LexSMT. BASAVVA AND ORS. ETC. versus THE SPL. LAND ACQUISITION OFFICER, AND ORS.
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A SMT. BASA VVA AND ORS. ETC. v. THE SPL. LAND ACQUISITION OFFICER, AND ORS. MARCH 15, 1996 B [K. RAMASWAMY AND G.T. NANAVATI, JJ.] Land Acquisition Act, 1894 : Land Acquisition-Compensatimi--Detennination of market value- C Deduction towards development charges-Pennissible extent of-Deduction between 33-113 to 53% held permissible by Supreme Court in many decisions-Land acquired situated in area where there was no develop- ment-Development likely to take long time-Reliance on sale deed for compensation-Land under sale deed sintated at far flung area from land under acquisitimi--In view of the fact that development would have taken D long years High Cowt allowed additional deduction of 12% i.e. 53% and 12% in detem1ination of compensatimi--Held principles adopted by High Court was not illegal. K Vasundara Devi v. Revenue Divisional Officer, LAO, [1995] S SCC E 426, relied on. F G CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2209-12 of 1993 Etc. Etc. From the Judgment and Order dated 25.9.92 of the Karnataka High Court in Misc. F.A. Nos. 677-79 and 681 of 1989. K. Madhava Reddy, S.S. Javaly, G.L. Sanghi, D. Dave, Anand A. Magadum, E.C. Vidya Sagar, Gopal Singh, T.V. Ratnam, Ms. Kiran Sur~ B.G. Sridharnn, G.V. Chandrashekhar, P.P. Singh, P. Mahale, S.K. Kulkar- ni, M.T. George and Ms. Sangeeta Kumar for the Appearing parties. The following Order of the Court was delivered : Notification under section 4(1) of the Land Acquisition Act, 1894 (for short, the 'Act') acquiring 194 acres of land (out of which 33 acres is subject matter in these appeals) for industrial development near Dharwad H was published on October 30, 1981. The Land Acquisition Officer awarded ~ 500 BASA VV Av. SPL. LAND ACQN. OFFICER 501 compensation at the rate ranging between Rs. 8,000 to Rs. 8,080 by his A award dated August 22, 1985. On reference the Civil Court enhanced the compensation to Rs. 1.72 per sq. ft. by judgment and order October 11, 1988 which worked out to Rs. 74,953 per acre. On appeal by judgment and order made in FMA No. 575/89 and batch the High Court reduced the compensation to Rs. 56,000 per acre. Thus, this appeal by claimants for B further increase. It is also not in dispute that though the State wanted to file appeals against enhancement of the compensation, this Court has dismissed their Special Leave Petitions. Shri K. Madhava Reddy, learned senior counsel for the appellants contended that 53% deduction is reasonable, as held by this Court but C deduction of 65% towards the developmental charges by the High Court is not correct principle of law. Therefore, the High Court has committed error of law in reducing the same. He also contended that when the lands acquired are adjacent to national highway and compensation for acquisi- tion, though snbsequent'to the date of notification in this case, for the lands D in Kulkarni's case which in just disposed of, was granted at the rate of Rs. 67,200 acre, the appellants also are entitled to the same benefit. The High Court, therefore, was in error in determining the compensation at the rate of Rs. 56,000 per acre. Shri Sanghi, learned senior counsel for the respon- dents resisted the contention. E Having given our consideration, the question that arises for con- sideration is : whether the High Court has committed any error of law in fixing the compensation at the rate of Rs. 56,000 per acre ? On the principle of deductions in the determination of the compensation, this Court in K Vasundara Devi v. Revenue Divisional Officer, LAO, (1995] 5 p SCC 426 has considered the entire case law and has held that the Court, in the first instance, has to consider whether sales relating to smaller pieces of lands are genuine and reliable and whether they are in respect of comparable lands. In the event the Court finds that such sales are genuine and reliable and the lands have comparable features, sufficient deduction should be made to arrive at the just and fair market value of large tracks G " of land. The time lag for real development and the waiting period for development are also relevant consideration for determination of just and adequate compensation. Each case depends upon its own facts. For deduc- tion of development charges, the nature of the development, conditions and nature of the land, the land required to be set apart under the building H 502 SUPREME COURT REPORTS [1996] 3 S.C.R. A rules for roads, sewarag
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