LexCHARAN DASS (DEAD) BY L.RS. versus H.P. HOUSING AND URBAN DEVELOPMENT AUTHORITY AND ORS.
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[2009) 14 (ADDL.) S.C.R. 163 ;... CHARAN DASS (DEAD) BY L.RS. A v. H.P. HOUSING AND URBAN DEVELOPMENT AUTHORITY AND ORS. (Civil Appeal No. 2213 of 2001) SEPTEMBER 7, 2009 - B [D.K. JAIN AND ASOK KUMAR GANGULY, JJ.] Land Acquisition Act, 1894: c - ss.23, 24 - Compensation - Market value of acquired land - Methodology of determination - Discussed - Interference of Court with the award of compensation - Scope of - Held: Is limited - It is only in cases where it is found that -<-- the authorities below, including High Court, either applied ' D wrong principles or omitted to consider relevant factors affecting valuation, that interference is warranted - On facts, there is no infirmity in approach of High Court in relying on location of land and sale deeds for enhancing market value , of acquired lands - No interference called for on that account. E Compensation for acquired land - Development charges - Deduction on account. of - Appropriate deduction -:- Determination of. In these appeals, appellant challenged the order of F High Court by which the amount of compensation awarded by the District Judge in reference under Section 18 of Land Acquisition Act was reduced. High Court held that the sale deeds filed by the respondent-Housing Board were relevant exemplars for ascertaining the G market value of the land in question. Having determined the market value of the acquired land, the Court noted the evidence of Assistant Architect (RW4) wherein he had deposed that only 41.4% of the total area was used for 163 H 164 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R. A construction and the remaining area was to be used for services like roads, pathways, green spaces etc. On the basis of the sa~d evidence, the High Court made a deduction of 40% from the market value of the land determined by it. Aggrieved appellants-landowners filed s these appeals. Partly allowing the appeals, the Court HELD: 1.1. Section 15 of the Land Acquisition Act mandates that in determining the amount of C compensation, the Collector shall be guided by the provisions contained in Sections 23 and 24 of the Act. Section 23 provides that in determining the amount of compensation to be awarded for the land acquired under the Act, the Court shall, inter alia, take ·into consideration D the market value of the land at the date of the publication of the Notification under Section 4 of the Act. The Section contains the Jist. of positive factors and Section 24 has a list of negatives, vis-a-vis the land under acquisition, to be taken into consideration while determining the amount E of compensation. One of the principles for determination of the market value of the acquired land would be the price that a willing purchaser would be willing to pay if it is sold in the open market at the time of issue of Notification under Section 4 of the Act. But finding direct F evidence in this behalf is not an easy task and, therefore, the Court has to take recourse to other known methods for arriving at the market value of the land acquired. One of the well accepted methods adopted for ascertaining the market value of the land in acquisition cases is the G sale transactions on or about the date of issue of Notification under Section 4 of the Act. But here again finding a transaction of sale on or a few days before the said Notification is not an easy exercise. In the absence of such evidence contemporaneous transactions in respect of the lands, which have similar advantages and H - + CHARAN DASS (DEAD) BY L.RS. v. H.P. HOUSING 165 AND URBAN DEVELOPMENT AUTHORITY • ~- disadvantages is considered as a good piece of evidence A , for determining the market value of the acquired land. It needs little emphasis that the contemporaneous transactions or the comparable sales have to· be in respect of lands which are contiguous to the acquired land and are similar in nature and potentiality. Again, in B the absence of sale deeds, the judgments and awards passed in respect of acquisition of lands, made in the same village and/or neighbouring villages can be accepted as valid piece of evidence and provide a sound basis to work out the market value of the land afte~ c ~ suitable adjustments with regard to positive and negativ~ factors enumerated in Sections 23 and 24 of the Act. ~ Undoubtedly, an element of some guess work is involved , in the entire exer~_ise, yet the authority charged with th
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