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TMI Blog1993 (10) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... f 1977 are that of the claimants and in them further enhanced compensation for the acquired lands is sought from the State and the company for whose benefit the State acquired the lands. 3. Material facts which have given rise to these appeals lie in a narrow compass: (i) Certain land situated in the Village Ranhera, Tehsil Ballabhgarh, District Gurgaon (Haryana), abutting Delhi-Mathura Road (G.T.Road) were needed by Messre Printers House Pvt. Ltd., hereinafter referred to as 'the Company", to set up its factory for the manufacture of printing machinery. A request was made by the Company to the Punjab Government to acquire that said lands, for its benefit. The Punjab Government, which conceded to the request of the Company, by a preliminary notification under Section 4(1) of the Land Acquisition Act, 1894, hereinafter referred to as 'the Act', published in the Punjab Gazette of April 7, 1961, proposed the acquisition of the said lands. Those lands measuring about 12 acres 3 kanals 4 marlas, comprised of 8 kanals 6 marlas (5020.50 Sq. Yds.) and 1 kanal 19 marlas (1179. 75 Sq. Yds.) of lands owned by Mst. Saiyandan, 9 kanals 2 marlas (5505.50 Sq. Yds.) and 6 kanal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... srs Cold Storage and Food Products comprised in Killas Nos. 11 and 12 at ₹ 6,000 an and of 6 Kanals and 15 marlas of the acquired land of the same claimant comprised in Killa Nos. 21 and 22 at the rate of ₹ 4,800 an acre. Besides, it determined the market-value of 73 kanals and 2 marlas of the acquired land of the Masjid in Village Ranhera at the Rate of ₹ 4,800 an acre. In addition, it awarded solatium at 15 per cent on the enhanced amount of market-value of the acquired lands and interest at 4 per cent per annum on the enhanced compensation of the acquired lands from the date of taking their possession until the date payment or deposit of the amount of compensation. (v) However, the claimants as well as the State, who were dissatisfied with the common award and separate decrees of the Reference Court, preferred appeals therefrom in the High Court of Punjab and Haryana, as adverted to by us already. (vi) The said appeals before the High Court were heard by a Division Bench comprised of Mr. Justice S.S. Sandhawalia and Mr. Justice Man Mohan Singh Gujaral. As the said judges rendered differing judgments on the amount of compensation awardable to the claimants f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the amount of compensation awardable for the lands acquired under the Act is required to be determined by a Civil Court, such amount of compensation has to be determined by taking into consideration the market-value of the lands on the date of publication in Government Gazette, of the preliminary Notification under Sub-section (1) of Section 4 of the Act, as is envisaged under the First Clause of Sub-section (1) of Section 23 of the Act admits of no controversy. Such market-value of the acquired land which has to be determined by the Courts ought to be the price which a willing vendor of the land might reasonably expect to obtain from a willing purchaser, has been a well accepted principle of valuation of acquired lands, ever since that the principle was expounded by the Privy Council in the case of Vyricherala Narayana Gajapatiraju Bahadur v. Revenue Divisional Officer, Vizagapatnam, known as 'Chemudu case'. In fact, this Court has approved the correctness of that principle by stating that the market-value means the price that a willing purchaser would pay to the willing seller for a property, having due regard to its existing condition, with all its existing advantage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... differing feature of factor in a land covered by comparable sale admits of adjustment in terms of money, depending on whether it is plus factor or minus factor, the market-value of the acquired land is determined either by increasing it price or decreasing its price vis-a-vis the price fetched for land under comparable sale. What applies to comparable sale, equally applies to comparable award, if such award is relied upon as that furnishing a price-basis for determination of the market-value of the land, cannot be disputed. Thus, the best evidence for determining the market-value of the acquired land could be an authentic transaction of sale relating to the very acquired land or a portion thereof of any other land which could be favourably compared with the acquired land. The same would be the position when the available evidence relates to land covered by a previous award. 8. If 'Comparable Sales Method of valuation of land' is adopted for determining the market-value of an acquired plot of land, it generally holds goods determination of the market-value of several acquired plots of land if acquisition of all such plot of land is made pursuant to the same preliminary Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (factors) i.e., advantages and disadvantages, possessed by each plot varied greatly. 11. Mst. Saiyadan (Appellant in C.A. No. 946 of 1977), Masjid of Village Ranhera (Appellant in C.A. No. 947 of 1977) and M/s. Cold Storage & Food Products (Appellant in C.A. NO. 948 of 1977) are the owners of the several acquired plots of land aggregating to 99 kanals and 4 marlas. Relying upon the evidence of C.W.1, Dyal Dass Patwari, Halqua Ballabhgarh, who was called as Court witness to the exact location of the acquired plots of lands with reference to a plan prepared by him, S.S. Sandhawalia, J. has referred to the fact situation in his judgment, thus : No serious challenge is posed to the correctness of the plan, Exhibit C.1 prepared from the official records and this would show that an Saidyadan, land-owner abuts on the Delhi- Mathura road with a frontage of nearly 23 karems or 44 yards thereon. The southern block of the land of Messrs Cold Storage and Food Products measuring 9 kanals and 2 marlas is in an identical situation because it adjoins the G.T. Road with a frontage of nearly 40 yards. In sharp contrast thereto, however, is the