1997 (4) TMI 547 - SC - Indian Laws

Summary

Issues Involved:
1. Determination of fair market value of the acquired land.
2. Eligibility for additional compensation u/s 23(1-A) of the Land Acquisition Act.

Summary:

Issue 1: Determination of Fair Market Value
The appeals concern the acquisition of 97 acres and 42 cents of land for developing a colony for weaker sections in Tenali, Guntur District, Andhra Pradesh. The initial compensation awarded by the Land Acquisition Officer was Rs. 22,940 per acre for leveled land and Rs. 21,700 per acre for unleveled land. Upon reference, the Subordinate Judge, Tenali, awarded a uniform compensation of Rs. 1,00,000 per acre. The High Court further enhanced this to Rs. 23.50 per sq. yard.

The Supreme Court examined whether the High Court's principle of determining compensation was correct. The High Court had relied on a sale deed (Ex. A-12) and applied a 50% deduction to arrive at the compensation. The Supreme Court emphasized that the claimants bear the burden of proof to demonstrate that the lands could fetch higher compensation. The Court reiterated that the market value should be determined based on the land's potential use, its location, and other relevant factors, and not merely on speculative or fictitious sales.

The Supreme Court found that the High Court erred in treating the lands as fit for building purposes and determined that a reasonable compensation should be Rs. 50,000 per acre, considering the cost of leveling the land.

Issue 2: Eligibility for Additional Compensation u/s 23(1-A)
The notification u/s 4(1) was issued on December 9, 1980, and possession was taken on June 20, 1981. The Amendment Act 68 of 1984, which introduced Section 23(1-A), was introduced on April 30, 1982. The Supreme Court referred to the transitional provisions in Section 30(1)(a) of the Amendment Act, which entitles claimants to an additional amount of 12% per annum from the date of the notification until the date of possession.

The Supreme Court held that the claimants are entitled to this additional amount, solatium at 30% on the enhanced compensation, and interest at 9% for one year from June 20, 1981, and 15% thereafter until the date of deposit into the court.

Conclusion:
The Supreme Court modified the award and decree of the reference Court, setting aside the High Court's judgment. The compensation was set at Rs. 50,000 per acre, with additional amounts as specified. The appeals were allowed, and the cross-appeals by the respondent-claimants were dismissed. No costs were awarded.