SECRETARY, KARNATAK ELECTRICITY BOARD Vs. ASSTT. COMMISSIONER

JUDGEMENT

(1.) LEAVE granted in both the petitions. A plot of land measuring two acres was acquired by Notification dated 14.4.1988 for establishment or sub -station by the Karnataka Electricity Board, the appellant herein. The market value or the land was fixed by the Land Acquisition Officer at Rs. 13,000/ - per acre by an award made on 21.8.1989. On reference being made, the Civil Judge, however, enhanced the compensation to Rs. 10,000/ - per gunta i.e. Rs. 4 lacs per acre by an order dated 16.12.1989. On appeal being preferred before the High Court, the enhancement was sustained but with the direction to deduct 65% towards development and other charges. The Electricity Board has preferred this appeal by special leave. The land owner has also approached this Court seeking further enhancement.

(2.) A perusal of the order of Reference Court shows that the land owner had himself led evidence to show yield, which was found to be around Rs. 11,000/ -per acre per year. This was the gross income; the net annual income assessed being Rs. 5,695/ -, after deducting 50% towards cost of cultivation. The market value as per the capitalisation method was, therefore, fixed at Rs. 28,470/ - per acres by deducting 50%of the average annual yield, assuming that the claimant had exaggerated the average annual yield in his evidence; he being an interested witness. The Reference Court, instead of fixing the market value at Rs. 28,470/ - per acre determined as per the capitalisation method, fixed the same at Rs. 4 lacs on the strength of a solitary sale deed which related to small piece of land measuring 74 feet x 17 feet, which was sold for Rs. 10,000/ - at the relevant point of time.

(3.) THE Courts below committed manifest error of law in having fixed the market value by taking into consideration a transaction wherein the land was valued on square foot basis. It has been noticed by this Court in its several decisions that recourse to determination of market value on square foot basis is taken at times to show the value rather less, whereas ultimately it works out to be much more. We, therefore, set aside the order of the Reference Court as modified by the High Court; instead, fix the market value at Rs. 28,470/ - per acre. The claimant would be entitled to solatium @ 30% and an amount calculated @ 12% per annum on the market value so fixed from 14.8.1988 till 21.8.1989. This apart, the claimant would be paid interest @ 9% for a period of one year from the date of taking possession of the land and thereafter @ 15% per annum till the date of payment of the enhanced compensation, less the amount already paid. In the result, the appeal No. 3247/95 arising out of SLP (C) No. 2246/94 is allowed as aforesaid. The appeal No. 3248/95 arising out of SLP (C) 21959194 stands dismissed. No order as to costs.