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BHULE RAM versus UNION OF INDIA & ANR.

Citation: [2014] 4 S.C.R. 247 · Decided: 28-03-2014 · Supreme Court of India · Bench: B.S. CHAUHAN, JASTI CHELAMESWAR · Disposal: Dismissed

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Judgment (excerpt)

[2014) 4 S.C.R. 247 
BHULE RAM 
v. 
UNION OF INDIA & ANR. 
(Civil Appeal No. 6251 of 2010) 
MARCH 28, 2014 
[DR. B.S. CHAUHAN AND J. CHELAMESWAR, JJ.] 
LAND ACQUISITION ACT, 1894: 
A 
B 
s. 23 - Acquisition of large tract of land - Compensation c 
- Belting method - Held: Market value of land acquired is to 
be assessed keeping in mind the limitation prescribed u/s 23, 
which mandates that the market value of the land is to be 
assessed at the time of notification uls 4 -- Therefore, value 
which has to be assessed is the value to the owner who parts 
0 
with his property and not the value to the new owner who takes 
it over -- Fair and reasonable compensation means the price 
of a willing buyer which is to be paid to the willing seller -
Where huge tract of land has been acquired, belting system 
may be applied 
ss. 9 and 23 - Acquisition -'of land - Claim for higher 
compensation - Held: Burden of proof lies on land owner to 
prove inadequacy of market value fixed for land acquired -
E 
In the instant case, appellant has not put on record as to what 
was his claim u/s. 9 and the award was made relying upon 
F 
some other award - Before High Court, appellant relied upon 
solely another judgment relating to land of same village and 
High Court awarded compensation as per demand of 
appellant - Reference court had already held appellant's land 
as non-comparable with other lands - There is no reason to 
G 
interfere. 
The appellant filed the instant appeal claiming 
compensation at the rate of Rs. 10, 00,000/- per acre for 
247 
H 
248 
SUPREME COURT REPORTS 
[2014] 4 S.C.R. 
A his land acquired under the Land Acquisition Act, 1894. 
The award u/s 11 of the Act was made on 6.6.1994 
assessing the market value of the land of the appellant 
@ Rs.4, 65,000/- per acre. The reference court enhanced 
the compensation assessing the market value of the land 
B @ Rs.5, 99,850/- per acre with other statutory benefits. On 
appeal, the High Court further enhanced the 
compensation assessing the market value of the land @ 
Rs.6, 51,000/- per acre placing reliance on other 
judgments. 
c 
Dismissing the appeal, the Court 
HELD: 1.1 The law can be summarised to the effect 
that the market value of the land is to be assessed 
keeping in mind the limitation prescribed in certain 
D exceptional circumstances u/s 23 of the Land Acquisition 
Act, 1894. Section 23 mandates that the market value of 
the land is to be assessed at the time of notification under 
Section 4 of the Act. Therefore, value which has to be 
assessed is the value to the owner who parts with his 
E property and not the value to the new owner who takes 
it over. Fair and reasonable compensation means the 
price of a willing buyer which is to be paid to the willing 
seller. A guess work, though allowed, is permissible only 
to a limited extent. The market value of the land is to be 
F determined taking into consideration geographical 
situation/location of the land alongwith the advantages/ 
disadvantages i.e. distance from Highway or a road 
situated within a developed area etc. In urban area even 
a small distance makes a considerable difference in the 
price of land. However, the court should not take into 
G consideration the use for which the land is sought to be 
acquired and its remote potential value in future. In 
arriving at the market value, it is the duty of the party to 
lead evidence in support of its case, in absence of which 
the court is not under a legal obligation to determine the 
H 
BHULE RAM v. UNION OF INDIA & ANR. 
249 
market value merely as per the prayer of the claimant. 
A 
[para 7 and 15] [254-C, E-G; 257-F-H; 258-A] 
Raja Vyricheria Narayana Gajapatraju Bahadur Garu v. 
Revenue Divisional Officer, Vizianagaram, AIR 1939 PC 98; 
and Adusumilli Gopalkrishna v. Sp/ Deputy Collector (Land 
8 
Acquisition), AIR 1980 SC 1870; Viluben Jhalejar Contractor ยท 
v. State of Gujarat, 2005 (3) SCR 542 =AIR 2005 SC 2214; 
Executive Engineer, Karnataka Housing Board v. Land 
Acquisition Officer & Ors., 2011 (1) SCR 600 = AIR 2011 SC 
781; Bilkis & Ors. v. State of Maharashtra & Ors., 2011 (4) 
C 
SCR 733 = (2011) 12 SCC 646 and Sabhia Mohammed 
Yusuf Abdul Hamid Mui/a v. Special Land Acquisition Officer 
& Ors., AIR 2012 SC 2709 - relied on. 
Thakur Kamta Prasad Singh v. State of Bihar, 1976 ( 3 ) 
SCR 585 = AIR 1976 SC 2219; Special Land Acquisition 
D 
Officer v. Karigowda & Ors., 2010 (5) SCR 164 =AIR 2010 
SC 2322; and Charan Das & e~c. etc. v. H.P. H

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