Ajaib Singh (deceased) represented by his LRs. vs Punjab State and others

V.K. Bali, J. (Oral)

By this common order, I propose to dispose of four connected Regular First Appeals bearing Nos. 914, 915, 1099 and 1100 of 1981. Whereas two appeals have been filed by the claimantlandowners, other two have been filed by the State. The bare minimum facts, that need a necessary mention, have, however, been extracted from RFA No. 1099 of 1981.

Whereas, the claimants in Regular First Appeals 1099 and 1100 of 1981 seek enhancement of compensation from the one that was assessed by learned District Judge vide his order dated 10.4.1981, obviously in Regular First Appeals 914 and 195 of 1981 filed by the State, prayer is for reduction of the said compensation and in consequence thereof to restore the order of compensation passed by the Land Acquisition Collector, vide his award dated 20.2.1980.

Brief facts of the case reveal that land measuring 16 kanals 8 marlas and 11 kanals 5 marlas situated in villages Fateh Nangal and Lehal, respectively, Tehsil and District Gurdaspur, was acquired in pursuance of Punjab Government notification dated 30.11.1977 issued under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as `the Act''). The Land Acquisition Collector vide his award dated 20.2.1980 assessed the market value of the land, subject matter of acquisition, at Rs. 15,000/ per acre. Dissatisfied with the compensation, so assessed by the Land Acquisition Collector, the claimants filed application under Section 18 of the Act seeking reference to the appropriate Court for fixation of proper compensation, as it was obtainable on the date when notification under Section 4 of the Act was issued, i.e., 30.11.1977. The State contested the reference aforesaid giving rise to the following issues that came to be framed by learned trial Court :

"1. Whether the reference is barred by limitation ?

Whether no claim was preferred by the claimant before the Land Acquisition Collector despite notice and if so, whether this reference is not maintainable ?

What was the market price of the land involved as on the date of notification u/s 4 of the Land Acquisition Act ?

To what amount by way of compensation would the applicant be entitled ?

Relief ?

The only question that survives for determination is with regard to issue No. 3 pertaining to market value of the land at the time notification under Section 4 of the Act came into being on 30.11.1977. The parties in their endeavour to show the market value of the land, subject matter of acquisition, led evidence in the shape of sale instances as tabulated below :

See Table

Exhibit

Date of sale

Area sold out

Distancefrom acquired land

Name of estate

Price paid Rs.

Averageprice per acre.

