High Court Patna High Court

Lakshmi Devi vs State Of Bihar on 7 October, 2010

Patna High Court
Lakshmi Devi vs State Of Bihar on 7 October, 2010
Author: Mungeshwar Sahoo
                        FIRST APPEAL No. 158 OF 1993


URMILA DEVI                                              .......... Appellant
                                     Versus
THE STATE OF BIHAR                                       ......... Respondents

                                      WITH

                        FIRST APPEAL No. 159 OF 1993


LAKSHMI DEVI                                             .......... Appellant
                                     Versus
THE STATE OF BIHAR                                       ......... Respondents


Both the appeals are directed against the common judgment and award
dated 21.1.1993 passed by Sri J.N.Sharma, the Land Acquisition Judge,
Biharsharif, Nalanda in Land Acquisition Case No. 1 of 1992 and 2 of 1992.


                                    ********

For the Appellant    :          Mr. Rajendra Prasad, Sr. Advocate(in both the
                                First Appeals)
                                Mr. Pramod Kumar, Advocate
                                Mr. Ritesh Kumar, Advocate


For the Respondents :          Ms. G. Nisha, Advocate, A.C. to A.A.G. 7



Dated : 7th day of October, 2010

                                PRESENT

      THE HON'BLE MR. JUSTICE MUNGESHWAR SAHOO

                              JUDGMENT

Mungeshwar Both the First Appeals have been filed by the respective
Sahoo, J
land owners against the common judgment and award dated

21.01.1993 passed by Sri J.N.Sharma, Land Acquisition Judge,

Biharsharif, Nalanda by which the Land Acquisition Case No. 1 of

1992 and 2 of 1992 were disposed of.

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(2) It may be mentioned here that First Appeal No. 158 of

1993, arises out of L.A. Case No. 1 of 1992 and First Appeal No.

159 of 1993, arises out of L.A. Case No. 2 of 1992. The State of

Bihar, respondent acquired the lands of the appellants of both the

First Appeals for the purpose of 33/11 K.V. Sub Station and

construction of staff quarters for the Electricity Department. The

notification under Section 4 of the Land Acquisition Act was

published in Gazette on 16.1.1991. Notification under Section 9

was issued on 09.10.1991. Total land was 1.4 acre, which has

been acquired by the State of Bihar. In First Appeal No. 158 of

1993, arising out of L.A. Case No. 1 of 1992, the land involved is

0.935 acre whereas in First Appeal No. 159 of 1993, arising out of

L.A. Case No. 2 of 1992, the land involved is 0.4225 acre. The

land owners claimed before the Collector for compensation at the

rate of Rs.18,000 to Rs.20,000 per Katha. The Collector awarded

total compensation of Rs.60,888.37 in First Appeal No. 158 of

1993 whereas in First Appeal No. 159 of 1993, the Collector

awarded Rs.27,440.36 including all statutory benefits. The value

of the land was fixed at Rs.1,481.46 per katha.

(3) On being dissatisfied with the award of the Land

Acquisition Officer, the claimants filed application under Section 18

of the L.A. Act which was referred by the Land Acquisition Officer

to the Land Acquisition Judge. The claimants claimed Rs.20,000

per katha for the lands acquired. Before the Land Acquisition

Judge, the claimants adduced oral as well as documentary

evidences. It may be mentioned here that the State of Bihar did

not file any written statement.

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(4) The claim of Urmila Devi who is appellant in First

Appeal No. 158 of 1993 is that the market value of the land in the

vicinity is not less than Rs.7064 to Rs.10,500 per decimal. In the

year 1966, the Circle Officer had assessed the price of the land in

the vicinity at Rs.20,000 per katha and therefore, the market value

of the lands acquired in the year 1991 cannot be less than the said

value. The further case is that the lands acquired are adjacent to

the municipal area and town is extending towards the said land.

Therefore, there is future potentiality of the land. There is

sufficient irrigation facility on the acquired land and the appellant

was earning Rs.16,000 per acre per annum from the agricultural

yield. At the time of taking possession on 16.1.1991, there was

paddy crops on the acquired land which was destroyed. Therefore,

in addition to the value of the land Rs.200 per katha was claimed

for the crops. The claim of Lakshmi Devi who is appellant of First

Apeal No. 159 of 1993 is on the same line.

