{"id":112910,"date":"1995-11-23T00:00:00","date_gmt":"1995-11-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/smt-shakuntalabai-ors-vs-state-of-maharashtra-on-23-november-1995"},"modified":"2016-03-04T01:38:38","modified_gmt":"2016-03-03T20:08:38","slug":"smt-shakuntalabai-ors-vs-state-of-maharashtra-on-23-november-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/smt-shakuntalabai-ors-vs-state-of-maharashtra-on-23-november-1995","title":{"rendered":"Smt. Shakuntalabai &amp; Ors vs State Of Maharashtra on 23 November, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Smt. Shakuntalabai &amp; Ors vs State Of Maharashtra on 23 November, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 SCC  (2) 152, \t  JT 1995 (8)\t501<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nSMT. SHAKUNTALABAI &amp; ORS.\n\n\tVs.\n\nRESPONDENT:\nSTATE OF MAHARASHTRA\n\nDATE OF JUDGMENT23\/11\/1995\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nHANSARIA B.L. (J)\n\nCITATION:\n 1996 SCC  (2) 152\t  JT 1995 (8)\t501\n 1995 SCALE  (6)693\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t O R D E R<br \/>\n     Notification under Section 4(1) of the Land Acquisition<br \/>\nAct, 1894  (for short, `the Act&#8217;), acquiring an extent of 20<br \/>\nacres of  land in  Survey No.24\/2 situated in Akola town for<br \/>\nconstruction of\t the houses  to weaker\tsections and  middle<br \/>\nincome group  people, was  published in the State Gazette on<br \/>\nAugust 11,  1965. The  Land Acquisition Officer in his award<br \/>\ndated March  26, 1971  determined the  market value  of\t the<br \/>\nfront portion  of land\tadmeasuring 4  acres 18\t gunthas  at<br \/>\nRs.5,500\/- per\tacre and  for the  rest of  15 acres  and 32<br \/>\ngunthas at  4,500\/- per\t acres. Dissatisfied  therewith, the<br \/>\nappellant sought  reference under  Section 18 of the Act and<br \/>\nthe Senior  Civil  Judge  in  his  award  and  decree  dated<br \/>\nSeptember 26,  1972 enhanced  the compensation in respect of<br \/>\nthe lands in the front portion at Rs.1.25 per sq. ft. and to<br \/>\nthe rest  of the land at Rs.1\/- per sq. ft. He also deducted<br \/>\nRs.3,000\/- per acre towards development charges and 30% land<br \/>\nwas left over for roads etc. On appeal by the State and also<br \/>\non cross  appeal by  the appellant,  by judgment  and decree<br \/>\ndated July  28, 1980  the Division  Bench of the Bombay High<br \/>\nCourt set  aside the award and decree of the Reference Court<br \/>\nand confirmed  that of\tthe Land  Acquisition Officer.\tThus<br \/>\nthis appeal by special leave.\n<\/p>\n<p>     It is  true, as  noted by\tthe Reference Court and also<br \/>\naccepted by the High Court, that the lands are situated in a<br \/>\ndeveloping area\t surrounded by\troads on three sides and the<br \/>\nlands had  potential  value  for  development  for  building<br \/>\npurposes.  Shri\t  Mohta,  learned  senior  counsel  for\t the<br \/>\nappellant, contended  that the High Court totally omitted to<br \/>\nconsider Exh.38,  a sale deed dated May 14, 1964, in respect<br \/>\nof lands of an extent of 5392 sq. ft. for a consideration of<br \/>\nRs.4,000\/- as  broken by  PW-6, the  son of  the vendee\t and<br \/>\nEx.44 dated  February 8,  1964 of  an extent of 6950 sq. ft.<br \/>\nfor consideration of Rs.5,000\/- as spoken by PW-8, the clerk<br \/>\nof the\tYendee who  was formerly an advocate and also was an<br \/>\nex-M.P. These  two documents  having been executed 18 months<br \/>\npreceding the  date of\tthe acquisition\t and  the  Reference<br \/>\nCourt having  accepted them  to be  reflective of having had<br \/>\nthe  same  potentialities,  since  the\tlands  are  situated<br \/>\nadjacent  to   the  acquired   land,  they  would  establish<br \/>\ncomparable  value.   The  High\t Court\t committed   obvious<br \/>\nillegality  in\t not  considering  this\t material  evidence.<br \/>\nTherefore, the\tjudgment and  decree of\t the High  Court  is<br \/>\nvitiated by error of law.\n<\/p>\n<p>     Though, initially,\t we  were  inclined  to\t accept\t the<br \/>\ncontention of  Shri Mohta, on perusal of evidence on record,<br \/>\nwe find\t it difficult  to give acceptance to the contention.<br \/>\nIt is an admitted fact that the claimant as PW-9 admitted in<br \/>\nthe cross-examination that in the year 1957 he purchased the<br \/>\nvery same  entire 20 acres of land for Rs.10,000\/-. In other<br \/>\nwords, he  estimated the  value of  the same  land  in\t1957<br \/>\ntaking all  potentiality at  Rs.10,000\/-. He  also stated in<br \/>\nthe cross-examination that the market value of the lands had<br \/>\nincreased ten  times from  1957 to  1965.  In  other  words,<br \/>\naccording to  his estimate the acquired land commands market<br \/>\nvalue in 1965 for a total consideration of around Rs.1 lakh.<br \/>\nThe Land  Acquisition Officer  considered the  evidence\t and<br \/>\nultimately determined  the market  value at  Rs.5,500\/-\t and<br \/>\nRs.4,500\/- to the different portions of the land. On belting<br \/>\nby average  it worked  out at  a total consideration of Rs.1<br \/>\nlakh.