PAINDER SINGH AND ORS. ETC. ETC.versusUNION OF INDIA ETC. ETC.
- Citation
- 1995 INSC 446
- Decided
- 8 August 1995
- Disposal
- Dismissed
Holding
The fixation of market value under the Stamp Act for stamp duty purposes is irrelevant to the determination of market value under Section 23(1) of the Land Acquisition Act; compensation must be based on evidence of the prevailing market value at the date of acquisition.
Summary
The petitioners sought a further increase in compensation for land acquired under a 1964 notification of the Land Acquisition Act, 1894, arguing that higher awards in adjacent villages and a later award of Rs. 68,000 per bigha should apply. The Supreme Court examined whether a circular issued under Section 48 of the Stamp Act, which fixed a stamp duty value of Rs. 60 per square yard, could be used to determine market value under Section 23(1) of the Land Acquisition Act. The Court held that the stamp duty valuation is a fiscal measure and bears no relevance to the market value required for compensation; the claimant must prove the prevailing market value at the date of acquisition with evidence. Consequently, the reliance of the lower courts on the circular was deemed illegal, and the higher awards in other villages were not determinative. The Special Leave Petitions were dismissed, leaving the compensation at the amount fixed by the High Court.
Issues considered
- Can a circular issued under Section 48 of the Stamp Act for stamp duty purposes be used to determine market value under Section 23(1) of the Land Acquisition Act, 1894?
- Is it permissible to infer the market value for compensation from awards granted in adjacent villages?
- Does a later award for a different notification provide a basis for enhancing compensation in the present case?
Legislation cited
- Indian Stamp Acts. 48
- Land Acquisition Act, 1894s. 23(1), s. 4(1)
Subjects
Judgment
A PAINDER SINGH AND ORS. ETC. ETC.
v.
UNION OF INDIA ETC. ETC.
AUGUST 8, 1995
B [K. RAMASWAMY AND B.L. HANSARIA, JJ.)
Land Acquisition Act, 1894 :
S. 23(1)-<:ompensation-Award of-<:ircular fixing value of land
C under S.48 of Stamp Act-Relevance of in the context of award of compen-
sation under Land Acquisition Act.
A notification under Section 4(1) of the Land Acquisition Act, 1894
acquiring a large extent of land for development of Delhi city was publish-
ed on 6th April, 1964. The Land Acquisition Officer awarded compensation
D @Rs. 5,000 and Rs 4,500 per bigha. On reference, the Civil Court, en-
hanced it to Rs. 7,260 and Rs. 7,000 per bigha respectively. On appeal, the
High Court uniformly enhanced the market value to Rs. 12,000 per bigha.
Hence these Special Leave petitions.
The petitioners contended that for the adjacent lands in village
E
Badarpur and Molarband, the Reference Court and the High Court en-
hanced the compensation to Rs. 43,000 per bigha etc. and so High Court
was not justified in confining the market value to Rs. 12,000 per bigha.
Dismissing the Special Leave Petitions, this Court
F
HELD : 1. Reliance was placed on the circular issued obviously
under Section 48 of the Stamp Act, by the Central Government fixing the
market value for the purpose of registration at Rs. 60 per sq. yard. This
Court has considered the entire gamut of the operation of the relevant
G provisions of Stamp Act and S.23(1) of the Land Acquisition Act and held
that the fixation by the Government of the amount under Stamp Act for
fiscal purpose bears no relevance to determine the market value under
Section 23(1) of the Act. The claimant aliunde needs to establish the
prevailing market value as on the date of the notification under Section
4(1) by adduction of evidence to prove that the acquired land and the land
H covered by sale transactions bear similar or same potentialities or ad-
572
PAINDERSINGH v. U.O.I. 573
vantageous features. The courts below have relied only on the circular A
issued by the Government for fiscal purpose, viz., for stamp duty. The
contra view taken by the High Court in that behalf is clearly illegal and
the same cannot form basis for further enhancement. [574-A-D]
2. The judgment of the High Court in relation to the notification
dated 5th July, 1973 in which the compensation was awarded @Rs. 68,000 B
per bigha for village Tughlakabad, is of little assistance as it is also
founded upon the circular issued by the Government on 26th March, 1966
and relates to a noti.fication issued after about 10 years of the notification
at hand. [574-E]
CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
c
No. 32 of 1990.
From the Judgment and Order dated 22.8.89 of the Delhi High Court
in RF.A. No. 52 of 1989.
D
L.C. Chechi and Serva Mitter for the Petitioners.
Ms. Indra Sawhney for S.A. Matto for the Respondents.
The following Order of the Court was delivered :
E
The notification under Section 4 (1) of the Land Acquisition Act,
1894 (for short, 'the Act') acquiring a large extent of land for development
of Delhi city was published on 6th April, 1964. The Land Acquisition
Officer awarded compensation @Rs. 5,000 and Rs. 4,500 per bigha by his
award No. 87of1980-81. On reference, the Civil Court, viz., the Additional
District Judge, enhanced it by his award and decree dated 30th August, F
1983 to Rs. 7,260 and Rs. 7,000 per bigha respectively. On appeal, the High
Court by the impugned judgment dated 22nd August, 1989 made in RF.A.
No. 52/89 and batch uniformly enhanced the market value to Rs. 12,000
per bigha. Feeling aggrieved, this petition has been filed for further enhan-
cement to Rs. 25,000 per bigha. G
The learned counsel for the petitioners states that these lands relate
to village Madanpur Khadar. He contends that for the adjacent lands in
village Badarpur and Molarband, the Reference Court and the High Court
enhanced the compensation to Rs. 43,000 per bigha etc. Therefore, the
High Court was not justified in confining the market value to Rs. 12,000 H
574 SUPREME COURT REPORTS [1995) SUPP. 2 S.C.R.
A per bigha.
We have gone through the judgments in those cases. Reliance was
placed on the circular, issued obviously under Section 48 of the Stamp Act,
by the Central Government fixing the market value for the purpose of
registration at Rs. 60 per sq. yard. This Court has considered the entire
B gamut of the operation of the relevant provisions of Stamp Act and S.23
(1) of the Act and held that the fixation by the Government of the amount
under Stamp Act for fiscal purpose bears no relevance to determine the
market value under Section 23(1) of the Act. The claimant aliunde need to
establish the prevailing market value as on the date of the notification
C under Section 4(1) by adduction of evidence to prove the acquired land
and the land covered by sale transactions bear similar or same potentialities
or advantageous features. The courts below have relied only on the circular
issued by the Government for fiscal purpose, viz., for stamp duty. The
contra view taken by the High Court in that behalf is clearly illegal and the
same cannot form basis for further enhancement. De hors the above
D judgment, there is no other evidence to enhance further compensation.
Learned counsel for the petitioners also relied on the judgment of
the High Court in relation to the notification dated 5th July, 1973 in which
the compensation was awarded Rs. 68,000 per bigha for village Tugh-
lakabad. That is also founded upon the circular issued by the Government
E
on 26th March, 1966 referred to earlier and relates to a notification issued
after about 10 years of the notification at hand. So this judgment also
renders little assistance.
Accordingly, the special leave petitions are dismissed.
G.N. Petition dismissed.
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