Supreme Court of India
MALLAPPA DEAD BY L.RS. & ORS. versus THE SPECIAL LAND ACQUISITION OFFICER & ANR. on 3 December 2018
470 SUPREME COURT REPORTS [2018] 14 S.C.R.[2018] 14 S.C.R. 470
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MALLAPPA DEAD BY L.RS. & ORS.
v.
THE SPECIAL LAND ACQUISITION OFFICER & ANR.
(Civil Appeal No. 6057 of 2012)
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DECEMBER 03, 2018
[ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
Karnataka Industrial Areas Development Act, 1966: s.28(1)– Acquisition of land for public purpose – While appreciating thesale deeds produced by land owners by way of exemplars, theCSpecial Deputy Commissioner determined the market rate of theland in question at Rs.500/- per Gunta whereas the Reference Courtfixed the compensation @ Rs.21,000/- per Gunta – High Court,however, reduced it to Rs.10,250/- per Gunta – Appeal bylandowners – Held: High Court was not justified in reducing theDrate determined by the reference Court There was enough evidenceto prove the potentiality of the land in question as was clear fromthe findings of the Land Acquisition Officer – Apart from it, thelandowners also submitted 10 sale deeds wherein it was establishedthat price of the land situated in the adjacent area varied fromRs.7250/- per Gunta to Rs.57,000/- per Gunta between 1977 tillE1982 – In view of these factors, there was no justifiable reason forthe High Court to reduce the rate from Rs.21,000/- per Gunta toRs.14,500/- per Gunta and then deducting 30% towardsdevelopment charges – In the facts and circumstances of the caseand the evidence adduced by the parties, market value of the landFin question is fixed at Rs.21,000/- per Gunta and after deducting10% towards the development charges, the compensation is fixedat Rs.18,900/- per Gunta – The appellants are also entitled to getother statutory compensation payable under the Act – Therespondents are accordingly directed to re-calculate thecompensation amount payable to the appellants – Land Acquisition.G
Disposing of the appeals, the Court
HELD: 1. The Special Deputy Commissioner (LAO) whileawarding compensation recorded a finding that the acquired land H
in question is suitable for construction of the buildings. It wasalso held that the land is situated in the midst of well-developedarea of the city and is surrounded by several big factories,industrial estate and the housing colonies. It was also held thatthe land is abutting the main road passing through Hubli. Inaddition, the appellants filed 10 sale deeds by way ofexemplars to prove the market value. These sale deeds wereexecuted from 1977 to 1982 in relation to adjacent lands. Thevalue of the land sold by these sale deeds varied fromRs. 7250/- per Gunta to Rs.57,000/- per Gunta. The landsinvolved in these sale deeds were of smaller area.[Paras 13, 14][474-B-E]
2. The market rate determined by the reference Court atthe rate of Rs.21,000/- per Gunta was the proper market rate ofthe land in question and the same, therefore, should have beenupheld by the High Court. There was enough evidence to provethe potentiality of the land in question as is clear from the findingsof the Land Acquisition Officer. Apart from it, the landownersalso proved the market value of the land in question by filing 10sale deeds wherein it was established that price of the landsituated in the adjacent area varied from Rs.7250/- per Gunta toRs.57,000/- per Gunta between 1977 till 1982. In view of thesefactors, there was no reason for the High Court to reduce therate from Rs.21,000/- per Gunta to Rs.14,500/- per Gunta andthen after deducting 30% towards development charges fixingat Rs. 10,250/- per Gunta. The market value of the land inquestion is fixed at Rs.21,000/- per Gunta and after deducting10% towards the development charges fix the market price ofthe land in question at Rs.18,900/- per Gunta. The appellantsare also entitled to get other statutory compensation payableunder the Act. The respondents are accordingly directed to re-calculate the compensation amount payable to the appellants inthe light of the market rate fixed by this Court, i.e.,Rs. 18,900/- per Gunta and after making proper verification payto the appellants the total compensation within 3 months.[Paras 16-21][474-C-D; 475-A-E]
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472 SUPREME COURT REPORTS [2018] 14 S.C.R.
ACIVIL APPELLATE JURISDICTION : Civil Appeal No. 6057of 2012.
