2005 (8) TMI 679 - SC - Indian Laws

Whether the Reference Judge acted illegally and without jurisdiction in passing the said judgment solely on the basis of the deposition of one Sendhabhai Vastaram Patel who alleged that the agricultural lands which he and others had been cultivating were of high fertility and three crops in a year were grown therein?

Issues Involved:
1. Legality and jurisdiction of the Reference Court's judgment.
2. Methodology for determining market value and compensation for acquired land.
3. Consideration of deeds of sale versus witness testimony.
4. Applicability of comparable sales method.
5. Role of High Court in reviewing Reference Court's decision.
6. Discretionary jurisdiction of the Supreme Court under Article 136 of the Constitution of India.

Detailed Analysis:

1. Legality and Jurisdiction of the Reference Court's Judgment:
The appellant contended that the Reference Court acted illegally and without jurisdiction by relying solely on the testimony of a witness and ignoring the deeds of sale considered by the Land Acquisition Collector. The Reference Court had passed an award computing compensation at Rs. 10 per sq. m., based on judgments from other cases without considering the deeds of sale.

2. Methodology for Determining Market Value and Compensation for Acquired Land:
The Supreme Court emphasized that the market value of the land must be ascertained, ideally through deeds of sale as evidence of what a willing purchaser would pay. In the absence of direct evidence, judgments and awards from similar acquisitions in neighboring villages could be considered. The Reference Court must apply the comparable sales method, taking into account the situation and similarity of the acquired land to other sold lands.

3. Consideration of Deeds of Sale versus Witness Testimony:
The Reference Court erred in relying solely on the testimony of a witness and ignoring the deeds of sale. The Supreme Court noted that if the Reference Court intended to differ from the Land Acquisition Collector's opinion, it needed to provide sufficient and cogent reasons. The Reference Court's reliance on previous awards without considering the deeds of sale was a significant error.

4. Applicability of Comparable Sales Method:
The Supreme Court reiterated the importance of the comparable sales method for determining market value, as outlined in previous cases such as Shaji Kuriakose and Another Vs. Indian Oil Corpn. Ltd. and Others. This method requires genuine transactions, proximity in time and location to the acquired land, and similarity in land characteristics. Adjustments must be made for any dissimilarities.

5. Role of High Court in Reviewing Reference Court's Decision:
The High Court dismissed the appellant's appeal without properly considering the factual and legal aspects. The Supreme Court found that the High Court misdirected itself in law by not posing the correct questions to arrive at a proper conclusion. The High Court should have taken into account the principles of law and factors enumerated in Section 23 of the Land Acquisition Act.

6. Discretionary Jurisdiction of the Supreme Court under Article 136 of the Constitution of India:
Despite identifying errors in the Reference Court and High Court's judgments, the Supreme Court chose not to exercise its discretionary jurisdiction under Article 136 due to the small financial implications involved. The Court noted that the appellants had already deposited 50% of the awarded amount, and further litigation would be costly for both parties. The Supreme Court emphasized that it might refuse discretionary relief even if justified in law, as seen in previous cases like S.D.S. Shipping (P) Ltd. Vs. Jay Container Services Co. (P) Ltd. and Others.

Conclusion:
The Supreme Court dismissed the appeals, highlighting the errors in the Reference Court and High Court's judgments but choosing not to interfere due to the minor financial stakes and the principles of discretionary jurisdiction. No order as to costs was made.

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