COLLECTOR OF DARRANG Vs. ASSAM INDUSTRIES PRIVATE LIMITED

JUDGEMENT

(1.) These two cross appeals have been brought by certificate from a judgment of the High Court of Assam and Nagaland in the matter of compensation awarded for certain land which had been acquired under the Land Acquisition Act, 1894 hereinafter called the 'Act'.

(2.) On March 11, 1955 a notification was issued under Section 4 of the Act by which an area of 19 Bighas1 Katha and 4 Latchas of land belonging to the Assam Industries (P) Ltd., was sought to be acquired for a public purpose, namely, establishment of Hat or a market. This area included 6 Bighas, 2 Kathas and 17 Latchas which was admittedly being used for purposes of a hat. The Collector gave an award at the rate of Rs. 300 per Bigha for the entire area of 19 Bighas 1 Katha and 4 Latchas. The District Judge on a reference maintained the award. The High Court after taking into consideration the evidence, assessed the value of the area comprising 6 Bighas, 2 Kathas and 17 Latchas at the rate of Rs. 15,000/- per Bigha. With regard to the remaining area it upheld the view of the District Judge that compensation should be awarded at the rate of Rs. 300/- per Bigha. The Collector of Darrang has appealed against that portion of the judgment by which the compensation for the hat land has been fixed at Rs. 15,000/- per Bigha whereas the company has appealed against the compensation awarded for the entire area of 19 Bighas, 1 Katha and 4 Latchas.

(3.) As regards the hat area of 6 Bighas, 2 Kathas and 17 Latchas evidence of three sales was adduced. The first sale took place on February 14. 1955. An area of 6 Latchas of land was sold for Rs. 1500/-. It may be mentioned that 100 latchas make 1 Bigha. In the sale deed certain houses were also shown to be standing on the land sold. The other two sales took place after the date of the notification under Section 4 which is the relevant date for the purpose of assessing the compensation. On October 30, 1956, 3 Latchas were sold for Rs. 700/, On September 27, 1955, 12 Latchas were sold for Rs. 1,000/. The ownership rights were not transferred by these sales but it were occupancy rights which were sold. The principal criticism on behalf of the Collector is that the sales subsequent to March 11, 1955 which was the date of the notification under Section 4 of the Act were irrelevant and should not have been taken into consideration and so far as the first sale is concerned it also included the transfer of some houses and no evidence had been led to show what the value of the house was. On the other hand it is maintained by the learned counsel for the company that the Hat land of 6 Bighas odd has been very much undervalued as its user for a number of years as Hat or Bazar should have been taken into consideration and higher valuation should have been fixed even on the basis of the first sale because it related to occupancy rights only. It has been pointed out that the Hat land of 6 Bighas odd was being leased out from time to time for the purpose of holding a Bazar and that in 1953-54 an area of about 5 Bighas fetched a rent of Rs. 6501. In the year 1954-55 it was rented for Rs. 8752/-. In subsequent years, i.e. 1955-56 and 1956-57 the rent went up to Rs. 12,000/- and over. Even if the rent for the year 1954-55 alone is taken into consideration the capital value would work out at a much higher figure than what has been awarded. Moreover the potential value has been completely ignored by the High Court.