{"id":211172,"date":"2001-08-14T00:00:00","date_gmt":"2001-08-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shaji-kuriakose-and-anr-vs-indian-oil-corpn-ltd-and-ors-on-14-august-2001"},"modified":"2016-04-24T07:09:17","modified_gmt":"2016-04-24T01:39:17","slug":"shaji-kuriakose-and-anr-vs-indian-oil-corpn-ltd-and-ors-on-14-august-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shaji-kuriakose-and-anr-vs-indian-oil-corpn-ltd-and-ors-on-14-august-2001","title":{"rendered":"Shaji Kuriakose And Anr vs Indian Oil Corpn. Ltd. And Ors on 14 August, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Shaji Kuriakose And Anr vs Indian Oil Corpn. Ltd. And Ors on 14 August, 2001<\/div>\n<div class=\"doc_bench\">Bench: V.N. Khare, B.N. Agrawal<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  3190-3192 of 2000\n\nPETITIONER:\nSHAJI KURIAKOSE AND ANR.\n\nRESPONDENT:\nINDIAN OIL CORPN. LTD. AND ORS.\n\nDATE OF JUDGMENT: 14\/08\/2001\n\nBENCH:\nV.N. KHARE &amp; B.N. AGRAWAL\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>2001 Supp(1) SCR 573<\/p>\n<p>The Judgment of the Court was delivered by<\/p>\n<p>V.N. KHARE, J. A large track of land in the village Manakunnam in the<br \/>\ndistrict of Cochin was sought to be acquired for setting up a bottling<br \/>\nplant by the respondent &#8211; Indian Oil Corporation Ltd. A notification under<br \/>\nSection 4 of the Land Acquisition Act (hereinafter referred to as the<br \/>\n&#8216;Act&#8217;) was issued on 23.8.1990 which was followed by issue of notification<br \/>\nunder Section 6 of the Act on 22.2.1991. The appellants&#8217; land measuring<br \/>\n7.13 acres is covered by the aforesaid notifications. The Collector on<br \/>\n5.5.1992 gave an award and offered compensation to the claimants @ Rs. 1225<br \/>\nper acre Rs. 500 per cent. The claimants sought reference for enhancement<br \/>\nof the compensation. The Additional Sub-Judge, Ernakulam enhanced the<br \/>\ncompensation to @ Rs. 7000 per cent. Aggrieved, the respondents filed<br \/>\nappeals before the High Court. The High Court was of the view that the<br \/>\ncompensation awarded by the reference court was on higher side and,<br \/>\ntherefore, reduced the compensation to @ Rs. 4000 per cent for the wet land<br \/>\nand Rs. 6500 for dry land. In that view of the matter, the appeals filed by<br \/>\nthe respondents were allowed. The cross-objections filed by the claimants<br \/>\nwere rejected by the High Court. Aggrieved, the claimants have preferred<br \/>\nthese appeals against the judgment of the High Court.\n<\/p>\n<p>Mr. Mathai M. Paikeday, learned senior counsel appearing for the appellants<br \/>\nurged that the High Court having proceeded to give compensation for the<br \/>\nacquired land on the basis of Comparable Sales Method of valuation of land,<br \/>\nit was not open to the High Court to fix the rate of compensation less than<br \/>\nthe market value of the land covered by Ex. A-4. Learned counsel relied<br \/>\nupon a decision of this Court in <a href=\"\/doc\/1800785\/\">Printers House Pvt. Ltd. v. Mst. Saiyadan<\/a><br \/>\n(deceased) by LRs. and Ors., [1994] 2 SCC 133. The second submission of the<br \/>\nlearned counsel is that once the appellants herein opted and agreed for<br \/>\naccepting compensation for their acquired land on the basis of Comparable<br \/>\nSales Method of valuation of land, it was not open to the High Court to fix<br \/>\nthe rate of compensation of the acquired land on the basis of the valuation<br \/>\nof the land on the capitalisation assessment of the land. Shri D.A. Dave,<br \/>\nlearned senior counsel, however, argued that the principle adopted by the<br \/>\nHigh Court in lowering the compensation for acquired land than what was the<br \/>\nvalue of land contained in Ex. A-4, is based on relevant considerations and<br \/>\nthese appeals do not require any interference and deserve to be dismissed.