Land Acquisition:
Deduction towards developmental charge – While determining market value of acquired land – For the purpose of granting compensation – What should be rate of deduction – Held: While determining true market value of large chunk of undeveloped acquired land, it is just and reasonable to make appropriate deduction towards expenses for development of acquired land – Percentage of deduction varies from 10% to 86% – Such deduction should be made keeping in mind nature of land, area under acquisition, whether the land is developed or not and if so to what extent, purpose of acquisition etc.– Courts can apply reasonable amount of guesswork to balance the equities in order to fix a just and fair market value in terms of parameters specified under s. 23 of Land Acquisition Act – In the facts of the present case Reference Court was justified in making deduction of 50% towards developmental charges – High Court did not assign any good reason in making such deduction @ 25% – Land Acquisition Act, 1894 – s. 23.
Allowing the appeals, the Court
HELD: 1. While determining the true market value of the acquired land especially when the acquired land is a large chunk of undeveloped land, it is just and reasonable to make appropriate deduction towards expenses for development of acquired land. At what percentage the deduction should be made varies from 10% to 86% and, therefore, the deduction should be made keeping in mind the nature of the land, area under acquisition, whether the land is developed or not and, if so, to what extent, the purpose of acquisition, etc. While determining the market value of the large chunk of land, the value of smaller pieces of land can be taken into consideration after making proper deduction in the value of lands especially when sale deeds of larger parcel of land are not available. The Court should also take into consideration the potentiality of the acquired land apart from other relevant considerations. The Courts can always apply reasonable amount of guesswork to balance the equities in order to fix a just and fair market value in terms of parameters specified under Section 23 of the Act. [Para 22] [1125-G, H; 1126-A-C] Trishala Jain & Anr. v. State of Uttaranchal & Anr. (2011) 6 SCC 47 : [2011] 8 SCR 520 ; Vithal Rao & Anr. v. Special Land Acquisition Officer (2017) 8 SCC
558 : [2017] 6 SCR 335 – relied on.
Chimanlal Hargovinddas v. Special Land Acquisition Officer, Poona & Anr. (1988) 3 SCC 751 : [1988] 1 Suppl. SCR 531 ; Union of India v. Raj Kumar Baghal Singh (Dead) Through Legal Representatives & Ors. (2014) 10 SCC 422 : [2014] 7 SCR 709 – referred to.
2. It is evident from the facts of the present case that firstly, the land acquired in question is a large chunk of land (101 acres approx.); Secondly, it is not fully developed; Thirdly, the respondents (landowners) have not filed any exemplar sale deed relating to large pieces of land sold in acres to prove the market value of the acquired land; Fourthly, exemplar relied on by the respondents, especially Ex.P-18 pertains to very small pieces of land (19 guntas); Fifthly, the three distinguishing features noticed in the land in sale deed (Ex.P-18) are not present in the acquired land. It was for the aforementioned reasons that the Reference Court was justified in making deduction of 50% towards developmental charges from the market value. The High Court, did not assign any good reason as to why and on what basis, it considered proper to make deduction towards developmental charges at the rate of 25% in place of 50%. [Para 23, 24] [1126-D-F]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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