The State of Punjab vs Surja Ram and others

Gokal Chand Mital, J.—The State of Punjab, vide notification published on 2.9.1982, u/s 4 of the Land Acquisition Act, 1894 (hereinafter referred to as ''the Act'') acquired 90 Kanals 17 marlas of the land near Rajpura town, District Patiala for setting up a Sutlej Yamuna Link Canal colony. The Land Acquisition Collector vide award dated 23.2.1983 allowed market price at the rate of Rs. 50/- per Sq. yard. Feeling dissatisfied, the claimants sought reference u/s 18 of the Act, all of which came up for consideration before Additional District Judge, Patiala. On the contest of the parties, the following common issues were framed after clubing the references.

What was the market value of the acquired land at the time of its acquisition ?

Whether the Land Reference No. 270 of 1983 titled State of Punjab v. Collector (Land Acquisition) and others has not been signed, verified and filed by a duly authorised person alleged in para No. 15 of the Additional objections?

Whether the amount of compensation awarded by the Collector is excessive and is liable to be decreased as alleged in the claim application No. 271 of 1983 titled State of Punjab v. Land Acquisition Collector and others ?

Relief

On the evidence led, the Additional District Judge Patiala vide award dated 31.8.1985 allowed market price at the following rates:

For three killas of land abutting the : Rs. 120/-per Sq. yard by-pass

Rest of the land: Rs. 100/-per Sq. yard

Against the aforesaid award, the State has filed Regular First Appeals Nos. 1767 to 1773 of 1985 for restoration of the award of the Collector whereas the claimants have filed Regular First Appeals Nos. 2001 to 2007 to claim further enhancement. Since they arise out of the same acquisition proceedings and common award of the Court below, they are being disposed of by a common judgment.

In order to determine the market price, the location and situation of the acquired land deserve to be kept in view. The Claimants have produced plan Exhibit A 7. A look at the plan shows that the acquired land is on the by-pass leading to Ambala and the acquired land abuts on that by-pass. Chandigarh-Rajpura-Patiala road crosses the aforesaid by-pass at a junction which is far away from the acquired land. The town of Rajpura is across the Railway Level crossing. The Railway crossing is also shown in the plan.

It is the case of the claimants that although the acquired land was being used for agricultural purposes at the time of acquisition, it had acquired the potential for urban purposes, namely, commercial, industrial and residential. To show potential of the acquired land it was pointed out by their witnesses that a Teachers Colony had sprung up on the back of the acquired land where Smt. Nasib Kaur had sold a number of plots. The Focal point urban estate and the residential colonies were virtually at stone''s thrown from the acquired land. A petrol pump and Eagle Hotel were on the same by-pass at the distance of hardly one killa from the acquired land In this behalf, the following finding was recorded by the Court below:-

Exhibit A.7 gives a graphic version of the case set by the claimants in their evidence And as already observed three killas of the acquired land touch the main by-pass while there is more than 50 wide metalled road. The petrol pump and Eagle Hotel are on the same bypass at a distance of hardly one killa from the acquired land. A Teacher''s Colony has sprung up on the back side of the acquired land where Smt Nasib Kaur has sold number of plots No doubt, it appears that the acquired land was being used for agricultural purpose but the same had the potentiality for being used for industrial, commercial and residential purposes. Although the various sale deeds which have been relied upon by the claimants relate to small pieces of land but the same cannot be completely ruled out of consideration in the light of the observations made in State of Madhya Pradesh v. Nagar Palika, A. I. R. 1981 MP 63 (DB). The Focal point, the urban estate and the residential colonies are virtually at the stone''s throw from the acquired land and I am of the considered opinion that keeping in view all the above referred circumstances Rs 120/- per Sq. yard would be the market value of 3 killas of land that about the metalled by pass while the rate of Rs 100/- per Sq. yard for the remaining land situated behind those three killas would be the market value of the acquired land at the time of the acquisition.

Accepting the aforesaid finding, I would proceed to consider the market value on the basis that the acquired land has potential for being used for commercial, industrial and residential purposes. The claimants have produced the following sale instances:

Exhibit of the sale deed

Date of Sale

Area sold in marlas

Sale Price

Price per Sq. yard

A-1

23.12.81

4

21500/-

159 00

A-2

10.7.81

4

2500. /-

278-00

A-3

14.10.81

5

19000/-

127-00

(Very closed to acquired land on the other side of the by-pass)

A-4

24.12.81

4

21500/-

159.00

A-5

25.6.82

3

15000/-

166 00

A-6

21.6.82

3

10000/-

111 00

(Part of the acquired land)

Tracing the aforesaid instances on map Exhibit A-7, one finds that the sale instance Exhibit A-6 is part of the acquired land and sale instance Exhibit A-3 is just on the other side of the by-pass, abutting on the by-pass and is close to the acquired land as compared to rest of the sale instances. The other four instances are on Chandigarh-Rajpura-Paliala road. Instances Exhibits A.1 and A-4 are close to the Railway level crossing whereas the instances Exhibits A-2 and A-5 are close to the junction where Chandgarh Rajpura-Patiala road crosses the by-pass. It is worth noticing that in this part of the country, wherever there arc crossings on the highway, the busses stop for a while to take and drop the passengers, who may like to go to the other directions and to cater for those passengers some eating shops et cetera come up From the junction of two roads to the Railway Level crossing, numerous eating shops et cetera have come up In this manner, small frontage abutting such roads or crossing assumes peculiar importance for setting up shops and the land lying on back continues to be used for agricultural purpose till the colonies for residence or an industry is set up. Moreover the, undisputed position is that Chandigarh Rajpura-Patiala road is the main road which passes through the town of Rajpura and has special importance and the land abutting on both sides of the road has higher value as compared to the land abutting on both sides of the bypass on which the acquired land abuts. It is depicted from the sale instances produced by the claimants that Exhibits A. 1, A. 2, A. 4 and A. 5 are the sale instances in regard to the land abutting on Chandigarh Rajpura-Patiala road and the sale price of these instances with regard to small plots ranging from 3 marlas to 4.1/2 marlas, between July, 1981 and June, 1982 has been between Rs. 159/- to Rs. 278/- per Sq. yard, whereas a part of the acquired land depicted in sale instances Exhibit A-6 in June, 1982 was sold at the rate of Rs. 111/- per Sq. yard (according to the calculation of the Court below, it is Rs. 100/-per Sq. yard) and vide sale instance Exhibit A.3, in October, 1981, the land abutting on other side of the by-pass was of the value of Rs. 127/- per Sq. yard. Besides that, the Supreme Court has held that the instances of part of the acquired land are the best. It is, therefore, clear that the value on the two roads is different and hence, we have to confine to the instances A 3 and A.6.

