
the purpose of setting up an industry, the acquired land will contribute 
E to production of goods yielding good profit-Hence deduction of 10% 
from the market value would meet the ends of justice. 
Market value--Of land acquired-Ascertainment of-Guiding 
factors-Discussed 
F 
Words and Phrases- 'Market value '-Meaning of in the context 
•
of land acquisition. 
' 
A Notification u/s 4 of Land Acquisition Act, was issued for 
acquisition of the land of the appellants. The land was situated as 
one compact unit in four villages. The Land Acquisition Collector 
G gave an award on the basis of quality ofland, by dividing the acquired 
land in seven categories. The market value assessed varied from 
Rs. 6000/- to Rs. 35000/- per acre. On reference u/s 18, compensation 
was awarded at a flat rate of Rs. 43,000/- per acre by placing reliance 
on two instances of sale deeds (Ex R-6 and R-7). On appeal, High 
H 
1120 
i 
ATMASINGH(DIED)THROUGHLRS. v. STATE 
1121 
Court relying on the copies of sale deeds (Exbts P-7, 9 and 10) A 
pertaining to land which was subject matter of acquisition, held that 
the market value of the land acquired was Rs. 1,20,000/- per acre. 
It made a deduction of33% on the ground that the exemplars filed 
by the appellants were of small pieces. Besides, appellants were also 
held entitled to statutory sums u/s 23 (1-A), 23 (2) and 28 of the Act. B 
State's appeal was dismissed. Hence the present appeals by the 
Landowners. 
Partly allowing the appeal, the Court 
HELD: 1. The claimant-appellants will be entitled to C 
compensation at the rate of Rs.1,08,000/- per acre. Besides the 
above amount, they will also be entitled to the statutory sum in 
accordance with Section 23(1-A) and solatium at the rate of30% in 
accordance with Section 23(2) of the Act. They will also be entitled 
to interest as provided in Section 28 of the Act. 
D 
[Para 16] [1133-E, F) 
2. The market value is the price that a willing purchaser would 
pay to a willing seller for the property having due regard to its existing 
condition with all its existing advantages and its potential possibilities 
when led out in most advantageous manner excluding any advantage E 
due to carrying out of the scheme for which the property is 
compulsorily acquired. In considering market value, disinclination 
of the vendor to part with his land and the urgent necessity of the 
purchaser to buy should be disregarded. The guiding star would be 
the conduct of hypothetical willing vendor who would offer the land F 
and a purchaser in normal human conduct would be willing to buy as 
a prudent man in normal market conditions but not an anxious dealing 
at arms length nor facade of sale nor fictitious sale brought about in 
quick succession or otherwise to inflate the market value. The 
determination of market value is the prediction of an economic event G 
viz., a price outcome of hypothetical sale expressed in terms of 
probabilities. [Para 4) (1126-E, F, G] 
Thakur Kanta Prasad v. State of Bihar, AIR (1976) SC 2219; 
Prithvi Raj Taneja v. State of MP. AIR (1977) SC 1560; Administrator H 
1122 
SUPREME COURT REPORTS 
[2007] 12 S.C.R. 
A General of West Bengal v. Collector, Varanasi, AIR (1988) SC 943; 
and Periyar v. State of Kera/a, AIR (1990) SC 2192, referred to. 
3. For ascertaining the market value of the land, the potentiality 
of the acquired land should also be taken into consideration. 
B Potentiality means capacity or possibility for changing or developing 
into state of actuality. It is well settled that market value ofa property 
has to be determined having due regard to its existing condition with 
all its existing advantages and its potential possibility when led out 
in it

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