Allahabad High Court
M.D.A. vs Idres Hussain And Others on 13 October, 2015
Bench: Sudhir Agarwal, Shamsher Bahadur Singh
HIGH COURT OF JUDICATURE AT ALLAHABAD
A.F.R.
Court No. - 34
Case :- FIRST APPEAL No. - 317 of 1991
Appellant :- M.D.A.
Respondent :- Idres Hussain And Others
Counsel for Appellant :- P.K. Singh,Virendra Singh
Counsel for Respondent :- Sirajul Haq,M.S. Haque,T.A. Khan
Hon'ble Sudhir Agarwal,J.
Hon'ble Shamsher Bahadur Singh,J.
1. Heard Sri P.K. Singh, learned counsel for appellant. None appeared on behalf of respondents though the appeal has been called in revised and name of counsels is shown in the cause list. Therefore, we proceed ex parte to decide this appeal.
2. This First Appeal, under Section 54 of Land Acquisition Act, 1894 (hereinafter referred to as 'Act, 1894'), has arisen from award/ judgment and decree dated 20.3.1990, passed by Sri I.B. Singh, IX Additional District Judge, Moradabad in Land Acquisition Reference No. 221 of 1988, determining market value of acquired land at the rate of Rs.325/- per sq. meter.
3. Learned counsel for the appellant raised two issues.
(A) Circle rate could not have been taken a basis for determining market value.
(B) Circle rates were of the period subsequent to the date of notification issued under Section 4(1) of Act 1894, therefore, were not relevant, hence on that basis also market rate could not have been determined and the Court below erred in law in doing so.
4. The factual matrix in brief is as under :
5. In order to acquire certain land of village Barwara Majra, Pargana, Tehsil and District Moradabad at the instance of appellant, a notification under Section 4(1) of Act 1894 was published on 5.4.1984. Notification under Section 6 it was published on 7.3.1987.
6. The Special Land Acquisition Officer (hereinafter referred to as 'SLAO') made its award dated 23rd August 1986 determining market value of acquired land at the rate of Rs.22.44 paise per sq. yard. Dissatisfied therewith, the respondents claimants made application for reference under Section 18 of Act 1894. Pursuant thereto Land Acquisition Reference No. 221 of 1988 was made and has been adjudicated by Court below vide impugned award, determining market value at the rate of Rs.325/- per sq. meter.
7. It is evident from the impugned award that no documentary evidence in the form of any exemplar i.e. sale deed, of relevant period was placed before the Court below for determining market value on the date of notification dated 5.4.1984 issued under Section 4(1) of Act. For the purpose of compensation, the date on which notification under Section 4(1) of Act was issued, is relevant. The Court below however has relied upon Government Order (G.O.) dated 7.3.1987 said to have been issued by Revenue Secretary stating that, while assessing compensation of land acquired the amount of market value should not be fixed lesser than the rate fixed for the purpose of stamp duty. It has also referred to document, paper No.19-Ga, which was circle rate fixed by District Magistrate, Moradabad for the year 1986 - 1988. Therein circle rate of village Barwara Majara for residential purposes was fixed at Rs.200/- to 350/- per sq. meter and for commercial purposes, between Rs.400/- to 700/- per sq. meter. The Court below has held that though no document showing circle rate of 1984 was placed on record but taking judicial cognizance of the fact that prices of land are increasing, it determine market rate at Rs.325/- per sq. meter.
8. The very basis adopted by Court below is untenable in law. The Apex Court has held that for purposes of determining market value of land acquired under Act 1894, circle rates do not lay down relevant material. Circle rates fixed by collector for the purpose of stamp duty are not relevant for determining market value. We are fortified in observing so, in view of the law laid down in U.P. Jal Nigam vs. M/s. Kalra Properties (P) Ltd. and others, 1996 3 (SCC) 124 and Lal Chand vs. Union of India and others (2009) 15 SCC 769 (para 35 and 36). Besides, counsel for the appellant also relied upon the decision in Ranvir Singh and another vs. Union of India (2005) 12 SCC 59, wherein it has been held that notifications issued by the Union of India fixing circle rate are not admissible for determining market value under Section 23 of the Act 1894.
10. We, therefore, have no hesitation in holding that the Court below has completely erred in law, firstly by relying upon certain documents, which were not admissible and relevant material for determining market value and secondly subsequent period notification of circle rate could not have been taken for determining market value of land acquired earlier thereto.
11. There is another aspect. The Court below in determining market value at the rate of Rs.325/- per sq. meter has not given any details as to how it has arrived at the said figure except of referring to certain adjoining developments in the area and location of acquired land, as is evident from the following part of the impugned award .
"Considering the facts that the land is situate at Kashipur Tiraha that there are shops, workshop, residential houses and hotels, around, that three starred hotel is being built in front of the disputed land as stated by the applicant, that the applicant had purchased the disputed land for installing a petrol pump, that the land adjoins the road leading to Rampur Kashipur and Moradabad and the same is situate within 3 to 4 kilo meters from the city and is suitable for business and commercial purpose, I find that the rate of market value of the disputed land in the year 1984 can easily be assessed at the rate of Rs.325/- per sq. meter."
12. The development in neighbouring area may be relevant factor to determine market value of acquired land but how the Court below could arrive at the figure of Rs.325/- per sq. meter is not understandable. From complete reading of award in question, we could not find anything. Such an award cannot be sustained.
13. Accordingly, the impugned award dated 20.3.1990, passed by Sri I.B. Singh, IX Additional District Judge, Moradabad in Land Acquisition Reference No. 221 of 1988 is hereby set aside. Appeal is allowed. Matter is remanded back to the Court below to decide aforesaid Land Acquisition Reference No. 221 of 1988 afresh in accordance with law.
Order Date :- 13.10.2015
S.S.
