VITHAL RAO & ANR. ETC. versus THE SPECIAL LAND ACQUISITION OFFICER

Citation: [2017] 6 S.C.R. 335 · Decided: 07-07-2017 · Supreme Court of India · Bench: ABHAY MANOHAR SAPRE · Disposal: Case Partly allowed
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Judgment (excerpt)

[2017) 6 S.C.R. 335 
VITHAL RAO & ANR. ETC. 
v. 
THE SPECIAL LAND ACQUISITION OFFICER 
(Civil Appeal Nos. 1645-1647 of 2016) 
JULY 07, 2017 
(ABHAY MANOHAR SAPRE AND 
SANJAY KISHAN KAUL, JJ.] 
Land Acquisition Act, 1894 - s. 23 - Market value of the 
acquired land - Determination of - Land acquisition for .construction 
A 
B 
of rehabilitation centre - Award of compensation in favour of land c 
owner -
High Court re-determined the compensation at 
Rs.13,93,9201- per acre as against Rs. 6,75,0001- per acre awarded 
by the reference court with all statutory benefits - On appeal, held: 
On facts, land acquired is a large chunk of land-30 acres approx., 
not fully developed land, for establishment of rehabilitation centre 
situated within the municipal limits, one side abutting the main district 
D 
road and some, buildings have come up in its near proximity - Land 
owners did not file any exemplar '.s sale deed in relation to large 
chunk of land to prove the price in acres but all sale deeds relied 
on by the land owners pertain to very small piece of land sold in the 
range of Rs.551- per sq. ft. to Rs.851- per sq. ft. except two parcels 
of land sold for Rs.JOO/- per sq. ft. and Rs.2181- per sq. ft. - It is 
not safe to rely on one or two isolated sale deeds of high value of 
very small plots - In view thereof, it would be just, fair and proper 
to work out the average value of these plots and to deduct 40% of 
the amount towards development charges out of the average price 
worked out - Thus, market value of the land is worked out as 
Rs.60/- per sq. ft. - Land owners entitled to compensation at the 
rate of Rs. 601- per sq ft. 
Partly allowing the appeals, the Court 
E 
F 
HELD: 1.1 On facts, the land acquired in question is a large G 
chunk of land (30 acres approx.); the purpose of acquisition is 
"Establishment of Rehabilitation Centre"; it is situated within 
the municipal limits; its one side is abutting the main district 
road (MDR); it is not fully developed; some buildings have come 
up in its near proximity; the appellants (land owners) have not 
filed any exemplar's sale deeds relating to large piece of land H 
335 
336 
SUPREME COURT REPORTS 
[2017] 6 S.C.R. 
A · sold in acres to prove the market value of the acquired land; all 
sale deeds relied on by the appellants pertain to very small piece 
of land such as, 25x55ft., 40x20ft., 40x40ft., etc whereas the land 
acquired, is quite large (30 acres); the price at which these small 
plots were sold was ranging from Rs.85/- per sq. ft. to Rs. 100/-
B per sq. ft., and Rs.218/- per sq. ft.; these eleven plots were sold 
prior to the date of acquisition (2000-2002) whereas the 
acquisition was in the year 2003; the small parcel of lands sold 
under these sale deeds are situated in near proximity of the 
acquired land and some were part of the acquired land; and all 
the eleven sale deeds are held bona fide and proper and these 
C sale deeds, therefore, can be relied on for determining the proper 
market value of the acquired land. [Para 30) [345-C-F) 
1.2 Taking into account the factual scenario of the acquired 
land and having regard to the totality of the circumstances taken 
note of, it would be just, fair and proper to take out the average 
D value of these plots. It is not safe to rely on one or two isolated 
sale deeds of high value of very small plots. Since the acquired 
land is not fully developed and it is required for construction of 
rehabilitation centre, it would be just, fair and proper to deduct 
40% of the amount towards development charges out of the 
average price worked out. Such deduction is permissible in law. 
E 
The average value of the land in this way is worked out to Rs.99/ 
- per sq. ft. and after deducting 40% towards development 
charges, Rs.60/- per sq. ft.(rounded ofO. The market value of 
Rs.60/- per sq. ft. which has been worked out, is just, fair and 
proper market value of the acquired land having regard to the 
F 
totality of the circumstances. It is this value which, should have 
been award~d to the appellants for the acquired land. [Paras 31, 
32, 33] [345-G ; 346-A-B] 
1.3 The impugned order is modified to the extent that the 
appellants are held entitled to claim compensation for the acquired 
G land at the rate of Rs.60/- per sq ft. As a consequence, the 
appellants are held entitled to claim all statutory compensation 
accordingly. The compensation now awarded by this Court by 
enhanced rate be re-worked and after mak
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