LexSTATE OF PUNJAB AND ANR. versus HANS RAJ (DEAD) BY LRS./SOHAN SINGH AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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STATE OF PUNJAB AND ANR.
v.
HANS RAJ (DEAD) BY LRS./SOHAN SINGH AND ORS.
FEBRUARY 15, 1994
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[K RAMASWAMY AND N. VENKATACHALA, JJ.)
Land Acquisition Act, 1894: Compensation for land acquirea-:.working
out of-Method of averaging the prices fetched by sales of different kinds and
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different times-Not to be resorted to since it is not reflective of the correct
c position.
Certain lands belonging to the Respondents were acquired and the
Land Acquisition Officer awarded compensation @ Rs.29.46 per maria.
On reference, the District Judge enhanced the compensation to Rs.SO per
maria. On further appeal, Single Judge of the High Court enhanced the
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D market value of the acquired land to Rs.375 per maria. He also awarded
Rs.17,000 for the super-structure constructed by the respondents on the
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land. State filed Letters Patent Appeal and the respondents filed cross-ob-
jections. The Division Bench of the High Court confirmed the decree
appealed against. The State preferred appeals to this Court questioning
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the enhanced compensation.
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Partly allowing the appeals, this Court
HELD: 1. The Single Judge of t.he High Court committed a grave
error in working out average price paid under the sale transactions to ....
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determine the market value of the acquired land on that basis. As the
method of averaging the prices fetched by sales of different lands of
different. kinds at different times, for fixing the market value of the
acquired land, if follow_:ed, could bring about a figure of price which may
not at all be regarded as the price to be fetched by sale of acquired land.
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One should not have, ordinarily recourse to such method. It is well settled
that genuine and bona fide sale transactions in respect of the land under
acquisition or in its absence the bona fide sale transactions proximate to
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the point of acquisition of the· land situated in ti,e neighbourhood of the
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acquired lands possessing similar value or utility taken place between a
. willing vendee and the willing vendor which could be expected to reflect the
H true value, as agreed between reasonable prudent persons acting in the
1008
STATE OF PUNJAB v. HANS RAJ
1009
normal market conditions are the real basis to determine the market value. A
The Single Judge did not adopt that method. (1011-B, DJ
2. It is agreed between the counsel appearing for contesting parties
that R-5 the sale deed dated August 4, 1965 which works out to Rs.78 per
maria, could form the basis for the fixation of the market value of acquired
land. Having regard to lapse of three years time between the date of the B
purchase under Ex.R-5 in August 1965 and the date of acquisition and
sudden developmental activities in and around the acquired land, fixation
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of the market value of acquired land @ Rs.100 per maria would be just
and reasonable. The respondent-claimants would be entitled to the propor-
tionate solatium on the enhanced market value of land @ 15% and interest c
@ 6% on the enhanced compensation from the date of taking possession
of the land till payment. (1011-E-F]
3. The deterD)ination of the market value of structure on the acquired
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land at Rs.17,000 does require interference and is confirmed. [1011-G]
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CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 4218-19
of 1982.
From the Judgment and Order dated 31.5.82 of the Punjab and
Harayna High Court in L.P.A. Nos. 307 and 310 of 1979.
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Ranbir Yadav for G.K. Bansal for the Appellants.
Dr. Meera Aggarwal and R.C. Mishra for the Respondents.
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The following Order of the court was deliv~red
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1. The notification under s.4(1) of the Land Acquisition Act, 1894,
('the Act' for short) was published in the State Gazette of Haryana on
January 3, 1967, proposing acquisition of land for construction of
Panchayat Offic~ building _at Tanda. Later on, due to consolidation
proceedings, without withdrawing earlier notification, another notification G
dated August 28, 1968 was published under s.4(1) of the Act, to acquire
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25 Kanals 2 marlas of land for the same purpose leaving apart the residue
for the Civil Hospital. The Land Acquisition Officer awarded compensa-
tion for the acquired land @ Rs. 29.46 per marla on May 30, 1973. On
reference under s.18 of the Act the District Judge, Hoshiarpur enhanced
the market value of acquired l~nd to Rs.50 per marla. On further appeal H
1010
SUPREME COURT REPORTS
(1994) 1 S.C.R.
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