SAJAN versus STATE OF MAHARASHTRA AND OTHERS

Citation: [2020] 4 S.C.R. 930 · Decided: 17-03-2020 · Supreme Court of India · Bench: R. BANUMATHI · Disposal: Case Partly allowed
cites 2 · see the full citation network in Lexace
Open in Lexace · Ask the AI about this case
Judgment (excerpt)

A
B
C
D
E
F
G
H
930
SUPREME COURT REPORTS
[2020] 4 S.C.R.
SAJAN
v.
STATE OF MAHARASHTRA AND OTHERS
(Civil Appeal Nos. 2170-2171 of 2020)
MARCH 17, 2020
[R. BANUMATHI AND A. S. BOPANNA, JJ.]
Land Acquisition:
Acquisition of land – Comprising of cultivable as well as
non-agricultural land used for running sugar mill – Determination
of compensation – Reference court enhanced the compensation
amount treating the entire land as land meant for non-agricultural
use and deducting 10% towards development costs – High Court
in appeal reduced the compensation amount deducting 40%
towards development costs – Appeal to Supreme Court – Held: The
value arrived at by Reference Court is fair and reasonable – Rule
of one-third deduction towards development is general rule – But
deduction for development may vary from 20% to 75% depending
upon purpose of acquisition etc. — In the present case, in view of
purpose of acquisition, 20% deduction for development cost would
be reasonable – Valuation of the damages of Civil work and
foundation as assessed by the High Court is affirmed – Award of
amount towards depreciated market value of electrical installation
by Reference Court is affirmed – Award of amount towards
depreciated market value of machinery and mechanical installation
as awarded by High court is affirmed – The concurrent finding
for awarding compensation for loss of business is also affirmed –
compensation amount accordingly modified.
Partly allowing the appeals, the Court
HELD: 1.1 The High Court has taken Exh. 23 dated
03.06.1976 as exemplar which is the sale deed for plot
admeasuring 30x32ft. (960 sq.ft.) for Rs. 3,000/- i.e. at the rate
of Rs. 3.12 per sq.ft. The appellants have also placed further
reliance on the sale deed dated 03.02.1982 Exh. 35 wherein, the
plot of admeasuring 5023 sq.ft. was sold for Rs. 35,000/- i.e. Rs.
6.90 per sq.ft. The High Court has taken Exh. 23 sale deed dated
   [2020] 4 S.C.R. 930
930
A
B
C
D
E
F
G
H
931
03.06.1976 and had taken 10% increase for every year and
arrived at the value at Rs.6 per sq.ft. Even going by Exh. 35
sale deed (03.02.1982) under which Rs.5023 sq.ft. was sold for
Rs. 35,000/- i.e. Rs. 6.90 per sq.ft., Exh. 35 sale deed
(03.02.1982) is after possession of the land was taken by the
State Government (21.11.1981) and Section 4 Notification dated
10.02.1982. Since Exh. 35 sale deed dated 03.02.1982 is
between two dates - date of taking possession of the land and
the date of Section 4 Notification, it is necessary to adopt a
reasonable valuation. Considering Exh. 23 and Exh. 35, the value
adopted by the Reference Court at Rs.6.90 per sq.ft., fixation
of valuation at Rs.6.90 per sq.ft., the value adopted is fair and
reasonable and the same is affirmed. [Para 14] [938-C-F]
1.2 Rule of one-third deduction towards development is
the general  rule. But depending upon the purpose of acquisition
and taking note of well planned layouts, if any, the deduction for
development cost may vary from 20% to 75%. In the present
case, since the land was acquired for Dam project, much of the
development like in the case of a layout for housing colony is
not required. 40% deduction made by the High Court appears
to be on the higher side. Considering the purpose of the
acquisition and the facts and circumstances of the case, 20%
deduction for development cost would be reasonable. Taking the
entire land 2,61,300 sq.ft. as non-agricultural and making 20%
deduction for the development cost, the value of the land is
calculated at Rs.12,54,530/- [Paras 16 and 17] [939-D; 940-A-
B]
Lal Chand v. Union of India and Another (2009) 15
SCC 769 : [2009] 13 SCR 622 – relied on.
Major General Kapil Mehra and Others v. Union of
India and Another (2015) 2 SCC 262 : [2014] 10 SCR
1153 – referred to.
2. After referring to the valuation of the civil work, the
evidence of PW-2 and witness No.3 for the State-Sub-Divisional
Engineer, the High Court has assessed the valuation of the
dismantling costs and damages of civil work and foundation to
the tune of Rs.4,09,565/- and Rs.17,325/- for transportation costs
of good materials and arrived at the total amounting to
SAJAN v. STATE OF MAHARASHTRA AND OTHERS
A
B
C
D
E
F
G
H
932
SUPREME COURT REPORTS
[2020] 4 S.C.R.
Rs. 4,26,890/-. There is no reason to take a different view and
the amount of Rs. 4,26,890/- towards damages of civil work and
foundation and transportation of good materials is affirmed. [Para
18] [940-H; 941-A-B]
3. As against the amount of Rs. 3,86,867/- awarded
Excerpt shown. Read the full judgment & AI analysis in Lexace.