The Land Acquisition Officer & Sub-Collector, Gadwal. Vs. Smt. Sreelatha Bhoopal & Anr.
EmailAppeal: Civil Appeal No. 3147 of 1997
(Arising out of SLP (C) No.2775 of 1997)
(From the Judgment and Order dated 8.8.96 of the Andhra Pradesh High Court in A.No. 2391 of 1986)
(Arising out of SLP (C) No.2775 of 1997)
(From the Judgment and Order dated 8.8.96 of the Andhra Pradesh High Court in A.No. 2391 of 1986)
Petitioner: The Land Acquisition Officer & Sub-Collector, Gadwal.
Respondent: Smt. Sreelatha Bhoopal & Anr.
Apeal: Civil Appeal No. 3147 of 1997
(Arising out of SLP (C) No.2775 of 1997)
(From the Judgment and Order dated 8.8.96 of the Andhra Pradesh High Court in A.No. 2391 of 1986)
(Arising out of SLP (C) No.2775 of 1997)
(From the Judgment and Order dated 8.8.96 of the Andhra Pradesh High Court in A.No. 2391 of 1986)
Judges: K. RAMASWAMY & D.P. WADHWA, JJ.
Date of Judgment: Apr 21, 1997
Appearances:
Mr. Altaf Ahmed, Additional Solicitor General and Mr. B. Parthasarathy, Advocate with him for the Appellants.
Head Note:
LAND ACQUISITION
Land Acquisition Act, 1894:
Section 4(1) – Compensation – Award challenged – Reliance upon sale deed of small piece of land – Held that it is well settled legal position that small pieces of land cannot offer the same market value when a large track of land is purchased – Further held that burden is on the claimant to prove by adducing acceptable evidence for higher compensation -Order as confirmed by High Court is set aside – Compensation enhanced – Solatium at the rate of 30% and interest on enhanced compensation at the rate of 9%. from the date of taking possession to the date of payment.
Land Acquisition Act, 1894:
Section 4(1) – Compensation – Award challenged – Reliance upon sale deed of small piece of land – Held that it is well settled legal position that small pieces of land cannot offer the same market value when a large track of land is purchased – Further held that burden is on the claimant to prove by adducing acceptable evidence for higher compensation -Order as confirmed by High Court is set aside – Compensation enhanced – Solatium at the rate of 30% and interest on enhanced compensation at the rate of 9%. from the date of taking possession to the date of payment.
Held:
Small pieces of land cannot offer the same market value when a large track of land is purchased in an open market by a willing and prudent purchaser. It is settled legal position that the Court has to put itself in the armchair of a prudent purchaser and put the question to itself whether the land, in the given circumstances, would fetch the same market value as is likely to be determined by the court when small piece of land would be offered for sale. (Para 4)
It is settled legal position that the burden is on the claimant to prove by adducing acceptable evidence for higher compensation. (Para 4)
JUDGEMENT:
O R D E R
1. Though notices have been served, respondents are not appearing either in person or through counsel.
2. Leave granted.
3. Notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, the ‘Act’) was published on September 26, 1981 for public purpose, namely, establishment of Bus Depot/Stand in Gadwal Town of Mahaboobnagar District in the State of Andhra Pradesh. The Land Acquisition Officer in his award dated December 27, 1983 awarded compensation at the rate of Rs.8,000/- per acre. On reference, the Civil Court by its award and decree dated November 15, 1985, enhanced the compensation to Rs.20/- per sq. yd. On appeal, the Division Bench of the A.P. High Court in Appeal No.2391/86 by judgment and decree dated August 8, 1996 has confirmed the same. Thus, this appeal, by special leave.