Ex.A.1

10.3.1975

3 kanals 7 marlas

710 karams

Fateh Nangal

Rs. 20000

Rs. 47761/

Ex.A.2

10.3.75

13 kanal

710 karams

do

Rs. 4000

Rs. 49230.70

Ex.A.3

10.8.75

1 kanal 3 marlas

280 karams

do

Rs. 16100

Rs. 112000/

Ex.A.4

9.8.77

1 kanal

Across the road

do

Rs. 9000

Rs. 72000/

Ex.A.5

2.6.77

8 marlas

500 karams

do

Rs. 88000

Rs. 1760000/

Ex.A.6

2.6.77

10 marlas

660 karams

do

Rs. 15000

Rs. 240000/

Ex.A.7

9.8.77

1 kanal

Across the road

do

Rs. 9000

Rs. 72000/

Ex.A.8

14.11.77

16 marlas

790 karams

do

Rs. 9000

Rs. 90000/

Ex.A.9

9.3.78

10 marlas

770 karams

do

Rs. 4200

Rs. 96000/

Ex.A.10

9.3.78

10 marlas

400 karams

do

Rs. 25000

Rs. 400000/

Ex.A.11

28.6.78

10 marlas

80 karams

do

Rs. 7000

Rs. 112000/

Ex.A.12

21.7.78

1 kanal

60 karams

do

Rs. 20000

Rs. 160000/

Ex.A.13

24.7.78

5 marlas

660 karams

do

Rs. 65000

Rs. 280000/

Ex.A.14

4.8.78

51/2 marlas

320 karams

do

Rs. 7000

Rs. 203636.30

Ex.A.15

6.10.78

1 kanal

60 karams

do

Rs. 18000

Rs. 144000/

RESPONDENT''S EVIDENCE

Ex. R.1

9.1.75

5 kanals 16 marlas

660 karams

do

Rs. 5000

Rs. 6890.60

Ex. R.2

29.1.76

4 kanals

760 karams

do

Rs. 6500

Rs. 13000/

Ex. R.3

27.1.76

1 kanal 14 marlas

620 karams

do

Rs. 2000

Rs. 9411.70

Ex. R.4

8.6.76

4 kanals

760 karams

do

Rs. 6500

Rs. 13000/

Learned District Judge, in my view, rightly ignored the sale instances of the State except sale instances, Exs. R1 to R4, on the ground that average price range in all these sale instances works out ranging between Rs. 2000/ to Rs. 6500/ and these sale instances were not even relied upon by the Land Acquisition Collector, meaning thereby, sale instances brought on record by the State were not relevant in determining the market value of the land. Insofar as sale instances brought on record by the claimants are concerned, all sale instances but for sale instances, Exs.A10 to A15, were relevant as they all came into being prior to issuance of notification under Section 4 of the Act. From the sale instances, Exs.A1 to A9, most relevant appear to be Exs. A4 and A7 and I may mention here that even learned District Judge holds likewise. The land had a great potential, inasmuch, as held by learned District Judge and I may mention that there is no challenge to this finding recorded by learned District Judge. Learned District Judge goes on to hold that the acquired land carries a great potential of being converted into urban and industrial plots. It has further been observed that from the site plan, it is clear that the acquired land consists of a rectangle and one of its sides abuts on DhariwalKanhuwan road. Just on the front side of the acquired land, there is a rice sheller. The acquired land abuts on a metaled road joining Dhariwal with Qadian. Dhariwal has swelled into a big town spread over to the neighbouring fields of the village. The extended abadi of the town has surrounded the acquired land. In the vicinity of the acquired land, there are 6/7 shops and two rice shellers. Ahmadabad, a colony of Dhariwal town, adjoins the acquired land. Dhariwal Railway Station is hardly eight killas from the acquired land. Dhariwal Woollen Mill may be ten killas away. Some six killas from the acquired land is situated a Mission Hospital. At a similar distance on the other side is Khalsa High School. The local grain market may be two killas from the acquired land. The road passing along the acquired land has frequent bus service. Main bus stand of Dhariwal, which is on the national high way, joining Amritsar with Pathankot, is just 15/16 killas.

The aforesaid location of the land would demonstrate beyond any shadow of doubt that the land, subject matter of acquisition, had potential of being converted into residential and commercial areas. In fact, this very acquired land is already surrounded by a lot of construction, as held by learned District Judge. In the facts and circumstances, as mentioned above, two sale instances, i.e., Exs. A4 and A7, which, even learned District Judge holds, are most relevant being located just opposite to the acquired land across the road, ought to have been taken into consideration for working out the market value of the land, subject matter of acquisition. By virtue of two sale instances, as noted above, land measuring 1 kanal each has been sold at Rs. 72,000/ per acre. This, in view of this Court, should have been worked out as a proper market value of the land, subject matter of acquisition. It may be mentioned here that the acquired land is also not a vast chunk of land as only two parcels of land, as mentioned above, of 16.8 marlas and 11.5 marlas have been acquired. It is, thus, not a case where a big cut, like 1/3rd or 1/4th, ought to have been applied on account of the fact that sale instances, that are being relied upon, are of very small area as compared to the land that was acquired. Still considering the fact that sale instances, Exs.A4 and A7, are of one kanal, a marginal cut needs to be applied in working out the market value of the land at the time of issuance of notification under Section 4 of the Act. There cannot be any straitjacket formula in applying a cut. It depends upon the facts of each case. In the facts and circumstances of the present case, this Court is of the view that a cut of Rs. 7,000/ per acre would meet the ends of justice in working out correct market value of the land. Thus, applying a cut of Rs. 7,000/ market value of the land would come to Rs. 65,000/ per acre. The claimantappellants are certainly entitled to above mentioned compensation.

In view of the discussion made above, whereas, claimants Regular First Appeals 1099 and 1100 of 1981 are allowed with costs, which means that they are entitled to the Court fee paid by them, modifying the order passed by learned District Judge, by enhancing compensation from Rs. 50,000/ to Rs. 65,000/ per acre, State Appeals bearing Nos. 914 and 915 of 1981, being devoid of merit, are dismissed.