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PETITIONER: RATAN LAL GUPTA & ORS.

       Vs.

RESPONDENT: UNION OF INDIA

DATE OF JUDGMENT21/11/1995

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. PARIPOORNAN, K.S.(J)

CITATION:  1996 SCC  (7)   3        JT 1995 (9)   105  1995 SCALE  (6)698

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      The application for substitution is allowed.      Notification under Section 4(1) of the Land Acquisition Act, 1874  (for short ‘the Act’) acquiring, land admeasuring about  5.29   acres  (28   bighas)   comprised   in   Khasra No.351/305/162 etc,  situated in  Yaquatpur, Delhi  for  the planned development  (was published  in the Union Gazette on February 4,  1964). The Compensation at Rs.5,000/- per bigha together with 15% solatium and interest @ 6%. The Additional District Judge by his award and decree dated August 5, 1969, determined the  compensation at  the  rate  of  Rs.30/-  per square yard.  On further appeal under Section 54 of the Act, the learned  single Judge determined market value at Rs.78/- per sq. yard, deducted Rs.7/- for development charges, fixed the land  available as per the lay out at 78.45% of the land areas saleable  for plots.  The learned  Judge further  held that market  value for  undeveloped  area  was  Rs.23/-  per square yard  while for the developed area in Greater Kailash Part-I, the  market value  come to Rs.39.34 per square yard. On application  of the  average, the learned Judge fixed the market value  at Rs.40/-  per square yard. On Letters Patent Appeal, the  Division Bench  in the  impugned  judgment  and decree dated  August 26,1981 dismissed the appeal. Thus this appeal by special leave.      Shri Mukul  Mudgal, learned  counsel appearing  for the claimants, contended  that the  learned single  Judge having found that a sum of Rs.7/- per square yard would be required for development  charges of  the saleable  land of 78.45% as per the lay out, committed an error of law in fixing average price of  developed and  undeveloped  land  at  Rs.40/-  per square yard.  Having determined the market value at 78/- per square  yard   and  having   deducted  an   amount   towards development charges  and also  determined the saleable plots of land  at 78.45% of the land, he committed an error of law for further  reducing the  market value.  Thus  the  learned

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single Judge  has applied  wrong principle of law warranting interference.      The question,  therefore, is  what would be the correct market value that could be fixed as compensation of the land in question.  It is  seen that  strong reliance  was  placed before the  Reference Court on the sale transaction relating to developed  area and  undeveloped area. In the undeveloped area, the  market value  was Rs.23/-  per square yard and in the developed area, the market value was Rs.39.34 per square yard. It  is seen  that the  High Court  found  these  lands connected with developed roads.      It has been repeatedly held by a catena of decisions of this Court that when the market value is to be determined on the basis  of small  plots of  land the same price cannot be expected to  be realised  when a  large  track  of  land  is offered to a willing purchaser by a willing vendor. When lay out has  been  obtained  and  the  land  is  situated  in  a developed area, though sale relating to small plots of lands were produced  before the Court, on recording a finding that such sales  are genuine  and not  intended  to  inflate  the market value  of the  land, this  Court held  that necessary directions should  be given  in determining  the true market value based on resalable price at a future date.      It is  an admitted  fact that the lands in question are in undeveloped  area though  adjacent to the developed area, viz, Greater Kailash-I. The average price given by the Court also does not appear to be correct. In Administrator General of West  Bengal vs.Collector.  Varanasi (AIR 1988 SC 943) in paragraph 6,  this Court had laid the principle of deduction of 53%, when small plots of land were found to be of genuine sale and  situated in  a potentially  developed  area  as  a wholesale price.  In Hasanali  Khanbhai and  Sons & Ors. vs. State  of  Gujarat  [(1995)  5  SCC  422]  this  Court  also considered all  the earlier  cases and  held that  the small extents of  land sold  in plots,  would not furnish the sole basis to  fix same  price offered  by them.  Therefore,  the deduction of  60% of  the value  per square yard by the High Court was  upheld by  this Court.  It is seen that since the lands in  question are  situated in undeveloped area, though adjacent  to   the  road,   it  would  take  long  time  for realisation of  potentialities as they would require further development. Considered  from this prospective, the price of the developed area cannot be adopted ipso facto as the basis to determine  compensation to  these lands.  Considering the facts that the land required development and having deducted 78.45% land  which was  required for  building purposes,  we think that  proper market  value would  be Rs.50% per square yard.  The   appellants,  therefore,   are  entitled  to  be compensated at  that rate with interest at the rate of 6% on the enhanced compensation from the date of taking possession till the  date of deposit into the Court. The claimants also are entitled to solatium @ 15% on the enhanced compensation.      The  appeal  is  allowed  but,  in  the  circumstances, without costs.