LexTHE SPECIAL LAND ACQUISITION OFFICER, DAVANGERE versus P. VEERABHADARAPPA ETC. ETC .
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
386
. B
c
D
•
F.
THE SPECIAL LAND ACQUISITION OFFICER, DAVANGERE
.
.
v .
•
P. VEERABHADARAPPA ETC. ETC .
January 9; J984
[A. P. SEN AND E. S. VsNKATARAMIAH]
Land Acquisitio11 1894 .(/ of 1894) S. 23
Acquisition· of agricUlturaf lands in 1971 and 1972-paynient of C(Jmpensation-
Market value fixed ~n basii of capitalisation Principl?-Multiplier to be adopted-
explained.
•
Co1np~l1!J'{ltion-ckten11ination
of-1nethod of capitalisation_:..whe1t w Qe
resorted to.
.
t
[n the.Y:ears 1971 and 1972, several "thousand acres of agflcriltural lands in
·two villages were acquired by ~he State Governn1ent pursua1'tt to different notifica-
tiOns issued ~nder section 4(1) of the Land Acquisition Act 1894. In response to
notices ·under section 9(2), the respondents appeared ·before the Special Land.
Acciuisition Officer and claimed co1npensation Varying between Rs.. 15,000 to
Rs.25. 000.per acre for dry and wet lands ctePending. up~n the natu~e.and the quality
of t.h.e soil, and the ·]~come derived therefron1.
In some cases -compensation .was
· ·claim:ed at ·more than Rs. 1 lakh Per acre
0
for arecai1ut .garden lands.
.
.
.
The Special L;ihd Acquisition Officer, by his various awards ·adopted a
multiple of fifteen and a Warded compensation.at a flat rate of'Rs 3,300 per acre for
dry agricu~tural lands and Rs 5 000.per.acre for we_t agri~ul~ural land_s.
On feferences undc; section 18, the Civil ,Tudge adopted a.1nultiple of fiftee
times the net annu1T profits as there was no other method of determinillg the market
valm: of the land, and enhanced the amount o( comp"ensatiOn to Rs. 19,500 per
acre for wet agricul tur•a"t lands and Rs 1,10,000 for arecanut garden lands."
On appeals b.Y ·the Special Land· Acquisition Officer,.the ·High Court also
adOpted the capitalised value at JS years'. purchase of the net ann~al·profits bu~
~educed the amount of 9Jmpensation to Rs. 15,000 pet acre. for ~t agricultural
lands an4 Rs.· 25,000 per acre for arecanut gar£1.en lands. .
.
G
· In the appeals to this Court. by the Special Land Acquisition Officer. it Was
H
contended relying ·on the unreported 'dccisioi1 of the High Court dated November
21, 1977 in MFA Nos. ssi·-4/76 :
.
.
. I
The Special Land Acquisition Officer, [Javangere v. B. Basavarajappa & ()rs
thiit the proper.· multipIC for computation o( the capitalized Value should be 12!,
8.nd that the High Court was wr-ong in adopting the multiple of· _15 when the rate
of return in the years 197l_and 1972 was~8 per cent per a:nnum:.
· · .'
•
•.
-
•
(~
' -
LAND ACQN. OFFICER V. P. VEERABHADARAPPA
387
Allowing the Appeafs;
..
HELD : 1. The funCtion of the Court in awarding compCnsation under
the Land Acquisition Act 1894 is to a~certain fhe "mark~t va1ue" o_f the land at
the datC of th~ notification under section 4(1) of the Act; and the metho9s of valua-
tion may .he; (1) OpiniOn of expert&: (2). Tne price paid withid.a reasonable
time in· bona fide transactions of purchase or sale of the lands _acquired, or of the
lands adjacent to these acquired and possessing sifDilar advanta~es, and (3) a number
of years' pu~~hase of th~ actual or in1Illediately · prosPective profits of the lands
acquired." [392 D-E]
•
2. The method 'Of-capitalising the actual or inunediately prospective profits
or the rent of a nun1ber of years' purchase should nofbe reso,rted to if there is
_evidence of comparable sales or other evidence for computation of the mafket
A
Value-.. It can be resorted to only" when no other_ n1ethod is available;. · [392 E]
C
3·. · The ~caqing to be placed upon the phrase·"Market Value"' of the land
under s.23 of the Act, is ~he price the land acquired could actually be sold at the
relevant time i.e. on the date of the notification _under s 4(1). The owner is-entitled
to_ the value of the property in its actual condition at -the time of•expropriation,
" with an its advantages and with_ all its possibilities,, excluding any advantage due
to the carrying out-of the scheme for the Purpose for which the Property is acquired.
D .
Its valbe is ineasured by a consideration of the prices that have been obtained9in
the past for lands of similar quality and in similar positi_ons ... [394 H; 392 B·C)
4. In Va·Iuing land or an· interest in Land for piJrposes of land acquisition
procOOdings, the rule as to nun1ber of years' purch~se is not a theoretical or legal
rule but depends ·upon economic factors such as the prevailExcerpt shown. Read the full judgment & AI analysis in Lexace.