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TMI Blog2011 (11) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... g 8 acres 4 guntas, situated in survey no.63 of the revenue estate of village Badepur, came to be acquired. Insofar as Civil Appeal nos.8899-8901 of 2011 is concerned, the appellants land measuring 7 acres 7 guntas, falling in survey no.14/2, in the revenue estate of village Rajapur, was acquired. 3. The Land Acquisition Officer announced his award on 7.7.1990. By the aforesaid award, the market value of the land, falling in the revenue estate of village Badepur, was fixed at the rate of ₹ 4,100/- per acre. For the land falling in the revenue estate of village Rajapur, the Land Acquisition Officer, assessed the market value at ₹ 13,500/- per acre. The landowner, Chandrashekar (whose LRs. are the appellants in Civil Appeal no.1743 of 2006) filed Writ Petition nos.15489-496 of 1990 to assail the acquisition proceedings initiated by the Gulbarga Development Authority, by finding fault with the procedure adopted. The High Court of Karnataka (hereinafter referred to as the High Court), while issuing notice, passed an interim order staying dispossession for a period of 3 weeks. By a motion bench order dated 10.8.1990, the interim order passed on 23.7.1990 was continued, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 21.12.2002, the Reference Court re-determined the market value of the acquired land at ₹ 1,45,000/- per acre. This determination by the Reference Court was again assailed before the High Court. Whilst the Gulbarga Development Authority and the Land Acquisition Officer filed appeals before the High Court for reducing the quantum of compensation awarded, the landowners preferred cross-objections for enhancement thereof. The appeals filed by the Gulbarga Development Authority and the Land Acquisition Officer were partly allowed, inasmuch as, the High Court reduced the compensation awarded by the Reference Court from ₹ 1,45,000/- per acre to ₹ 65,000/- per acre. The instant order passed by the High Court dated 2.4.2004 has been assailed before this Court through Civil Appeal no. 1743 of 2006, as also, through the connected Civil Appeal nos. 8899-8901 of 2011. 7. It would be relevant to mention, that while determining the controversy, the High Court was satisfied in deducting 55 percent of the market value assessed on the basis of the exemplar sale deed, towards developmental charges, 5 percent towards waiting period, and 10 percent towards de-escalation. By v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down by this Court, and accordingly, the compensation determined by the Reference Court, should be restored to the land losers. 11. The issue which falls for our consideration in the present appeal falls in a narrow compass. As already noticed hereinabove, through the impugned notifications, the Gulbarga Development Authority had sought acquisition of 144 acres of land, falling in the revenue estates of villages Rajapur (71 acres) and Badepur (73 acres). As compared to the acquired land, the exemplar sale deed dated 30.12.1983 reflects sale of a small piece of land measuring 2400 square feet (40 x 60 = 2400 square feet). The aforesaid sale transaction (dated 29.12.1983) was executed 1 year 7 months and 17 days after the date of the preliminary notification (dated 13.5.1982). 12. Insofar as the nature of the acquired land of the appellant measuring 8 acres 4 guntas, in survey no.63 of the revenue estate of village Badepur is concerned, reference may be made to the statement recorded by the landowner before the Reference Court. Chandrashekar recorded his statement before the Reference Court on 16.2.1998. In his statement he asserted, that the acquired land was wet land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exemplar sale deed dated 30.12.1983, constituted sale of a developed site. And fifthly , the exemplar sale deed dated 30.12.1983, was executed 1 year 7 months and 17 days, after the publication of the preliminary notification on 13.5.1982. 15. The present controversy calls for our determination on the quantum of the deductions to be applied, to the market value assessed on the basis of the exemplar sale transaction, so as to ascertain the fair compensation payable to the land loser. The only factual parameters to be kept in mind are, the factual inferences drawn in the foregoing paragraph. On the issue in hand, we shall endeavor to draw our conclusions from past precedent. In the process of consideration hereinafter, we have referred to all the judgments relied upon by the learned counsel for the appellants, as well as, some recent judgments on the issue concerned: (i) In Brigadier Sahib Singh Kalha Ors. v. Amritsar Improvement Trust Ors., (1982) 1 SCC 419, this Court opined, that where a large area of undeveloped land is acquired, provision has to be made for providing minimum amenities of town-life. Accordingly it was held, that a deduction of 20 percent