U.P STATE INDUSTRIAL DEVELOPMENT CORPORATION versus RISHABH ISPAT LTD. AND ORS.

Citation: [2006] SUPP. 10 S.C.R. 1129 · Decided: 15-12-2006 · Supreme Court of India · Bench: B.P. SINGH · Disposal: Dismissed

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Judgment (excerpt)

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U.P. STA TE INDUSTRIAL DEVELOPMENT CORPORATION 
A 
v. 
RISHABH ISPA TL TD. AND ORS. 
DECEMBER 15, 2006 
[B.P. SINGH AND AL TAMAS KABIR, JJ.] 
B 
Land Acquisition Act, 1894: 
s.4-Award of compensation by reference court-Appeal by claimants 
for enhancement of compensation-High Court affirmed the finding of C 
Reference Court-On appeal, held, finding of reference court was based on 
proper appreciation of evidence on record and proper application of principles 
relating to determination of compensation under the Act and hence does not 
call for interference. 
D 
s. I 8-Plea of State that land vested in the State Government and 
claimants have no right to claim compensation for such land-Held, such 
plea cannot be raised in proceedings under S.18-Land Acquisition Officer 
himself had made offer of compensation to claimants-Having done so and 
having made a reference to court under S.18, it could not be contended by 
LA officer in a proceeding under S.18 that claimants to whom he had himself E 
offered compensation were not owners of the lands. 
In land acquisition case, a Notification dated August 25, 1981 was issued 
under s.4 of Land Acquisition Act in respect of village Habibpur. Another 
Notification dated September 14, 1981 under s.4 was issued in respect of F 
village Gulsitapur. The third Notification was issued on May 30, 1985 also 
in respect of village Gulsitapur. 
Pursuant to Notification issued under s.4 on August 25, 1981, lands in 
village Habibpur were sought to be acquired. The possession of lands in 
question was taken September 25, 1981. 
The Land Acquisition Officer fixed compensation. The land owners were 
not satisfied hence a reference was made under s.18 of the Act. The reference 
Court enhanced the compensation offered by Land Acquisition officer and it 
1129 
G 
H 
1130 
SUPREME COURT REPORTS [2006) SUPP. IO S.C.R .. 
A allowed compensation @ Rs.11 per: sq. yard for the lands abutting the road 
and the compensation ofRs.6 per sq. yard for the other lands. On appeal, 
High Court enhanced the compensation in respect of other lands from Rs. 6 
to Rs. 9 per sq. yard while maintaining Rs. 11 per sq. yard for lands abutting 
the road. Both State and Claimants filed appeals. 
B 
The appellant-State contended that in the instant case there was a sale 
deed wherein land was purchased by one 'A' @0.72 ps. per sq. yard and, 
therefore, there could be no better evidence to prove that the value of the land 
was much less, particularly when the aforesaid sale deed was executed only 4 
days before the issuance of the Notification under s.4 of the Act; that the 
C claimants having accepted the compensation offered to them without demur 
or protest, they were not entitled to claim a reference under s.18 of the Act; 
and that the lands vest.ed in the State Government and claimants had no right 
D 
to claim compensation for such lands. 
Dismissing the appeals, the Court 
HELD: 1.1. It cannot be disputed that the lands in question are valuable · 
lands and have become even more valuable on account of the development that 
has taken place in the area. The lands are in the vicinity of the city of Delhi 
and within 8-9 kilometers of Noida on Dadri - Noida - Delhi main road. It is 
E not in dispute that villages Habibpur and Gulsitapur are adjacent villages. 
Having regard to the location of these villages, compensation for lands 
acquired have been awarded on the same basis and at the same rates by the 
High Court. [1133-D-E] 
1.2. Having regard to the fact that the Land Acquisition Collector himself 
F offered compensation @ Rs. 3.92 ps; and Rs. 2.14 per sq. yard, the 
compensation could not have been reduced to 0. 72 ps. per sq. yard in view of 
the provision of Section 25 of the Act. The Reference Court relied upon a 
sale deed executed on 25th July, 1981 which related to the sale of2 bighas of 
land of village Habibpur@Rs. 21,600 per bigha. This sale deed was executed 
G on 25th July, 1981 whereas the Notification under Section 4 was issued on 
25th August, 1981. The Reference Court found this exemplar to be a reliable 
piece of evidence and accordingly determined compensation @ Rs. 11 per sq. 
yard for the lands abutting the road and Rs. 6 for the lands away from the 
road. The High Court has affirmed the finding of the Reference Court. There 
H is no reason to interfere with the finding which is based on proper appreciation 
U.P. STATEINDUSTRIALDEVELOPMENTCORPN. 1•. RISHABHISPATLTD. 
1131 
of the evidence on r

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