{"id":224980,"date":"1996-08-07T00:00:00","date_gmt":"1996-08-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-state-of-m-p-etc-vs-harishankar-goel-anr-etc-on-7-august-1996-3"},"modified":"2016-12-09T21:04:15","modified_gmt":"2016-12-09T15:34:15","slug":"the-state-of-m-p-etc-vs-harishankar-goel-anr-etc-on-7-august-1996-3","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-state-of-m-p-etc-vs-harishankar-goel-anr-etc-on-7-august-1996-3","title":{"rendered":"The State Of M.P. Etc vs Harishankar Goel &amp; Anr. Etc on 7 August, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">The State Of M.P. Etc vs Harishankar Goel &amp; Anr. Etc on 7 August, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 SCALE  (6)39<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nTHE STATE OF M.P. ETC.\n\n\tVs.\n\nRESPONDENT:\nHARISHANKAR GOEL &amp; ANR. ETC.\n\nDATE OF JUDGMENT:\t07\/08\/1996\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nG.B. PATTANAIK (J)\n\nCITATION:\n 1996 SCALE  (6)39\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t  W I T H<br \/>\n\t\tCIVIL APPEAL NO.2796 OF 1987<br \/>\n\t\t\t    AND<br \/>\n\t\tCIVIL APPEAL NO.2298 OF 1987<br \/>\n\t\t\t O R D E R<br \/>\n     These appeals arise from the judgment of the High Court<br \/>\nof Madhya  Pradesh. On\ta difference  of opinion  among\t two<br \/>\nlearned judges,\t third Judge  on reference  in Miscellaneous<br \/>\nAppeal No.82\/75\t and 83\/75  enhanced the  compensation.\t The<br \/>\nnotification under  Section 4(1) of the Land Acquisition Act<br \/>\n1 of  1894 was\tpublished on  January 17,  1964 acquiring 33<br \/>\nbighas\t15   biswas  of\t land  belonging  to  two  different<br \/>\nindividuals for\t industrial purpose.  The  land\t Acquisition<br \/>\nOfficer\t by   his  award   under   Section   11\t  determined<br \/>\ncompensation on\t March 14,  1966 at  Rs. 3,150\/-  per  bigha<br \/>\ntreating the  lands to\tbe agricultural\t lands. On reference<br \/>\nunder Section 18, the Additional District Judge by his award<br \/>\nand decree  dated May  15, 1975 enhanced the compensation to<br \/>\nRs.1\/- per  sq. ft.  and also awarded statutory benefits. On<br \/>\nappeal, learned\t Judge B.C.Verma, J. determined compensation<br \/>\nat 0.90\/-  per sq.  ft. deducted  15% towards  developmental<br \/>\ncharges. Learned  Judge R.C.  Srivastava, J.  determined the<br \/>\ncompensation at\t Rs. 0.50  per sq.  ft .  and  deducted\t 25%<br \/>\ntowards developmental  charges. On  reference, learned Judge<br \/>\nT.N. Singh, J. agreed with the determination of compensation<br \/>\nB.C. Verma,  J. at  Rs.0.90 per\t sq. ft.  but  deducted\t 20%<br \/>\ntowards developmental  charges.\t He  also  awarded  enhanced<br \/>\nsolatium, interest  and additional amount as available under<br \/>\nthe Amendment  Act 68  of 1984.\t Thus these  appeals by\t the<br \/>\nState and  also\t cross\tappeal\tby  the\t claimants  claiming<br \/>\ncompensation at Rs.1\/- per sq. ft.\n<\/p>\n<p>\t The question that arises for consideration is as to<br \/>\nwhat is the rate. of compensation that the lands are capable<br \/>\nto secure  in an  open market.\tIt is  not in  dispute\tthat<br \/>\nthough they  were the  agricultural lands  as on the date of<br \/>\nnotification the  respondents who  are\tno  other  than\t the<br \/>\nbuilders and  developers had,  after the  purchase  obtained<br \/>\nsanction under\tSection 172  of the  Madhya Pradesh  Revenue<br \/>\nCode for conversion of the land into non-agricultural lands,<br \/>\nbut no\tsanction from  the municipality\t for construction of<br \/>\nany colonisation,  was obtained.  Even\tlearned\t Judge\tB.C.<br \/>\nVerma,\tJ.  had\t noted\tin  his\t judgment  that\t though\t the<br \/>\nrespondents- claimants\thad entered  into the  agreement  of<br \/>\nsales  with   the  prospective\t purchasers,  they  had\t not<br \/>\ncompleted  the\tsale  transactions.  Those  agreements\twere<br \/>\nbrought into  existence to  bolster the claims. However, the<br \/>\nlearned Judge  found that  the lands were situated very near<br \/>\nto the\tVickoy moped  factory. They  abut the  Jhansi  Road;<br \/>\nSitholi railway station is one mile from the acquired lands,<br \/>\nbut they  are  situated\t outside  the  municipal  limits  of<br \/>\nGwalior Municipal  Corporation.\t Their\tlands  are  fit\t for<br \/>\ndeveloping  industries,\t housing  colonies,  godown,  petrol<br \/>\npumps etc:.  The evidence  also disclosed  that the land was<br \/>\nnot improved  and it  was not  even land. Considered in this<br \/>\nbackground, the\t learned Judge\thad accepted  the sale\tdeed<br \/>\nexecuted by  one of the claimants for a small extent of land<br \/>\nat Rs. 0.50 per sq. ft. but having found that the lands were<br \/>\npossessed of potential value, determined the compensation at<br \/>\nRs.0.90 per  sq. ft.  and, as  stated earlier,\tdeducted 15%<br \/>\ntowards developmental  charges. Learned Judge Srivastava, J.<br \/>\nrelied upon  the very  sale deeds put forth by the claimants<br \/>\nand held that they could not claim higher than what they had<br \/>\nput up,\t namely,  Rs.  0.50  per  sq.  ft.  and,  therefore,<br \/>\ndetermined the compensation on that premise and deducted 25%<br \/>\ntowards developmental  charges. As seen, learned T.N. Singh,<br \/>\nJ. had\tagreed\twith  B.C.  