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VITTHALBHAI BAKORBHAI (DEAD) THROUGH L.RS. AND ORS. ETC. versus THE EXECUTIVE ENGINEER, CAPITAL PROJECT AND ANR.

Citation: [1996] 3 S.C.R. 173 · Decided: 01-03-1996 · Supreme Court of India · Bench: K. RAMASWAMY, G.B. PATTANAIK · Disposal: Dismissed

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Judgment (excerpt)

VITTHALBHAI BAKORBHAI (DEAD) 
THROUGH L.RS. AND ORS. ETC. 
v. 
THE EXECUTIVE ENGINEER, CAPITAL PROJECT AND ANR. 
MARCH 1, 1996 
[K. RAMASWAMY AND G.B. PATTANAIK, JJ) 
A 
B 
Land Acquisition Act, 1894 : Sections 4( 1 ), 18, 23 and 54 Land 
acquisiti01t-<:ompensation-Determination of-Lands acquired in area 
which was not developed-Finding of Reference Cowt that some lands are C 
agricultural and some non-agricultural-Detennination of compensation by 
Reference Court 011 the basis of sale instances of the lands sold in the 
developed area held illegal-High Court relying upon the yield of income and 
applying multiplier of terr-Held principle adopted by High Court was not 
vitiated by any error of law. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4289 of 
19%. 
From the Judgment and order dated 14.9.94 of the Gujarat High 
Court in First Appeal No. 704 of 1993. 
With 
C.A. No. 4290/96, 4291/%, 4292-4306 and 4308-4354/96. 
R.P. Bhat, M.N. Shroff, Ms. Tanuja Sheet and Ms. Reema Bhandari 
D 
E 
for the Appellants. 
F 
Ms. H. Wahi, S. Hazarikha, Ms. Nandini Mukherjee for the Respon-
dents. 
The following Order of the Court was delivered: 
Leave granted. 
We have heard learned counsel on both sides. 
G 
These appeals by special leave arise from various judgments of 
Gujarat High Court. Facts in first of them, viz., CA. @ SLP (C) No. H 
173 
174 
SUPREME COURT REPORTS 
[1996] 3 S.C.R. 
A 24953/95 directed against First Appeal No. 704/93 would be sufficient for 
disposal of all the appeals. The High Court determined the compensation 
at the rate ot Rs. 50 per sq. meter (after giving due deductions). Notificaton 
under SectioJI 4(1) of the Land Acquisition Act, 1894 was published on 
July 7, 1983. The Land Acquisition Officer determined compensation 
B between Rs. 20 and Rs. 24 per sq. meter. On reference under Section 18, 
civil Court fixed it between Rs. 94 and Rs. 110 per sq. meter. On appeal 
under Section 54, the High court reduced the compensation to Rs. 50 per 
sq. meter. The lands in this case are situated in Vavol Village which is now 
part different sectors of Gandhi Nagar. The lands are in Sector 4. The High 
C Court has pointed that though Sector 4 was underdeveloped area as stated 
by the reference Court, the plots of land under sale are situated in 
developed area, their claim for compensation @ Rs. 300 per sq. meter 
cannot be accepted. The High Court relied upon the yield of the income 
after taking into consideration all the attendant circumstances and more 
particularly the location of the land, its proximity to developed area and 
D the existing potentials of its use etc. and applying the multiplier of 10, 
determined the compensation at the rate of Rs. 50 per sq. meter Shri Bhatt, 
learned senior counsel has contended that when the lands are situated in 
developing area and plots in developed area were already sold after 
ploughing at the rate of Rs. 330 per sq. meter after giving due deduction, 
E the determination of the compensation at the rate of Rs. 50 is inadequate. 
F 
He also contended that for the same land in the same village acquired by 
notification dated January 29, 1978 market value was determined at the 
rate of Rs. 80 per sq. meter which was allowed lo become final. The 
appellants are entitled at least to that rate. He further contended that by 
virtue of another notification dated February 18, 1981 in respect of lands 
situated at close proximity of 300 meters to the lands covered in the present 
notification dated January 15, 1978, the appellants are entitled to compen-
sation at the rate of at least Rs. 80, it is contended by Smt. H. Wahi, 
learned counsel for respondents that the High Court has considered all the 
relevant facts of the case and taken a pragmatic view in determining the 
G compensation. The view arrived al by the High Court cannot be said to be 
incorrect compensation. When the High court had determined compensa-
tion at the rate of Rs. 50 per sq. meter for the acquisition of 1983, for the 
lands covered by acquisition of 1981 cannot be higher than the rate of Rs. 
50 per sq. meter though there is no evidence as to under what circumstan-
H ces the appeal against the award dated January 29, 1978 had come to 
I 
\l 
VITIHALBHAI BAKORBHAI v. THE EX. ENG. CAPITAL PROJECT 175 
become final. It cannot be a ground to further enhance the compensation A 
to the land when the Court, on the relevant evidence, had adjudged the 
reasonable compensation and determined the market valu

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