Holding

The appellant is entitled to parity of market value for the acquired land, together with 30% solatium and the prescribed interest.

Summary

The appellant, a landowner, challenged the compensation awarded for land acquired under the Land Acquisition Act, 1894 for a housing scheme. The acquisition officer had initially fixed the market value at Rs. 92 per cent, which the civil court enhanced to Rs. 800 per cent on reference under Section 18. The High Court affirmed this award, rejecting the appellant’s claim that lands in the same area, acquired under the same notification, had been valued at higher rates (Rs. 1000 and Rs. 1050 per cent) and therefore the appellant should receive parity of market value. The Supreme Court held that the officer’s differential treatment of the lands (92 per cent versus 70 per cent in other cases) constituted intrinsic evidence that the appellant’s land possessed better advantageous features, warranting parity of market value. Consequently, the Court allowed the appeal, granting the appellant parity compensation, a 30% solatium, 9% interest for the first year and 15% thereafter, and dismissed costs. The decision clarifies that comparative valuation of lands within the same acquisition can establish parity of compensation.

Issues considered

Whether the appellant is entitled to parity of market value based on the higher valuations awarded to other lands in the same area acquired under the same notification.
Whether the High Court erred in holding that there was no evidence of parity of advantageous position of the lands.
Whether solatium and interest are payable on the enhanced compensation.

Legislation cited

Land Acquisition Act, 1894s. 12, s. 18, s. 4, s. 6

Subjects

Land acquisitionMarket valueParity of compensationSolatiumInterest on compensationSection 18 referenceComparative advantage

Judgment

A K. PERIASANI I=
-.(
v.
~
SUB-TEHSILDAR (LAND ACQUISITION)

MAY 4, 1994

B [K. RAMASWAMY AND N. VENKATACHALA, JJ.]

Land Acquisition Act, 1894 : SS. 4, 6, 12, IS-Acquisition of land--
!
Compensatio11-Detenninatio11 of-Held, appellant was entitled to parity of •
market value for acquired land whe11 High Court enhanced the rate in respect
c of other lands situated in same area and acquired under the same Notification.

Certain lands of the appellant-landowner were acquired under the
Land Acquisition Act, 1894, for a Housing Scheme. Market value of the
land was determined at Rs. 92 per cent. On reference, the market value
was enhanced to Rs. 800 per cent as against the claim at the rate of Rs.
D 1500 per cent. The High Court confirmed the award of the reference court
i.
and dismissed the appeal filed by the state and the cross-objection of the
i-
land owner. .;

In appeal to this Court, it was contended on behalf of the appellant-
land owner thut the High Court erred in not noticing the fact that in
f
E
respect of other lands situated in the same area and acquired under the -.
same notification under which the land in question was acquired, it had
enhanced the rate to Rs. 1000 per cent and Rs. 1050 per cent. It was
claimed that there was material on record to show that the land in question
was possessed of better advantageous features.
F
Allowing the appeals, this Court
•
'
HELD : I. The High Court was not right in holding that there was
no evidence as to parity of the advantageous position of the lands to award
the same compensation. The treatment of lands by the Land Acquisition
G Officer himself by awarding them a rate of Rs. 92 per cent in the instant
appeals while he had awarded the rate of Rs. 70 per cent of lands in other
appeals furnishes the intrinsic evidence that the lands in question are
situated in a better advantageous position than the lands concerned in the
other appeals. The appellant is entitled to parity ol' market value for the
H acquired lands. [904-B-C]
902
PERIASANI v. SUB-TEHSILDAR 903
\ 2. The appellant is entitled to 30 per cent solatium and 9 per cent A
interest on the enhanced compensation for the first )'t'ar from the date of
taking possession and thereafter J5 per cent interest till date of payment
or deposit, whichever is earlier. [904-C-D)

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 851 &
852 of 1993. B

From the Judgment and Order dated 25.10.89 of the Madras High
Court in A. Nos. 760 and 763 of 1987.

V. Balachandran for the Appellants.
c
A. Mariarputham and Mrs. Aruna Mathur for the Respondent.

The following Order of the Court was delivered :

By a Notification under Section 4(1) of the Land Acquisition Act,
1894 published in the Tamil Nadu Gazette on March 7, 1973 a large extent D
of lands including Survey No. 11/4 and 49/7 in Thathanai Village, near
Madurai were proposed to be acquired for a Housing Scheme. The Land
Acquisition Officer determined the market value of that land @ Rs. 92 per
cent. On reference under section 18, the Civil Court 1 by its award, en-
hanced the Market value of that land to Rs. 800 per cent as against the E
claim of the appellant at the rate of Rs. 1500 per cent. The High Court, by
its judgment and decree dated October 25, 1989 confirmed the award of
the Civil Court and dismissed the appeal in Civil Appeal No. 763 of 1987
of the State. It also dismissed the cross-objections of the appellant. Hence,
this claimant's appeal by special leave.
F
It is not disputed that the market value of lands acquired pmsuant
to the said Notification has been determined by different benches of the
High Court such as appeals Nos. 538/87 and 1226/86 titled Special Tchsil-
dar, Land Acquisition v. Laksluni Anunal and another. The lands for which
the land Acquisition Officer had awarded at the rate of Rs. 70 per cent
and the Civil Court on reference, had enhanced such rate to Rs. 850 per G
cent, the High Court on appeal had enhanced the rate in two cases to Rs.
1000 per cent and in two other cases to Rs. 1050 per cent. Since the lands
under consideration in the present appeals are situated in the same area
and were acquired under the same acquisition and the Land Acquisition
Officer himself had treated that lands to be in a better advantageous H
904 SUPREME COURT REPORTS [1994] 3 S.C.R.

A position than the lands covered in the other appeals, it would be clear that
the lands in these appeals are possessed of better advantageous features
than the lands covered by the judgment in other appeals fixing their value
at the .rate of Rs. 92 per cent. This fact was not noticed by the learned
Judge, while disposing of the appeals, as it is observed that there is no
evidence as to parity of the advantageous position of the lands to a\vard
B
the same compensation. The observation appears to be incorrect. The
treatment of the lands by the Land Acquisition Officer himself by awarding
to them a rate of 92 per cent in these appeals while he had awarded the
rate of Rs. 70 per cent of lands in the other appeals furnishes the intrinsic
evidence that the lands in question are situated in a better advantageous
c position than the lands concerned in the other appeals. When such is the
situation the appellant also is entitled to parity of market value for the
acquired land.

The appeals are accordingly allowed. The appellant is entitled to 30
per cent solatium and 9 per cent interest on the enhanced compensation
D for the first year the date of taking possession and thereafter 15 per cent
interest till date of payment of deposit, whichever is earlier. No costs.

R.P. Appeal allowed.