REVENUE DIVISIONAL OFFICER-CUM-L.A.O. versus SHAIK AZAM SAHEB ETC. ETC.

Citation: [2009] 1 S.C.R. 289 · Decided: 13-01-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Case Partly allowed
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Judgment (excerpt)

[2009] 1 S.C.R. 289 
,,. 
REVENUE DIVISIONAL OFFICER-CUM-L.A.O. 
A 
v. 
SHAIK AZAM SAHEB ETC. ETC. 
(Civil Appeal Nos. 8984-8985 of 2003) 
JANUARY 13, 2009 
B 
[S.B. SINHA, LOKESHWAR SINGH PANTA AND 
--+ 
B. SUDERSHAN REDDY, JJ.] 
Land Acquisition Act, 1894: 
c 
Compensation for land acquired - Computation of -
Agricultural lands abutting National High way and nearby, 
situated about 4 km. away from District Headquarters and 
surrounded by educational institutions - Factors relevant for 
+ 
determination of market value - Explained - Market value 
determined accordingly -
One-third deduction allowed D 
towards development costs - 10% escalation per year added. 
Agricultural lands of the respondents-claimants 
abutting National Highway situate in village 'P' and 
nearby village 'BT', both being about 4 km. away from the E 
District Head Quarters and surrounded by educational 
institutions including one Engineering College, were 
acquired pursuant to a Notification uls.4(1) of the Land 
Acquisition Act, 1894 published on 5.5.1994 for the 
purpose of establishing Shri Krishna Devraya University. F 
The Collector awarded compensation at the rate of 
Rs.16,000/- for the lands in Village 'P' and Rs.15,000/- for 
those in village 'BT'. The reference court enhanced the 
compensation to Rs.1,00,000/- per acre and Rs.90-,000/-
per acre respectively, and the High Court further G 
v 
enhanced it to Rs.1,90,000/- uniformly for the lands situate 
in both the villages. Aggrieved, the Revenue Divisional 
Officer-cum-LAO filed the appeals. 
289 
H 
A 
290 
SUPREME COURT REPORTS 
[2009] 1 S.C.R. 
Allowing the appeals in part, the Court 
HELD: 1.1. Determination of market value of a land 
acquired in terms of the provisions of the Land 
Acquisition Act, 1894 depends upon a large number of 
8 
positive and negative factors, namely, whether the land 
acquired is agricultural land or homestead land; in the 
event the land being agricultural one, whether irrigated 
or non-irrigated, extent of facilities available for irrigation, 
location of the land, closeness thereof from any road or 
C highway, the evenness of land, its position in different 
seasons particularly in rainy season, existence of any 
building or structure as also the development in and 
around the area, sale exemplars and in their absence 
whether claim can be determined on yield basis. [Para 11 
D and 12] [296-E-G; 297-A-S] 
Vi/uben Jha/ejar Contractor v. State of Gujarat (2005) 4 
sec 789, relied on. 
1.2. The acquired lands abut on National Highway No. 
E 18, they are situated about 4 kilometers away from the 
District Headquarter and have been held to have the 
requisite potential value as building site as also for 
constructing industrial complexes. The reference court 
noticed that there are educational institutions 
F surrounding the acquired lands including an Engineering 
College. As on the date of acquisition, it was found that 
the vicinity surrounding the land was well developed. 
[Para 14] [298-B-D] 
1.3. Indisputably, a big chunk of lands, namely, 87 
G Acres 96 cents were acquired for the purpose of 
establishing an institution known as Sri Krishna 
Devaraya University. The award of the Land Acquisition 
Y 
Collector was accepted by most of the persons. Only the 
respondents objected thereto. The lands are situated in 
H two different villages. The plan showing the location of 
REVENUE DIVISIONAL OFFICER-CUM-LAO. v. SHAIK 
291 
AZAM SAHEB ETC. ETC. 
... 
the land vis-a-vis the National Highway No. 18 was not A 
placed before the Court. From the award of the reference 
/ 
court, it appears that the lands situated in village 'P' are 
\ 
better placed than the lands situated in village 'BT'. Such 
a distinction was also kept in mind by the Land 
Acquisition Collector. The market value of the land would B 
also depend upon the situation thereof. [Paras 15, 16 and 
17] [298-E-H; 299-A] 
1.4. Indisputably while comparing the market value of 
developed lands with that of undeveloped lands, the 
court has to make suitable deductions towards the cost c 
of development. [Para 19] [299-D] 
P.S. Krishna and Co. Pvt. Ltd. v. The Land Acquisition 
Officer, (Deputy Collector) Hyderabad (1991) 2 SCALE 1186; 
' 
Mummidi Apparao v. Nagarjuna Fertilizers and Chemicals 
D 
_,. 
Ltd. (2008) 16 SCALE 226 and Viluben Jhalejar Contractor 
(DJ v. State of Gujarat (2005) 4 SCC 789, referred to. 
1.5. In the facts and circumstances of the case, one-
third deduction should be made towa
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