THAKUR KULDEEP SINGH (D) THR. L.R. & ORS. versus UNION OF INDIA & ORS.

Citation: [2010] 3 S.C.R. 141 · Decided: 08-03-2010 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Dismissed
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Judgment (excerpt)

[2010] 3 S.C.R. 141 
THAKUR KULDEEP SINGH (D) THR. L.R. & ORS. 
v. 
UNION OF INDIA & ORS. 
(Civil Appeal No. 8636 of 2002) 
MARCH 8, 2010 
[P. SATHASIVAM AND H.L. DATIU, JJ.] 
Land Acquisition Act, 1894 - ss. 4, 18, 23 (1-A) and 54 
A 
B 
- Land Acquisition for public purpose - Property situated in 
Karol Bagh, Delhi - Compensation fixed by Land Acquisition 
C 
Collector - Reference u/s. 18 seeking enhancement of 
compensation dismissed -
High Court enhancing 
compensation @ Rs. 30001- per sq. yd. with all other statutory 
benefits - On appeal, held: Market value of the acquired lands 
cannot be fixed merely on basis of circle rate- Sale price in 
D 
respect of small piece of land cannot be the basis for 
detennination of market value of large stretch of land - Nature 
of land, locality and prevailing circumstances are relevant -
Evidence of the attorney of claimant that acquired plot was 
located within the developed commercial hub of Karol Bagh 
E 
having all facilities - Thus, the amount determined by High 
Court is just, reasonable and acceptable. 
The appellants' property was situated in Karol Bagh. 
The respondents acquired the same for public purpose-
for Joshi Memorial Hospital. The Land Acquisition 
Collector determined the market value of the acquired 
land @ Rs. 550 per sq. yd. and in addition awarded 
solatium @ 30 % and additional amount uls. 23 (1-A) of 
F 
the Land Acquisition Act @ 12 %. The appellants filed 
reference uls. 18 and the same was dismissed. The High 
G 
Court enhanced the compensation @ Rs. 3,0001- per sq. 
yd. with all other statutory benefits. Hence the present 
cross appeals. 
I 
141 
H 
A 
142 
SUPREME COURT REPORTS 
[2010] 3 S.C.R. 
Dismissing the appeals, the Court 
HELD: 1.1 While fixing compensation, it is the duty 
of the Land Acquisition Collector as well as the Court to 
take into consideration the nature of the land, its 
8 suitability, nature of the use to which the lands are sought 
to be acquired on the date of notification, income derived 
or derivable from or any other special distinctive feature 
which the land is possessed of, the sale transactions in 
respect of land covered by the same notification are all 
relevant factors to be taken into consideration in 
C determining the market value. It is equally to consider the 
suitability of neighbourhood lands as are possessed of 
similar potentiality or any advantageous features or any 
special characteristics available. The Land Acquisition 
Collector as well as the Court should always keep in their 
D mind that the object of assessment is to arrive at a 
reasonable and adequate market value of the land. While 
doing so, imagination should be eschewed and 
mechanical assessment of evidence should be avoided. 
More attention should be on the bona fide and genuine 
E sale transactions as guiding star in evaluating the 
evidence. The relevant factor would be that of the 
hypothetical willing vendor would offer for the land arid· 
what a willing purchaser of normal human conduct would 
be willing to buy as a prudent man in normal market 
F conditions prevailing in the open market in the locality in 
which the acquired lands are situated as on the date of 
notification u/s. 4(1) of the Land Acquisition Act, 1894. 
The Judge who sits in the armchair of the, willing buyer 
and seek an answer to the question whether in the. given 
G set of circumstances as a prudent buyer he would offer 
the same market value which the court proposed to fix 
for the acquired lands in the available market conditions~ 
The market value so determined should be just, adequate 
and reasonable. [Para 6] [148-H; 149-A-F] 
H 
THAKUR KULDEEP SINGH (D) THR. L.R. & ORS. v. 143 
UNION OF INDIA & ORS. 
1.2. In view of the purpose for which the 'circle rates' 
A 
have been notified by the Ministry of Urban Affairs and 
Employment, market value of a plot cannot be determined 
solely on the basis of the circle rates. On the other hand, 
it cannot be ignored in toto. If other materials are 
available, Government rates can also be considered as 
B 
corroborative evidence. The nature of the land plays an 
important role. Likewise, market conditions prevafting as 
on the date of notification are also relevant. Sale price in 
respect of small piece of land cannot be the basis for 
determination of market value of large stretch of land. c 
[Para 13) [155-H; 156-A-B] 
1.3. Merely on the basis of 'circle rate', market value 
for acquired lands cannot be fixed but, at t
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