P. VENKATARAJUversusSPECIAL TEHSILDAR (LAND ACQUISITION)

A                           P. VENKATARAJU
                                   v.
                 SPECIAL TEHSILDAR (LAND ACQUISITION)

                                 DECEMBER 6, 1995

8      [K. RAMASWAMY, FAIZAN UDDIN AND B.N. KIRPAL, JJ.]

            Lalld Acquisitioll Act, 1894 :

          S.4(1)-Acquisitioll of lalld-Compellsatioll-Determillatioll or
    Evidel!ce-Held, cowts should collsider evidel!ce ill proper perspective-
C   Brought up sales should be igllored.

          A large extent of land belonging to the appellant was acquired for
    construction of Vengalarayasagar Project by a Notification under s.4(1) of
    the Land Acquisition Act 1894 published ~n 20th September 1979. The
D   Land Acquisition Officer determined the compensation at the rate
    of Rs. 10,000 per acre. The reference court, relying on the documents dated
    15.12.1976 of a consideration of Rs. 15,000 and Rs. 19,000 per acre .en-
    hanced the compensation to Rs. 22,000 per r.cre. In another matter a Single
    Judge of the High Court confirmed the compensation in respect of neigh-
    bouring lands at the rate of Rs. 22,000 per acre. The Division Bench of the
E   High Court reduced the compensation to Rs. 20,000 per acre. Aggrieved,
    the land-owner filed the present appeal.

            Dismissing the appeal, this Court

          HELD : It is the duty of the court to consider the evidence in proper
F   perspective and to determine the compensation. The Project was in-
    augurated on August 28, 1976, and the documents obviously had been
    brought up for inOating the market valne. The enhancement was, therefore,
    not justified. These facts were not bro11ght to the notice of the Single Judge
    of the High Court when he confirmed the compensation. Under the cir-
G   cumstances, the market value cannot be enhanced. [285-G, 286·A]

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 11906 of
    1995.

         From the Judgment and Order date. 3.3.92 of the Andhra Pradesh
H   High Court in Appeal No. 1766 of 1984.
                                             284
              P. VENKATARAJU v. SPL. TEHSILDAR (L.A)                    285

      K. Ram Kumar for the Appellant                                           A
      T.V.S.N. Chari for the Respondent.

      The following Order of the Court was delivered :

      Leave granted.                                                           B

      Notification under s.4(1) of the Land Acquisition Act, 1894 (for
short, "the Act") acquiring a large extent of land for construction of
Vengalarayasagar Project, West Godavari District of Andhra Pradesh, was
published on September 20, 1979. The Land Acquisition Officer in his           C
award has determined compensation at the rate of Rs. 10,000 per acre for
wet land and had also granted value of the coconut trees. The Subordinate
Judge on reference under s.18(1) enhanced the market value to Rs. 22,000
per acre. He relied upon two sale deeds and Ex. A2, an agreement of sale
dated December 15, 1976, for a large extent of land for a consideration of
Rs. 15,000. One sale deed was executed under Ex.A3 on September 22,            D
1978. Another document, Ex.Al was executed on the same day for a sum
of Rs. 19,800. It has come on record that the project was inaugurated on
August 28, 1976. The lower Court enhanced the compensation to
Rs.22,000 per acre relying upon the above documents. However, in another
matter, a learned single Judge of the High Court by his judgment dated
February 14, 1985 had confirmed the compensation in respect of neigh-
                                                                               E
bouring lands acquired earlier, at Rs. 22,000 per acre. The Division Bench,
however, by the impugned order reduced the compensation to Rs. 20,000.
Thus this appeal by special leave. Unfo.rtunately, the State has not come in
appeal against the enhanced compensation.
                                                                               F
       The only question is whether the appellant is eutitled to compensa-
tion@ Rs. 22,000 per acre. It is seen that when the Project was inaugurated
on August 28, 1976, all these documents obviously had been brought up
for inflating the market value. Unfortunately, all these facts were not
brought to the notice of the learned single Judge when he confirmed the
compensation of the land at the rate of Rs. 22,000 per acre. It is settled G
law that it is the duty of the court to consider the evidence in proper
perspective and to determine the compensation. In each case, the court
sitting in the arm chair of a hypothetical willing purchaser would as a
prudent person offer the market value when the owner offered the land for
sale. Once the project was inaugurated and the lands were acquired, no H
    286                   SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A prudent person would come forward and purchase the same at higher
    rates. It may be depressed sales in case of acute necessity and urgency of
    the seller for money. Under these circumstances, we hold that the sale
    deeds were brought up sales and the enhancement was not justified. We
    do not propose to interfere with the matter and cannot also enhance the
    market value.
B
           The appeal is accordingly dismissed. No costs.

    R.P.                                                    Appeal dismissed.