From the Judgment and Order dated 12.10.2007 of the High Courtof Karnataka at Bangalore in MFA No. 594 of 2003.
With
BC. A. No. 1573 of 2018
Jaideep Gupta, Ms. Kiran Suri, Sr. Advs., Shankar Divate,Satish Kumar, Anand Sanjay M. Nuli, Dharam Singh, Nanda Kumar K.B., M/s. Nuli & Nuli, P. R. Ramasesh, S. J. Amith, Ms. AishwaryaKumar, Dr. (Mrs.) Vipin Gupta, Advs. for the appearing parties.
CThe Judgment of the Court was delivered byABHAY MANOHAR SAPRE, J.
In Civil Appeal No.6057/2012
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1. This appeal is directed against the final order/judgment dated12.10.2007 passed by the High Court of Karnataka at Bangalore in M.F.A.DNo.594 of 2003 whereby the High Court allowed the appeal filed by therespondents herein and reduced the compensation awarded to theappellants herein by award dated 30.09.2002 passed by the AdditionalCivil Judge (Sr. Division) Hubli in LAC No.58/87.
2. In order to appreciate the controversy involved in this appeal, itEis necessary to set out the facts of the case hereinbelow.
3. The appellants are the claimants (landowners) and therespondents are the State Authorities-non-applicants in the land acquisitionreference proceedings out of which this appeal arises. The State ofKarnataka in exercise of powers conferred under Section 28(1) of theKarnataka Industrial Areas Development Act, 1966 (hereinafter referredFto as “the Act”) acquired the land measuring 24 acres 15 guntas bearingSurvey No. 44, Naruab Thimmasagar Village, Hubli Taluk DistrictDharwad. The land was acquired for Karnataka Industrial AreasDevelopment Board, Bangalore for a public purpose “expansion ofexisting industrial estate in Tahsil Hubli”.
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4. The notification was accordingly issued under Section 28(1) on23/28.06.1980. It was published in the official Gazette on 03.07.1980(page 152 part III-1). This notification was followed by issuance ofanother notification on 27.05.1981 under Section 28 (4) of the Act. Theappellants being the owners of the land in question became entitled toHclaim compensation for their land.
5. This led to initiation of the proceedings for determination of thecompensation payable to the appellants for their land under the Act. TheSpecial Land Acquisition Officer (respondent No. 1 herein) by his awarddated 27.10.1986 awarded compensation to the appellants at the rate ofRs.5/- per sq. meter = Rs. 500/- per Gunta.
6. The appellants (landowners) felt aggrieved and prayed formaking a reference to the Civil Court for re-determination of the rate ofcompensation. It was accordingly made. By award dated 30.09.2002,the Reference Court partly answered the reference in appellants’ favourand enhanced the rate of compensation at Rs.21,000/- per Gunta.
7. The appellants and the State Authorities both felt aggrieved ofthe award of the Reference Court and filed appeals in the High Court ofKarnataka at Bangalore. The appellants prayed for further enhancementin the rate of compensation whereas the State prayed for reduction inthe rate.
8. By impugned judgment/order, the High Court allowed the appealfiled by the State in part and reduced the rate of compensation toRs.10250/- per Gunta from Rs.21,000/- per Gunta fixed by the ReferenceCourt. The High Court fixed the market rate at Rs.14,500/- per Guntaand deducting 30% towards development charges fixed at Rs.10,250/-per Gunta. As a consequence, the appeal filed by the landowners wasdismissed which has given rise to filing of this appeal by way of specialleave by the landowners in this Court.
9. The question, which arises for consideration in this appeal, iswhether the High Court was justified in reducing the rate of compensationfrom Rs.21,000/- per Gunta to Rs. 10,250/- per Gunta.
10. In other words, the question, which arises for consideration inthis appeal, is whether the High Court was justified in holding that themarket value of the land in question was Rs.10,250/- per Gunta on thedate of its acquisition.
11. Having heard the learned counsel for the parties and on perusalof the record of the case, we are inclined to allow the appeal and whilesetting aside the impugned order of the High Court restore the award ofthe Reference Court/Civil Court with slight modification as indicatedinfra.