of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt arrived at the conclusion, that a deduction of 40 percent as developmental cost from the market value determined by the Reference Court would be just and proper for ascertaining the compensation payable to the landowner. (v) In Kasturi and others vs. State of Haryana, (2003) 1 SCC 354, this court opined, that in respect of agricultural land or undeveloped land which has potential value for housing or commercial purposes, normally 1/3rd amount of compensation should be deducted, depending upon the location, extent of expenditure involved for development, the area required for roads and other civic amenities etc. It was also opined, that appropriate deductions could be made for making plots for residential and commercial purposes. It was sought to be explained, that the acquired land may be plain or uneven, the soil of the acquired land may be soft and hard, the acquired land may have a hillock or may be low lying or may have deep ditches. Accordingly, it was pointed out, that expenses involved for development would vary keeping in mind the facts and circumstances of each case. In Kasturi s case (supra) it was held, that normal deductions on account of development would be 1/3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to sale price of small developed plot(s), deductions varying between 20 percent to 75 percent of the price of such developed plot(s) could be made. (xi) In Subh Ram Ors. vs. State of Haryana Anr., (2010) 1 SCC 444, this Court opined, that in cases where the valuation of a large area of agricultural or undeveloped land was to be determined on the basis of the sale price of a small developed plot, standard deductions ought to be 1/3rd towards infrastructure space (areas to be left out for roads etc.) and 1/3rd towards infrastructural developmental costs (costs for raising infrastructure), i.e., in all 2/3rd (or 67 percent). (xii) In Andhra Pradesh Housing Board vs. K. Manohar Reddy Ors., (2010) 12 SCC 707, having examined the existing case law on the point it was concluded, that deductions on account of development could vary between 20 percent to 75 percent. In the peculiar facts of the case a deduction of 1/3rd towards development charges was made from the awarded amount to determine the compensation payable. (xiii) In Special Land Acquisition Officer Anr. vs. M.K. Rafiq Sahib, (2011) 7 SCC 714, this Court after having concluded, that the land which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This deduction was divided by the Court into two components. For the first component referred to in the foregoing paragraph, it was held that a deduction of 20 percent should be made. For the second component , it was held that the deduction could range between 20 to 33 percent. It is therefore apparent, that a deduction of upto 53 percent was the norm laid down by the Court as far back as in 1982. The aforesaid norm remained unchanged for a long duration of time, even though, keeping in mind the peculiar facts and circumstances emerging from case to case, different deductions were applied by this Court to balance the differential factors between the exemplar land and the acquired land. Recently however, this Court has approved a higher component of deduction. In 2009 in Lal Chand s case (supra) and in 2010 in Andhra Pradesh Housing Board s case (supra), it has been held, that while applying the sale consideration of a small piece of developed land, to determine the market value of a large tract of undeveloped acquired land, deductions between 20 to 75 percent could be made. But in 2009 in Subh Ram s case (supra), this Court restricted deductions on account of the first compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on beyond 75 percent would give the impression of being lopsided, or contextually unreal, since the land loser would seemingly get paid for only 25 percent of his land. This impression is unjustified, because deductions are made out of the market value of developed land, whereas, the acquired land is undeveloped (or not fully developed). Differences between the nature of the exemplar land and the acquired land, it should be remembered, is the reason/cause for applying deductions. Another aspect of this matter must also be kept in mind. Market value based on an exemplar sale, from which a deduction in excess of 75 percent has to be made, would not be a relevant sale transaction to be taken into consideration, for determining the compensation of the acquired land. In such a situation the exemplar land and the acquired land would be uncomparable, and therefore, there would be no question of applying the market value of one (exemplar sale) to determine the compensation payable for the other (acquired land). It however needs to be clarified, that even though on account of developmental activities (under the head development ), we have specified the upper benchmark of 67 percent, it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ite strenuous