Vide sale instance Exhibit A-6, two months ten days before the acquisition, a small plot measuring 3 marlas close to the by-pass fetched Rs. 111/- per Sq. yard. Therefore, this could reasonably be fixed as the market price of the land abutting the by-pass. Moreover, this instance is part of the acquired land. It was argued that the land covered by the sale instance Exhibit A. 6 was not on the by pass but was on the side road although close to the by-pass and therefore, on the by-pass the value would be slightly more. In this state of affairs one may refer to Exhibit A.3, which is regarding sale of a small plot of 5 marlas in October, 1981 abutting on the other side of the by-pass and close to the acquired land. The price fetched by this piece of land is at the rate of Rs. 127/- per Sq. yard. I am of the considered view that at best we can draw average of the sale instances Exhibits A-3 and A-6 and that should reasonably determine the market price in regard to the land abutting on the by-pass. The average comes to Rs. 120/- per Sq. yard. Accordingly, I fix the market price of the land abutting on the By-pass at the rate of Rs 120/- per Sq. yard.

The next point for consideration would be for how much depth on the by-pass, aforesaid, rate has to be allowed. The largest area out of the six sale instances produced by the claimants is of 5 marlas vide Exhibit A-3. The next is of 4-1/2 marlas vide Exhibits A.1 and A. 4 and the remaining three instances are of 3 marlas. The area of 5 marlas would be 150 Sq. yards, say a plot of 10 yards x 15 yards. The area of 3 marlas would be 90 Sq. yards, say a plot of 10 yards x 9 yards. In this manner, I consider that the claimants are entitled upto the depth of 10 yards from the by-pass at the rate of Rs. 120/- per Sq. yard and I order accordingly.

It has to be seen as to what could be the value of remaining land situate in the rear of 10 yards belt. The land situated on the road is generally for commercial use whereas the rear land is put to use for residential purpose and it cannot be disputed that the land for commercial value is of higher value as compared to the land for residential purpose Moreover, with regard to the land abutting on the road, full frontage can be used but the land on the rear can be used in small plots leaving open space for roads and lanes which consumes 25 per cent to 33 per cent of the area. In this manner the value of the land in the rear will further have to be reduced by 25 per cent to 33 per cent See: Smt. Kausalya Devi Bogra and Others Vs. Land Acquisition Officer, Aurangabad and Another, .

The claimants'' own case is that the residential and industrial colonies have come up near the acquired land and that land of Smt. Nasib Kaur''s is just close to the acquired land The claimants have not brought on record any instance of sale made in those residential or industrial colonies and they have remained content merely by producing two sale instances on the by-pass and four sale instances abutting on Chandigarh-Rajpura Patiala road, two of which are close to the junction of two roads, and the other two are close to Railway Level crossing. Hence, there is no data to fix the value of the land in the rear. On this process of reasoning for the rear land I could maintain the award of the Land Acquisition Collector and fix Rs. 50/- per Sq. yard. All the same on the parity of facts in Mirza Nausherwan Khan and Another Vs. The Collector (Land Acquisition), Hyderabad, , where acquisition was made in the town of Hyderabad, for the land on the road, Rs. 20/- per Sq. yard were awarded and for the rear Rs. 10/- per Sq. yard were awarded, I fix the market price for the rear land at the rate of Rs. 60/-sq. yard Since the land-owners have been deprived of their land by compulsory acquisition, I prefer to err in favour of the claimants and allow them Rs. 60/- per Sq. yard for the rear land. The award of the Court below granting Rs. 100/- per Sq. yard is accordingly modified and reduced to Rs. 60/- per Sq. yard.

Since the sale instance Exhibit A. 6 is in regard to a part of the land, in case that piece of land comes within wholly or partially in the belt of 10 yards from the road and the price when worked out according to the judgment is equal to the price paid or more, the claimants would be paid accordingly. In case the price when worked out according to this judgment is less than the price paid, in that event the claimants would be paid the price which they had paid at the time of purchase so that they get at least what they have actually paid.

For the reasons recorded above, while the claimants appeals are dismissed, the State appeals are allowed to the extent that for the land beyond 10 yards from the by-pass they would be entitled to market price at the rate of Rs. 60/- per Sq. yard. As regards the claimants covered by Exhibit A.6, the compensation would be determined and paid as indicated above. On the market price the claimants would be entitled to solatium at the rate of 30 per cent. On the market price plus solatium, the claimants would be entitled to interest for the first year from the date of taking of possession at the rate of 9 per cent per annum and thereafter at the rate of 15 per cent per annum. The claimants would also be entitled to an additional amount at the rate of 12 per cent per annum on the market price u/s 23-A of the Act from the date of publication of notification u/s 4 of the Act till the date of taking of possession or award of the Land Acquisition Collector whichever is earlier. The parties are left to bear their own costs.