LexFARIDABAD GAS POWER PROJECT, NTPC LTD. ETC. versus OM PRAKASH & ORS. ETC.
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(2009] 1 S.C.R.912 A FARIDABAD GAS POWER PROJECT, NTPC LTD., ETC. +- v. OM PRAKASH & ORS. ETC. (Civil Appeal No. 493 of 2007) 8 FEBRUARY 5, 2009 [R.V. RAVEENDRAN AND LOKESHWAR SINGH PANTA, JJ.] .... LAND ACQUISITION ACT, 1894: c s.4(1) and 23 - Acquisition of agricultural lands - Compensation - Factors for consideration - Compensation awarded to similarly situated nearby lands - Permissible deduction - Escalation in market value - HELD: Reference D court should have deducted 20% from value of adjacent land to determine market value of lands in question, keeping in view its comparable lesser potential, and allowed 7. 5% cumulative increase towards escalation of price - As regards ·- the small piece of land which was surrounded by commercial E establishments, the market value fixed by reference court and affirmed by High Court confirmed. The State of Haryana issued Notification dated 16.8.1995 uls 4(1) of the Land Acquisition Act, 1897 for ). F acquisition of 319.31 acres of agricultural lands in villages Mujhari, Neemka, Sihi, Jhajru and Pyala of District • Faridabad for construction of a Gas Based Power Project of National Thermal Power Corporation Limited. The compensation awarded by the Collector was enhanced r G by the reference court to Rs.14,81,0401- per acre (equivalent to Rs.3061- per sq. yard) for the lands in villages Mujhari, Neemka and Sihi, Rs.9,19,6001- per acre 1f. (equivalent to Rs.190/- per sq. yard) for the land in village H 912 FARIDABAD GAS POVVER PROJECT, NTPC LTD., ETC v. 913 OM PRAKASH & ORS. ETC. --.+-- Jhajru, and Rs.3,00,000/- per acre for the land in Village A Pyala. Appeals of the claimants for further enhancement and of NTPC for reduction in compensation having been dismissed by the High Court, both filed the appeals. ;.- Disposing of the appeals, the Court B HELD:1.1. While determining the compensation for the lands in Villages Mujhari, Neemka and Sihi, the reference court and the High Court rightly rejected the sale deed (Ext. P-6) pertaining to a small piece of land of c 100 sq. yards. The copy of the mutation entries of sales transaction effected in the year 1992-93 cannot be accepted as admissible evidence for determining the market value of the land acquired. The sale deed dated 30.06.1993 (Ex. RS) has been rightly rejected by the D reference court and the High Court because the said sale deed was executed about two years prior to the preliminary notification issued in respect of the lands in question and the said sale is nothing but a distress sale made by a co-owner who had only one-eighth share in E the land. Sale deed dated 23.06.1996 (Ex. R6) has also been rightly rejected as it relates to a share in the land given on lease for a period of 99 years without possession. [Para 11] [933-G-H; 934-A] F 1.2. The reference court, relying upon the judgment of the High Court (Ext. P-X) came to the conclusion that the land in question was similar in quality, and by adding 5% increase, enhanced the market value thereof. However, on an independent scrutiny of the evidence on G record, it is proved that the entire chunk of the land in question was purely agricultural in quality and of lesser potential, as the lands which were subject matter of Ext. PX were situated in a better developed area with greater H 914 SUPREME COURT REPORTS [2009] 1 S.C.R. A potential. Therefore, the market value of the lands in question, when compared to the lands pertaining to Ext. PX, should be reduced by at least 20%. The value of lands in Ext. PX was determined at Rs.291/- per square yard with reference to a preliminary notification issued on B 23.11.1992. As on 16.08.1995 (date of preliminary notification in regard to the lands in question), the market value of lands in Ex PX was Rs.291/- plus a cumulative increase of 7.5% per year for three years, which works out to be Rs.361.50p. per square yard. If 20% is deducted C from the said market value on account of lesser potential value and quality of the acquired land and the distance between the two areas, the market value of the acquired land would be Rs.289/- per square yard. Accordingly, the market value for the acquired agricultural lands situated D at Mujheri, Sihi and Neemka is reduced from Rs.306/- to Rs.289/- per square yard. (Para 12, 18 and 23] (934-E-F; 937-H; 938-A-C] 1.3. As regards the lands of Village Jhajru, the E reference court should have worked
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