LexTHE STATE OF M.P. ETC. versus HARISHANKAR GOEL AND ANR. ETC.
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THE STATE OF M.P. ETC. A v. HARISHANKAR GOEL AND ANR. ETC. AUGUST 7, 1996 [K. RAMASWAMY AND G.B. PATIANAIK, .lJ.[ B Land Acquisition Act, 1894: Ss.4(1 ), 11, 18, 23(1-A), 23(2) and 28-Acq11isitio11 of more titan 33 bigltas of land in 1964-Awai-d by Collector in 1966 dete1111ining compensa- C tion at the rate of Rs. 3,150 per big/ta-Award and decree by reference cowt i11 1975 enhancing compensation at the rate of Re.I per sq. ft.-High Cowt dete1111ini11g compensation at Rs. 0.90 per sq. ft. and awarding enhanced solatiunz, interest and additional aniount as available under Anzendntent Act 68 of 1984---Held, reference cowt and High Cowt committed ennr of law in detennining compensation of such a large extent of land on sq.ft. basis-High D Cowt also committed el1'or of law in allowing benefits of enhanced solatiwn and additional amoum under s.23(1-A) and 23(2) as also interest under proviso "28-Compensation detennined at Rs. 4 per sq. yd. and deduction would be 25% towards developmental charges. CIVIL APPELLATE JURISDICTION : Civil appeal nc. 2297 of E 1987 Etc. From the Judgment and Order dated 28.10.86 of the Madhya Pradesh High Court in M.A. No. 83 of 1975. K.N. Shukla, Prashant Kumar and S.K. Agnihotri for the Appellants. S.S. J aveli and Vivek Gambhir for the Respondents. The following Order of the Court was delivered : These appeals arise from the Judgment of the High Court of Madhya Pradesh. On a difference of opinion among two learned Judges, third Judge on reference in Miscellaneous Appeal No. 82175 and 83/75 enhanced the compensation. The notification under Section 4(1) of the Land Acquisi- tion Act I of 1894 was published on January 17, 1964 acquiring 33 bighas F G 15 biswas of land belonging to two different individuals for industrial H 349 350 SUPREME COURT REPORTS [1996] SUPP. 4 S.C.R. A purpose. The Land Acquisition Officer by his award under Section 11 determined compensation on March 14, 1966 at Rs. 3,150 per bigha treat- ing the lands to be agricultural lands. On reference under Section 18, the Additional District Judge by his award and decree dated May 15, 1975 enhanced the compensation to Rs. 1 per sq. ft. and also awarded statutory B c D E F benefits. On appeal, learned Judge B.C. Verma, J. determined compensa- tion at 0.90 per sq. ft. deducted 15% towards developmental charges. Learned Judge R.C. Srivastava, J. determined the compensation at Rs. 0.50 per sq. ft. and deducted 25% towards developirental charges. On refer- ence, learned Judge T.N. Singh, J. agreed with the determination of com- pensation B.C. Verma, J. at Rs. 0.90 per sq. ft. but deducted 20% towards developmental charges. He also awarded enhanced solatium, interest and additional amount as available under the Amendment Act 68 of 1984. Thus these appeals by the State and also cross appeal by the claimants claiming compensation at Rs. 1 per sq. ft. The question that arises for consideration is as to what is the rate of compensation that the lands are capable to secure in an open market. It is not in dispute that though they were the agricultural lands as on the date of notification the respondents who are no other than the builders and developers had, after the purchase obtained sanction under Section 172 of the Madhya Pradesh Revenue Code for conversion of the land into non- agricultural lands, but no sanction from the municipality of construction of any colonisation, was obtained. Even learned Judge B.C. Verma, J. had noted in his judgment that though the respondents - claimants had entered into the agreement of sales with the prospective purchasers, they had not completed the sale transactions. Those agreements were brought into existence to bolster the claims. However, the learned Judge found that the lands were situated very near to the Vicky moped factory. They abut the Jhansi Road; Sitholi railway station is one mile from the acquired lands, but they are situated outside the municipal limits of Gwalior Municipal Corporation. Their lands arc fit for developing industries, housing colonies, godown, petrol pumps etc. The evidence also disclosed that the land was G not improved and it was not even land. Considered in this background, the learned Judge had accepted the sale deed executed by one of the claimants for a small extent of land at Rs. 0.50 per sq. ft. but having found that the lands were possessed of potential value, determined the compensation at Rs.
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