Full Judgment Text
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CASE NO.:
Appeal (civil) 7463 of 1997
PETITIONER:
Krishi Utpadan Mandi Samiti Sahaswan Distt.Badaun thr.Secretary
RESPONDENT:
Bipin Kumar & Anr.
DATE OF JUDGMENT: 07/01/2004
BENCH:
S. N. VARIAVA & H. K. Sema.
JUDGMENT:
J U D G M E N T
S. N. Variava, J
This Appeal is against the Judgment dated 14th July, 1997.
Briefly stated the facts are as follows:
Section 4 Notification for acquisition of 6.9 acres of land were
issued on 30th January, 1988. Section 6 Notification was issued on 30th
July, 1988. The award was passed on 16th July, 1990. The Land
Acquisition Officer had called for sale deed from the office of the
Registrar of Documents. He received 12 sale deeds of which one was
in respect of a land situated within the acquired land. The Land
Acquisition Officer, therefore, considered that sale deed to be a
relevant document and on the basis of that sale deed, awarded
compensation at the rate of Rs. 15.37 per sq. yards.
The respondent and other claimants whose land had been
acquired filed references under Section 18. Before the Reference
Court it was proved that near the acquired land there was a cold
storage and a petrol pump. It was shown that the high way passed
near the acquired lands. It was proved that there was a lot of building
constructions going on all around the acquired land. It was thus
proved that the acquired land had high potential for building
construction activity. The sale deed by which the respondent had
himself purchased a portion of this land, in January, 1984 for
Rs.4100/- was proved. However the respondent also relied on an
order dated 28.5.1987 by which the Stamp Officer fixed the market
value to be Rs.120 per sq. yards and levied stamp duty accordingly.
The Reference Court relied on the fact that the District Magistrate,
Badaun had fixed market rate of land, within the abadi at Rs.200 to
250 per sq. yard and that of land away from the abadi at Rs.150 to
170 per sq. yards. On this basis the Reference Court fixed
compensation at the rate of Rs.150 per sq. yard.
The appellant filed an appeal to the High Court. The High Court
by the impugned judgment had fixed compensation at the rate of
Rs.170 per sq. yards on the following basis:
"Duly considered the submissions of both sides. The
land was acquired on 30.1.80 by publication of notice
under Sec.4 of the L.A.Act and the declaration was made
on 13.8.86 under Sec.6 of the Land Acquisition Act on
13.8.86, the disputed land did not face Badaun Delhi Road.
Be that as it may be, the registered sale deed by which
this plaintiff-respondent purchased the land was a good
exemplar for ascertainment of market price. It is the
matter of common experience that the price of the land is
soring high due to developments of the country and also
due to exploitation of population. If 15% per annum is
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accepted as rate of increase of the price of the land then
there would 45% enhancement of the price of acquired
land in dispute. Taking into consideration, that the
development had just started at the time of acquisition of
the land, I think Rs.170 per sq. yard should be proper
market price of the acquired land at the time of acquisition
and compensation be awarded accordingly."
We have heard the parties at great length. It is settled law that
one of the methods on which market value can be ascertained, is on
basis of comparable sale deeds. As has been noticed, the Land
Acquisition Officer had taken note of a sale deed of a land situated
within the acquired land. That was a comparable sale deed. Further,
the respondent had himself purchased a small portion of the acquired
land and had tendered his own sale deed as evidence. Of course, this
sale deed was for only Rs.4100/- i.e. at the rate of Rs.15.40 per sq.
yards. Therefore, reliance was placed by the respondent on the order
passed by the Stamp Officer who valued for the purposes of stamp
duty, at the rate of Rs.120 per sq. yard.
As noted above, the Reference Court has relied on the order of
the Stamp Officer and on the fact that the District Magistrate, Badaun
had fixed market value of land at Rs.200 to 250 per sq. yards for land
within the abadi and at the rate of Rs.150 to 170 per sq. yard for land
away from the abadi. The High Court has also taken note of the
respondent’s sale deed and given 45% increase. However the High
Court has not taken the rate mentioned in the sale deed but has also
taken the rate of Rs.120 per sq. yards i.e. the rate fixed by the Stamp
Officer.
It has been held by this Court in the case of Jawajee Nagnatham
vs. Revenue Divisional Officer, Adilabad, A. P. and Ors. [1994 (4) SCC
595] that market value under Section 23 of the Land Acquisition Act,
1894 cannot be fixed on the basis of a basic valuation register
maintained by the registering authority for collection of stamp duty.
Therefore, the reliance by the Reference Court on the values of land
fixed by the District Magistrate for stamp duty purposes is clearly
erroneous. For the purposes of Land Acquisition Act the market value
must be determined on the basis of sale deeds of comparable lands.
In this case the Land Acquisition Officer had taken note of one such
sale deed where the price was Rs.15.37 per sq. yard. The Reference
Court also had before it the sale deed by which the respondent
purchased a portion of the acquired land. As stated above the sale
deed was for Rs.15.40 per sq. yard. Section 92 of the Evidence Act
precludes a party from leading evidence contrary to the terms of a
written document. It was, therefore, not open to the respondent to
urge that, even though his sale deed showed a price Rs. 15.40 per sq.
yard the real market value was Rs.120 per sq. yard. To permit a party
to so urge would be to give a premium to dishonesty. Parties who
undervalue their documents, for purpose of payment of stamp duty,
cannot be allowed to then claim that their own documents does not
reflect the correct market value. Therefore as per sale instances of
the comparable lands the market value, on dates of sales, were in the
region of Rs.15.37 to Rs.15.40 per sq. yard.
However there is evidence of high potentiality. The increase of
15% given by the High Court cannot therefore be said to be
unreasonable. Of course, the 15% increase has to be on Rs.15.40
which is the figure shown in the sale deed. It cannot be on Rs.120 as
wrongly taken by the High Court. The High Court also erred in
considering only three years increase whereas in fact there is four
years difference between the respondent’s sale deed and the
acquisition proceedings. Thus taking an increase of 60% over the
price of Rs.15.40 per sq. yard the value comes to Rs.24.64 per sq.
yard. We accordingly set aside the order of the Reference Court and
the High Court and fix value at the rate of Rs.24.64 per sq. yard. The
respondent will also to be entitled to solatium and other statutory
benefits under the Land Acquisition Act, 1894.
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The Appeal stands disposed of accordingly. There will be no
order as to cost.