THAKUR KAMTA PRASAD SINGH (DEAD) BY L.RS. versus THE STATE OF BIHAR

Citation: [1976] 3 S.C.R. 585 · Decided: 10-03-1976 · Supreme Court of India · Bench: HANS RAJ KHANNA · Disposal: Dismissed
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Judgment (excerpt)

I 
• 
585 
THAKUR KAMTA PRASAD SINGH (DEAD) BY L.Rs. 
A 
v. 
THE STATE OF BUIAR 
March 10, 1976 
[H. R. KHANNA AND P. K. GOSWAMI, JJ.] 
Land Acquisition Act, 1894-Sections 23 and 24-Market value-Compensa-
tion-Potential possibilities. 
The respondents acquired appellant's land under the Land Acquisition Act. 
B 
The Land Acquisition Officer awarded compensation at the rate of Rs. 3000/-
pcr acre. In a reference under s. 18, the Additional District Judge enhanced 
the compensation to Rs. 800/- per katha ( 1/32 of an acre). On appeal by 
the State, the High Court reduced the compensation to Rs. 475/- per katha. 
C 
In an appeal by certificate the appellant contended that the High Court was 
in error in reducin£ the rate of compensation. 
r 
Dismi&sing the appeal, 
• 
' 
HELD : ( 1) The Additional District Judge \Vrongly excluded certain sale 
transactions on the ground that the plots in those transactions were at some 
distance from the acquired land. 
The High Court rightly held that the said 
transactions could not be excluded altogether from consideration. The High 
Court also took into account 3 other sale transactions which were relied upon 
by the appellant. The High Court rightly excluded from consideration certain 
sale deeds executed by the appellant. These transactions related to small plots 
of land situated on road site and were entered into after the land in dispute 
had been notified for acquisition. 
[586E-H, 587C-D] 
(2) .f\.Jarket value under s. 23 means the price that a willing purchaser would 
pay to a willing seller for property having due regard to its existing condition 
with all its existing advantages and its potential possibilities when laid out in the 
n1ost advantageous manner excluding any advantages due to the carrying out 
of the schen1e for which the property is compulsorily acquired. In considering 
market value the disinclination of the vendor to part with his land and the 
urgent necessity of the purchaser to buy should be disregarded. [587E-F] 
(3) There is an element of guess work inherent in rnost ca.ses 
involving 
determination of the market value of the acquired land. But, this in the very 
nature of things cannot be helped. The essential thing is to keep in view the 
relevant factors prescribed by the Act. The finding of the High Court is 
based upou consideration of the evidence adduced in the case and there are 
no grounds to interfere with that finding. 
[587F-G] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1436 of 1968. 
From the Judgment and Order dated 28-9-67 of the Patna High 
Court in Appeal from Original Decree No. 129/62 
V. S. Desai and B. P. Singh for the Appellant. 
R. C. Prasad for the Respondent. 
The Judgment of the Court was delivered by 
KHANNA, J.-This is an appeal on certificate under article 133(1) 
(a) of the Constitution against the judgment of the Patna High Court 
whereby the appeal of the respondent State against the award of the 
5-M608SCl/76 
D 
E 
F 
G 
H 
586 
SUPREME COURT REPORTS 
[1976] 3 S.C.R. 
A 
learned Additional District Judge Arrah was allowed in part and the 
amount of compensation payable to the respondent in a land acquisi-
tion case was reduced. 
B 
c 
D 
E 
F 
G 
H 
The respondent-State acquired 23.70 acres of the appellant's land 
out of plots Nos. 529 and 1262 appertaining to Khata No. 1 in village 
Tenduni in Shahbad district for the purpose of constructing an Irriga-
tion Research Station. 
Notification under section 4 of the Land 
Acquisition Act (hereinafter referred to as the Act) was first published 
on March 8, 1957, but this notification w;i,s cancelled on December 
2, 1957. Another notification for the acquisition: of the said land was 
issued under section 4 -of the Act on January 1, 1959. 
The Land 
Acquisition Officer awarded compensation to the appellant at the rate 
of Rs. 3,000 per acre, besides certain other amounts with which we 
are not concerned. 
The total compensation awarded by the Land 
Acquisition Officer came to Rs. 86,070.92. The appellant got a refe-
rence made under section 18 of the Act. Learned Additional District 
Judge Arrah who disposed of the reference held the market value o~ 
the land to be Rs. 800 per katha. It is stated that there are 32 kathas 
in an acre. On appeal by the State the High Court assessed the market 
value of the land' at Rs. 475 per katba. 
In appeal before us, learned counsel for the appellant has assailed 
the 
judgment of the High Conrt and bas contended that 
the High Cou
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