MIRZA NAUSHERWAN KHAN & ANR versus THE COLLECTOR (LAND ACQUISITION), HYDERABAD

Citation: [1975] 2 S.C.R. 184 · Decided: 26-09-1974 · Supreme Court of India · Bench: HANS RAJ KHANNA · Disposal: Dismissed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

18 4 
MIRZA NAUSHERWAN KHAN & ANR 
v. 
THE COLLECTOR (LAND ACQUISITION); HYDERABAD 
September 26, 1974 
[H. R. KHANNA, M. H. BEG ANQ V. R. KRISHNA IYER, JJ.] 
Hyderabad Land Acquisition Act (9 of 1309 Fas/i)-Compensation for large 
area of land and buildings acquired-Principles. 
B 
The State Government acquired a large area with some buildings thereon 
in the city of Hyderabad, belonging to the appe~l~!!t and the Collector ,awar~ed 
compensation under the Hyderabad Land Acqumtlon Act. The compensation 
was made up of sums awarded for buildings, for standing trees, for a be.It, of 
land 50 ft. deep adjoining the road at a particular rate, and for the rem&mmg 
C 
area at a lesser rate. On reference, the City Civil Court increased the value 
of the buildings on the basis of by a multiple of 25 times the. r~nt fetched: On 
appeal, the High Court further enhanced the value of. the bmldmgs. ~y .usmg a 
multiple of 27 instead of 25, in fixing the compensation for the bu1ldmgs. 
In appeal to this Court, it was contended (i) that there was a potential 
value of the land which was not taken into account by the High Court; (ZY 
that the land and buildings should have been taken together; and that the land 
should not have been sub.·divided on the principle of belting; and (3) that th~ 
D 
multiple for cap.italisation of the value t'f buildings should have been 33-1/ > 
and not 27. 
Dismissing the appeal, 
HELD : There is no substantial question of law of general importance merit-
ing consideration by ~his. Court. 
[185HJ 
( 1) The potential value of the land was taken into account by the High 
n: 
Court. On a consideration of the totality of factors, the physical fe~ture of 
the terrain, and the evidence placed on record, the High Court was justified in 
holding that the appellant had not substantiated the big potential value claimed 
by him on the basis of any unique features of the land. 
[186 D-FJ 
· 
(2) The higher value for a strip of 50 feet adjoining the land was given 
by the courts below on the principles of belting. This principle was adopted 
at the instance of the appellant himself and such an approach had operated to 
F 
his benefit and not detriment. The Court had also taken note of the fact that 
the value of a tiny plot is not a proper measure when a large area is ae> 
quired. [ 187 A-CJ 
Mol1i11! Mo/i411 v. Prol'illce of Be11gal A.I.R. 1951 Cal. 246; K11nj11krisl111a v. 
State A.I.R. 1953 T.C 177; refer.red to. 
. 
(3) The rate of interest allowed on government securities at the relevant 
hme (19~7) ranged between 3?% and 4% _and the High Court, when accepting 
the !Dulttple of 2~, accepted h%. There 1s no warrant for the appellant's con-
tention that. the mterest on govc~mment bonds at the relevant time was only 
3%. [187 D·EJ 
CIVIL APPELLATE JURISDICTION.: Civil Appeal No. 2025 of 1968. 
Appeal from the judgment and decree dated the 18th October, 
~j~~6f the Andhra Pradesh High Court in C. C. C. Appeal No. 46 
R. V. Pillai and P. M. Pillai, for the appellant. 
G 
H 
A 
8 
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D 
E 
M. N. KHAN v. COLLECTOR (Krishna Iyer,/.) 
185 ' 
P. Ram Reddy and P. P. Rao, for the respondent. 
The Judgment of the Court was delivered by 
KRISHNA IYER, J .-This appeal, by certificate, arises out of land 
acquisition proceedings under the Hyderabad Land Acquisition Act 
(Hyderabad Act IX of 1309 Fasli) (hereinafter called the Act, for 
short) which substantially resembles the provisions of the 
Central 
Land Acquisition Act. 
The Government of Andhra Pradesh acquired a large open area 
with some buildings thereon by Notification, .dated January 3, 1957 
with a view to construct Income-tax and Central Excise Offices at 
Hyderabad. The contest before us is confined to the 
quantum of 
compensation and, although Shri vasudeva Pillai, counsel for the ap-
pellants, has l'ressed his points with presistence, 
we are unable .to 
disturb the High Court's award. 
The land, vast in extent, had a building with a plinth area of 
3,300 sq. yds. The area in which the acquired plot is situate is per-
haps an important one in the City. 
After getting expert valuation 
made of the buildings by the 
Central Public Works 
Department 
engineers, the Collector awarded a sum of Rs. 41,674/- for the build· 
ings. Rs. 1.440/- for the standing .trees and a sum of R~. 30,630/-
for a belt of land 50 ft. 
deep at Rs. 15/- per square yard and 
Rs. 99,435 /- for the remaining area of 13,258 sq. yds. 
The total 
figure together with statutory solatium grant

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