(5) The appellants adduced oral as well as documentary

evidences in the Court below. After trial, the learned Land

Acquisition Judge in First Appeal No. 158 of 1993 enhanced total

compensation including the statutory benefits to Rs.4,72,000 and

odd in addition to award of the Collector. The rate of the land was

fixed at Rs.11,000 per katha whereas in First Appeal No. 159 of

1993, the total compensation was fixed at Rs.2,14,215.47.

Therefore, the market value of the land which was fixed by the

Collector at Rs.1,481.46 was enhanced to Rs.11,000 per katha.

(6) The claimants filed these First Appeals claiming

enhancement of the compensation on the ground that the Land
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Acquisition Judge should have fixed the market value of the land

acquired at Rs.20,000 per katha and in no case, it should be less

than the said amount.

(7) The learned counsel appearing on behalf of the

appellants submitted that the learned Court below has not properly

assessed the evidence and has wrongly not relied upon the sale

deeds which amply proves the market value of the land acquired to

be Rs.20,000 per katha. The learned counsel further submitted

that admittedly lands acquired are just by the side of main road

i.e. Patna-Ranchi Highway and it is in the developed area and

moreover, the lands were acquired for the purpose of construction

of power-station and for construction of staff’s quarters and

therefore, the compensation should be enhanced.

(8) On the other hand, the learned counsel appearing on

behalf of the State-respondent submitted that the compensation

awarded by the Land Acquisition Judge is adequate, just and

proper and cannot be interfered with in this First Appeal. The

learned counsel further submitted that considering everything i.e.

the nature of the land, for the purpose of which the lands were

acquired and the market value in the vicinity, the learned Land

Acquisition Judge has enhanced the value from Rs.1481 and odd

per katha to Rs.11,000 per katha and therefore, the total

compensation including the statutory benefits have been increased

to Rs.4,72,000 and odd in addition to award of Collector for 94

decimals land in First Appeal No. 158 of 1993 whereas

compensation in First Appeal No. 159 of 1993 where 42 decimals

of land is involved has been enhanced from Rs.27,440 and odd to
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Rs.2,14,215 in addition to award of Collector. On these grounds,

the learned counsel submitted that the First Appeals are liable to

be dismissed with cost.

(9) In view of the submission of the parties, the points

arises for consideration in this appeal is as to “whether the

compensation awarded by the Land Acquisition Judge is just,

proper, adequate or not or “whether the appellants are entitled to

more compensation?”

(10) P.W. 1 is Suresh Prasad who is husband of Urmila

Devi, appellant in First Appeal No. 158 of 1993. He is power of

attorney holder of Urmila Devi. He has stated that 94 decimals of

land has been acquired by the State of Bihar which is just by the

side of Patna-Ranchi road and the said land is fit for construction of

houses and shops. He himself has purchased the said land for

construction of a glass factory prior to the acquisition. There is

police line, petrol pump, hotels etc. in the said area. The award

given by the collector is very low. At the time of taking

possession, the crops worth Rs.6,000-7,000 was destroyed. He

has further stated that he had produced the sale deeds before the

Collector and the witness has proved his application under Section

18. P.W. 3 is Brahamdeo Prasad, who is husband of Lakshmi Devi,

appellant in First Appeal No. 159 of 1993. He has proved the

power of attorney as Exhibit 3. He has stated that 42 ¼ decimals

land have been acquired. The said land is by the side of road and

at a distance of 50 yard by the side of the said land and houses

are there. On one portion of the acquired land, house was there

and a tenant was inducted and thereafter he filed eviction suit
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against him which was decreed. This witness has further stated

that at the time of acquisition of the land, the market value of the

land was Rs.25,000 to Rs.30,000 per katha. P.W. 4 has proved

the sale deeds Exhibit-2 series. P.W. 2 has stated that he has

purchased lands in the vicinity. His sale deed has been marked as

Exhibit-2 and 2/1. P.W. 6, Misri Lal has stated that the lands

acquired are situated near the Ranchi-Patna road and adjacent to

this land, he has purchased the land for construction of house.

The town is expanding to that side. The certified copy of the sale

deed has been marked Exhibit-4.

(11) From perusal of the evidences of the witnesses as

discussed above, it appears that the area is developed area. There

are buildings, hotels, petrol pump, shops and houses in the

locality. Further, the land is situated adjacent to Patna-Ranchi

road and is near to municipality. In my opinion, therefore, it

appears that the learned Court below has rightly found that the

market value of the land fixed by the Land Acquisition Officer is

very low. However, the sale deed, Exhibit-2 series have been

produced by the appellants to show the market value of the land.

