LexBHAG SINGH ETC. versus UNION OF INDIA & ANR.
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A B C D E F G H 144 SUPREME COURT REPORTS [2022] 3 S.C.R. [2022] 3 S.C.R. 144 144 BHAG SINGH ETC. v. UNION OF INDIA & ANR. (Civil Appeal Nos. 4070 - 4075 of 2012) MAY 05, 2022 [HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.] Land Acquisition Act, 1894 – ss.4, 6 and 18 – Acquisition of land (situated in village Sohana) vide notification in question dated 26-10-1990 – Compensation of Rs.4 lakhs per acre awarded by Reference Court, upheld by High Court – Challenge before Supreme Court – Relevance, if any, of subsequent notification dated 11-11- 1993, wherein compensation of Rs.8 lakhs per acre was awarded – Whether determination of market value subsequent to the notification in question would be relevant – Held: Though appreciation in price can be presumed, but the market value cannot be assessed by applying suitable deduction in the market value of the land acquired by a subsequent notification – When the later notification was issued, development activities had already been taken place in view of two earlier notifications – It was not the percentage of increase in the market value but increase due to development which had taken place on account of earlier notifications – Therefore, market value of the land in question cannot be based upon the land acquired vide notification dated 11-11-1993 and when there were other intervening notifications – Alternatively, if one examines market value of land acquired vide earlier notification dated 4-2-1981 in village Sohana (wherein compensation of Rs.1.25 lakhs per acre was awarded), after giving yearly increase of 10% per annum, even then the market value arrived at (corresponding to year 1990) would be Rs.2.94 lakhs per acre, which is not more than market value of Rs. 4 lakhs per acre determined by High Court – Reference Court had awarded compensation of Rs.4 lakhs per acre in respect of land situated in another village (Village Lakhnaur), which was also acquired vide same notification – Such determination was not appealed against either by the land owners or by the State – High Court rightly relied upon such determination to assess market value of land in question at Rs.4 lakhs per acre – No interference warranted. A B C D E F G H 145 Dismissing the appeals, the Court HELD: 1. It is an undisputed fact that there is no sale instance in respect of land situated in Village Sohana after the first notification dated 4.2.1981 till the notification in question dated 26.10.1990. Though, in respect of acquisition of land vide notification dated 11.11.1993, the compensation assessed is Rs.8 lakhs per acre which is more than two years later and in between, there is acquisition of land vide notification dated 25.7.1991. The question now is as to whether determination of market value subsequent to the notification would be relevant to determine the market value of the land acquired more than two years earlier. It is found that though appreciation in price can be presumed, but the market value cannot be assessed by applying suitable deduction in the market value of the land acquired by a subsequent notification. When the later notification is issued, the development activities had already been taken place in view of the earlier two notifications. Therefore, it is not the percentage of increase in the market value but increase due to the development which has taken place on account of earlier notifications. Therefore, market value of the land cannot be based upon the land acquired vide notification dated 11.11.1993 and when there were other notifications intervening on 26.10.1990 and 25.7.1991. [Para 14][149-E, G-H; 150-A-B] 2. Alternatively, even if one examines the market value of the land acquired vide notification dated 4.2.1981 in Village Sohana after giving yearly increase of 10% per annum, even then the market value arrived at (corresponding to the year 1990) is not more than market value determined by the High Court. [Paras 16, 17][150-C; 150-E] 3. The Reference Court has awarded compensation of Rs.4 lakhs per acre in respect of land situated in another village (Village Lakhnaur), acquired vide the same notification. Such determination has not been appealed against either by the land owners or by the State. The High Court has rightly relied upon such determination to assess the market value of the land at Rs.4 lakhs per acre. [Para 18][150-F-G] BHAG SINGH ETC. v. UNION OF INDIA & ANR. A B C D E F G H 146 SUPREME COURT REPORTS [2022] 3 S.C.R. CIVIL APPELLATE JURISDICTION : Civil Appeal N
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