\n<\/p>\n<p>     The question,  therefore, is whether the High Court has<br \/>\ncommitted any manifest error of law or had applied any wrong<br \/>\nprinciple of law in determining the compensation and whether<br \/>\nits  failure   to  consider  Ex.38  and\t 44  does  make\t any<br \/>\ndifference. Having given our consideration to the contention<br \/>\nof Shri\t Mohta,\t we  think  that  the  High  Court  had\t not<br \/>\ncommitted any  manifest error of law or omitted to apply any<br \/>\ncorrect principle  of law.  It is  seen\t that  if  there  is<br \/>\nevidence or  admission on  behalf of the claimants as to the<br \/>\nmarket value commanded by the acquired land itself, the need<br \/>\nto travel  beyond the  boundary\t of  the  acquired  land  is<br \/>\nobviated. The  head of\ttake into consideration the value of<br \/>\nthe lands  adjacent to\tthe acquired  land or near about the<br \/>\narea which  possessed same  potentiality  to  work  out\t the<br \/>\nprices fetched\ttherein for determination of market value of<br \/>\nthe acquired land would arise only when there is no evidence<br \/>\nof the\tvalue of the acquired land. In a case where evidence<br \/>\nof the\tvalue of  the acquired\tland itself  is available on<br \/>\nrecord, it is unnecessary to travel beyond that evidence and<br \/>\nconsider the  market value prevailing in the adjacent lands.<br \/>\nAs  stated  earlier,  though  Ex.38  and  44  might  command<br \/>\ndifferent market value to the land situated in approved lay-<br \/>\nouts, since  the appellant  himself had\t purchased the self-<br \/>\nsame acquired  lands in\t 1957 at Rs. 10,000\/- for the entire<br \/>\n20 acres  of land,  the High  Court was right in its view to<br \/>\nconsider  the\tvery  same   evidence\tto   determine\t the<br \/>\ncompensation to\t the acquired land. On the assessment of the<br \/>\nincrease in  the value\tby 10  times,  the  High  Court\t had<br \/>\naccepted that  assessment of  the appellant  himself as PW-9<br \/>\nand upheld the award of the Land Acquisition Collector since<br \/>\nit reflects  the same  price as\t granted in  the award under<br \/>\nSection 11.\n<\/p>\n<p>     It\t is   seen  that   the\tReference  Court  blissfully<br \/>\noverlooked the admission of the owner on the surmise that it<br \/>\nis an  estimate made by the claimant and the evidence of the<br \/>\nsale deeds  under ex.38\t and 44\t being prevailing prices, it<br \/>\nacted thereon  and determined the compensation. The approach<br \/>\nof the\tReference Court\t is clearly  illegal and that of the<br \/>\nHigh Court is quite correct and it was the only way in which<br \/>\nthe market  value could\t be determined\ton the\tface of\t the<br \/>\nevidence on  record. The  Reference Court committed manifest<br \/>\nerror in  determining the  compensation on  the basis of sq.<br \/>\nft. When lands of an extent of 20 acres are offered for sale<br \/>\nin an  open market,  no willing\t and prudent purchaser would<br \/>\ncome forward to purchase that vast extent of land on sq. ft.<br \/>\nbasis. Therefore,  the Reference  Court has  to consider the<br \/>\nvaluation sitting  on the  arm chair  of a  willing  prudent<br \/>\nhypothetical vendee  and to put a question to itself whether<br \/>\nin given  circumstances, he would agree to purchase the land<br \/>\non sq.\tft. basis.  No feats  of imagination is necessary to<br \/>\nreach the  conclusion. The  answer  is\tobviously  no.\tThis<br \/>\naspect of  the matter  was totally  ignored by the Reference<br \/>\nCourt and  mechanically\t accepted  the\ttwo  sale  deeds  to<br \/>\nenhance the  compensation at  a value  of nearly Rs.35,000\/-<br \/>\nper acre.  In State  of M.P.  vs.  Santabai  &amp;\tOrs.,  (C.A.<br \/>\nNo.2844\/34)  and   Salgoankar  vs.   Union  of\tIndia  (C.A.<br \/>\nNo.3800\/89) decided  on 11.1.1990),  this Court had accepted<br \/>\nthe principle  that when the owner himself has purchased the<br \/>\nland under  acquisition, the  consideration mentioned in the<br \/>\nsale deed  would form  the basis  to  determine\t the  market<br \/>\nvalue. Though  the High\t Court has  relied on the sale deeds<br \/>\nunder Ex.65  and 66 relating to the lands in Nityanand Nagar<br \/>\nColony, it  is also  necessary to go into that aspect of the<br \/>\nmatter in the view we have stated above.\n<\/p>\n<p>     Considered from  this perspective,\t we think that it is<br \/>\nnot a fit case for our interference under Article 136 of the<br \/>\nConstitution. In  view of  the fact  that the  appellant has<br \/>\nwithdrawn the  amount deposited pursuant to the award of the<br \/>\nReference Court, since the award of the Collector now stands<br \/>\nconfirmed, respondent  No.2 is\tentitled to recover the same<br \/>\nfrom the  appellant. The appellant is given six months&#8217; time<br \/>\nfor depositing\tthe same  with\tthe  same  interest  as\t was<br \/>\nawarded by the Reference Court.\n<\/p>\n<p>     The  appeal   is  accordingly  dismissed  but,  in\t the<br \/>\ncircumstances, without cost.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Smt. Shakuntalabai &amp; Ors vs State Of Maharashtra on 23 November, 1995 Equivalent citations: 1996 SCC (2) 152, JT 1995 (8) 501 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: SMT. SHAKUNTALABAI &amp; ORS. Vs. RESPONDENT: STATE OF MAHARASHTRA DATE OF JUDGMENT23\/11\/1995 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. HANSARIA B.L. (J) CITATION: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-112910","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Smt. 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