(Prayer in A.S.No.406 of 1999:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.17 of 1993, dated 16.4.1997.
Prayer in A.S.68 of 2000:-Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.8 of 1993, dated 24.12.1997.
Prayer in A.S.980 of 2001:-Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.9 of 1993, dated 29.3.2001.
Prayer in A.S.No.1200 of 2001:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.21 of 1993, dated 4.4.2001.
Prayer in A.S.No.1201 of 2001:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.19 of 1993, dated 4.4.2001.
Prayer in A.S.No.1207 of 2001:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.18 of 1993, dated 4.4.2001.
Prayer in A.S.No.1207 of 2001:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.23 of 1993, dated 4.4.2001.
Prayer in A.S.No.237 of 2002:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.12 of 1993, dated 26.2.2001.
Prayer in A.S.No.1043 of 2003:- Appeal against the judgment and decree of the learned Subordinate Judge of Vellore, made in LAOP No.20 of 1993, dated 16.4.1997.)
Common Judgment:
The above appeals are focussed as against the judgment and decree dated 16.4.1997, 24.12.1997, 29.3.2001, 4.4.2001, 4.4.2001, 4.4.2001, 4.4.2001, 26.2.2001, 16.4.1997 respectively of the learned Subordinate Judge of Vellore made in LAOP Nos.17, 8, 9, 21, 19, 18, 23, 12, 20 of 1993 respectively. For convenience sake, the parties are referred to here under according to their litigative status before the trial Court.
2. Heard the learned Special Government Pleader(AS) appearing for the appellant.
3. The nutshell of facts which are absolutely necessary and germane for the disposal of these appeals would run thus:
The Government published Section 4(1) Notification under the Land Acquisition Act for acquiring :
(i) the land in Survey Nos.195/A1 and 19/5A2 measuring an total extent of 0.66 cent land in AS.No.406/1999
(ii) the land in Survey No.19/2A measuring an extent of 0.39.0 Hectare land and the land in Survey No.19/2B measuring an extent of 0.01.5 Hectare land, totally 0.40.5 Hectare land i.e. 1.00 acre land in AS.No.68/2000
(iii) the land in Survey No.5/1 B1 measuring an extent of 0.56.5 Hectare land i.e 1.39 cent and the land in Survey No.5/2A measuring an extent of 0.27.5 Hectare land i.e. 0.68 cent in AS.No.980/2001
(iv) the land in Survey No. 17/3 measuring an extent 0.18.0 hectare ie.0.44 cent land in AS.No.1200/2001
(v) the land in Survey No. 18/1 and 18/2 measuring an extent of 0.22.5 hectare land in AS.No.1201/2001.
(vi) the land in Survey No. 18/3 B measuring an extent of 0.36.5 hectare land i.e.0.60 cent in AS.No.1207/2001.
(vii) the land in Survey No. 17/3 A measuring an extent of 0.44 cent land i.e.0.60 cent in AS.No.1208/2001.
(viii) the land in Survey No. 19/4 measuring an extent of 0.60.5 hectare land (1.50 Acre) in AS.No.237/2002
(ix) the land in Survey No.19/8 C measuring an extent of 0.15 cent and Survey No.19/8 H-1 measuring an extent of 0.30 cent and totally 0.45 cent of land in Abdullahpuram Village, Vellore for the purpose of providing housing sites for the Adi Dravidar personnel. After complying with the procedures, the Land Acquisition Officer passed an award assessing a sum of Rs.100/- per cent towards compensation. Being aggrieved by such awarding of the compensation, the matter was got referred to the Sub Court under Section 18 of the Land Acquisition Act.
4. During enquiry before the Sub Court,
(i) on the side of the claimant/land owner, one Arumugam was examined as C.W.1 and Exhibits A-1 and A-2 were filed. On the side of the Land Acquisition Officer, one Jeyakumar was examined as R.W.1 and Exhibits B-1 to B-5 were marked in AS.No.406 of 1999.
(ii) on the side of the claimant/land owner, the claimant/land owner herself was examined as C.W.1 and one C.K.Murugesan was examined as C.W.2 and Exhibits A-1 to A-3 were filed. On the side of the Land Acquisition Officer, one Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in AS.No.68 of 2000.
(iii) on the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and one S.Rajendiran and P.Murthy were examined as C.W.2 and C.W.3 and Exhibits A-1 to A-3 were filed. On the side of the Land Acquisition Officer, one Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in AS.No.980/2001.
(iv) On the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and one A.C.Rajendiran, P.Murthy were examined as C.W.2 and C.W.3 and Exhibits A-1 and A-2 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in A.S.1200/2001.
