MALLAPPA DEAD BY L.RS. & ORS.versusTHE SPECIAL LAND ACQUISITION OFFICER & ANR.

470               SUPREME[2018]
                          COURT 14REPORTS
                                  S.C.R. 470              [2018] 14 S.C.R.


A                   MALLAPPA DEAD BY L.RS. & ORS.
                                       v.
          THE SPECIAL LAND ACQUISITION OFFICER & ANR.
                        (Civil Appeal No. 6057 of 2012)
B                           DECEMBER 03, 2018
      [ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
             Karnataka Industrial Areas Development Act, 1966: s.28(1)
      – Acquisition of land for public purpose – While appreciating the
      sale deeds produced by land owners by way of exemplars, the
C
      Special Deputy Commissioner determined the market rate of the
      land in question at Rs.500/- per Gunta whereas the Reference Court
      fixed the compensation @ Rs.21,000/- per Gunta – High Court,
      however, reduced it to Rs.10,250/- per Gunta – Appeal by
      landowners – Held: High Court was not justified in reducing the
D     rate determined by the reference Court There was enough evidence
      to prove the potentiality of the land in question as was clear from
      the findings of the Land Acquisition Officer – Apart from it, the
      landowners also submitted 10 sale deeds wherein it was established
      that price of the land situated in the adjacent area varied from
      Rs.7250/- per Gunta to Rs.57,000/- per Gunta between 1977 till
E
      1982 – In view of these factors, there was no justifiable reason for
      the High Court to reduce the rate from Rs.21,000/- per Gunta to
      Rs.14,500/- per Gunta and then deducting 30% towards
      development charges – In the facts and circumstances of the case
      and the evidence adduced by the parties, market value of the land
F     in question is fixed at Rs.21,000/- per Gunta and after deducting
      10% towards the development charges, the compensation is fixed
      at Rs.18,900/- per Gunta – The appellants are also entitled to get
      other statutory compensation payable under the Act – The
      respondents are accordingly directed to re-calculate the
      compensation amount payable to the appellants – Land Acquisition.
G
             Disposing of the appeals, the Court
           HELD: 1. The Special Deputy Commissioner (LAO) while
      awarding compensation recorded a finding that the acquired land

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                                      470
 MALLAPPA DEAD BY L.RS. & ORS. v. THE SPECIAL LAND                       471
              ACQUISITION OFFICER

in question is suitable for construction of the buildings. It was        A
also held that the land is situated in the midst of well-developed
area of the city and is surrounded by several big factories,
industrial estate and the housing colonies. It was also held that
the land is abutting the main road passing through Hubli. In
addition, the appellants filed 10 sale deeds by way of
                                                                         B
exemplars to prove the market value. These sale deeds were
executed from 1977 to 1982 in relation to adjacent lands. The
value of the land sold by these sale deeds varied from
Rs. 7250/- per Gunta to Rs.57,000/- per Gunta. The lands
involved in these sale deeds were of smaller area.
[Paras 13, 14][474-B-E]                                                  C
      2. The market rate determined by the reference Court at
the rate of Rs.21,000/- per Gunta was the proper market rate of
the land in question and the same, therefore, should have been
upheld by the High Court. There was enough evidence to prove
the potentiality of the land in question as is clear from the findings   D
of the Land Acquisition Officer. Apart from it, the landowners
also proved the market value of the land in question by filing 10
sale deeds wherein it was established that price of the land
situated in the adjacent area varied from Rs.7250/- per Gunta to
Rs.57,000/- per Gunta between 1977 till 1982. In view of these
factors, there was no reason for the High Court to reduce the            E
rate from Rs.21,000/- per Gunta to Rs.14,500/- per Gunta and
then after deducting 30% towards development charges fixing
at Rs. 10,250/- per Gunta. The market value of the land in
question is fixed at Rs.21,000/- per Gunta and after deducting
10% towards the development charges fix the market price of              F
the land in question at Rs.18,900/- per Gunta. The appellants
are also entitled to get other statutory compensation payable
under the Act. The respondents are accordingly directed to re-
calculate the compensation amount payable to the appellants in
the light of the market rate fixed by this Court, i.e.,
Rs. 18,900/- per Gunta and after making proper verification pay          G
to the appellants the total compensation within 3 months.
[Paras 16-21][474-C-D; 475-A-E]