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474 SUPREME COURT REPORTS [2018] 14 S.C.R.
A12. It may be mentioned that the State had also filed appeal byspecial leave in this Court against the impugned order of the High Courtwherein the grievance of the State was that the High Court was notjustified in fixing the market rate at Rs. 10,250/- per Gunta. According tothe State, the rate should have been determined at a much lower ratethan Rs.10,250/- per Gunta. This Court by order dated 04.11.2015Bdismissed the appeal filed by the State and affirmed the impugned order.
13. On perusal of the record, we find that the Special DeputyCommissioner (LAO) while awarding compensation recorded a findingthat the acquired land in question is suitable for construction of thebuildings. It was also held that the land is situated in the midst of well-Cdeveloped area of the city and is surrounded by several big factories,industrial estate and the housing colonies. It was also held that the landis abutting the main road passing through Hubli.
14. In addition, the appellants filed 10 sale deeds by way ofexemplars to prove the market value. These sale deeds were executedDfrom 1977 to 1982 in relation to adjacent lands. The value of the landsold by these sale deeds varies from Rs.7250/- per Gunta toRs.57,000/- per Gunta. The lands involved in these sale deeds are ofsmaller area.
15. As mentioned above, while appreciating the aforementionedevidence, the Special Deputy Commissioner determined the market rateEof the land in question at Rs.500/- per Gunta whereas the ReferenceCourt fixed the compensation at the rate of Rs.21,000/- per Gunta. TheHigh Court, however, reduced it to Rs.10,250/- per Gunta.
16. In our considered opinion, the market rate determined by thereference Court at the rate of Rs.21,000/- per Gunta was the properFmarket rate of the land in question and the same, therefore, should havebeen upheld by the High Court. In other words, the High Court was notjustified in reducing the rate determined by the reference Court fromRs.21,000/- per Gunta to Rs.10,250/- per Gunta and instead the HighCourt should have upheld the rate fixed by the Reference Court.G17. In our considered view, there is enough evidence to prove thepotentiality of the land in question as would be clear from the findings ofthe Land Acquisition Officer mentioned above. Apart from it, thelandowners have also proved the market value of the land in question byfiling 10 sale deeds wherein it is established that price of the land situatedin the adjacent area has varied from Rs.7250/- per Gunta toHRs.57,000/- per Gunta between 1977 till 1982.
18. Taking into consideration the aforementioned factors, we areof the view that there was no justifiable reason for the High Court toreduce the rate from Rs.21,000/- per Gunta to Rs.14,500/- per Guntaand then deducting 30% towards development charges fixed atRs. 10,250/- per Gunta.
19. In our opinion, having regard to the totality of the facts and thecircumstances emerging from the record and keeping in view the evidenceadduced by the parties, we consider just and proper to fix Rs.21,000/-per Gunta as the market value of the land in question and after deducting10% towards the development charges fix the market price of the landin question at Rs.18,900/- per Gunta.
20. In other words, we hold and accordingly fix the market valueof the land in question at the rate of Rs. 18,900/- per Gunta for paymentof compensation to the appellants for their land. The appellants are alsoentitled to get other statutory compensation payable under the Act, whichis now to be re-calculated on the basis of the market rate fixed by thisCourt.
21. The respondents are accordingly directed to re-calculate thecompensation amount payable to the appellants in the light of the marketrate fixed by this Court, i.e., Rs.18,900/- per Gunta and after makingproper verification pay to the appellants the total compensation within 3months.
22. In view of the foregoing discussion, the appeal succeeds andis accordingly allowed. Impugned order is set aside.
In Civil Appeal No.1573 of 2018
This appeal is directed against the final judgment and order dated17.07.2017 passed by the High Court of Karnataka, Dharwad Bench inM.F.A. No.24071 of 2011 whereby the High Court dismissed the appealfiled by the appellants herein and reduced the rate of compensation to10,250/- per Gunta from Rs.21,000/- per Gunta on the grounds of paritywhich was granted to the adjacent land in question in S.No.44 in LACNo.58/1987.
In view of the order passed above in C.A. No.6057 of 2012, thisappeal is disposed of on the same terms.
Devika Gujral
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