(v) On the side of the claimant/land owner, the claimant/land owner herself was examined as C.W.1 and one A.C.Rajendiran, P.Murthy were examined as C.W.2 and 3 and Exhibits A-1 to A-3 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in A.S.1201/2001.
(vi) On the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and one A.C.Rajendiran, P.Murthy were examined as C.W.2 and 3 and Exhibits A-1 to A-3 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in A.S.1207/2001.
(vii) On the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and one A.C.Rajendiran, P.Murthy were examined as C.W.2 and 3 and Exhibits A-1 to A-3 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-2 were marked in A.S.1208/2001.
(viii) On the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and one A.C.Rajasekar was examined as C.W.2 and Exhibits A-1 and A-2 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 to B-3 were marked in A.S.237/2002.
(ix) On the side of the claimant/land owner, the claimant/land owner himself was examined as C.W.1 and Exhibits A-1 and A-2 were filed. On the side of the Land Acquisition Officer, one L.Jeyakumar was examined as R.W.1 and Exhibits B-1 and B-4 and B-5 were marked in A.S.1043/2003.
5. The Sub Court, ultimately enhanced the compensation from Rs.100/- per cent to Rs.1000/- per cent.
6. Being dissatisfied with the judgment and decree of the Sub Court, the Land Acquisition Officer preferred this appeal on various grounds, the gist and kernel of them would run thus:
The judgments and decrees of the trial Court are against law and weight of evidence and all probabilities of the case. The Reference court simply enhanced the compensation from Rs.100/- to Rs.1000/- . Without any valid reason, the data gathered by the Land Acquisition Officer for assessing the value of the land were ignored by the Reference Court. Hence, he prayed for setting aside the judgment and decree of the Sub Court.
7. The point for consideration is as to whether the Sub Court was justified in enhancing the compensation from Rs.100/- per cent to Rs.1,000/- per cent ?
8. The learned Special Government Pleader (AS) would reiterate the grounds of appeal and advance his argument to the effect that the trial Court was not justified in placing reliance on Ex.A.1 and Ex.A.2. Accordingly, he prayed for setting aside the judgment and decree of the Sub Court.
9. Whereas, the learned counsel for the land owners/claimants by placing reliance on Exhibits A-1 viz., Sale deed dated 3.8.1988 and Ex.A.2 dated 19.5.1988 relied on by the Reference Court for enhancing the compensation, would develop his argument to the effect that those documents emerged a few months anterior to Section 4(1) notification and in such a case, the trial court was right in assessing the compensation in a sum of Rs.1,000 per cent.
10. In this factual matrix, it has to be seen as to whether the lower court was justified in relying on Ex.A.1 and Ex.A.2 ignoring Ex.B.1, the sale deed dated 23.10.1985, which was relied on by the Land Acquisition Officer. Ex.B.1, which emerged on 23.10.1985 was relating to the sale of 2 � cents of land in R.S.No.13/1 in the Abdullahpuram village for a sum of Rs.25,000/- which means that each cent of the agricultural land was sold for a sum of Rs.100/-. It is obvious that Section 4(1) notification was passed in the year 1988. It is therefore clear that Ex.B.1 cannot be taken as one reflecting the true market value of the land acquired during the year 1988 for carving out plots and allotting the same in favour of Adi-dravida community people. However, only a few months anterior to the publication of Section 4(1) notification Ex.A.1 and Ex.A.2 emerged which reflected the market value of the land which prevailed during the year 1988 in the vicinity where the lands were acquired by the Government. Ex.A.1 dated 3.8.1988 is relating to an extent of 28 � cents of land in Survey No.13/2 in that village and the sale consideration contemplate therein was Rs.7,790/- which means that per cent of land was sold for a sum of Rs.975.87/-. Ex.A.2 is the sale deed dated 19.5.1988 relating to R.S.No.18/3 admeasuring 30 cents of land which was sold for a sum of Rs.30,000/-, which connotes that per cent of land was sold for a sum of Rs.1000/-. It is therefore crystal clear that those two sale deeds Ex.A.1 and Ex.A.2 relied on by the Reference Court are reflecting the true market value of the land acquired. There is nothing to indicate that those two sale deeds Ex.A.1 and Ex.A.2 were brought up purely for boosting up the market value. At this juncture, my mind is redolent with the following decisions of the Hon'ble Apex Court reported in
(1) 1996(9) SCC 640 [Basavva vs. Special Land Acquisition Officer],
(2) 2007(9)SCC 447 (NELSON FERNANDS V. SPECIAL LAND ACQUISITION OFFICER) AND
(3) AIR 2007 SCC 740 (DEPUTY DIRECTOR, LAND ACQUISITION VS. MALLA ATCHINAIDU)and the decisions of this Court reported in
(4) 2006(5) CTC 173 [The Land Acquisition Officer, Coonoor vs. Pappammal] and 2006(2) CTC 733 [The Special Tahsildar (Land Acquisition) vs. Valliammal].
