1958 (11) TMI 33 - SC - Indian Laws

Summary

Issues Involved:
1. Payment of compensation for a building constructed before the publication of the preliminary notification.
2. Payment of compensation for low-lying land (halla).
3. Payment of compensation for the remaining land after deducting the area for making roads and buildings.

Detailed Analysis:

1. Payment of Compensation for a Building Constructed Before the Publication of the Preliminary Notification
The High Court awarded compensation of Rs. 7,000 for a building, finding it was constructed before the publication of the preliminary notification. The appellant challenged this, arguing the building was constructed after the notification. However, the Supreme Court upheld the High Court's finding, noting the building was in actual occupation by the medical department and the evidence did not displace the High Court's clear finding.

2. Payment of Compensation for Low-Lying Land (Halla)
The Land Acquisition Officer valued the low-lying land at Rs. 3 per sq. yard and deducted Rs. 15,000 for filling it up. The High Court awarded compensation at Rs. 8/8 per sq. yard. The Supreme Court found no error in the High Court's valuation, reasoning that even if the Rs. 15,000 required for filling the land was added to the Rs. 3 per sq. yard valuation, the market value would still be around Rs. 8 per sq. yard. The Supreme Court also considered the respondent's sales of building sites and the presence of buildings opposite the low-lying land but did not find these factors sufficient to alter the High Court's valuation.

3. Payment of Compensation for the Remaining Land After Deducting the Area for Making Roads and Buildings
The High Court awarded compensation at Rs. 13/8 per sq. yard for the remaining land. The appellant argued that the High Court committed errors by considering extraneous factors and using an incorrect method to ascertain the market value. The Supreme Court agreed, noting the High Court's arbitrary selection of four out of six transactions to calculate an average price and the erroneous second averaging method. The Supreme Court recalculated the proper market value to be Rs. 11 per sq. yard, based on all six transactions and the respondent's own claim of an average rate of Rs. 10 per sq. yard for building sites. Consequently, the Supreme Court modified the High Court's order, substituting the figure Rs. 11 per sq. yard for the Rs. 13/8 awarded by the High Court.

Conclusion:
The Supreme Court partly allowed the appeal, modifying the compensation for the remaining land to Rs. 11 per sq. yard while upholding the High Court's findings on compensation for the building and the low-lying land. The parties were ordered to bear their own costs for the Supreme Court proceedings, with costs in lower courts to be proportionate to their success and failure.