UNION OF INDIA Vs. SHANTI DEVI

JUDGEMENT

(1.) WHAT should be the true multiplier to be adopted in determining the compensation payable in respect of land acquired in or about the year 1962-63 where the market value of the land is to be fixed on the basis of the capitalisation principle is the question which arises for consideration in these appeals.

(2.) THE construction of the Beas Project was commenced in the year 1960 as a joint venture of the erstwhile State of Punjab and the State of Rajasthan by mutual agreement between the two States. All decisions on the policy and administrative matters were taken by a Board known as the Beas Control Board which was set up by the Central Government in consultation with the two States on 19/02/1961. THE Beas Project Board was presided over by the Governor of the then State of Punjab and its members included Ministers of the States of Punjab and Rajasthan and senior officers of the Central Government and of the two States. THE decisions of the Beas Control Board used to be implemented by the Punjab Government which was administering and executing the works on the Project. THE expenditure on the Project was shared by the Rajasthan Government.

(3.) ABOUT 70,000 acres of land had to be acquired for the Beas Dam Project which was located, in the Kangra area of the erstwhile State of Punjab which stood transferred to the then Union Territory of Himchal Pradesh under the Punjab Reorganisation Act, 1966. The necessary notifications under Sec. 4 (1) of the Land Acquisition Act, 1894 had been issued by the appropriate Government for that purpose. We are concerned in these cases with lands which were notified for acquisition in the years 1962 and 1963 under Section 4 (1) of the Land Acquisition Act. The acquisition proceedings in respect of the lands which stood transferred to the Union Territory of the State of Himachal Pradesh, as mentioned above, were to be completed by its officers. The lands in question are situated in Tikka Bhararian, Mauza Dhameta, Tehsil Dehra, District Kangra, Himachal Pradesh. The Land Acquisition Officer issued notices tinder Section 9 (3) of the Land Acquisition Act to the interested persons inviting their representations and objections with regard to the determination and payment of the compensation. After receiving the representations and objections, the Land Acquisition Officer (Shri Didar Singh) passed a common award on 31/01/1972 in respect of an extent of 1125.33 acres of land in Tikka Bhararian which had been notified on 1/04/1963. It would appear that another Land Acquisition Officer, Shri Jaswant Singh, had passed an award earlier on 2/04/1969 in respect of certain lands situated in Tikka Bihari which had been acquired for the very same public purpose. The Land Acquisition Officer who had to pass the award in these cases being of the opinion that the fertility, productivity and potentiality of land in Tikka Bhararian (the lands in question) were more or less comparable with those of the lands, situated in Tikka Bihari and that the classification and valuation of lands in the award, passed by Shri Jaswant Singh were quite fair, adopted the same for the purpose of passing the award in respect of the lands in question. It may be mentioned here that Shri Jaswant Singh had adopted for the purpose of valuation of lands the principle of capitalisation. He was of the view that the rule of 20 years' purchase was to be adopted. He accordingly after determining the net annual profit per kanal of land of the best category at Rs. 50 and multiplying it by 20 arrived at Rs. 1,000.00 as the value of one kanal of the best variety of land. In order to determine the net annual profit from the land, it appears that he had carried out a crop cutting experiment on some plot of land after the publication of the notification under Section 4 (1) of the Land Acquisition Act. It would appear that on behalf of the Department a statement had been filed showing that the lands of similar quality were being sold at or about the time of the publication of the notification under Section 4 (1) of the Land Acquisition Act at Rs. 300.00 per kanal. Shri. Jaswant Singh (the Land Acquisition Officer) found that a mean between the valuation arrived at by him by adopting the principle of capitalisation i.e. Rupees 1,000/- per kanal and, Rs. 300.00 per kanal which, according to the Department was the value of the best category of land, in the area would be a reasonable compensation. Accordingly by adding the above two figures and dividing the total by two he arrived at Rs. 650.00 per kanal as the value of the best category of land and reduced the value proportionately in respect of other categories of land which were lower in quality. Virtually what was awarded was equivalent to thirteen times the net annual income.