SH. TOPANDAS KUNDANMAL, SINCE DECEASED THEREAFTER BY HIS HEIRS AND LRS. ETC. versus THE STATE THROUGH THE LAND ACQUISITION OFFICER, JAMNAGAR ETC.

Citation: [1995] SUPP. 2 S.C.R. 318 · Decided: 25-07-1995 · Supreme Court of India · Bench: K. RAMASWAMY, K.S. PARIPOORNAN · Disposal: Dismissed
Open in Lexace · Ask the AI about this case
Judgment (excerpt)

A 
SH. TOPANDAS KUNDANMAL, SINCE DECEASED 
B 
c 
THEREAFTER BY HIS HEIRS AND LRS. ETC. 
v. 
THE STATE THROUGH THE LAND ACQUISITION 
OFFICER, JAMNAGAR ETC. 
JULY 25, 1995 
[K. RAMASWAMY AND K. S. PARIPOORNAN, JJ.] 
Land Acquisition Act, 1894: 
Compensation-Comparable transaction-Relevancy of-Award of 
Compensation on sq. ft. basis-When could be resorted to. 
In the land acquisition proceedings appellants laid a claim at the 
rate of Rs. 1,08,898/per acre. The Land Acquisition Officer awarded a sum 
D of Rs. 2,500 per acre. Appellants made a Reference to the Civil judge, and 
restricted their claim to Rs. 2.00 per sq. ft. The Civil Court enhanced the 
compensation to Rs. 1.25 per sq.ft. The High Court set aside the award 
and decree of the Reference Court and confirmed that of the Collector. 
Hence these appeals. 
E 
Dismissing the appeals, this Court 
HELD : It is settled law that the claimants are entitled to succeed 
for higher compensation only on proof of value prevailing as on the date 
of notification. Burden is always on the claimant to prove the same. It is 
p 
seen that the appellant purchased the land in 1957 at the rate of Rs. 190 
per acre. The land adjacent to the land under acquisition was purchased 
two months prior to the date of Notification. It is common knowledge that 
issuance of Notification under s.4(1) to initiate acquisition would take 
considerable time and the publication of the Notification under s.4(1) of 
the Act would be made much later on. Having had knowledge, it would be 
G obvious that documents would be brought into existence to inflate the 
market value. All the sales refered in the award would only show the sales 
on acrage basis. Obviously the documents have been brought into existence 
on the basis of the sq.ft. to inflate higher market value. The property o~ 10 
acres and 12 gunthas, when offered for sale in the open market, no prudent 
H purchaser would be willing to purchase the same on sq.ft. basis. If the 
318 
·l 
T.KUNDANMAL v. STA7:::: 
319 
small extent of land in a commercial area is sought to be acquired, A 
perhaps, determination of the compensation on the basis of the sq. ft. may 
be justified. But when the claimant himself assessed the market value at 
Rs. 190 per acre and purchased in 1957 and when in 1960 the 8 acres and 
39 gunthas of neighbouring land was sold for Rs. 568 per acre, no prudent 
purchaser would offer to purchase on square foot basis. This Court in a B 
catena of decisions deprecated the practice of the reference courts or High 
Court to determine market value of the lands on sq. ft. basis unless it is 
established as a fact that the acquired lands are situated in already highly 
developed residential and industrial area where regular sales are on sq. ft. 
basis. The High Court also has given cogent and well considered reasons 
in not accepting the award and decree of the Reference Court. There are 
no compelling reasons to differ from the cogent reasons given by the High 
Court. [320-F-H, 321-A-E] 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3542-43 
of 1972. 
From the Judgment and Order dated 28.7.72 of the Gujarat High 
Court in A. No 521 of 1963 &. 519 of 1963. 
With Civil Appeal Nos. 399-400 of 1973. 
Bhimrao Naik, J. Jhaveri and H.J. Jhaveri for the appellants in C.A. 
Nos. 3542-43/72. 
Swaraj Kaushal and Ms. H. Wahi for the State. 
Sunil Kr. Jain, for the Respondent in C.A. Nos. 399-400/73. 
The following Order of the Court was delivered : 
These appeals are by certificate of fitness granted by the High Court 
under Article 133(1) of the Constitution of India. Notification under s.4(1) 
c 
D 
E 
F 
of Land Acquisition Act, 1894 (for short, 'the Act') was published on 
October 15, 1959 acquiring 10 acres and 12 gunthas of land situated in G 
Jamnagar for the establishment under development of T.B. Hospital. The 
appellants laid a claim pursuant to the notice issued under s.9 and 10 at 
the rate of Rs. 1,08,898 per acre. The Land Acquisition Officer in his 
award dated July 18, 1962 under s.11 awarded a sum of Rs. 2,500 per acre. 
Dissatisfied therewith, a Reference to the Civil Judge senior division was H 
320 
SUPREME COURT REPORTS [1995) SUPP. 2 S.C.R. 
A 
made under s.18 of the Act. The appellants restricted their claim to Rs. 
2.00 per sq. ft. The Civil Court enhanced the compensation to Rs. 1.25 per 
sq. ft. The High Court in .the impugned judgment in the FirstAppeal Nos. 
521 and 519 of 1963 dated 28.7.72 set aside the award and dec
Excerpt shown. Read the full judgment & AI analysis in Lexace.