LexPRABHAKAR RAGHUNATH PATIL AND ORS. versus STATE OF MAHARASHTRA
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A B c [2010) 13 (ADDL.) S.C.R. 586 PRABHAKAR RAGHUNATH PATIL AND ORS. v. STATE OF MAHARASHTRA (Civil Appeal Nos. 2817-18 of 2005) NOVEMBER 11, 2010 [DR. MUKUNDAKAM SHARMA AND SWATANTER KUMAR, JJ.] Land acquisition Act, 1894: Compensation - Increase in valuation of open space - Held: When a large tract of land is acquired and the valuation thereof is sought to be determined on the basis of sale instances relating to small portion of land, deduction of 33% 0 from the value of such small tract of land is the general trend - High Court held that reference court was justified in awarding compensation @ Rs. 2251- sq meter for open space - While coming to the said conclusion, High Court corisidered the sale related to a small plot of land as compared to the acquired land and made deduction from the exemplar value E and on the basis thereof upheld the valuation fixed at Rs. 225 per square meter - Claimants could not produce further cogent reasons for an increase in valuation - Plea for increase of compensation rejected. F Compensation - Valuation of structure - Held: Age of structure is relevant for valuation purpose - Expert could not state the age of structure when it was notified in 1983 for acquisition - The fine condition of structure and superior quality of material used for construction in the structure was G beyond doubt and never questioned - Schedule Rates cover costs of construction in the entire district - Cost of construction was for the first time introduced in 1991 - Cost of construction would admittedly be lower in 1983 than in 1991 - Besides, the cost of construction of ground floor is always on the higher H 586 PRABHAKAR RAGHUNATH PATIL v. STATE OF 587 MAHARASHTRA side while the cost of construction of first floor and second floor A is on the lower side - Depreciation also would have accrued to the structures owing to wear and tear over a period of 8 years - In the year 1991, cost of construction of residential building was Rs. 2, 800 per square meter for the ground floor and Rs. 2,200 per square meter for the second and the third B floors - A deduction of 60 per cent from the said valuation of the cost of construction in 1991 found appropriate - Accordingly, compensation fixed at Rs. 1700 per square meter for the structure - Thus, the valuation raised from Rs. 1,200 per square meter to Rs. 1700 per square meter. c The acquisition proceedings were initiated under the Land Acquisition Act, 1894 in respect of the properties belonging to the claimants-appellants. Section 4 Notification was issued on 15.9.1983. The Land 0 Acquisition Officer passed an award on 22.09.1986 and possession of the properties was taken on 18.10.1986. The claimants were not satisfied with the compensation amount. Before the reference court, they claimed compensation @ Rs.3501- sq. meter for the open land and @ Rs.2000/sq. meter for the structures. The reference E court considered the evidence of expert witness to be unreliable as he failed to state in his evidence, the details regarding the age of the building acquired under the notification. It relied on the sale instance and enhanced the compensation, determining the value of the open land F @ Rs.225/- sq. meter and @ Rs.1200/- sq. meter for the structure. The State and the claimants both challenged the order of the reference court before the High Court. The High Court allowed the appeals filed by the State G and dismissed those filed by the claimants. It held that the reference court was justified in awarding compensation @ Rs.225/- sq meter for open space. While coming to the said conclusion, the High Court considered the sale deed dated 11.12.1982 for an open space H 588 SUPREME COURT REPORTS (2010] 13 (ADDL.) S.C.R. A admeasuring 16' x 16' for which sale consideration of Rs. 8,000 was received. But, since the same related to a small plot of land as compared to the acquired land, the High Court made deduction from the exemplar value and on the basis thereof upheld the valuation of the reference B court fixed at Rs. 225 per square meter for the open space. The instant appeals were filed by the claimants challenging the order of the High court. Partly allowing the appeals, the Court C HELD: 1. When a large tract of land is acquired and the valuation thereof is sought to be determined on the basis of sale instances relating to small portion of land, the general trend of this Court is to
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