23 September 1996
Supreme Court
Download

LAND ACQUISITION OFFICER Vs R.R. HANMANTANAWAR & ANR.


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2  

PETITIONER: LAND ACQUISITION OFFICER

       Vs.

RESPONDENT: R.R. HANMANTANAWAR & ANR.

DATE OF JUDGMENT:       23/09/1996

BENCH: K. RAMASWAMY, G.B. PATTANAIK

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted      We have heard learned counsel on both sides.      Notification   under   Section   4(1)   of   the   Land Acquisition Act,  1894 (for  short the ’Act’) was  published on April 14,1977 acquiring an extent of 3  acres 34 gunthas, 1 acre  2 gunthas  for extension  of   agricultural  Produce Marketing Committee, Gadag in  Dharwad district of Karnataka state. The land Acquisition Officer (lad) by his award dated January 23  ,1982 determined the compensation at the rate of Re.0.76 per  sq,ft. On  reference, the  Civil Judge Gadag in his award  dated November 29, 1982 enhanced the compensation to Rs.8.50  per sq.  ft. On  appeal under Section 54; in the impugned judgment  dated October  7,1992 and November 4.1992 in MFA  No.837/87 and MFA  No.1962/87 respectively, the High Court of  Karnataka reduced  the compensation  to Rs.7/- per sq. ft. Thus these appeal by special leave.      The reference Court and High Court relied on three sale instances of  an extent  of 38.4  sq. ft.  and 87.35 sq. ft. which worked  out at  the rate  of Rs,8/-  and Rs.19.98  per sq.ft.; another  sale deed  of 78  sq. ft. was worked out at the rate of Rs.31.25 per sq. ft. The question is whether the principal adopted  by the courts below is correct in law? It is now settled legal position by catena of decisions of this court that  the civil Court has to sit in the arm chair of a willing prudent  purchaser and  put question  to itself  and answer whether  such a willing prudent purchaser would offer to purchase in the open market at the rate Court proposes to determine as  compensation. When  a total  extent of 7 acres and odd  is sought  to be  acquired no  prudent purchaser in open market would offer to purchase the open land on sq. ft. basis that  too on  the basis of few small sale transactions and small extents would always fetch higher market value and the same  will never  command such  price in rsepct of large extent. This  Court had  always rejected  such instances  as being  not  comparable  sales.  Therefore  the  Civil  Judge adopted  feats   of  imagination   and  of  imagination  and determined compensation  on the basis thereof. Unfortunately the High  Court also  fell into  the  same  grave  error  in determination  the   compensation  on  the  same  basis  but

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2  

deducted 1/3rd  toward development  charges,  the  principle adopted by  the court  below  is  abviously  erroneous  and, therefore, it  cannot be  substained on  that basis. However where we  asked the  learned  counsel  for  the  parties  to produced the  evidence, the  appellant has  produced certain documents indicating  therein that for the same purpose they appeared to  have negotiated  and purchased  the  properties from  other  at  the  rate  of    Rs.9,000/-  per  acre  and registered sale deed came to be  executed. They are produced for the  first time.  Shri Ranjit Kumar, learned counsel for the respondents,  contended  that  the  documents  were  not placed either  in the  reference Court or in the High Court. He also says that location of the lands are different. Under these circumstances,  we cannot;  decide for  the first time the value of the land on the basis thereof without giving an opportunity to  either of  the parties for adducing evidence and without  consideration thereof  by the  reference Court. Accordingly, the  awards and  decrees of the reference Court and that  of the  High Court  stand set aside. The cases are remitted to the civil Court for decision afresh after giving an opportunity  to the parties to adduce evidence afresh and then decide the market value according to law. Pending these appeals since  the respondents  have withdrawn the amount as per   the interim  direction passed  by this Court, the same may not  be disturbed  and  the  amount  withdrawn  will  be adjusted when the award was passed by the reference Court.      The appeals  are accordingly  disposed of. The judgment of High  Court to  the extent  of awarding additional amount under Section  23(1-A) of the Act stands set aside since the LAO had  made his  award before  the Amendment Act came into Force. no costs.