situation of the land of the third claimant the Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Method of Valuation' to determine the market value of the acquired land, cannot be doubted. What is done under the 'Comparable Sales Method' of valuation of land is to find out the price fetched for sale of land under the sale-deed claimed to be comparable sale and take that price as that which the acquired land would have fetched, if its sales had been effected in the open market and determine the market value of the acquired land accordingly. The 'Comparable Sales Method of Valuation' of land is preferred to other known methods of valuation of land since the variety of factors appertaining to the land, which require adjustment by the Court (valuer) in determining the market value of the acquired land, would be the least. Where, however, certain factors appertaining to the land in a comparable sale has to be adjusted, it is done by varying the price of land covered by the sale, i.e. by adding certain amount to the price fetched for the land sold or by deducting a certain amount in such price, depending on the nature of the factor concerned being a plus factor or a minus factor. Whatever it be, the genuineness or authenticity of the sale is a factor which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parable sales or awards of the same type, no difficulty arises since the 'price basis' to be got from them would be common. But, difficulty arises when the comparable sales or awards are not of the same kind and when each of them furnish a different 'price basis'. This difficulty cannot be overcome by averaging the prices fetched by all the comparable sales or awards for getting the 'price basis' on which the market value of the acquired land could be determined. It is so, for the obvious reason that such 'price basis' may very largely depending even no comparable sales or awards. Moreover, 'price basis' got by averaging comparable sales or awards which are not of the same kind, cannot be a correct reflection of the price which the willing seller would have got from the willing buyer, if the acquired land had been sold in the market. For instance, in the case on hand, there are three claimants. The plots of their acquired land, which are five in numbers, are not similar, in that, their location, size, shape greatly vary. One plot of land of one claimant and another plot of another claimant appear to be one type. Another plot of land of one of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of this plot can not be termed in any way better than the acquired land. The area acquired for the Gurgaon canal is with a very little width the quite a good length, and, therefore, it can not be compared with the acquired land in the sense of its dimensions. The land sold by Shaha-bu-din (A.W. 18) measuring 6 kanals, for ₹ 4,000 is again a small area. It would thus be seen that out of five instances, which have been found to be useful for arriving at the market value of the acquired land, three instances are of small plots whereas two are of big plots. It would thus be appropriate to draw the average and work out the price per square yard on the basis of the said transactions which comes to ₹ 4.60 per Sq. Yard. But some reduction has to be made on account of the acquired land being low lying. It would appear appropriate Chat the deduction of ₹ 1.60 per square yard be made from the average price as the entire land is 6 or 7 feet below the road. The land fallen in Killa No. 14 Rectangle No. 11, has been proved to be a Jauhar. The market value of Killa No. 14 which is a Jauhar, awarded by the learned Additional District Judges, appears to be a fair compensation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the acquired plots of land by 'Comparable Sales Method of valuation', it is not the average price reflected in such comparable sales or awards which should form the 'price basis' but it is the price reflected in the sale or award pertaining to a land closest or nearest to the acquired land, in all its features. As could be seen from their judgments, an obvious mistake is committed in determining the market value of acquired lands possessed of dissimilar features by applying the unwarranted principle of valuation adaptable in valuation of agricultural lands in a large tract of acquired agricultural land or vast extent of non-agricultural land or strip of agricultural or non-agricultural acquired land comprised of several plots of similar land on the basis of price fetched by a comparable sale of a similar plot of land or amount awarded in a comparable award for a plot of acquired land. Consequently, the market value of the acquired plots of lands with dissimilar features, determined by the two learned Judges of the High Court in their judgments under appeals become unsustainable. This situation, should have, in the normal course, led us to make an order sett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Messrs Cold Storage and Food Products and (3) Masjid of Village Ranhera. The entire land is situated between the Grand Trunk Road, leading from Delhi to Mathura and the railway line connecting these two stations. A substantial part of the land of Mst. Saiyadan is situated on the Grand Trunk Road while only a small portion is at the other end next to the railway line. As regards the land of Messrs Cold Storage and Food Products, it is all situated on the G.T. Road but is in two parts flanking the plot of Mst. Saiyadan. The main plot which is on the south has a good frontage on the G.T. Road but the plot on the north has hardly any frontage and is only accessible to the G.T. Road through a small passage. So far as the land of Masjid is concerned, it is in one block behind the main plot of Mst. Saiyadan and the two plots of the Cold Storage and extends upto the railway line. 24. Plots of lands, the market value of which has to be determined by us are correctly described in the above judgment of learned Judges of the High Court with reference to their location (situation) vis-a-vis Delhi-Mathura Road (Grand Trunk Road) has been, in fact, endorsed by learned Counsel for opposing pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abhgarh. It cannot, therefore, be disputed that the acquired lands had the potentiality for their user for industrial or commercial purposes. 