CHANDRASHEKAR (D) BY LRS. & ORS. versus LAND ACQUISITION OFFICER & ANR.

Citation: [2011] 15 S.C.R. 414 · Decided: 22-11-2011 · Supreme Court of India · Bench: RAJENDRA MAL LODHA · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
[2011] 15 (ADDL.) S.C.R. 414 
CHANDRASHEKAR (D) BY LRS. & ORS. 
v. 
LAND ACQUISITION OFFICER & ANR. 
(Civil Appeal No(s).1743 of 2006) 
NOVEMBER 22, 2011 
[R.M. LODHA AND JAGDISH SINGH KHEHAR, JJ.] 
Land Acquisition Act, 1894 - s.23 - Market value -
Assessment of - Acquired land, an un-irrigated, undeveloped 
C agricultural land admeasuring 144 acres - Assessment of 
market value, on basis of the exemplar sale transaction of a 
developed site measuring 2400 square feet and executed 
subsequent to the date of publication of preliminary 
notification -
Quantum of deductions to be applied -
D Determination of - High Court reduced the compensation 
awarded by the Reference Court from Rs. 1, 45, 0001- per acre 
to Rs. 65,0001- per acre, deducting 55 percent of the market 
value assessed on the basis of the exemplar sale deed, 
towards developmental charges, 5 percent towards waiting 
E period, and 10 percent towards de-escalation - On appeal 
held: It is essential to earmark appropriate deductions, out of 
the market value of an exemplar land, for each of the two 
components-viz. ·first component-for keeping aside area/space 
for providing developmental infrastructure and second 
F component-for developmental expenditure/expense - This 
would be the first step towards balancing the differential factors 
- The second step is to classify the nature of the exemplar 
land as also the acquired land referring to the development 
activities in connection with the first component as also 
G second component - Comparison of the classifications 
arrived, would depict the difference in terms of development, 
between the exemplar land and the acquired land, which 
would lead to the final step - In the final step, the absence 
and presence of developmental components, based on such 
H 
414 
CHANDRASHEKAR (D) BY LRS. v. LAND ACQUISITION 415 
OFFICER 
comparison, would constitute the basis for arriving at an 
A 
appropriate percentage of deduction, necessary to balance 
the differential factors between the exemplar land and the 
acquired land - Upper limit of permissible deduction is 75 per 
cent-Deduction upto 67 per cent i.e. deduction of 33113 per 
cent each can be made for the two components under the 
B 
head of development - Range of deductions other than the 
head development would depend on the facts and 
circumstances of each case - It may exceed 8 per cent but 
that would only be where deductions for development activities 
under head development is less than 67 per cent i.e. as long c 
as cumulative deductions do not cross the upper bench mark 
of 75 percent - High Courl limited deductions under the head 
of "development" to 55 percent, thus, does not call for 
interference - Deduction of 10 per cent under the head of 'de-
escalation' is appropriate specially when the period in 
0 
question exceeded 1year7 months and 17 days - Deduction 
of 5 per cent towards waiting period is upheld - Cumulatively 
these deductions would amount to 70 percent (55+10+5=70) 
which is within the parameters laid down by this Courl- Thus, 
there is no infirmity in the quantum to accumulated deductions 
E 
applied by the High Court - High Court awarded final 
compensation at the rate of Rs. 65,0001- per acre to the land 
losers relying on its own judgment in an earlier case which 
perlained to acquisition of land out of the same notification 
under which appellants' land was acquired - Consistency in 
the judicial determination is of utmost imporlance - Final 
F 
compensation determined by the High Courl at Rs.65,0001-
per acre, was fully justified, even for the land acquired from 
the revenue estate of the other village - City Improvement 
Trust Board Act, 1976 - s. 15(1). 
G 
Development Authority issued a preliminary 
Notification under Section 15(1) of the City Improvement 
Trust Board Act, 1976 for acquisition of land for raising a 
residential layout. After seven years final notification was 
issued and the land of the appellants falling in the 
H 
416 
SUPREME COURT REPORTS (2011) 15 (ADDL.) S.C.R. 
A revenue estate of village 8 and R were acquired. The 
Land Acquisition Officer passed an award. The market 
value for the village 8 was fixed at the rate of Rs. 4, 100/-
per acre and the market value for the village R was fixed 
at the rate of Rs. 13,500/- per acre respectively, as 
s compensation. Thereafte•, on a reference filed for 
enhancement of compensation, the compensation 
enhanced from Rs. 4,100/- per acre to Rs. 1,46,000/- per 

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