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TMI Blog2022 (7) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... the lands acquired or the lands adjacent to the lands acquired and possessing similar advantages; and (3) a number of years purchase of the actual or immediately prospective profits of the lands acquired. It is observed that in determining the market value, the Court has to take into account either one or the other of the three methods to determine market value of the lands appropriate to the facts of a given case to determine the market value. Thereafter, this Court considered whether the Basic Valuation Register would form the foundation to determine the market value. The aforesaid decision in the case of Jawajee Nagnatham has been subsequently followed in a subsequent decision of this Court in the case of Lal Chand [ 2009 (8) TMI 1248 - SUPREME COURT] and it is observed that the market value of the land under Section 23 of the Land Acquisition Act cannot be fixed on the basis of the rates mentioned in the Basic Valuation Registers' maintained for the purpose of collection of proper stamp duty. In that case, as the Reference Court determined the amount of compensation on the value of the land fixed by the District Magistrate for stamp duty purposes, this court has observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanced the amount of compensation for the lands acquired mainly relying upon the prevailing Ready Reckoner rates of the land, the Bharat Sanchar Nigam Limited (BSNL) has preferred the present appeal. 2. That the lands owned by the respondents herein original landowners situated at Yavatmal, Maharashtra were acquired by the State Government under the provisions of the Land Acquisition Act for BSNL. The Land Acquisition Officer declared the award determining the total compensation @ Rs.14,33,703/- (at Rs.13.32 per sq. ft.). At the instance of the landowners, a reference was made to the Reference Court. The Reference Court enhanced the amount of compensation to Rs.21/- per sq. ft. 2.1 In a further appeal to the High Court at the instance of the original claimants, by the impugned judgment and order, the High Court has enhanced the amount of compensation to Rs.174/- per sq. ft. (more than 800% of the Reference Court compensation and about 1300% of the compensation awarded by the Land Acquisition Officer). 2.2 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court enhancing the amount of compensation to Rs.174/- per sq. ft., BSNL has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Present appeal is vehemently opposed by Mrs. Kiran Suri, learned Senior Advocate appearing on behalf of original claimants. Mrs. Suri, learned Senior Advocate appearing on behalf of the original claimants has vehemently submitted that in the present case while enhancing the compensation amount to Rs. 174/- per sq. ft., the High Court has rightly relied upon the Government Resolution and the Ready Reckoner. It is contended that the value of the land mentioned in the Ready Reckoner is a statutory cost and even the Government has issued a Resolution that while determining the amount of compensation, the price/value mentioned in the Ready Reckoner is required to be taken into consideration. 5.1 It is submitted that in the present case, the original claimants have relied upon the Government Resolution dated 31.10.1994 as well as the Ready Reckoner rates by examining the Assistant Town Planner as PW-4. 5.2 It is submitted that the Government Resolution dated 31.10.1994 makes it obligatory that on the date of the notification under Section 4 of the Land Acquisition Act, wherever, necessary, the capitalization method and/or the valuation as per the Ready Reckoner, whichever is hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). However, when decision of this Court in the case of Jawajee Nagnatham (supra) and Krishi Utpadan Mandi Samiti, Sahaswan (supra), which were binding, on whether while determining the compensation for the lands acquired under the Land Acquisition Act, the Ready Reckoner prices, which are for determination of the stamp duty can be considered or not, the High Court has not followed the aforesaid decisions of this Court, which were binding on the High Court under Article 141 of the Constitution of India. Therefore, High Court has seriously erred in not following the two decisions of this Court in the case of Jawajee Nagnatham (supra) and Krishi Utpadan Mandi Samiti, Sahaswan (supra). 8. Whether the prices mentioned in the Ready Reckoner can be the basis for determining the compensation for the lands acquired under the Land Acquisition Act has been dealt with by this Court in the two decisions of this Court in the case of Jawajee Nagnatham (supra) and Krishi Utpadan Mandi Samiti, Sahaswan (supra). In the case of Jawajee Nagnatham (supra), this Court has observed and held that the amount of compensation for the lands under the Land Acquisition Act is determined by adopting the metho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 of List III, Concurrent List, of the VIIth Schedule read with Article 254 of the Constitution empowers the State Legislature to amend the Indian Stamp Act, 1899. In exercise thereof all the State Legislatures including the Legislature of A.P. amended the Act and enacted Section 47- A empowering the registering officer to levy stamp duty on instruments of conveyance, etc., if the registering officer has reason to believe that the market value of the property, covered by the conveyance, exchange, gift, release of right or settlement, has not been truly set forth in