11. A mere perusal of those precedents would highlight the fact that simply because a sale deed emerged a few months anterior to Section 4(1) notification, it need not be looked askance at.
12. The whole kit and caboodle of facts and figures placed before the Reference Court would exemplify and demonstrate that the land acquired is in the vicinity where there are industrial units, T.V.S. Factory with quarters, I.T.units in addition to Air port situated within a short distance. It is therefore clear that the said area had the potentiality of becoming highly developed area in the near future and the agricultural lands are having the potentiality of being converted into industrial sites and house sites. Keeping the entire background in mind, if Ex.A.1 and Ex.A.2 are analysed, it is clear that those sale deeds reflected the true market value prevailing in that area.
13. However one significant fact was lost sight of by the Reference Court as it failed to deduct some amount from the market value towards development charges.
14. The learned counsel for the land owners/claimants would advance his argument to the effect that no deduction need be made towards development charges for the reason that Ex.A.1 and Ex.A.2 do contemplate agricultural lands, as the subject matter of sales. It is also his argument that if a sale of small plot of land is chosen as the sample one and the land acquired is an agricultural land, in that event, there should be deduction towards development charges. In this context, I recollect the recent two decisions of the Hon'ble Apex Court which I would like to cite as under:-
(1) Tenneti Kamesam vs. Land Acquisition Officer reported in (2008) 5 MLJ 371 (SC) and excerpt from it would run thus:
"5. In the impugned order itself, it has been mentioned that there was no dispute with regard to the fact that the land in question was situated in a well-developed town surrounded by several structures, residential buildings and other commercial establishments, apart from being located near a railway station and other facilities. It is, therefore, evidence that the land was already situated in a developed area and the question of deduction of development charges did no, therefore, arise".
No doubt, a perusal of the aforesaid judgment and more specifically, the extracted excerpt supra would reveal that there need not be any deduction towards development charges if the very land itself is a developed land. But here, it is exfacie and prima facie clear that the lands acquired are constituting a vast tract of agricultural land. For the purpose of carving out house sites, obviously, roads, drainage facilities, park facilities including other incidental facilities should be provided for the occupants of the locality and in such a case, deduction should necessarily be made towards development charges.
15. At this juncture, I would recollect the following decision, viz., The Deputy Director, Land Acquisition Vs. Mala Atchinaidu and Others reported in AIR 2007 SC 740. An excerpt from it would run thus
"3. The facts herein are that, on 07.03.1982, an extent of Ac.19.87 cents of dry land in Sy.Nos.3/1 to 3/42 of Pisinikada Village, in the outskirts of Anakapalli Town, was acquired under Section 4 (1) of the Land Acquisition Act (hereinafter referred to as the Act), for the provision of house sites for the weaker sections. Urgency clause under Section 17(4) of the Act was invoked and a draft declaration under Section 6 (1) was also published simultaneously on the same date.
67. The land acquired being in an already developed area, having potential of construction of residential and commercial buildings, nor more than 20% ought to have been deducted towards development, as held by this Court in Kasturi & Ors. Vs. State of Haryana (supra). Therefore, the deduction of 35% towards development is not justified."
In the above cited case, the land acquired was for providing house sites to the weaker sections and hence the Hon'ble Apex Court reduced the development charges from Rs.35 per cent to Rs.20 per cent on the ground that the land acquired was in a developed area.
16. Ex.A.1 and Ex.A.2 were relating to lands admeasuring 28 and 30 cents respectively. But the Government in the said village viz., Abdullahpuram acquired a vast tract of land for the purpose of allotting the house sites with facilities and in such a case atleast 20% should be deducted from the market value of Rs.1000/- per cent arrived at by the Reference Court.