\n<\/p>\n<p>It is no doubt true that courts adopt Comparable Sales Method of valuation<br \/>\nof land while fixing the market value of the acquired land. While fixing<br \/>\nthe market value of the acquired land, Comparable Sales Method of valuation<br \/>\nis preferred than other methods of valuation of land such as Capitalisation<br \/>\nof Net Income Method or Expert Opinion Method. Comparable Sales Method of<br \/>\nvaluation is preferred because it furnishes the evidence for determination<br \/>\nof the market value of the acquired land at which a willing purchaser would<br \/>\npay for the acquired land if it has been sold in open market at the time of<br \/>\nissue of notification under Section 4 of the Act. However, Comparable Sales<br \/>\nMethod of valuation of land for fixing the market value of the acquired<br \/>\nland is not always conclusive. There are certain factors which are required<br \/>\nto be fulfilled and on fulfilment of those factors the compensation<br \/>\ncan be awarded, according to the value the land reflected in the sales. The<br \/>\nfactors laid down&#8221; inter alia are : (1) the sale must be a genuine<br \/>\ntransaction, that (2) the sale deed must have been executed at the time<br \/>\nproximate to the date of issue of notification under Section 4 of the Act,<br \/>\nthat (3) the land covered by the sales must be in the vicinity of the<br \/>\nacquired land, that (4) the land covered by the sale must be similar to the<br \/>\nacquired land and that (5) the size of plot of the land covered by the<br \/>\nsales be comparable to the land acquired. If all these factors are<br \/>\nsatisfied, then there is no reason why the sale value of the land covered<br \/>\nby the sales be not given for the acquired land. However, if there is a<br \/>\ndissimilarity in regard to locality shape, site or nature<br \/>\nof land between land covered by sales and land acquired, it is open to<br \/>\nCourt to proportionately reduce the compensation for acquired land than<br \/>\nwhat is reflected in the sales depending upon the disadvantages attached<br \/>\nwith the acquired land. In the present case, what we find is that the first<br \/>\ntwo factors are satisfied. The sale transaction covered by the sale Ex. A-4<br \/>\nis genuine, inasmuch as sale was executed in proximity to the date of<br \/>\nnotification under Section 4 of the Act. However, there is a difference in<br \/>\nthe similarity in the land acquired and the land covered by Ex. A-4. The<br \/>\nland covered by Ex. A-4 is situated at Kottayam and Ernakulam, PWD Road,<br \/>\nwhereas the acquired land is situated at a distance of 3 furlong from the<br \/>\nmain road. There is no access to the acquired land and there exists only an<br \/>\ninternal mud road which belonged to one of the claimants, whose land has<br \/>\nalso been acquired. Further, the land covered by Ex. A-4 is a dry land and<br \/>\nwhereas the acquired land is a wet land. After acquisition, the acquired<br \/>\nland has to be re-claimed and a lot of amount would be spent for filling<br \/>\nthe land. Moreover, the land covered by Ex. A-4 relates to a small piece of<br \/>\nland which do not reflect the true market value of the acquired land. It is<br \/>\noften seen that a sale for a smaller plot of land fetches<br \/>\nmore consideration than larger or bigger piece of land. For all these<br \/>\nreasons, the High Court was fully justified in lowering the rate of<br \/>\ncompensation that what was the market value of the land covered by Ex. A-4.<br \/>\nWe therefore, do not find any infirmity in the judgment of the High Court.<br \/>\nSo far as the second argument is concerned, the High Court has granted<br \/>\ncompensation on the basis of Comparable Sales Method of valuation of land<br \/>\nand the reference regarding Capitalisation Method of valuation of the land<br \/>\nwas only by way of illustration. We, therefore, do not find any merit in<br \/>\nthis submission.\n<\/p>\n<p>For the aforesaid reasons, the appeals fail and are accordingly dismissed.<br \/>\nThere shall be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Shaji Kuriakose And Anr vs Indian Oil Corpn. Ltd. And Ors on 14 August, 2001 Bench: V.N. Khare, B.N. Agrawal CASE NO.: Appeal (civil) 3190-3192 of 2000 PETITIONER: SHAJI KURIAKOSE AND ANR. RESPONDENT: INDIAN OIL CORPN. LTD. AND ORS. DATE OF JUDGMENT: 14\/08\/2001 BENCH: V.N. KHARE &amp; B.N. AGRAWAL JUDGMENT: JUDGMENT [&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-211172","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>Shaji Kuriakose And Anr vs Indian Oil Corpn. Ltd. 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