27. Leaned counsel for the claimants, who are appellants in their appeals and respondents in the appeals or the opposite party, mainly relies upon tow sale-deeds Ext. A.W. 14/1 and Ext. A.w. 6/1 to support the claimants' claim for determination by us of the market value of the acquired lands at the rate of ₹ 10 per sq. yd. But, according to learned Counsel for M/s. Printers House Pvt. Ltd., the Company for whose benefit the lands concerned had been acquired and who appellants in their appeals and respondents in the claimants' appeals contends that the sale-deeds relied upon on behalf of the claimants to fix a higher market-value for the acquired land can be of no assistance to this Court in determining the market-value of the acquired lands at the rate so claimed. His submission on the other hand was that this Court has to rely upon the mutation extracts Ext. R-2 and Ext. R-8 to reduce the market value of the lands determined by the High Court. 28. In the said situation, where the parties want the Court to determine the market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the claimants that the aforesaid land covered by the sale-deed since does not abut the Delhi-Mathura Grand Trunk Road, the market-value of the acquired lands which abut the Delhi-Mathura Grand Trunk Road should be regarded as that of higher value as compared with the land covered by the sale-deed. When certain facts are shown to exist, certain amount of guess would, no doubt, be there in drawing inferences while determining the market-value of land in acquisition cases. For instance, if the land sold to Globe Factory was show to adjoin the acquired land or show to have been situated in the closer vicinity of the acquired land, it was possible to say that the value fetched by land sold to Globe Factory would bear on the value to be given to acquired land. But, as pointed out earlier that is not the case here. Here, the map Ex.A.W.4/1 is not by Courts, as that which correctly reflects the locations of the places show thereunder. Hence, we are constrained to hold that the land covered under the said sale-deed cannot in any way be compared with the acquired plots of land. In this view of the matter, we find it unnecessary to examine the challenge made on behalf of M/s. Printers House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had deposited a sum of ₹ 30,000 in Punjab National Bank at Ballabhgrah. I have spent ₹ 5,000 on the marriage of my daughter and a sum of ₹ 5,000 was spent by me on the construction of my pacca house.... 34. The purchaser of the said land Dr. Jaswant Rai Chawala (A.W.6) has also been examined on behalf of the claimants. It is stated in his examination-in-chief that sale money of ₹ 40,000 was paid to the vendor before the Sub-Registrar. In his cross- examination, he said : It is wrong to suggest that only a sum of ₹ 10,000 was paid to Nawal Singh, and the balance was taken back from him. 35. As seen from the copy of the registered sale-deed dated 24.4.1961, the extent of the land sold thereunder us 8 kanals of land and it faces the Delhi-Mathura Grand Trunk Road as the plot of 8 kanals and 6 marlas of Mst. Saiyadan and the plot of 9 kanals 2 marlas of M/s. Cold Storage and Food Products, do. It also adjoins the acquired lands. Thus, the features and location of land covered by the sale-deed well compares with the plot of 8 kanals and 6 marlas of Saiyadan and plot of 9 kanals and 2 marlas of M/s. Cold Storage & Food Products, covered by Group (1) lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be accepted. When the amount to be awarded for land acquired under the Act has to be just market value to be determined on the basis of well recognised principles of valuations, amounts payable under statutory provisions by cultivating tenants for purchase of lands by them from the landlords, can provide no guidance in the matter. Moreover, Shaha-bu-din, though is the vendor, according to entry, nothing relating to the said transaction is suggested in the course of his cross-examination. Hence, this exhibit also can be of no assistance to M/s. Printers House Pvt. Ltd. for determination of market value of the acquired plots of lands. 39. Thus out of the lands which are the subject-matters of the sales aforesaid, only the lands covered by Ext. A.W.6/1 is comparable with the plot of 8 kanals 6 marlas of Mst. Saiyadan and a plot of 9 kanals and 2 marlas of M/s. Cold Storage and Food Products. 40. Then as seen from the registration copy A.W.6/1 of the sale-deed, 8 kanals of land is sold for ₹ 40,000. This ₹ 40,000 cannot be the value of the land itself for the land was purchased along with a tube-well in working order with electric connections. The ₹ 40,000 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an insignificant extent of 1 kanal 19 marlas in the Group. If 73 kanals 2 marlas was to be sold in the market, it could not have fetched the same price as those Group (1) lands as on the date of the publication of the preliminary Notification. The reasons are obvious: (i) That its location lies beyond industrial plots facing Delhi-Mathura Grand Trunk Road covered in Group (1) lands which are proper and suitable for setting up medium scale of Industries. (ii) That it has no access to either G.T. Road or any other road. (iii) That its extent being as large as 3 kanals 2 marlas it will involve loss of land of roads and expenditure in turning them into industrial plots of the size in Group (1) lands. (iv) That it would involve also considerable cost in purchasing valuable land for making a road to reach the G.T. Road. 43. The said minus factors, if are taken into account, necessarily they reduce the value of the land considerably and on a rough estimate its reduced value could be put at three fifth value fixed by us for plots of lauds in group (1). Therefore, it would be safe and reasonable to determine the market value of this land of 73 kanals 2 marlas of land at ₹ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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