Mohan Lal Goela vs Union Of India
1987 Latest Caselaw 255 Del

JUDGMENT

S.S. Chadba, J.

(1) This batch of Regular First Appeals seek the enhancement of the compinsation as determined by various Courts of Additional District Judges on references under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act') relating to the acquisition of land in village Rajpur Chhawni.

(2) The Delhi Administration by notification dated November 13, 1959, issued under Section 4 of the Act, notified land including the land in the revenue estate of Rajpur Chhawni acquisition for a public purpose, namely, for the Planned development of Delhi. Areas were being acquired out of this notification from time to time as and when the necessity arose after the publication of declaration under Section 6 of the Act. A declaration under Section 6 was made by publication of a notification dated October 26, 1961. Most of the cases in this batch are covered by Award No. 1290 dated March 14, 1962. R.F.A 197 of 1978 arises out of the Award No 2005 though the date of Section 4 notification is the same but the declaration under Section 6 was made on May 29, 1967. R.F.A. 264 of 1968, 317 of 1968 and 90 of 1969 relate to Award No. 1291 and R.F.A. 3 of 1970 relate to Award No. 1426. The Land Acquisition Collector has offered the compensation for the land under garden at the rate of Rs. 4000.00 per bigha and the other land at Rs. 3500.00 per bigha. On various references the learned Additional District Judges have enhanced the compensation by Rs 1500.00 per bigha to Rs. 2500.00 per bigha in different cases.

(3) The Land Acquisition Collector, while determining the market value of the land, expressed that the land under acquisition consist mostly of the gardens situated between G.T. Road, Prem Bari Road and the Mall Road. Some area of the adjoining village Malikpur Chhawni was also acquired by the same declaration under Section 6 of the Act and was included in the triangle mentioned in the Award. It was expressed as having the same potentiality and situation. The area of the acquired land is situated in front of the Model Town colony and the Police Lines. It is about half a mile away from Rana Pratap Bagh Colony and about one mile from Roop Nagar and Kamla Nagar. The land has, therefore, got very high prices because it has got potential value for building purposes. After so expressing the Land Acquisition Collector awarded Rs. 4000.00 per bigha for the gardens including the price of the trees and Rs. 3500.00 per bigha for the land other than the gardens. It is thus clear from the Award that the acquired land has got a great potentiality as a building site.

(4) The claimants had placed on record before the Additional District Judge in the batch of Lac cases 599/68 to 603/68 out of which these appeals have arisen, different sale deeds relating to plots of land in Model Town and Rana Pratap Bagh. Six sale deeds of Model Town were produced and 14 sale deeds of Rana Pratap Bagh were produced in these references. The sale deed dated October 5, 1959 for plot No. D-14/15, Model Town was for a consideration of Rs. 8,680.00 relating to an area of 280 square yards, thus sold at the rate of Rs.31.00 per square yard. An earlier sale deed dated September 15, 1959 relating to plot No. 3/F-2, Model Town was for a sale consideration of Rs. 8,262.00 for an area of 273.13 square yards and the rate thus was at Rs. 30.25 per square yard. In an earlier sale deed of September 9, 1958 relating to property No. 13-D/14. Model Town the rate worked out was Rs. 30.36. The price for the plots in Model Town near about the date of notification under Section-4 of the Act was thus considered at Rs. 31.00 per square yard. The sale deed dated August 12, 1959 relating to property No. A-3/5, Rana Pratap Bagh was for a consideration of Rs. 7000.00 and the rate per square yard work out at Rs. 35.00 . The sale deed dated October 3, 1959 relating to property No. A13/5, Rana Pra,tap Bagh wherein the rate also comes to Rs. 35.00 per square yard. The price fetched by plots in Rana Pratap Bagh area about the notification under Section 4 was assessed at Rs. 35.00 per square yard.

(5) The method of valuation on the basis of the sale deeds in a developed colony has been approved by Courts, In M/s. Dlf Housing & Construction P. Ltd., F. Block Connaught Place, New Delhi v. Union of India, and in R.F.A. 91/61 decided on April 29, 1964 by the Circuit Bench of the Punjab High Court in Delhi. We can adopt the method for determining the market value of undeveloped plot on the basis of prices of plots in a developed colony situated nearby. It is derived by deducing from the value fetched by the plots in the year 1959, development charges, price of areas lost on account of making roads, parks and other common utility. By this method the value of the land in dispute would come to about Rs. 15,00 .00 per bigha.

