25 October 1996
Supreme Court
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P. RAJAN & ANR. Vs THE KERALA STATE ELECTRICITY BOARD & ANR.


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PETITIONER: P. RAJAN & ANR.

       Vs.

RESPONDENT: THE KERALA STATE ELECTRICITY BOARD & ANR.

DATE OF JUDGMENT:       25/10/1996

BENCH: K. RAMASWAMY, S.P. KURDUKAR

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted.      Notification under Section 4(1) of the Land Acquisition Act was published on October 13, 1979 acquiring large extent of land  admeasuring  7  acres,  8  cents  together  with  a building situated  in 1600  sq. mtrs,  of the land. The Land Acquisition Officer  awarded compensation  @ Rs. 1432.50 per cent, Rs.  2,35,233/- for  the building and Rs. 24,033/- for the trees  as well as wells and Rs. 4,19,006/- The reference Court enhanced  the compensation for the land to Rs. 3,000/- per cent and awarded an additional amount of Rs. 1,83,783.60 per cent and awarded an additional amount of Rs. 1,83,783.60 towards building  and Rs.  17,958/- as value of improvement. The respondents  filed an  appeal before the High Court. The High Court  allowed the  appeal of  the respondent, reducing the land  value to  Rs. 2,000/-  per cent.  This  appeal  by special lave  has been  filed  by  the  appellants-claimants challenging the  reduction of  the compensation  by the High Court.      The question  for consideration  is: whether  the  view taken by  the High  Court is correct in law? It is seen that the courts  below have relied upon Exs. A-1, A-2, A-7 and A- 9. The respondents have relied upon Exs. R-1 and R-6. Ex.A-1 is the  sale deed  dated July 31, 1978 pertaining to sale of an extent  of 2-1/2 cents of land whose value was worked out @ Rs.  3,000/- per cent spoken to by AW-4. It is an admitted position that the lands covered by the said sale transaction are situated  within the  municipal limits  in  a  developed area. The  distance between  the acquired  land and the land covered  by   the  Sale  deed  is  2-1/2  kms.  Under  these circumstances, the  said  sale  deed  does  not  furnish  ay reasonable  basis   to  determine   the  market   value  and compensation. Equally,  Ex.A-2 is  dated November  15,  1978 spoken to  by AW-2.  It is  a small  extent of land situated within the  municipal limits which worked out at Rs. 4,000/- per cent.  Ex.A-7 is  dated August 1, 1979 and the extent of the land has not been mentioned; but is an admitted position that it  is a  small piece  of land  purchased by AW-3 which worked out  to Rs.  26,000/- per  cent. Ex.A-9  is  a  post- notification sale  deed dated  October 9,1980  pertaining to

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sale of  an extent  of three cents of land purchased by AW-5 which worked  to Rs. 5,000/- per cent. This also being post- notification and being in respect of a small extent of land, does not  furnish any  reasonable basis  of land,  does  not furnish any reasonable basis for determination of the market value and compensation.      It is  well settled  legal  position  that  when  large extent of land is acquired, determination of compensation on the fort  of a  cent, square  yard of  square foot  is wrong principle.  This   Court  repeatedly   emphasised  that  the principle is  fixation on  acrage basis. The other principle is  developed  area  and  acquired  land  was  converted  as building plots  as colony  or land  itself is well developed area like heart of the commercial centres.      It is  seen that  Ex.R-1  is  dated  October  27,  1979 involving 15 cents of land sold by  RS-1 which worked out to Rs. 2,800/- per cent. In view of the large extent of land in view of the fact that the sale deeds are in respect of small extents of  land, they  do not offer any reasonable basis to determine the  market vale and compensation higher than that was granted by the High Court which had become final.      Under  these   circumstances,  we   do  not   find  any compelling  evidence   or  the   application  of  any  wrong principle of law to conclude that the High Court has ignored any material  evidence in  determining the  compensation. No error of  law has  been committed  by the  High   Court  for warranting interference  with the  valuation of  the  market value of the land.      As regards  the building, it is not is dispute that the Executive Engineer  of the Department of Government assessed the value  of the building. Though the Commissioner Engineer appointed by the reference Court had valued the building and the material  at Rs. 1,85,026/- consisting  of the valuation and appreciation  of 15  per cent  etc, the High Court found that three is reliable evidence placed on record in awarding 15% more as was assessed by the Engineer. This also being on appreciation of  evidence, we  do not find any unimpeachable material to  find that  the  view taken by the High Court is warranted for interference on the facts of this case.      Under  these   circumstances,  we   do  not   find  any compelling reason warranting interference.      The appeal is accordingly dismissed. No costs.