LexUNION OF INDIA versus DYAGALA DEVAMMA & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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SUPREME COURT REPORTS
[2018] 7 S.C.R.
UNION OF INDIA
v.
DYAGALA DEVAMMA & ORS.
(Civil Appeal Nos. 6986-6987 of 2018)
JULY 25, 2018
[ABHAY MANOHAR SAPRE AND
UDAY UMESH LALIT, JJ.]
Land Acquisition:
Deduction towards developmental charge – While determining
market value of acquired land – For the purpose of granting
compensation – What should be rate of deduction – Held: While
determining true market value of large chunk of undeveloped
acquired land, it is just and reasonable to make appropriate
deduction towards expenses for development of acquired land –
Percentage of deduction varies from 10% to 86% – Such deduction
should be made keeping in mind nature of land, area under
acquisition, whether the land is developed or not and if so to what
extent, purpose of acquisition etc.– Courts can apply reasonable
amount of guesswork to balance the equities in order to fix a just
and fair market value in terms of parameters specified under s. 23
of Land Acquisition Act – In the facts of the present case Reference
Court was justified in making deduction of 50% towards
developmental charges – High Court did not assign any good reason
in making such deduction @ 25% – Land Acquisition Act, 1894 –
s. 23.
Allowing the appeals, the Court
HELD: 1. While determining the true market value of the
acquired land especially when the acquired land is a large chunk
of undeveloped land, it is just and reasonable to make appropriate
deduction towards expenses for development of acquired land.
At what percentage the deduction should be made varies from
10% to 86% and, therefore, the deduction should be made
keeping in mind the nature of the land, area under acquisition,
whether the land is developed or not and, if so, to what extent,
the purpose of acquisition, etc. While determining the market
value of the large chunk of land, the value of smaller pieces of
[2018] 7 S.C.R. 1118
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land can be taken into consideration after making proper
deduction in the value of lands especially when sale deeds of
larger parcel of land are not available. The Court should also
take into consideration the potentiality of the acquired land apart
from other relevant considerations. The Courts can always apply
reasonable amount of guesswork to balance the equities in order
to fix a just and fair market value in terms of parameters specified
under Section 23 of the Act. [Para 22] [1125-G, H; 1126-A-C]
Trishala Jain & Anr. v. State of Uttaranchal & Anr.
(2011) 6 SCC 47 : [2011] 8 SCR 520 ; Vithal Rao &
Anr. v. Special Land Acquisition Officer (2017) 8 SCC
558 : [2017] 6 SCR 335 – relied on.
Chimanlal Hargovinddas v. Special Land Acquisition
Officer, Poona & Anr. (1988) 3 SCC 751 : [1988] 1
Suppl. SCR 531 ; Union of India v. Raj Kumar Baghal
Singh (Dead) Through Legal Representatives & Ors.
(2014) 10 SCC 422 : [2014] 7 SCR 709 – referred to.
2. It is evident from the facts of the present case that firstly,
the land acquired in question is a large chunk of land (101 acres
approx.); Secondly, it is not fully developed; Thirdly, the
respondents (landowners) have not filed any exemplar sale deed
relating to large pieces of land sold in acres to prove the market
value of the acquired land; Fourthly, exemplar relied on by the
respondents, especially Ex.P-18 pertains to very small pieces of
land (19 guntas); Fifthly, the three distinguishing features noticed
in the land in sale deed (Ex.P-18) are not present in the acquired
land. It was for the aforementioned reasons that the Reference
Court was justified in making deduction of 50% towards
developmental charges from the market value. The High Court,
did not assign any good reason as to why and on what basis, it
considered proper to make deduction towards developmental
charges at the rate of 25% in place of 50%. [Para 23, 24]
[1126-D-F]
Case Law Reference
[1988] 1 Suppl. SCR 531 referred to
Para 19
[2014] 7 SCR 709
referred to
Para 21
[2011] 8 SCR 520
relied on
Para 22
[2017] 6 SCR 335
relied on
Para 22
UNION OF INDIA v. DYAGALA DEVAMMA & ORS.
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SUPREME COURT REPORTS
[2018] 7 S.C.R.
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6986-
6987 of 2018.
From the Judgment and Order dated 08.08.2014 of the High Court
of Judicature at Hyderabad in Land Acquisition Appeal Suit No.762/2010
and Cross Objections (SR) No.373 of 2011.
Vikramjit Banerjee, ASG, B. Adinarayana Rao, Sr. Adv., Anish
Kumar Gupta, Ms. Bhakti Pasrija Sethi, MExcerpt shown. Read the full judgment & AI analysis in Lexace.