LexNATIONAL FERTILIZERS LTD. versus JAGGA SINGH (DECEASED) THROUGH L.RS.& ANR.
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[2011] 15 (ADDL.) S.C.R. 809 NATIONAL FERTILIZERS LTD. v. JAGGA SINGH (DECEASED) THROUGH L.RS.& ANR. (CIVIL APPEAL No. 3033 OF 2008) NOVEMBER 15, 2011 [CYRIAC JOSEPH AND A.K. PATNAIK, JJ.] A B Land Acquisition Act, 1894 - Acquisition of land - Determination of market value - In the year 1983, State Government acquired 29. 68 acres of land in village Bhatinda C to meet the requirement of dwelling houses for the employees of NFL - Award passed by Land Acquisition Collector - Not satisfied, respondents-landowners made reference to civil court - Additional District Judge determined compensation at the rate of Rs.32.50 per square yard considering inter alia D the order of the High Court in SS's case - Order of Additional District Judge upheld by Single Judge of High Court - Letters Patent Appeals - Division Bench of High Court held that for assessment of market value of the land acquired in the present case, the order passed by the High Court in the case E of SS could not be preferred over the order of the High Court passed in the case of KS, and determined Rs. 1201- per Square yard as just and reasonable market value for the land acquired in the present case after adopting the reasoning given in the order of the High Court in the case of KS - F Justification - Held: The reliance on order of the High Court 1 passed in SS's case by the Additional District Judge and the Single Judge was not correct because the land in SS's case which was acquired for military cantonment was far away from the land acquired in the present case which wa~ located G adjacent to the colony of NFL and other colonies .,.. Also, compared to the land acquired in SS's case, the land acquired in KS's case was much more nearer to the land acquired in the present case - In KS's case, the mark$t value 809 H 810 SUPREME COURT REPORTS (2011] 15 (ADDL.) S.C.R. A of land was worked out at Rs. 1761- per sq. yard - The Division Bench of the High Court applied a cut to this rate of Rs. 1761 - per sq. yard and determined the rate of Rs. 1201- per sq. yard as just and reasonable value of the land acquired in the present case considering the location and potentiality of the B acquired land - The Division Bench took into consideration the fact that the land in KS's case was located in the heart of the Bhatincm town, whereas the land acquired in the present case was slightly away from the heart of the town and was located adjacent to the existing colony of the NFL - No merit C in the submission of the appellant that a cut of 60% should have been applied to the rate as determined in KS's case considering the larger size and lower quality of the land acquired in the present case - The cut applied by the Division Bench of the High Court in the impugned judgment so as to reduce the value from Rs.1761- per sq. yard to Rs.1201- per D sq. yard was just and reasonable in the facts of the present case. The National Fertilizers Limited (NFL) is a Government of India Undertaking engaged in the E business of manufacturing fertilizers and has a plant in Bhatinda in the State of Punjab. To meet the requirement of dwelling houses for the employees of NFL, the State of Punjab acquired 29.68 acres of land in village Bhatinda by notification dated 24-01-1983 issued under Section 4 F of the Land Acquisition Act, 1894. The Land Acquisition Collector determined the compensation. Not satisfied with the award, the respondents-landowners made reference under Section 18 of the Act to the civil court. The Additional District Judge determined the G compensation at a rate of Rs.32.50 per square yard after considering two unregistered sale agreements (Exhibits A-X and A-Y) and the order of the High Court in Sadhu Singh's case determining the compensation for land acquired for extension of the military cantonn:ient in the H year 1976. On appeal, the Single Judge of the High Co~rt NATIONAL FERTILIZERS LTD. v. JAGGA SINGH 811 (DECEASED) THROUGH L.RS. sustained the determination of compensation made by A the Additional District Judge. The Division Bench of the High Court, however, held that as Exhibits A-X and A-Y were unregistered and did not bear any date, these documents could not be 8 considered for determination of compensation. The Division Bench also found from the site plan that the military cantonment for which Sadhu Singh's land was acquired was far away from the land acquired in the present case; an
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