the instrument, he may refuse registering such instrument and refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon. On receipt of such opinion, he may call upon the vendor as per the rules prescribed, to pay the additional duty thereon. If the vendor is dissatisfied, he has been given the right to file an appeal and further getting reference made to the High Court for decision in that behalf. Section 47-A would thus clearly show that the exercise of the power thereunder is with reference to a particular land covered by the instrument brought for regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lal [(1988) 2 Andh LT 306] a Division Bench of that High Court, without noticing these two binding decisions, held that the Basic Valuation Register would form foundation to determine the market value and directed to determine the compensation on that basis. The entire controversy was considered by yet another Division Bench in Vasireddi Bharata Rao v. Revenue Divisional Officer [(1992) 1 Andh LT 591]. The Division Bench, after considering the case law disagreeing with Sohan Lal [(1988) 2 Andh LT 306] view as per incuriam, also reiterated that the Basic Valuation Register maintained by the registering authority has no statutory foundation to determine the market value and cannot form the base under Section 23(1) to determine the market value. This Court in Gulzara Singh v. State of Punjab [(1993) 4 SCC 245] held that mutation entries of the land transactions in the revenue records are not evidence unless the parties to the transactions have been examined in proof of documents. In Director of Survey-cum-LAO v. Mohd. Ghouse [(1985) 1 MLJ 116] relied on by Mr Ganguli, the Division Bench of Madras High Court, relying upon the instructions issued by the Government to determine the mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view taken in the aforesaid two decisions that the prices mentioned in the Ready Reckoner for the purpose of calculation of the stamp duty, which are fixed for the entire area, cannot be the basis for determination of the compensation under the Land Acquisition Act. It is required to be noted that in the present case, the Reference Court did consider the submission on behalf of the claimants to determine the market value on the basis of the Ready Reckoner. The Reference Court specifically refused to accept the same on appreciation of the deposition of PW-3. PW-3, a Government Officer specifically admitted that the Ready Reckoner was prepared for recovery of the proper stamp duty and the registration charges and that the actual rates of transaction of sales in market are different than the rates mentioned in the Ready Reckoner and that correct market prices cannot be reflected from the Ready Reckoner. Even PW-4 also specifically admitted in his deposition that the Ready Reckoner is prepared only for collecting stamp duty. The Refence court, therefore, rightly relied upon and followed the decisions of this Court in the case of Jawajee Nagnatham (supra) and Krishi Utpadan Mandi Samiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant). (6) The determination has to be made standing on the date line of valuation (date of publication of notification under Section 4) as if the valuer is a hypothetical purchaser willing to purchase land from the open market and is prepared to pay a reasonable price as on that day. It has also to be assumed that the vendor is willing to sell the land at a reasonable price. (7) In doing so by the instances method, the court has to correlate the market value reflected in the most comparable instance, which provides the index of market value. (8) Only genuine instances have to be taken into account. (Sometimes instances are rigged up in anticipation of acquisition of land.) (9) Even post-notification instances can be taken into account (1) if they are very proximate, (2) genuine, and (3) the acquisition itself has not motivated the purchaser to pay a higher price on account of the resultant improvement in development prospects. (10) The most comparable instances out of the genuine instances have to be identified on the following considerations: (i) proximity from time angle, (ii) proximity from situation angle. (11) Having identified the instances which prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Act. Therefore, the rates mentioned in the Ready Reckoner, which are basically for the purpose of collection of stamp duty and as observed hereinabove, which are the uniform rates for all the lands in the area, cannot be the basis for determination of the compensation for the lands acquired under the Land Acquisition Act. Therefore, the High Court has committed a serious error in enhancing the amount of compensation by 800% from Rs. 21/- per sq. ft. to Rs. 174/- per sq. ft. relying upon and/or considering the rates mentioned in the Ready Reckoner. 12. Now, so far as the reliance placed upon the Government Resolution dated 31.10.1994 by the claimants as well as the High Court is concerned, apart from the fact that the same is contrary to the law laid down by this Court in the aforesaid two decisions, what is mentioned in the said Government Resolution is that the Ready Reckoner is scientifically prepared by taking into account the geographical conditions of each area, major roads, railways, etc., as well as by inspecting the information of buying and selling transactions and that the Ready Reckoner rates are based on the talukas in rural areas and the urban areas in different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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