Verma,  J.\tin  determining\t the<br \/>\ncompensation at. Rs. 0.90 per sq. ft.\n<\/p>\n<p>     The  question,   therefore,  is:\twhat  would  be\t the<br \/>\nreasonable market value the lands are capable to fetch as on<br \/>\nthe date  of the  notification had  it been sold in the open<br \/>\nmarket to  a willing  purchaser? It is seen that when 33 and<br \/>\nodd bighas of land was sought to be sold in the open market,<br \/>\nno willing  prudent purchaser would with any credulity agree<br \/>\nto purchase  it on sq.ft. basis. It is well settled law that<br \/>\nthe  judge   determining  compensation\t in   a\t  compulsory<br \/>\nacquisition should  eschew feats  of imagination  sit in the<br \/>\narm chair  of a\t willing purchaser  and put  a\tquestion  to<br \/>\nhimself whether\t as a  willing prudent\tpurchaser  he  would<br \/>\noffer the  same price  sought to be awarded for the acquired<br \/>\nland. It  would, therefore, be clear that the learned Judges<br \/>\ndid  not   apply  correct   legal  tests  to  determine\t the<br \/>\ncompensation but  determine the compensation on the basis of<br \/>\nsq.ft. Which  is illegal.  per se.  We, therefore, hold that<br \/>\nthe learned  Judges had\t applied wrong\tprinciple of  law in<br \/>\ndetermining compensation.\n<\/p>\n<p>     The question  then arises is what would be the just and<br \/>\nadequate compensation which the land are capable to fetch in<br \/>\nthe open  market? It  is seen  that the\t land  are  situated<br \/>\nbeyond the  municipal limit  and on uneven land. But for the<br \/>\nVickoy\tmoped\tfactory,  there\t  was  no   other  immediate<br \/>\ndevelopment. The claimants themselves purchased the lands as<br \/>\nbuilders develop the lands. They did not file their own sale<br \/>\ndeeds to show at what rate they had purchased the land which<br \/>\nwould  have   furnished\t best\tmaterial.   Admittedly,\t  on<br \/>\nsanction from  the Municipal  Corporation or  any  competent<br \/>\nauthority was  obtained in  that behalf to construct housing<br \/>\ncolony. Necessarily when the land was to await some time for<br \/>\ndevelopment either for industrial or colonisation, the price<br \/>\nthat could  not be  secured at the rate was put forth by the<br \/>\nclaimants. They\t themselves had\t sold at Rs. 0.50 per sq.ft.<br \/>\nfor a  small extent  of land. The learned Judges, therefore,<br \/>\nhad not\t correctly appreciated\tthe  correct  principles  of<br \/>\nlaw in\tdetermining the\t compensation. Having found that the<br \/>\nends were  possessed of\t potential  value  the\tcompensation<br \/>\ncould determined  on the basis of the market value on square<br \/>\nyard basis.  Considered from this perspective, we are of the<br \/>\nview that  the market value for the land would be Rs.4\/- per<br \/>\nsq. yd.\t and we agree with learned Judge Srivastava, J. that<br \/>\nthe deduction  should be  25% towards  developmental charges<br \/>\nsince it  is in\t evidence that acquisition is for industrial<br \/>\npurpose and  electricity was  immediately available as found<br \/>\nby learned  Judge T.N.\tSingh, J.  The lands are adjacent to<br \/>\nnational highway.  It is  settled law  that normally 33-1\/3%<br \/>\nshould be  deducted towards  developmental charges.  In this<br \/>\ncase as\t a special  case, 25%  is deducted.  It will  not be<br \/>\ntreated as present.\n<\/p>\n<p>     The learned  Judges were  wholly wrong  in applying the<br \/>\nAmendment Act  68 of  1984 since the acquisition was made in<br \/>\nthe year  1964 and the Collector had made the award on March<br \/>\n14, 1966  and the  reference  Court  itself  determined\t the<br \/>\ncompensation on May 15, 1975. Under those circumstances, the<br \/>\nclaimants are  not entitled  to the  additional benefits  of<br \/>\nenhanced solatium  under Section 23(2) at 30% interest under<br \/>\nproviso to Section 28 at 9% for the first year from the date<br \/>\nof taking  possession and  thereafter at  15% till  date  of<br \/>\ndeposit on  the enhanced  compensation and additional amount<br \/>\nunder Section  23(1-A). The  judgment in  that\tbehalf\talso<br \/>\nstands set aside. Instead, the claimants will be entitled to<br \/>\nsolatium at 15% on the enhanced compensation and interest at<br \/>\n4% on  the enhanced  compensation from\tthe date  of  taking<br \/>\npossession till date of deposit into Court.\n<\/p>\n<p>     The appeals  of the  State are  accordingly allowed and<br \/>\nthe cross  appeal of  the claimants stands dismissed, but in<br \/>\nthe circumstances, without costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India The State Of M.P. Etc vs Harishankar Goel &amp; Anr. Etc on 7 August, 1996 Equivalent citations: 1996 SCALE (6)39 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: THE STATE OF M.P. ETC. Vs. RESPONDENT: HARISHANKAR GOEL &amp; ANR. ETC. DATE OF JUDGMENT: 07\/08\/1996 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK [&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-224980","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 State Of M.P. Etc vs Harishankar Goel &amp; Anr. 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