LexEXECUTIVE ENGINEER KARNATAKA HOUSING BOARD versus LAND ACQUISITION OFFICER, GADAG & ORS.
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[2011) 1 S.C.R. 600 A EXECUTIVE ENGINEERt KARNATAKA HOUSING BOARD v. B LAND ACQUISITION OFFICER, GADAG & ORS. (Civil Appeal Nos. 51-52 of 2011) JANUARY 04, 2011 · [R V RAVEENDRAN AND A K PATNAIK1 JJ.] Land Acquisition Act, 1894: c s. 4(1) - Land acquisition for State Housing Board - Issuance of Notification dated 06.02.1992 - Determination of market value - Evidence relating to auction sales - Other sale transactions not applicable as they related to far away properties - Reference Court relying upon auction sale dated 0 02.01.1989 of a larger plot in the vicinity, arrived at the market value as Rs. 4,62,4941- per acre - Compensation determined as Rs. 2, 17, 3721- per acre, after deducting 53% towards development factor - However, the High Court relied on auction sale dated 20. 11. 1989 of a smaller plot and arrived at the market value as Rs. 6, 60, 9 77 /- per acre - E Compensation increased to Rs. 4, 42, 0001- per acre, after deducting 33% towards development factor- On appeal, held: Having regard to the proximity of location and the size of the acquired land, the Reference Court was justified in relying upon the auction sale transaction of a larger plot - On the basis of F the sale price disclosed by the said auction sale, the value of the land in question works out to Rs. 4, 62, 4941- per acre - Deduction of 20% to be made to off-set the impact of competitive-hike involved in the auction sale and the market value per acre as on 02.01.89 would be Rs. 3,69,9951- - G Relevant date for determination of compensation is 06.02.1992 and the date of auction is 02.01.1989, thus, there being a gap of three years, appropriate appreciation has to be provided for - The acquired lands being within the municipal limits with considerable development potential, a H 600 y / EXECUTIVE ENGINEER, KARNATAKAHOUSING BOARD v. 601 LAND ACQUISITION OFFICER, cumulative increase of 10% per annum for three years is A adopted - Market value as on 06.02.1992 would be Rs. 4, 92, 4601- per acre - Having regard to the partial access to infrastructural facilities, a deduction of 40% towards cost of development is applied - Thus, rate per acre for the acquired land as on 06.02.1992 is determined as Rs. 2,95,4761- per B acre - Compensation awarded as Rs. 2,95,5001- per acre. Market value of acquired land - Determination of - ~ _ Comparable sale transaction - Auction Sale - Held: Element .. ~., of competition in auction sales makes them unsafe guides c for determining the market value - But where an open auction sale is the only comparable sale transaction available on account of proximity in situation and proximity in time to the acquired land, the court may with caution, rely upon the price disclosed by such auction sales, by providing appropriate D deduction or cut to off-set the competitive-hike in value. ~ Raj Kumar v. Haryana State 2007 (7) SCC 609 - relied on. Executive Engineer (Electrical), Karnataka Power Transmission Corporation Ltd. Vs. Assistant Commissioner E & LAO, Gadag CA Nos.1768-1775 of 2010 decided on 11.2.2010 - referred to. -+ Case Law Reference: F 2001 (7) sec 609 Relied on. Para 6 CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 51- 52-of 2011. .. From the judgment & order dated 30.01.2008 of the High G ~ Court of Karnataka at Bangalore in M.F.A. No. 7037 of 2003 with M. F. A. GROB. No: 243 of 2004. WITH H 602 SUPREME COURT REPORTS (2011) 1 S.C.R. A C. A. Nos. 53-54, 55-56, 57-58, 59-60, 61-62, 63-64,71-72 & 73-74,of 2011. Jagjit Singh Chhabra for the Appellant. 8 Mallikarjun S. Mylar, E. R. Sumathy, Anitha Shenoy for the Respondents. The order of the Court was delivered by R.V.RAVEENDRAN, J. 1. Leave granted. c 2. An extent of 127 acres 26 guntas of lands in Betegeri village .within the municipal limits of Gadag-Betegeri Municipality, was acquired for Karnataka Housing Board in pursuance of Preliminary Notification dated 6.2.1992. The Land D Acquisition Officer, Gadag, made an award dated 14.2.1997 awarding a compensation of Rs.45,000/- per acre. 3. On a reference being made at the instance of the land owners, the Reference Court, by judgment and award dated 11.7.2003, determined the compensation for the acquired lands E as Rs.2, 17,372/- per acre. For this purpose, the Reference Court relied upon Exhibit P-2 which is a sale deed dated 30.7.1992 executed by the Municipal Commissioner, Gadag- Betegeri Municipality in favour of
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