(6) In land Acquisition Case No. 111/69 decided by Mr.M.R. Sikka, Additional District Judge, Delhi on August 13, 1969 various transactions of developed plots in Model Town have also been considered. In that case, the sale deeds for the year 1959 related to shop plots sold between Rs. 50.00 per square yard and Rs. 56.00 per square yard. On March 26, 1960 there were three transactions relating to plots for residential purposes wherein the rate is Rs. 42.00 per square yard. In that case, the reference was relating to the land in Malikpur Chhawni. The learned District Judge concluded that the price of developed residential plots in Model Town in ihe year 1959 was Rs. 30.00 per square yard and commercial plots @ Rs. 50.00 per square yard. He took the average of the rates @ Rs. 40.00 per square yard and made that the basis of calculation for awarding compensation. He then noticed the development charges, ratio of the pottable area to the gross area etc. and valued the land by adopting the method for determining the market value of undeveloped land on the basis of prices of plots in a developed colony situated nearly. In Lac No. 111 of 1969 the sale deeds relating to commercial plots and those relating to the residential plots were considered. Extraordinary transactions were excluded from the consideration of the average price of the land. The market value of the land in dispute in that case was thus determined at the rate of Rs. 18.000.00 per bigha. It is a well considered judgment by discussing all the material available on the record to fix the market value.

(7) In L.A.C. Case No. 744 of 1965 decided by Mr. Jagdish Chandra (the then Additional District Judge) on April 14, 1976 the transactions of sale of developed plots in Model Town, as produced in that case, were considered. The Judgment of L.A.C. No. Ill of 1969 was also noticed. The average price of the developed plot was taken at the rate of Rs. 35.00 per square yard and on that basis the market value was determined at the rate of Rs. 26,000.00 per bigha. The land of L.AC. No. Ill of 1969 and L.A.C. No. 744 of 1965 was acquired under same notification dated November 13, 1959 under Section 4 of the Act and related to village Malikpur Chhawni.

(8) We may also notice a sale deed dated July 9,1959 relating to an area 5 bighas 3 biswas in Sadora Kalan which fetched the price of Rs. 93,000.00 . The land, subject matter of the sale deed dated July 9, 1959 was near to Rana Pratap Bagh. The transaction of the sale deed dated July 9, 1959 of an area of 5 bighas-3 biswas at the rate of Rs. 18.00 per square yard is a clear indicative of the prevalent market price in that area. The land of sale deed dated July 9, 1959 was situated near Rana Pratap Bagh but a light advantage to the nearness to Rana Pratap Bagh is offset by the rising prices in the period of four months that had elapsed between the sale deed of July 9, 1959 and the notification dated November 13. 1959 under Section 4. The compensation has lo be determined by reference to the price which a willing vendor might reasonaable expect to obtain from a willing purchaser. This sale deed is a material document.

(9) We are fully concious that in determining the market value of the acquired land there is a lot of guess work and conjectures. The valuation of the land depends largely on evaluation of many imponderables. The land in this case has a great potentiality as a building site, but it cannot be said that it is a commercial site, being away from the main Mall Road or G.T. Road. It had near contiguity to an expanding residential complex of Model Town on one side and Rana Pratap Bagh on the other side. The safe guide to fix a fair and just compensation of the acquired land would be to adopt an average of the hypothetical market value of the undeveloped land on the basis that it would be sold as house site. On that basis the price should Rs. 18, 000.00 pei bigha which is also the price of the aforesaid sale deed.

(10) We have considered the question whether the land which is abutting on some road should be given a slightly enhanced compensation. It may have a slight edge over others. We do not however, find any justification for the same. Those lands are not situated on the main road of the city and therefore not suitable for a commercial building site. Considering from the point of view of an intending purchaser wanting to have a residential plot, he may not prefer the main road because of the traffic noise, or other hazards of living on the main road and he may prefer to have his house at a distance from the main road. There are advantages and disadvantages of the main road and the price offered by him would almost be the same. There is no material on the record as to the special adaptability of the land on the road or for grant of a higher value to the lands in front than to those in the rear.

(11) In this R.F.A. No. 26 of 1969 we grant compensation @ Rs. 18, 000.00 per bigha as against Rs. 20, 000.00 per bigha as claimed. Whatever has been received earlier will be deducted.

(12) In addition to the market value calculated at the rate as mentioned above, the appellant will be entitled to solarium at the rate of 15% and interest at the rate 6% per annum from the date of taking over the possession till the date of deposit of the enhanced amount of compensation. So far as the entitlement of the appellant to the amount in terms of Section 23(1A) at the rate of l2% solarium at the rate of 30% on the market value under the Amendment Act 68 of 1984 and interest at the rate of 9% per annum for a period of one year from the taking over of possession and thereafter 15% on the enhanced compensation till payment is concerned, we are informed that these questions have been referred to a Larger Bench of the Supreme Court and the judgment has been reserved. If and when the judgment is delivered in the matter and if the appellant is found to be entitled to the increased amount, solarium, interest or additional amount, he will be entitled to receive the same from the Land Acquisition Collector in accordance with law. The appellant is also awarded the proportionate the costs of the appeal.