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THE LAND ACQUISITION OFFICER AND SUB-COLLECTOR, GADWAL versus SMT. SREELATHA BHOOPAL AND ANR.

Citation: [1997] 3 S.C.R. 875 · Decided: 21-04-1997 · Supreme Court of India · Bench: K. RAMASWAMY, D.P. WADHWA · Disposal: Leave Granted & Allowed

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Judgment (excerpt)

THE LAND ACQUISITION OFFICER AND 
SUB-COLLECTOR, GADWAL 
v. 
SMT. SREELATHA BHOOPAL AND ANR. 
APRIL 21, 1997 
[K. RAMASWAMY AND D.P. WADHWA, JJ.] 
Land Acquisition Act, 1894 : 
A 
B 
Compensatiort-Award of--Land Acquisition Officer awarding Rs. 
C 
8,000 per acre--Confinned by the High Court-On appeal held: --111 view of 
the state of evidence, the large extent of land as also the facts the appropriate 
market value would be Rs. 20, 000 per acre, which is substituted in place of 
Rs. 8, 000 awarded by the Land Acquisition Officer and co11fim1ed by High 
Cowt-Also entitled to usual solarium at the rate of 30% and interest 011 
enhanced compensation at the rate of 9% per annum from the date of taking D 
possession till the date of paymellt of such enhanced compensation and at 
the rate of 15% thereafter till deposit of enhanced compensation into the 
court. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3147 of E 
1997. 
From the Judgment and Order dated 8.8.96 of the Andhra Pradesh 
High Court in A. No. 2391 of 1986. 
Altaf Ahmed, Additional Solicitor General and B. Parthasarathy for 
F 
the Appellant. 
The following Order of the Court was delivered : 
Though notices have been served, respondents are not appearing 
either in person or through counsel. 
G 
Leave granted. 
Notification under Section 4(1) of the Land Acquisition Act, 1894 
(for short, the 'Act') was published on September 26, 1981 for public 
purpose, namely, establishment of Bus Depot/Stand in Gadwal Town of H 
875 
876 
SUPREME COURT REPORTS 
[1997) 3 S.C.R. 
A Mahaboobnagar District in the State of Andhra Pradesh. The Land Ac-
quisition Officer in his award dated December 27, 1983 awarded compen-
sation at the rate of Rs. 8,000 per acre. On reference, the Civil Court by 
its award and decree dated November 15, 1985, enhanced the compensa-
tion to Rs. 20 per sq. yd. On appeal, the Division Bench of the A.P. High 
B 
Court in Appeal No. 2391/86 by judgment and decree dated August 8, 1996 
has confirmed the same. Thus, this appeal, by special leave. 
The High Court has relied upon Ex. A-4 the sale wherein related to 
a small piece of land, and accordingly confirmed the market value @ Rs. 
20 per sq. yd. It is now well settled legal position that small pieces of land 
C cannot offer the same market value when a large track of land is purchased 
in an open market by a willing and prudent purchaser. It is settled legal 
position that the Court has to put itself in the armchair of a prudent 
purchaser and put the question to itself whether the land, in the given 
circumstances, would fetch the same market value as is likely to be dcter-
D mined by the court when small piece of land would be offered for sale. 
Unfortunately, the High Court has not adopted that principle; it has merely 
proceeded to rely open sale deed relating to a small piece of land. We have 
gone through the award of the Collector. The Collector referred to various 
sale deeds and ultimately he relied upon a sale transaction and held that 
the lands in the sale deed at SI. No. 120, pertaining to survey Nos. 854, 
E which fetched the rate of Rs. 4,519-77 as on the date of the sale, namely, 
December 27, 1978 was comparable one. The Land Acquisition Officer 
noted that the lands therein were converted into non-agricultural lands and 
the lands in question still remained to be agricultural lands and were 
adjacent to Gadwal Town. Under these circumstances, he awarded the 
F 
market value at the rate of Rs. 8,000 per acre. It is settled legal position 
that the burden is on the claimant to prove by adducing acceptable 
evidence for higher compensation. Having rejected Ex. A-4 relied on by 
the High Court, though the award of Land Acquisition Officer is not 
evidence stlicto sensu with a view to do substantial justice. We looked into 
it and considered the material collected therein. Having regard to the stale 
G of evidence and large extent of the land in question as also and the facts, 
we think that the appropriate market value would be Rs. 20,000 per acre 
and would be just and reasonable compensation. 
The appeal is accordingly allowed. The order of the reference Court 
H as confirmed by the High Court is set aside. Instead, the award shall be 
LAND ACQUISITION OFFICER AND SUB-COLLECTOR. GADWALv. S. BHOOPAL 
877 
substituted by Rs. 20,000 per acre with usual solatium at the rate of 30% A 
and interest on enhanced compensation at the rate of 9%oPer annum from 
the date of taking possessio

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