4. The High Court has relied upon Ex.A-4 the sale wherein related to a small piece of land, and accordingly confirmed the market value @ Rs.20/- per sq. yd. It is now well settled legal position that small pieces of land cannot offer the same market value when a large track of land is purchased in an open market by a willing and prudent purchaser. It is settled legal position that the Court has to put itself in the armchair of a prudent purchaser and put the question to itself whether the land, in the given circumstances, would fetch the same market value as is likely to be determined by the court when small piece of land would be offered for sale. Unfortunately, the High Court has not adopted that principle; it has merely proceeded to rely upon sale deed relating to a small piece of land. We have gone through the award of the Collector. The Collector referred to various sale deeds and ultimately he relied upon a sale transaction and held that the lands in the sale deed at Sl. No.120, pertaining to survey Nos.854, which fetched the rate of Rs.4,519-77 as on the date of the sale, namely, December 27, 1978 was comparable one. The Land Acquisition Officer noted that the lands therein were converted into non-agricultural lands and the lands in question still remained to be agricultural lands and were adjacent to Gadwal Town. Under these circumstances, he awarded the market value at the rate of Rs.8,000/- per acre. It is settled legal position that the burden is on the claimant to prove by adducing acceptable evidence for higher compensation. Having rejected Ex.A-4 relied on by the High Court, though the award of Land Acquisition Officer is not evidence stricto sensu with a view to do substantial justice. We looked into it and considered the material collected therein. Having regard to the state of evidence and large extent of the land in question as also and the facts, we think that the appropriate market value would be Rs.20,000/- per acre and would be just and reasonable compensation.
5. The appeal is accordingly allowed. The order of the reference Court as confirmed by the High Court is set aside. Instead, the award shall be substituted by Rs.20,000/- per acre with usual solatium at the rate of 30% and interest on enhanced compensation at the rate of 9% per annum from the date of taking possession to the date of payment of such enhanced compensation and at the rate of 15% thereafter till deposit of enhanced compensation into the court. No orders as to costs.
1. Though notices have been served, respondents are not appearing either in person or through counsel.
2. Leave granted.
3. Notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, the ‘Act’) was published on September 26, 1981 for public purpose, namely, establishment of Bus Depot/Stand in Gadwal Town of Mahaboobnagar District in the State of Andhra Pradesh. The Land Acquisition Officer in his award dated December 27, 1983 awarded compensation at the rate of Rs.8,000/- per acre. On reference, the Civil Court by its award and decree dated November 15, 1985, enhanced the compensation to Rs.20/- per sq. yd. On appeal, the Division Bench of the A.P. High Court in Appeal No.2391/86 by judgment and decree dated August 8, 1996 has confirmed the same. Thus, this appeal, by special leave.
4. The High Court has relied upon Ex.A-4 the sale wherein related to a small piece of land, and accordingly confirmed the market value @ Rs.20/- per sq. yd. It is now well settled legal position that small pieces of land cannot offer the same market value when a large track of land is purchased in an open market by a willing and prudent purchaser. It is settled legal position that the Court has to put itself in the armchair of a prudent purchaser and put the question to itself whether the land, in the given circumstances, would fetch the same market value as is likely to be determined by the court when small piece of land would be offered for sale. Unfortunately, the High Court has not adopted that principle; it has merely proceeded to rely upon sale deed relating to a small piece of land. We have gone through the award of the Collector. The Collector referred to various sale deeds and ultimately he relied upon a sale transaction and held that the lands in the sale deed at Sl. No.120, pertaining to survey Nos.854, which fetched the rate of Rs.4,519-77 as on the date of the sale, namely, December 27, 1978 was comparable one. The Land Acquisition Officer noted that the lands therein were converted into non-agricultural lands and the lands in question still remained to be agricultural lands and were adjacent to Gadwal Town. Under these circumstances, he awarded the market value at the rate of Rs.8,000/- per acre. It is settled legal position that the burden is on the claimant to prove by adducing acceptable evidence for higher compensation. Having rejected Ex.A-4 relied on by the High Court, though the award of Land Acquisition Officer is not evidence stricto sensu with a view to do substantial justice. We looked into it and considered the material collected therein. Having regard to the state of evidence and large extent of the land in question as also and the facts, we think that the appropriate market value would be Rs.20,000/- per acre and would be just and reasonable compensation.
5. The appeal is accordingly allowed. The order of the reference Court as confirmed by the High Court is set aside. Instead, the award shall be substituted by Rs.20,000/- per acre with usual solatium at the rate of 30% and interest on enhanced compensation at the rate of 9% per annum from the date of taking possession to the date of payment of such enhanced compensation and at the rate of 15% thereafter till deposit of enhanced compensation into the court. No orders as to costs.
