STATE OF M.P. Vs. HARISHANKAR GOEL

JUDGEMENT

(1.) THESE appeals arise from the judgment of the High Court of Madhya Pradesh. On a difference of opinion among two learned Judges, third Judge on reference in Miscellaneous Appeal No. 82/75 and 83/75 enhanced the compensation. The notification under section 4 (1) of the Land Acquisition Act 1 of 1894 was published on January 17, 1964 acquiring 33 bighas 15 biswas of land belonging to two different individuals for industrial purpose. The Land Acquisition Officer by his award under section 11 determined compensation on March 14, 1966 at Rs. 3,150/ - per bigha treating the lands to be agricultural lands. On reference under section 18, the Additional District Judge by his award and decree dated May 15, 1975 enhanced the compensation to Rs. 1/ - per sq. ft. and also awarded statutory benefits. On appeal, learned Judge B.C. Verma, J. determined compensation at 0.90/ - per sq. ft. deducted 15% towards developmental charges. Learned Judge R.C. Srivastava, J. determined the compensation at Rs. 0.50 per sq. ft. and deducted 25% towards developmental charges. On reference, learned Judge T.N. Singh, J. agreed with the determination of compensation by B.C. Verma, J. at Rs. 0.90 per sq. ft. but deducted 20% towards developmental charges. He also awarded enhanced solatium, interest and additional amount as available under the Amendment Act 68 of 1984. Thus these appeals by the State and also cross appeal by the claimants claiming compensation at Rs. 1/ - per sq. ft.

(2.) THE question that arises for consideration is as to what is the rate of compensation that the lands are capable to secure in an open market. It is not in dispute that though they were the agricultural lands as on the date of notification the respondents who are no other than the builders and developers had, after the purchase obtained sanction under section 172 of the Madhya Pradesh Revenue Code for conversion of the land into non -agricultural lands, but no sanction from the municipality for construction of any colonisation, was obtained. Even learned Judge B.C. Verma, J. had noted in his judgment that though the respondents claimants had entered into the agreement of sales with the prospective purchasers, they had not completed the sale transactions. Those agreements were brought into existence to bolster the claims. However, the learned Judge found that the lands were situated very near to the Vicky moped factory. They abut the Jhansi Road; Sitholi railway station is one mile from the acquired lands, but they are situated outside the municipal limits of Gwalior Municipal Corporation. Their lands are fit for developing industries, housing colonies, godown, petrol pumps etc. The evidence also disclosed that the land was not improved and it was not even land. Considered in this background, the learned Judge had accepted the sale deed executed by one of the claimants for a small extent of land at Rs. 0.50 per sq. ft. but having found that the lands were possessed of potential value, determined the compensation at Rs. 0.90 per sq. ft. and, as stated earlier, deducted 15% towards developmental charges. Learned Judge Srivastava, J. relied upon the very sale deeds put forth by the claimants and held that they could not claim higher than what they had put up, namely, Rs. 0.50 per sq. ft. and, therefore, determined the compensation on that premise and deducted 25% towards developmental charges. As seen, learned T.N. Singh, J. had agreed with B.C. Verma, J. in determining the compensation at Rs. 0.90 per sq. ft.

(3.) THE question then arises is what would be the just and adequate compensation which the lands are capable to fetch in the open market? It is seen that the lands are situated beyond the municipal limits and on uneven land. But for the Vicky moped factory, there was no other immediate development. The claimants themselves purchased the lands as builders to develop the lands. They did not file their own sale deeds to show at what rate they had purchased the land which would have furnished best material. Admittedly, no sanction from the Municipal Corporation or any competent authority was obtained in that behalf to construct housing colony. Necessarily when the land was to await some time for development either for industrial or colonisation, the price that could not be secured at the rates was put forth by the claimants. They themselves had sold at Rs. 0.50 per sq. ft. for a small extent of land. The learned Judges, therefore, had not correctly appreciated the correct principles of law in determining the compensation. Having found that the lands were possessed of potential value the compensation could be determined on the basis of the market value on square yard basis. Considered from this perspective, we are of the view that the market value for the land would be Rs. 4/ - per sq. yd. and we agree with learned Judge Srivastaa, J. that the deduction should be 25% towards developmental charges since it is in evidence that acquisition is for industrial purpose and electricity was immediately available as found by learned Judge T.N. Singh, J. The lands are adjacent to national high -way. It is settled law that normally 33 -1/3% should be deducted towards developmental charges. In this case as a special case, 25% is deducted. It will not be treated as precedent.