17. This Court is fully aware of the fact that towards potentiality of the land, some compensation should be awarded by increasing some amount over and above the amount contemplated in sale deed like Ex.A.1 and Ex.A.2 and thereafter deducting at least 1/3 out of it. However, I am of the opinion that Ex.A.1 and Ex.A.2 emerged a few months before Section 4(1) notification and in such a case, it is inferable that the sellers and purchasers under Ex.A.1 and Ex.A.2 might have foreseen the potential value of those agricultural lands and agreed for such sale prices contemplated therein. Inasmuch as the privateers were the purchasers under those sale deeds and that too smaller extents of agricultural land were involved therein, the court cannot simply award the entire rate of Rs.1000 per cent without any deduction relating to the vast extent of land acquired by the Government in that village for providing house sites and facilities to the Adi-dravida community people. Hence, by way of striking a balance between the two, without increasing any amount over and above Rs.1000 per cent towards potential plot value and thereafter deducting 1/3 out of it, straight away 20% deduction can be effected from out of Rs.1000 per cent, which comes to Rs.800 per cent.
18. Accordingly, I am of the considered opinion that the net value per cent shall be fixed at Rs.800/- and that the petitioners/claimants are entitled to solatium and other statutory benefits as per law.
19. The judgments and decrees of the Reference Court shall stand modified and the appeals are disposed of accordingly. However, there shall be no order as to costs. The amount if not already deposited by the Government, the same shall be deposited within a period of two months from the date of receipt of a copy of this order.
Summary of the Opinion — Land Acquisition Appeals (Abdullahpuram, Vellore)
Factual and Procedural Background
The present consolidated appeals challenge several judgments and decrees of the learned Subordinate Judge, Vellore, delivered in multiple reference suits (LAOP Nos. 8, 9, 12, 17, 18, 19, 20, 21, 23 of 1993) arising out of Section 18 references under the Land Acquisition Act. The Government issued Section 4(1) notifications to acquire various small parcels of agricultural land in Abdullahpuram Village, Vellore, for the purpose of providing housing sites for Adi Dravidar personnel. After the Land Acquisition Officer's award fixed compensation at Rs.100 per cent, the matters were referred to the Sub Court under Section 18.
During the reference proceedings the claimants and the Land Acquisition Officer led oral testimony and documentary exhibits. The Reference (Sub) Court enhanced compensation from Rs.100 per cent to Rs.1,000 per cent. The Land Acquisition Officer appealed, challenging the Reference Court's reliance on particular sale deeds and the resulting enhancement.
Legal Issues Presented
- Whether the Sub Court was justified in enhancing the compensation from Rs.100 per cent to Rs.1,000 per cent based on the sale deeds (Ex.A.1 and Ex.A.2) relied upon by the claimants.
Arguments of the Parties
Appellant (Land Acquisition Officer / Government)
- The judgments and decrees of the trial (Reference) Court are against law and against the weight of evidence and probabilities.
- The Reference Court merely enhanced compensation from Rs.100 to Rs.1,000 per cent without valid reason, ignoring data collected by the Land Acquisition Officer for assessing land value.
- The Reference Court was not justified in placing reliance on Ex.A.1 and Ex.A.2 (sale deeds dated 3.8.1988 and 19.5.1988) to the exclusion of Ex.B.1 (sale deed dated 23.10.1985) and other material.
- The learned Special Government Pleader reiterated these grounds and sought setting aside the Reference Court's judgment and decree.
Respondents (Claimants / Landowners)
- Relied on Ex.A.1 (sale deed dated 3.8.1988) and Ex.A.2 (sale deed dated 19.5.1988) as reflecting the true market value prevailing at the time immediately prior to the Section 4(1) notification.
- Argued that because these sale deeds were executed a few months before the notification, the Reference Court was correct to assess compensation at Rs.1,000 per cent on that basis.
- Contended that there is nothing to indicate Ex.A.1 and Ex.A.2 were fabricated or introduced merely to inflate market value.
