SHIMLA DEVELOPMENT AUTHORITY AND ORSversusSMT. SANTOSH SHARMA AND ANR.
- Citation
- 1996 INSC 1380
- Decided
- 22 November 1996
- Disposal
- Dismissed
Holding
A deduction of 40% of the compensation towards development charges is reasonable and the High Court's order is affirmed.
Summary
The case concerned land acquired under the Land Acquisition Act, 1894 where the acquisition officer initially fixed compensation at Rs 40,000 per bigha. The District Judge enhanced the amount to Rs 1,00,000 per bigha, but the High Court, on appeal, deducted 40 % of the enhanced compensation as development charges, in line with earlier decisions. The appellants contended that the deduction should be between 30 % and 40 % and that a fixed 40 % deduction may not be appropriate. The Court examined the precedent that a deduction of up to 40 % is permissible depending on location and development needs. It held that a 40 % deduction was reasonable in the present case and affirmed the High Court’s order. Consequently, the appeal was dismissed.
Issues considered
- Whether a deduction of 40% of the compensation awarded for land acquisition towards development charges is permissible under the Land Acquisition Act, 1894.
Legislation cited
- Land Acquisition Act, 1894s. 4(1)
Subjects
Judgment
SHIMLA DEVELOPMENT AUTHORITY AND ORS A
v.
SMT. SANTOSH SHARMA AND ANR.
NOVEMBER 22, 1996
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.] B
Land Acquisition Act, 1894:
Land Acquisitio11-Compensatiolt-Deduction of development char-
ges-Extent of-Compensation awarded by Land Acquisition Officer @ Rs. C
40,000 per bigha-Reference Court enhanced the compensation to Rs.
1,00,00()-{)eduction of 40% towards developmelll charges-Held, valid.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 15550 of
1996.
D
From the Judgment and Order dated 5.1.90 of the Shimla High Court
in R.F.A. No. 11 of 1988.
H.K. Puri for Naresh Kr. Sharma for the Appellants.
The following order of the Court was delivered : E
Leave granted.
Notice was sent to the respondents as early as on July 25, 1991 but
neither the unserved notice nor the acknowledgement cards have so far
been received from the respondents. So notice must be deemed to have F
been on them.
Notification under Section 4(1) of the Land Acquisition Act, 1894
was published on 23.1.1986 acquiring land situated at Patti Rihana I and
II and Kasumpti Junga of Tehsil & District Shimla. The Land Acquisition G
Officer awarded the compensation at the rate of Rs. 40,000 per bigha. On
reference, the District Judge enhanced the compensation to Rs. 1,00,000.
• On aPPeal, the High Court after deducting 40% of the compensation
awarded towards development charges, has confirmed the same in the
impugned judgment. Shri H.K. Puri, learned counsel for appellants con-
tended that in several judgments, this Court has confirmed deduction upto H
171
172 SUPREME COURT REPORTS (1996) SUPP. 9 S.C.R.
A 40% of the compensation towards development charges and that, there-
fore, the same ratio would be maintained in all the cases. In some cases
this Court has pointed out that depending upon the location of the land
and development needed, deduction between 30% to 40% was proper and
was approved. In this case the Division Bench has accepted this :
B I am of the view a deduction of the 40% would be reasonable."
We are, therefore, of the view that the High Court has correctly
applied the principle and we find no ground to interfere with it.
The appeal is accordingly dismissed.
c Appeal dismissed.
T.N.A.
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