efforts having been made at the hands of the appellants, the respondents failed to divulge the expenses incurred towards developmental costs on the acquired land in question. Insofar as the instant aspect of the matter is concerned, it is relevant to notice, that the appellant submitted an application dated 4.11.1999 to the Commissioner, Gulbarga Development Authority, requiring him to furnish to the appellant, interalia, certified copies of expenditure incurred in developing survey no.63 of the revenue estate of Badepur. The appellant had specially sought, the expenditure incurred in developing 8 acres 4 guntas of the land, acquired from the appellant. The aforesaid communication was responded to vide a letter dated 16.12.1999, whereby, the Commissioner, Gulbarga Development Authority declined to furnish the certificate sought by the appellant. Based on the said denial at the hands of the respondents, it is sought to be inferred, that no developmental expenses came to be incurred on the acquired land. As such, it was the vehement contention of the learned counsel for the appellants, that it was impermissible for the High Court to have made the deduction of 55 percent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court towards development of the land, out of the market value determined on the basis of the exemplar sale deed, was just and proper. The determination in question, more often than not, has to be in the absence of inputs as were sought by the appellants from the Commissioner, Gulbarga Development Authority. Obviously, deductions can only be based on reasonable and logical norms. Comparison of the state of development of the exemplar land, as also, that of the acquired land can be the only legitimate basis, for a reasonable and logical determination on the issue. Based on the aforesaid foundation, an assessment has to be made by applying the parameters delineated above. From the inferences drawn by us, on the basis of the statement made by the landowner before the Reference Court in paragraph 12 hereinabove, it is natural to conclude, that the acquired land in question was totally undeveloped. Likewise, even though the High Court had described the exemplar sale transaction as a developed site, the appellants have not disputed the same. We shall therefore proceed on the assumption, that the exemplar sale deed was a fully developed site. In such a situation, keeping in mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of market price of land is a question of fact, which should ordinarily to be proved through cogent evidence. Yet, keeping in mind ground realities, and taking judicial notice thereof, we are of the view that land prices are on the rise throughout the country. The outskirts of Gulbarga town are certainly not an exception to the rule. The exemplar sale deed dated 30.12.1983 was executed exactly 1 year 7 months and 17 days after the publication of the preliminary notification on 13.5.1982. Keeping in mind the judgments referred to hereinabove, we are of the view, that no fault can be found with the determination rendered by the High Court in making a deduction of 10 percent under the head of de-escalation , specially when the period in question exceeded one year (as for annual deductions), by 7 months and 17 days. 26. The only other deduction allowed by the High Court was made towards waiting period . Under this head the High Court allowed a deduction of 5 percent. During the course of hearing, learned counsel for the appellants did not assail the aforesaid deduction. It is therefore not necessary for us to record any finding in respect of the deduction applied by the High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to acquisition of land, out of the same notification (under which the appellants land was acquired). The aforesaid determination was rendered in respect of the land acquired from the revenue estate of Badepur village. While recording its final determination the High Court expressed, that it was desirable to arrive at a uniform value, specially when the land in question came to be acquired out of the same process of acquisition, and had not been shown to be any different from the appellants land. We affirm the aforesaid view expressed by the High Court. This sentiment expressed by the High Court should never be breached. Consistency in judicial determination is of utmost importance. Since we are informed that the judgment relied upon by the High Court has attained finality, we are of the view, that the final compensation determined by the High Court at ₹ 65,000/- per acre, was fully justified. 29. The conclusions drawn by us hereinabove, apply equally to Civil Appeal nos.8899-8901 of 2011. In this behalf it would also be pertinent to mention, that the conclusions drawn by us pertain to acquisition of land falling in the revenue estate of village Badepur. In so far as the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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