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NIKKI versus UNION OF INDIA AND ANR.

Citation: [1995] 1 S.C.R. 341 · Decided: 17-01-1995 · Supreme Court of India · Bench: K. RAMASWAMY, SUJATA V. MANOHAR · Disposal: Dismissed

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Judgment (excerpt)

NIKKI 
A 
v. 
UNION OF INDIA AND ANR. 
JANUARY 17, 1995 
[K. RAMASWAMY AND SUJATA V. MANOHAR, JJ.] 
B 
> 
Land Acquisition Act, 1894-Sections 4(1) & 23 (1}-Compensation 
claim-Land acquired in 1978 for brick klin-Lands situated not in developed 
area-Fixation of market value at Rs. 50,000 per acre-Not arbitrary or il-
legal-Sale instances of small extent-cannot be relied on to detennine com-
C 
pensation of large extent of land. 
A notification u/s 4(1) of the Land Acquisition Act, 1894, was pub-
lished on June 2, 1978 acquiring 21.64 acres of land in a village near 
Chandigarh for established of a Brick Klin for Chandigarh Housing 
Board. The Land Acquisition Collector classified the the land and awarded D 
the compensation between Rs. 21,000 to Rs. 48,000 per acre. On reference, 
the civil com1 uniformly enhanced the compensation to Rs. 27 ,000 per acre. 
On appeal, the High Court enhanced the compensation to Rs. 50,000 per 
acre. This appeal had been filed by the claimant for further enhancement 
of the compensation to Rs.1 lac per acre. 
E 
The appellant contended that the High Court Court ought to have 
relied on the awards made by the Court in 1980 wherein Rs. 3,75,000 per 
acre was awarded and Rs. 62,000 per acre was awarded in 1982, wherein 
the acquisition was near Chandigarh by the side of the town which ~as 
equi-distance of the land under acquisition on the other side of the road. 
F 
Dismissing the appeal, this Court 
HELD : In the instant case, the lands were situated on the side of 
the road wherein lands were not developed. The very fact; that the acquisi-
tion in this case was for brick klin indicated that it was not such a G 
developed area. As early as in 1974 when the court itself determined the 
compensation of Rs. 33,000 per acre, the fixation of the market value at 
Rs. 50,000 per acre could not be said to be arbitrary or illegal. Two sale 
instances of 1971 & 1974 were of small extents and so they did not provide 
reasonable and safe basis nor could be relied on to determine compensa- H 
341 
342 
SUPREME COURT REPORTS 
[1995] 1 S.C.R. 
A tion of large extent of land. [343-D-F] 
CIVIL APi:ELLATE JURISDICTION : CiviJ Appeal No. 998 of 
1990. 
From the Judgment and Order dated 17.1.83 of the Punjab & 
B Haryana High Court in R.F.A. No. 821 of 1980. 
L.R. Singh for the Appellant. 
Manoj Swaroop for the Respondent. 
C 
The following Order of the Court was delivered : 
A notification under s.4(1) was published on June 2, 1978 acquiring 
21.64 acres of land in Mauli Jagaram village, near Chandigarh for estab-
lishment of a Brick Klin for Chandigarh housing Board. The Land Ac-
quisition Collector in his award under s.11 of the Act dated July 12, 1978 
D classified the land and awarded the compensation between Rs. 21,000 to 
Rs. 48,000 per acre. On reference, the Addl. District Judge in his award 
and decree dated January 28, 1980 had uniformly enhanced the compen-
sation to Rs. 27,000 per acre, without agreeing with the classification of the 
land made by the Collector. On further appeal under s.54, the High Court 
E by its judgment and decree dated 17.1.83 in RFA no. 821 enhanced the 
compensation to Rs. 50,000 per acre. Still not being satisfied, the appellant 
has come to this Court by special leave. 
The learned counsel Sri L.R. Singh for the appellant has contended 
that as early as in 1971 and 1974 the market value of the land was ranging 
F between Rs. 37,500 to Rs. 62,000 per acre. The High Court ought to have 
relied on the awards made by the Court in RFA No. 2608of1980 wherein 
Rs.3,75,000 per acre was awarded for the acquisition to establish Mani 
Mazra Motor Market and Rs. 62,000 per acre was awarded in LP A No. 
1207 dated September 22, 1982 wherein the acquisition was near Chan-
G digarh by the side of the town which is equi-distance of the land under 
acquisition on the other side of the road. Therefore, the claimants are 
entitled to the compensation at Rs. 1 lac per acre. We find no force in the 
contention. The learned Judge of the High Court has pointed out in his 
_judgment thus : 
H 
"It cannot be disputed that in the area of Chandigarh the prices 
NIKKI v. U.0.1. 
343 
have been rising and by the time the acquisition was made in June, A 
1978, the rise would have been such that the value would have been 
50,000 per acre. It is true that in December, 1974 for village Buterla 
the compensation was allowed at the rate of Rs. 33,000 per acre, 
but for the acquisitions made in 1977-7

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