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472               SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6057
  of 2012.
         From the Judgment and Order dated 12.10.2007 of the High Court
  of Karnataka at Bangalore in MFA No. 594 of 2003.
                                       With
B        C. A. No. 1573 of 2018
         Jaideep Gupta, Ms. Kiran Suri, Sr. Advs., Shankar Divate,
  Satish Kumar, Anand Sanjay M. Nuli, Dharam Singh, Nanda Kumar K.
  B., M/s. Nuli & Nuli, P. R. Ramasesh, S. J. Amith, Ms. Aishwarya
  Kumar, Dr. (Mrs.) Vipin Gupta, Advs. for the appearing parties.
C        The Judgment of the Court was delivered by
         ABHAY MANOHAR SAPRE, J.
         In Civil Appeal No.6057/2012
         1. This appeal is directed against the final order/judgment dated
  12.10.2007 passed by the High Court of Karnataka at Bangalore in M.F.A.
D No.594 of 2003 whereby the High Court allowed the appeal filed by the
  respondents herein and reduced the compensation awarded to the
  appellants herein by award dated 30.09.2002 passed by the Additional
  Civil Judge (Sr. Division) Hubli in LAC No.58/87.
         2. In order to appreciate the controversy involved in this appeal, it
E is necessary to set out the facts of the case hereinbelow.
         3. The appellants are the claimants (landowners) and the
  respondents are the State Authorities-non-applicants in the land acquisition
  reference proceedings out of which this appeal arises. The State of
  Karnataka in exercise of powers conferred under Section 28(1) of the
  Karnataka Industrial Areas Development Act, 1966 (hereinafter referred
F
  to as “the Act”) acquired the land measuring 24 acres 15 guntas bearing
  Survey No. 44, Naruab Thimmasagar Village, Hubli Taluk District
  Dharwad. The land was acquired for Karnataka Industrial Areas
  Development Board, Bangalore for a public purpose “expansion of
  existing industrial estate in Tahsil Hubli”.
G        4. The notification was accordingly issued under Section 28(1) on
  23/28.06.1980. It was published in the official Gazette on 03.07.1980
  (page 152 part III-1). This notification was followed by issuance of
  another notification on 27.05.1981 under Section 28 (4) of the Act. The
  appellants being the owners of the land in question became entitled to
H claim compensation for their land.
 MALLAPPA DEAD BY L.RS. & ORS. v. THE SPECIAL LAND                             473
  ACQUISITION OFFICER [ABHAY MANOHAR SAPRE, J.]

       5. This led to initiation of the proceedings for determination of the   A
compensation payable to the appellants for their land under the Act. The
Special Land Acquisition Officer (respondent No. 1 herein) by his award
dated 27.10.1986 awarded compensation to the appellants at the rate of
Rs.5/- per sq. meter = Rs. 500/- per Gunta.
      6. The appellants (landowners) felt aggrieved and prayed for             B
making a reference to the Civil Court for re-determination of the rate of
compensation. It was accordingly made. By award dated 30.09.2002,
the Reference Court partly answered the reference in appellants’ favour
and enhanced the rate of compensation at Rs.21,000/- per Gunta.
       7. The appellants and the State Authorities both felt aggrieved of      C
the award of the Reference Court and filed appeals in the High Court of
Karnataka at Bangalore. The appellants prayed for further enhancement
in the rate of compensation whereas the State prayed for reduction in
the rate.
       8. By impugned judgment/order, the High Court allowed the appeal        D
filed by the State in part and reduced the rate of compensation to
Rs.10250/- per Gunta from Rs.21,000/- per Gunta fixed by the Reference
Court. The High Court fixed the market rate at Rs.14,500/- per Gunta
and deducting 30% towards development charges fixed at Rs.10,250/-
per Gunta. As a consequence, the appeal filed by the landowners was
dismissed which has given rise to filing of this appeal by way of special      E
leave by the landowners in this Court.
      9. The question, which arises for consideration in this appeal, is
whether the High Court was justified in reducing the rate of compensation
from Rs.21,000/- per Gunta to Rs. 10,250/- per Gunta.
                                                                               F
       10. In other words, the question, which arises for consideration in
this appeal, is whether the High Court was justified in holding that the
market value of the land in question was Rs.10,250/- per Gunta on the
date of its acquisition.
       11. Having heard the learned counsel for the parties and on perusal
                                                                               G
of the record of the case, we are inclined to allow the appeal and while
setting aside the impugned order of the High Court restore the award of
the Reference Court/Civil Court with slight modification as indicated
infra.

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474                 SUPREME COURT REPORTS                        [2018] 14 S.C.R.


