LexCHAKAS versus STATE OF PUNJAB & ORS.
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A. B [2011) 10 S.C.R. 618 CHAKAS v. STATE OF PUNJAB & ORS. (Civil Appeal No. 7258 of 2011) AUGUST 24, 2011 [DALVEER BHANDARI AND DEEPAK VERMA, JJ.] LAND ACQUISITION ACT, 1894: c s.23 - Compensation for the land acquired - Computation of - Base price - Comparable sale deed - Held: Market value has to be assessed as at the time of s.4 notification - Appropriate sale deed would be Ext. PB as it is touching the issuance of s.4 notification and is for more than 0 20 bighas of land - Further, tax department granted a clearance certificate with regard to it - It is a genuine and bona fide transaction - As per this sale deed the base price of the land acquired is fixed at Rs. 4,08,0001- per acre. s.23 - Market value of land acquired - Deductions - E Held: The land was reserved for industrial purposes and 80- 85 industries are already located in the adjoining area - The bulk of the land has been given to the allottee-beneficiary for setting up its own industry and other infrastructure thereon - Thus, the land likely to be used towards the roads, sewage F and other such facilities would be minimum as most of the vacant land would be utilized by the allottee for its own benefits - Therefore, a deduction of 10% from the base price would be reasonable - Reference court directed to calculate the amount of compensation accordingly and pay the same to the G appellants and all such other land owners whose lands have been acquired - Appeal - Benefit extended to similarly situated non-appellants also. The State Government-respondent No. 1 in CA No. H 618 CHAKAS v. STATE OF PUNJAB & ORS. 619 7258 of 2011, for the purposes of setting up of an A Industrial Focal Point, issued a notification u/s 4 of the Land Acquisition Act, 1894 on 13.11.1992 for acquiring 550.03 acres of lands of four villages. The Land Acquisition Officer pronounced the award fixing different rates for the lands of four villages. However, the reference 8 court held that the land owners of all the four villages were entitled to receive compensation at a uniform rate of Rs. 1.5 lakhs per acre. The Single Judge of the High Court enhanced the compensation to Rs.2.75 lakhs per acre. Both the land owners and the beneficiary- C respondent no. 3, filed the appeals. The question for consideration before the court was: what would be proper, adequate, just and reasonable compensation to be awarded to the land owners for the land acquired by the respondent State? D Allowing the appeals filed by the land owners and dismissing those filed by the beneficiary, the Court HELD: 1.1 From the evidence of P.W 31, Patwari of Halqa of all the four villages, it is clearly made out that all E these villages are adjoining each other and form a compact block. He has further admitted that more than 80 to 85 industries near and adjoining the acquired land are already running and doing their business since long. The area acquired has been reserved for industrial purposes. He has further deposed that if the land had not been acquired, many factories would have sprung up in F the acquired land. His evidence is corroborated by other government officials, who had appeared before the reference court. It is also not in dispute that the said land G is situated on the Ambala-Chandigarh Highway. From the evidence adduced by respondent Nos. 1 and 2, it cannot be disputed that it was a valuable land for the land owners and it had great potential. Obviously, in 1992, the H 620 SUPREME COURT REPORTS [2011) 10 S.C.R. A market value of the same, at the time of issuance of notification u/s 4 of the Act, would be much more than what has been awarded to them by the impugned judgment. [para 12-13) [626-B-F] 1.2 The appellant, to prove his case with regard to 8 market value of the land, had produced many sale deeds, but the most appropriate sale deed touching the issuance of notification u/s 4 is Ext.P .8. The said land is with regard to the land almost abutting the acquired land. The total area of the land so purchased was 20 Bighas C and 8 biswas. Before execution of the sale deed, an Agreement to Sell dated 30.10.1992 (Ext. P .45) was executed between the vendor and the vendee which was very close to the s.4 notification dated 13.11.1992 in the instant case. The said land is almost abutting the D acquired land. As required under the law, permission was sought from the Income Tax Department which granted a Clearance Certi
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