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PETITIONER: P. VENKATARAJU

       Vs.

RESPONDENT: SPECIAL TEHSILDAR(LAND ACQUISITION)

DATE OF JUDGMENT06/12/1995

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. FAIZAN UDDIN (J) KIRPAL B.N. (J)

CITATION:  JT 1995 (9)   339        1995 SCALE  (7)333

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted.      Notification under  s.4(1) of the Land Acquisition Act, 1894 (for short, "the Act") acquiring a large extent of land for construction  of Vengalarayasagar Project, West Godavari District of  Andhra Pradesh,  was published on September 20, 1979.  The   Land  Acquisition  Officer  in  his  award  had determined compensation  at the rate of Rs.10,000/- per acre for wet  land and  had also  granted value  of  the  coconut trees. The  Subordinate Judge  on  reference  under  s.18(1) enhanced the market value to Rs.22,000/- per acre. He relied upon two  sale deeds  and Ex.A2,  an agreement of sale dated December 15,  1976,  for  a  large  extent  of  land  for  a consideration of  Rs.15,000/-. One  sale deed  was  executed under Ex.A3  on September 22, 1978. Another document, Ex. A1 was executed  on the  same day  for a sum of Rs.19,800/-. It has come  on record  that the  project  was  inaugurated  on August 28,  1976. The  lower Court enhanced the compensation to Rs.22,000/-  per acre  relying upon  the above documents. However, in  another matter,  a learned  single Judge of the High Court  by his  judgment dated  February  14,  1985  had confirmed the  compensation in respect of neighbouring lands acquired earlier,  at Rs.22,000/-  per  acre.  The  Division Bench,  however,   by  the   impugned  order   reduced   the compensation to  Rs.20,000/-. Thus  this appeal  by  special leave. Unfortunately,  the State  has  not  come  in  appeal against the enhanced compensation.      The only  question is whether the appellant is entitled to compensation @ Rs.22,000/- per acre. It is seen that when the Project  was inaugurated  on August  28, 1976, all these documents obviously  had been  brought up  for inflating the market  value.  Unfortunately,  all  these  facts  were  not brought to  the notice  of the  learned single Judge when he confirmed the  compensation of  the  land  at  the  rate  of Rs.22,000/- per  acre. It is settled law that it is the duty

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of the  court to consider the evidence in proper perspective and to  determine the  compensation. In each case, the court sitting in the arm chair of a * willing purchaser would as a prudent person offer the market value when the owner offered the land  for sale. Once the project was inaugurated and the lands were  acquired, no  prudent person  would come forward and purchase  the same  at higher rates. It may be depressed sales in  case of  acute necessity and urgency of the seller for money.  Under these circumstances, we hold that the sale deeds were  brought up  sales and  the enhancement  was  not justified. We  do not  propose to  interfere with the matter and cannot also enhance the market value.      The appeal is accordingly dismissed. No costs.