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CASE NO.: Appeal (civil)  7463 of 1997

PETITIONER: Krishi Utpadan Mandi Samiti Sahaswan Distt.Badaun thr.Secretary  

RESPONDENT: Bipin Kumar & Anr.                                        

DATE OF JUDGMENT: 07/01/2004

BENCH: S. N. VARIAVA & H. K. Sema.

JUDGMENT: J U D G M E N T

S. N. Variava, J

This Appeal is against the Judgment dated 14th July, 1997. Briefly stated the facts are as follows:         Section 4 Notification for acquisition of 6.9 acres of land were  issued on 30th January, 1988.   Section 6 Notification was issued on 30th  July, 1988. The award was passed on 16th July, 1990.   The Land  Acquisition Officer had called for sale deed from the office of the  Registrar of Documents.   He received 12 sale deeds of which one was  in respect of a land situated within the acquired land.  The Land  Acquisition Officer, therefore, considered that sale deed to be a  relevant document and on the basis of that sale deed, awarded  compensation at the rate of Rs. 15.37 per sq. yards.         The respondent and other claimants whose land had been  acquired filed references under Section 18.  Before the Reference  Court it was proved that near the acquired land there was a cold  storage and a petrol pump. It was shown that the high way passed  near the acquired lands. It was proved that there was a lot of building  constructions going on all around the acquired land. It was thus  proved that the acquired land had high potential for building  construction activity.   The sale deed by which the respondent had  himself purchased a portion of this land, in January, 1984 for  Rs.4100/- was proved.  However the respondent also relied on an  order dated 28.5.1987 by which the Stamp Officer fixed the market  value to be Rs.120 per sq. yards and levied stamp duty accordingly.    The Reference Court relied on the fact that the District Magistrate,  Badaun had fixed market rate of land, within the abadi at Rs.200 to  250 per sq. yard and that of land away from the abadi at Rs.150 to  170 per sq. yards.  On this basis the Reference Court fixed  compensation at the rate of Rs.150 per sq. yard.

       The appellant filed an appeal to the High Court.   The High Court  by the impugned judgment had fixed compensation at the rate of  Rs.170 per sq. yards on the following basis:         "Duly considered the submissions of both sides.   The  land was acquired on 30.1.80 by publication of notice  under Sec.4 of the L.A.Act and the declaration was made  on 13.8.86 under Sec.6 of the Land Acquisition Act on  13.8.86, the disputed land did not face Badaun Delhi Road.   Be that as it may be, the registered sale deed by which  this plaintiff-respondent purchased the land was a good  exemplar for ascertainment of market price.   It is the  matter of common experience that the price of the land is  soring high due to developments of the country and also  due to exploitation of population.  If 15% per annum is

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accepted as rate of increase of the price of the land then  there would 45% enhancement of the price of acquired  land in dispute.   Taking into consideration, that the  development had just started at the time of acquisition of  the land, I think Rs.170 per sq. yard should be proper  market price of the acquired land at the time of acquisition  and compensation be awarded accordingly."

       We have heard the parties at great length.   It is settled law that   one of the methods on which market value can be ascertained,  is on   basis of comparable sale deeds.  As has been noticed, the Land  Acquisition Officer had taken note of a sale deed of a land situated  within the acquired land.  That was a comparable sale deed.   Further,  the respondent had himself purchased a small portion of the acquired  land and had tendered his own sale deed as evidence.   Of course, this  sale deed was for only Rs.4100/- i.e. at the rate of Rs.15.40 per sq.  yards. Therefore, reliance was placed by the respondent on the order  passed by the Stamp Officer who valued for the purposes of stamp  duty, at the rate of Rs.120 per sq. yard.         As noted above, the Reference Court has relied on the order of  the Stamp Officer and on the fact that the District Magistrate, Badaun  had fixed market value of land at Rs.200 to 250 per sq. yards for land  within the abadi and at the rate of Rs.150 to 170 per sq. yard for land  away from the abadi.  The High Court has also taken note of the  respondent’s sale deed and given 45% increase.  However the High  Court has not taken the rate mentioned in the sale deed but has also  taken the rate of Rs.120 per sq. yards i.e. the rate fixed by the Stamp  Officer.           It has been held by this Court in the case of Jawajee Nagnatham  vs. Revenue Divisional Officer, Adilabad, A. P. and Ors. [1994 (4) SCC  595] that market value under Section 23 of the Land Acquisition Act,  1894 cannot be fixed on the basis of a basic valuation register  maintained by the registering authority for collection of stamp duty.    Therefore, the reliance by the Reference Court on the values of land  fixed by the District Magistrate for stamp duty purposes is clearly  erroneous.  For the purposes of Land Acquisition Act the market value  must be determined on the basis of sale deeds of comparable lands.   In this case the Land Acquisition Officer had taken note of one such  sale deed where the price was Rs.15.37 per sq. yard.   The Reference  Court also had before it the sale deed by which the respondent  purchased a portion of the acquired land.  As stated above the sale  deed was for Rs.15.40 per sq. yard.  Section 92 of the Evidence Act  precludes a party from leading evidence contrary to the terms of a   written document. It was, therefore, not open to the respondent to  urge that, even though his sale deed showed a price Rs. 15.40 per sq.  yard the real market value was Rs.120 per sq. yard.  To permit a party  to so urge would be to give a premium to dishonesty.  Parties who  undervalue their documents, for purpose of payment of stamp duty,  cannot be allowed to then claim that their own documents does not  reflect the correct market value.  Therefore as per sale instances of  the comparable lands the market value, on dates of sales, were in the  region of Rs.15.37 to Rs.15.40 per sq. yard.   However there is evidence of high potentiality.  The increase of  15% given by the High Court cannot therefore be said to be  unreasonable.  Of course, the 15% increase has to be on Rs.15.40  which is the figure shown in the sale deed. It cannot be on Rs.120 as  wrongly taken by the High Court.   The High Court also erred in  considering only three years increase whereas in fact there is  four  years difference between the respondent’s sale deed and the  acquisition proceedings.   Thus taking an increase of 60% over the  price of Rs.15.40 per sq. yard the value comes to Rs.24.64  per      sq.  yard.  We accordingly set aside the order of the Reference Court and  the High Court and fix value at the rate of Rs.24.64 per sq. yard. The  respondent will also to be entitled to solatium and other statutory  benefits under the Land Acquisition Act, 1894.  

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The Appeal stands disposed of accordingly. There will be no  order as to cost.