Table of Precedents Cited
Precedent | Rule or Principle Cited For | Application by the Court |
---|---|---|
Basavva v. Special Land Acquisition Officer, 1996 (9) SCC 640 | That a sale deed emerging a few months prior to the Section 4(1) notification need not be rejected and can be considered in assessing market value. | The court relied on this line of authority to support the proposition that Ex.A.1 and Ex.A.2 (both dated a few months before the notification) may legitimately reflect the market value prevailing at the relevant time. |
Nelson Fernands v. Special Land Acquisition Officer, 2007 (9) SCC 447 | Support for considering recent sale deeds as relevant evidence of market value when they pre-date the notification by only a few months. | Grouped with other Apex Court decisions to justify reliance on Ex.A.1 and Ex.A.2 as reflecting true market value at the relevant time. |
Deputy Director, Land Acquisition v. Malla Atchinaidu, AIR 2007 SC 740 | When land is in an already developed area with potential for construction, deduction for development charges should normally not exceed 20% (court reduced a 35% deduction to 20% there). | The court cited this authority when considering the appropriate magnitude of deduction for development charges; it used the decision to justify applying a 20% deduction in the present case as a benchmark. |
Land Acquisition Officer, Coonoor v. Pappammal, 2006 (5) CTC 173 | Support for treating recent sale deeds as admissible indicators of market value in the context of land acquisition disputes. | Used as a decision of the State High Court consistent with the Apex Court authorities to validate reliance on contemporaneous sale deeds (Ex.A.1 and Ex.A.2). |
Special Tahsildar (Land Acquisition) v. Valliammal, 2006 (2) CTC 733 | Another decision of this Court supporting the view that sale deeds executed shortly before notification can reflect market value. | Reinforced the court's conclusion that Ex.A.1 and Ex.A.2 were reliable indicators of market value. |
Tenneti Kamesam v. Land Acquisition Officer, (2008) 5 MLJ 371 (SC) | Where land is already situated in a well-developed town, deduction of development charges may not arise; no deduction needed if the land is already developed. | The court cited the excerpt but distinguished it from the present facts: the acquired land here was primarily agricultural and not already developed, so deduction for development charges was held appropriate. |
Kasturi & Ors. v. State of Haryana (authority referenced in text) | Authority treating the quantum of permissible deduction for development in certain circumstances (court referenced it for the proposition limiting deduction when land is already developed). | The decision was cited as an antecedent authority that informed the court's approach to limiting development deduction (the court referenced it when discussing the appropriate percentage to be deducted). |
Court's Reasoning and Analysis
The court proceeded in a stepwise analytical fashion grounded on the evidence and authorities cited:
- Assessment of competing sale deeds: The court found Ex.B.1 (sale dated 23.10.1985) to be temporally remote from the Section 4(1) notification of 1988 and therefore not reflective of the true market value prevailing at the time of acquisition. By contrast Ex.A.1 (3.8.1988) and Ex.A.2 (19.5.1988) had been executed a few months prior to the notification and therefore more accurately reflected the local market value in 1988 (Ex.A.1 implying ~Rs.975.87 per cent; Ex.A.2 implying Rs.1,000 per cent).
- Reliance on precedent: The court invoked a line of Apex Court and High Court decisions to support the principle that sale deeds executed shortly before a notification should not be automatically rejected and can be reliable evidence of market value.
- Consideration of locality and potentiality: The court noted the acquired lands lay in a locality with industrial units, factories with quarters, IT units and an airport in short distance — indicating potential for development and conversion from agricultural to house/industrial sites.
- Deduction for development charges: Although Ex.A.1 and Ex.A.2 reflected market value around Rs.1,000 per cent, the court concluded that the Reference Court erred in not making any deduction for development charges. The court distinguished Tenneti Kamesam (where no deduction was required because the land was already developed) by observing that the present lands were agricultural tracts requiring provision of roads, drainage, parks and other facilities to convert into house sites.
- Quantification of deduction: Having regard to the authorities (notably the Deputy Director v. Malla Atchinaidu decision that capped deduction at 20% where land was already developed), the court balanced two considerations: (a) that some enhancement is sometimes warranted due to potentiality; and (b) that where the Government acquired a vast tract for developing house sites, a deduction for development charges was nonetheless necessary. Rather than increasing the Rs.1,000 per cent and then applying a larger deduction, the court struck a balance by applying a straight 20% deduction to the Rs.1,000 per cent figure relied on by the Reference Court.
- Final computation and ancillary reliefs: Applying the 20% deduction produced a net value of Rs.800 per cent. The court held petitioners (claimants) entitled to solatium and other statutory benefits as per law.
Holding and Implications
Holding:
Judgments and decrees of the Reference (Sub) Court are modified and the appeals are disposed of.
Direct consequences and relief awarded:
- The court fixed the net compensation at Rs.800 per cent (being Rs.1,000 per cent less 20% deduction towards development charges).
- The claimants are entitled to solatium and other statutory benefits in accordance with law.
- The Reference Court's award of Rs.1,000 per cent is therefore reduced to Rs.800 per cent and the appeals by the Land Acquisition Officer are accordingly disposed of by modifying the earlier judgments and decrees.
- There shall be no order as to costs.
- If the amount has not already been deposited by the Government, it shall be deposited within two months from receipt of a copy of the order.
The opinion does not purport to create a new precedent; it applies existing authorities to the facts and modifies the Reference Court's computation accordingly.
The Special Tahsildar Land Acquisition Adi Dravidar Welfare, Vellore v. Kuppammal & Others
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