Exhibit-2 is dated 5.12.1990 for Rs.4,950 by which 6 Dhurs land

was purchased and likewise, Exhibit 2/1 is dated 7.4.1992 for

Rs.16,000 and the land sold is 16 Dhurs. Exhibit-2/2 is dated

5.10.1990 for Rs.21,000 and the land sold was 14 ½ Dhurs.

Exhibit-2/3 is dated 5.10.1990 for Rs.21,000 and the lands sold

was 14 ½ Dhurs. Likewise, Exhibit 2/4 is dated 22.7.1985 for

Rs.30,000 and the lands sold was 5 ½ decimals. From the above

sale deeds, it appears that very small area was transferred
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through the said sale deeds. As stated above, in the present case,

near about 1.5 acres of land has been acquired. Therefore, it

cannot be said that when the lands acquired was offered for the

sell in open market could have fetched the same value. In the case

of State of U.P. and others vs. Ram Kumari Devi and ors., the

Hon’ble Supreme Court has held that it is common knowledge that

acquisition proposal would be made at an earlier point of time and

finalization of acquisition would take a long time. In the process

on becoming aware of the acquisition, obviously, the sale deeds

are brought into existence to inflate the market value. In the said

decision, the Hon’ble Supreme Court further held that it is the duty

of the Court to assess reasonable compensation and the acid test

which the Court has to adopt is that the Court has to sit in the

armchair of a prudent purchaser, eschew feats of imagination and

consider whether a reasonable prudent purchaser in the open

market would offer the same price which the Court is intending to

fix the market value in respect of the acquired land. Since it is a

compulsory acquisition, it is but the solemn duty of the Court to

assess reasonable compensation so as to allow the same to the

owner of the land whose property has been acquired and also to

avoid needless burden on public exchequer.

(12) From perusal of the impugned judgment, it appears

that the Land Acquisition Judge has noticed that the area is

developed area and the lands are by the side of Ranchi-Patna road

and there are constructions and electricity line in the locality. The

learned Land Acquisition Judge also noticed the sale deeds,

Exhibit-2 series.

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(13) Admittedly, the lands have been acquired for the

purpose of construction of power house and staff’s quarters and

therefore, appropriate deduction for development of the land by

providing enough space for roads, sewage and drains are to be

taken into account. The lands involve in the sale deeds are of very

small area and therefore, the price cannot be equated in the

present case with the lands acquired. In the case of Ahad

brothers vs. State of M.P. and ors reported in 2005, Vol. 1,

Supreme Court Cases 545, the Hon’ble Apex Court held that it

would be just and proper to deduct 30% towards development

charges. In the case of Sharadamma vs. Special Land

Acquisition Officer reported in 2007 AIR SCW 1109, the

Hon’ble Supreme Court taking note of the fact that the acquired

land in that case was surrounded by factories and there was

industrial potentialities and the land acquired was adjoining the

national highway and better locality fixed the compensation at the

rate of Rs.20 per square yard.

(14) In view of the above facts and circumstances,

regard being had to the situation of the land and the prevailing

market value as would be evident from sale deeds, Exhibit-2

series, I find that the learned Court below has rightly fixed the

market value of the lands acquired at Rs.11,000 per katha.

(15) The learned counsel for the appellant submitted that

the learned Court below has awarded Rs.100 per katha for damage

of the crop. It may be mentioned here that for determination of

compensation some guess work is essential. The claimants were

claiming Rs.200 per katha and the learned Court below has
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awarded Rs.100 per katha for damage of the crops. In my

opinion, it is just compensation. Now, the total compensation

awarded by the Land Acquisition Judge is Rs.4,72,715.69 in

addition to the award of the Collector which has already been paid

and likewise, in other First Appeal, the total compensation is

Rs.2,13,001.33 in addition to the award of the Collector of

Rs.27,440.36 already paid to the appellant. In my opinion, this

amount enhanced by the Land Acquisition Judge is just, proper and

is the prevailing market value of the land acquired. I, therefore,

find no reason to interfere with the findings of the learned Court

below.

(16) In the result, I find no merit in both the First

Appeals and accordingly, both the First Appeals are dismissed. In

the facts and circumstances, the parties shall bear their own costs.

Patna High Court                                 (Mungeshwar Sahoo, J.)
Dated 7th October, 2010
N.A.F.R./Saurabh