P. RAM REDDY ETC. versus LAND ACQUISITION OFFICER, HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD ETC.

Citation: [1995] 1 S.C.R. 584 · Decided: 27-01-1995 · Supreme Court of India · Bench: K. RAMASWAMY · Disposal: Disposed off
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Judgment (excerpt)

A 
B 
c 
D 
E 
P. RAM REDDY ETC. 
v. 
LAND ACQUISITION OFFICER, HYDERABAD 
URBAN DEVELOPMENT AUTHORITY, HYDERABAD ETC. 
JANUARY 27, 1995 
[K. RAMASWAMY AND N. VENKATACHALA, JJ.] 
Land Acquisition Act, 1894: Sections 4(1), 6, 9, 11, 18i. 23 23(1-A), 
23(2) and 51-A. 
Land. Acquisition-Compensation-Principles for determination 
of-Building potentiality-Relevance for determination ·of compensa-
. tion-Releiant factors for detennining potentiality-Held potentiality should 
be decided on the basis of material on record-Such material should be 
supp01ted by documentary evidence. 
Basic valuation Register maintained under Stamp Act-Cannot form 
basis for detennination of compensation. 
Value of land mentioned in sale or gi.ft deed-Basis for determination 
of compensation-Failure to cross-examine witness-Effect of. 
Value fetched by sale of small extent of lan<i-Basis for calculation of 
compensation for large extent land acquired-Relevant factors to be taken 
into account. 
I 
I 
Claim for enhanced compensation-Reliance by Court on the contents 
F of award made by Land Acquisition Officer- Pennissibility of. 
Compen~ation-Amount of award under Section 23( 1-A )-Permissible 
limit of-Market v~lue in respect of which solatium is awardable under 
section 23(2)-Inc/usion of amount payable under section 23(1-A)-Pennis-
G sibility of 
Land belonging to the appellants were acquired under the Land 
Acquisition Act, 1894. The Land Acquisition Officer fixed the value of the 
. acquired land @ Rs.20 pe.t ~q. yard on the basis of the value fetched under 
sale deeds of r~sidential · pf~ts. The compensation was paid @ Rs. U per 
H sq. yard i.e. by deducting 40% towards lay out losses. Besides statutory 
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P. RAMREDDYv. URBANnEVELOPMENT AUTHORITY 
585 
benefits were also given. Th~ Civil Court enhanced the market value of the 
claimant's land @ Rs. 80 per sq. yard. In determining the enhanced 
compensation the Civil Court relied on (1) the amounts of consideration 
mentioned under sale deeds and gift deed; (ii) probable value of building 
plots in the locality of the acquired land; and (iii) the value of building 
plots as found in the basic valuation register maintained under the Stamp 
Act. The High Court reduced the market value of the land holding that it 
was not safe to determine the value on the basis of the basis valuation 
register. It fixed the valuation of land @ Rs. 40 per sq. yard and after 
deducting 20% towards layout losses awarded compensation @ Rs. 32 per 
sq. yards. 
In appeals to this Court on the questions :· 
1. Whether the building potentiality of a land acquired under the 
Land Acquisition Act requires to be taken into consideration in deter-
minating its market value, and if so, how has that to be done? 
2. Whether the value of building plots as found in the Basic Valua-
tion Register maintained under the Stamp Act or its Rules, could form the 
basis for determination of the market value of lands? 
3. Whether the value of land mentioned in an instance of sale or an 
instance of gift claimed to compare with the acquired land warrants 
acceptance as the correct value. of such land merely because the witnesses 
who would have given evidence as regards them, on behalf of the claimants 
had not been cross-examined or effectivdy cross-examined on behalf of the 
Land Ac<1uisition Officer? 
4. Whether the valuation fetched by sale of a small extent of land can 
be made the basis for determination of the market value of a large extent 
of the acquired land? 
A 
B 
c 
D 
E 
F 
5. Will it not be open to a Court which rejects the evide~ce adduced 
by the claimant in support of his claim for enhanced compensation for his G 
acquired land made in a reference under Section 18, to rely upon the 
contents of the award of the Land Acquisition Officer made under section 
11 thereof to enhance the compt:nsation awardable for such land? If the 
LAO's award is based on value fetched under sale deeds on their perusal 
as contained in the register maintained under the Registration Act, bas he H 
1 
586 
SUPREME COURT REPORTS 
[1995] 1 S.C.R. 
A to prove those sale deeds in court for sustaining h~s award? 
6. What is the amount which could be awarded under section 23 (1 ·A) 
in addition to the market value of the acquired land? 
7. Does the market value in respect of which solatium is awardable 
B u~der section 23(2) of the LA Act include the amount payable under 
section 23(1-A) of the Land Acquisition Act? 
8. Wh
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