{"id":152293,"date":"1995-03-07T00:00:00","date_gmt":"1995-03-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-secretary-karnataka-vs-assistant-commissioner-gadag-on-7-march-1995"},"modified":"2016-04-15T00:24:10","modified_gmt":"2016-04-14T18:54:10","slug":"the-secretary-karnataka-vs-assistant-commissioner-gadag-on-7-march-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-secretary-karnataka-vs-assistant-commissioner-gadag-on-7-march-1995","title":{"rendered":"The Secretary, Karnataka &#8230; vs Assistant Commissioner, Gadag &amp; &#8230; on 7 March, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">The Secretary, Karnataka &#8230; vs Assistant Commissioner, Gadag &amp; &#8230; on 7 March, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 SCC,   Supl.  (2)\t1 JT 1995 (3)\t184<\/div>\n<div class=\"doc_author\">Author: H B.L.<\/div>\n<div class=\"doc_bench\">Bench: Hansaria B.L. (J)<\/div>\n<pre>           PETITIONER:\nTHE SECRETARY, KARNATAKA ELECTRICITY BOARD\n\n\tVs.\n\nRESPONDENT:\nASSISTANT COMMISSIONER, GADAG &amp; ORS\n\nDATE OF JUDGMENT07\/03\/1995\n\nBENCH:\nHANSARIA B.L. (J)\nBENCH:\nHANSARIA B.L. (J)\nRAMASWAMY, K.\n\nCITATION:\n 1995 SCC  Supl.  (2)\t1 JT 1995 (3)\t184\n 1995 SCALE  (2)146\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>HANSARIA, J.:\n<\/p>\n<p>1.   Leave granted in both the petitions.\n<\/p>\n<p>2.   A\tplot  of land measuring two acres  was\tacquired  by<br \/>\nNotification  dated  14.4.1988\tfor  establishment  of\tsub-<br \/>\nstation\t by the Karnataka Electricity Board,  the  appellant<br \/>\nherein.\t The market value of the land was fixed by the\tLand<br \/>\nAcquisition  Officer  at Rs. 13,000\/- per acre by  an  award<br \/>\nmade on 21.8.1989. On reference being made, the Civil Judge,<br \/>\nhowever, enhanced the compensation to Rs. 10,000\/- per gunta<br \/>\ni.e.  Rs. 4 lacs per acre by an order dated  16.12.1989.  On<br \/>\nappeal\t being\t preferred  before  the\t High\tCourt,\t the<br \/>\nenhancement  was sustained but with the direction to  deduct<br \/>\n65% towards development and other charges.  The\t Electricity<br \/>\nBoard has preferred this appeal by special leave.  The\tland<br \/>\nowner  has  also  approached  this  Court  seeking   further<br \/>\nenhancement.\n<\/p>\n<p>3.   A\tperusal of the order of Reference Court\t shows\tthat<br \/>\nthe land owner had himself led evidence to show yield, which<br \/>\nwas found to be around Rs. 11,000\/- per acre per year.\tThis<br \/>\nwas  the gross income; the net annual income assessed  being<br \/>\nRs.   5,695\/-,\tafter  deducting  50  %\t towards   cost\t  of<br \/>\ncultivation.   The  market value as per\t the  capitalisation<br \/>\nmethod\twas,  therefore, fixed at Rs.28,470\/-  per  acre  by<br \/>\ndeducting  50 % of the average annual yield,  assuming\tthat<br \/>\nthe claimant had exaggerated the average annual yield in his<br \/>\nevidence; he being an interested witness.\n<\/p>\n<p>4.   The Reference Court, instead of fixing the market value<br \/>\nat Rs.28,470\/- per acre determined as per the capitalisation<br \/>\nmethod,\t fixed\tthe same at Rs.4 lacs on the strength  of  a<br \/>\nsolitary  sale\tdeed which related to small  piece  of\tland<br \/>\nmeasuring 74 feet x 17 feet, which was sold for Rs. 10,000\/-<br \/>\nat the relevant point of time.\n<\/p>\n<p>5.   Learned  counsel for the Board has contended  that\t the<br \/>\nReference Court, as well as the High Court, erred in law  in<br \/>\nplacing reliance on a solitary sale transaction and that too<br \/>\nrelatable to a very small piece of land in fixing the market<br \/>\nvalue at Rs. 4 lacs.  The learned counsel for the  claimant,<br \/>\nhowever, draws our attention to the evidence of the approved<br \/>\nLand and Building valuer who was examined as P.W.3 and whose<br \/>\nevidence  has  been dealt in para 10 of\t the  Civil  Judge&#8217;s<br \/>\norder.