A             12. It may be mentioned that the State had also filed appeal by
      special leave in this Court against the impugned order of the High Court
      wherein the grievance of the State was that the High Court was not
      justified in fixing the market rate at Rs. 10,250/- per Gunta. According to
      the State, the rate should have been determined at a much lower rate
      than Rs.10,250/- per Gunta. This Court by order dated 04.11.2015
B
      dismissed the appeal filed by the State and affirmed the impugned order.
              13. On perusal of the record, we find that the Special Deputy
      Commissioner (LAO) while awarding compensation recorded a finding
      that the acquired land in question is suitable for construction of the
      buildings. It was also held that the land is situated in the midst of well-
C     developed area of the city and is surrounded by several big factories,
      industrial estate and the housing colonies. It was also held that the land
      is abutting the main road passing through Hubli.
              14. In addition, the appellants filed 10 sale deeds by way of
      exemplars to prove the market value. These sale deeds were executed
D     from 1977 to 1982 in relation to adjacent lands. The value of the land
      sold by these sale deeds varies from Rs.7250/- per Gunta to
      Rs.57,000/- per Gunta. The lands involved in these sale deeds are of
      smaller area.
              15. As mentioned above, while appreciating the aforementioned
E     evidence, the Special Deputy Commissioner determined the market rate
      of the land in question at Rs.500/- per Gunta whereas the Reference
      Court fixed the compensation at the rate of Rs.21,000/- per Gunta. The
      High Court, however, reduced it to Rs.10,250/- per Gunta.
              16. In our considered opinion, the market rate determined by the
      reference Court at the rate of Rs.21,000/- per Gunta was the proper
F     market rate of the land in question and the same, therefore, should have
      been upheld by the High Court. In other words, the High Court was not
      justified in reducing the rate determined by the reference Court from
      Rs.21,000/- per Gunta to Rs.10,250/- per Gunta and instead the High
      Court should have upheld the rate fixed by the Reference Court.
G             17. In our considered view, there is enough evidence to prove the
      potentiality of the land in question as would be clear from the findings of
      the Land Acquisition Officer mentioned above. Apart from it, the
      landowners have also proved the market value of the land in question by
      filing 10 sale deeds wherein it is established that price of the land situated
      in the adjacent area has varied from Rs.7250/- per Gunta to
H     Rs.57,000/- per Gunta between 1977 till 1982.
 MALLAPPA DEAD BY L.RS. & ORS. v. THE SPECIAL LAND                               475
  ACQUISITION OFFICER [ABHAY MANOHAR SAPRE, J.]

       18. Taking into consideration the aforementioned factors, we are          A
of the view that there was no justifiable reason for the High Court to
reduce the rate from Rs.21,000/- per Gunta to Rs.14,500/- per Gunta
and then deducting 30% towards development charges fixed at
Rs. 10,250/- per Gunta.
      19. In our opinion, having regard to the totality of the facts and the     B
circumstances emerging from the record and keeping in view the evidence
adduced by the parties, we consider just and proper to fix Rs.21,000/-
per Gunta as the market value of the land in question and after deducting
10% towards the development charges fix the market price of the land
in question at Rs.18,900/- per Gunta.
                                                                                 C
       20. In other words, we hold and accordingly fix the market value
of the land in question at the rate of Rs. 18,900/- per Gunta for payment
of compensation to the appellants for their land. The appellants are also
entitled to get other statutory compensation payable under the Act, which
is now to be re-calculated on the basis of the market rate fixed by this
Court.                                                                           D

       21. The respondents are accordingly directed to re-calculate the
compensation amount payable to the appellants in the light of the market
rate fixed by this Court, i.e., Rs.18,900/- per Gunta and after making
proper verification pay to the appellants the total compensation within 3
months.                                                                          E

       22. In view of the foregoing discussion, the appeal succeeds and
is accordingly allowed. Impugned order is set aside.
       In Civil Appeal No.1573 of 2018
       This appeal is directed against the final judgment and order dated        F
17.07.2017 passed by the High Court of Karnataka, Dharwad Bench in
M.F.A. No.24071 of 2011 whereby the High Court dismissed the appeal
filed by the appellants herein and reduced the rate of compensation to
10,250/- per Gunta from Rs.21,000/- per Gunta on the grounds of parity
which was granted to the adjacent land in question in S.No.44 in LAC
                                                                                 G
No.58/1987.
      In view of the order passed above in C.A. No.6057 of 2012, this
appeal is disposed of on the same terms.

Devika Gujral                                             Appeals disposed of.   H