\t We have been taken through this part of  the  Civil<br \/>\nJudge&#8217;s\t order\twherein mention has been made,\tinter  alia,<br \/>\nabout  the  aforesaid plot of land being within\t the  Gadag-<br \/>\nBetigeri  Municipal limit, which is not so, as the  acquired<br \/>\nland is situated beyond the limit of the municipality.\tFrom<br \/>\nthe judgment of the High Court, it further appears that\t the<br \/>\nplot  of  land whose sale was taken into  consideration\t had<br \/>\nabutted two main roads; and could not have, therefore,\tbeen<br \/>\ntaken  as the basis for determining the market value of\t the<br \/>\nacquired land.\tThe High Court itself has, therefore, stated<br \/>\nthat the sale deed could not have been made as the basis for<br \/>\ndetermining the market value.  Being of this view, what\t the<br \/>\nHigh  Court  did  was to make a\t deduction  of\t65%  towards<br \/>\ndevelopment and other charges.\n<\/p>\n<p>6.   According to us, however, if the sale deed in  question<br \/>\ncould  not have formed the basis of determining the,  market<br \/>\nvalue  of the acquired land, the proper course open for\t the<br \/>\ncourts\t below\twas  to\t fix  the  valuation  as   per\t the<br \/>\ncapitalisation\tmethod,\t as was sought to  be  pressed\tinto<br \/>\nservice by the claimant himself which is apparent<br \/>\n<span class=\"hidden_text\">186<\/span><br \/>\nfrom the fact that to bring on record the yield he  examined<br \/>\nhimself The courts below committed manifest error of law  in<br \/>\nhaving fixed the market value by taking into consideration a<br \/>\ntransaction  wherein  the  land was valued  on\tsquare\tfoot<br \/>\nbasis.\t It has been noticed by this Court. in\tits  several<br \/>\ndecisions that recourse to determination of market value  on<br \/>\nsquare foot basis is taken at times to show the value rather<br \/>\nless, whereas ultimately it works out to be much more.\n<\/p>\n<p>7.   We,  therefore,  set aside the order of  the  Reference<br \/>\nCourt as modified by the High Court; instead, fix the market<br \/>\nvalue  at  Rs.28,470\/-\tper acre.   The\t claimant  would  be<br \/>\nentitled  to solarium @ 30 % and an amount  calculated\t@12%<br \/>\nper  annum on the market value so fixed from 14.8.1988\ttill<br \/>\n21.8-1989.  This apart, the claimant would be paid  interest<br \/>\n@9%  for  a  period  of one year from  the  date  of  taking<br \/>\npossession  of the land and thereafter @ 15% per annum\ttill<br \/>\nthe  date of payment of the enhanced compensation, less\t the<br \/>\namount already paid.\n<\/p>\n<p>8.   In\t the result, the appeal No. 3247\/95 arising  out  of<br \/>\nSLP(C)\tNo.2246\/94  is\tallowed as  aforesaid.\t The  appeal<br \/>\nNo.3248\/ 95 arising out of SLP(C) 21959\/94 stands dismissed.<br \/>\nNo order as to costs.\n<\/p>\n<p><span class=\"hidden_text\">188<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India The Secretary, Karnataka &#8230; vs Assistant Commissioner, Gadag &amp; &#8230; on 7 March, 1995 Equivalent citations: 1995 SCC, Supl. (2) 1 JT 1995 (3) 184 Author: H B.L. Bench: Hansaria B.L. (J) PETITIONER: THE SECRETARY, KARNATAKA ELECTRICITY BOARD Vs. RESPONDENT: ASSISTANT COMMISSIONER, GADAG &amp; ORS DATE OF JUDGMENT07\/03\/1995 BENCH: HANSARIA B.L. [&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-152293","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Secretary, Karnataka ... vs Assistant Commissioner, Gadag &amp; ... on 7 March, 1995 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-secretary-karnataka-vs-assistant-commissioner-gadag-on-7-march-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Secretary, Karnataka ... vs Assistant Commissioner, Gadag &amp; 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