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Supreme Court of India

UNION OF INDIA ETC. ETC.versusSUNIL CHANDRA SAHA AND ANR. ETC. ETC.

Citation
1995 INSC 413
Decided
25 July 1995
Disposal
Disposed off

Holding

Beneficiaries must be given notice and a chance to adduce evidence; the award and decree are set aside and the matter remitted to the reference court for determination of market value.

Summary

The Union of India appealed against the award and decree confirming acquisition of land belonging to Sunil Chandra Saha and others under the Land Acquisition Act, 1894. The appellants argued that they were not given notice or an opportunity to present evidence to rebut the claimed market value of the land at the time of notification. The Supreme Court held that the beneficiaries are entitled to notice and participation in the award inquiry and that no admissible evidence on market value had been produced by either the claimants or the acquisition officer. Consequently, the award and decree were set aside. The matter was remitted to the reference court, directing the parties to appear on 28 August 1995 and to present evidence to determine the true market value, with a disposal deadline of three months. The appeal was allowed and the case was remitted for fresh determination.

Issues considered

  • Whether the beneficiaries under the Land Acquisition Act are entitled to notice and an opportunity to be heard in the award inquiry.
  • Whether the award and decree can stand in the absence of admissible evidence establishing market value of the acquired land.
  • Whether the reference court should be directed to determine the correct market value after allowing parties to adduce evidence.
  • Whether the High Court's confirmation of the award can be set aside on these grounds.

Legislation cited

Subjects

Land acquisitionCompensationMarket valueNoticeRight to be heardReference courtAward set asideRemand

Judgment

A                    UNION OF INDIA ETC. ETC.
                                v.
              SUNIL CHANDRA SAHA AND ANR. ETC. ETC.

                                   JULY 25, 1995

B             [K. RAMASWAMY AND K.S. PARIPOORNAN, JJ.]

          Land Acquisition Act. 1894:

          Acquisition-Award-Market Value prevailing on the date of notifica-
C tion-No evidence .let in to supp01t or rebut the same-Matter remitted to
    reference court-Directed to consider and dispose of the matter within three
    months after giving opportunity to all the pmties.

         In these appeals, the award and decree as confirmed by the High
    Court has been challenged.
D
          Setting aside the award and decrees, this Court

          HELD : 1. The appellants-beneficiaries are entitled to a notice and
    participation in the award inquiry as well as in the reference and could
    adduce evidence in rebuttal to the claim of higher compensation. Unfor-
E   tunately, the appellants had no notice nor an opportunity to adduce
    evidence. In the absence of such relevant and material evidence it would
    be difficult to determine compensation in respect of the acquired lands.
    Hence these cases are remitted to the referenc~ court for disposal.·
                                                                    [317-D-F]
F         2. The appellants are directed to appear before the reference court
    on August 28, 1995. Parties are at liberty to adduce such legal evidence as
    is necessary to determine true and correct market value of the land              ,._
    prevailing as on the date of the notification. The reference court is directed
    to consider and dispose of these cases within three months from August
G   28, 1995 after giving opportunity to all the parties. [317-G]

          CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 5559-60
    of 1994.

          From the Judgment and Order dated 27.11.92 of the Assam High
H Court in M.A. (F) No. 8/88 & M.A. (F) No. 175 of 1989.
                                         316
                                  U.0.1. v. S.C. SAHA                         317

                                            And                                      A
             C.A. Nos. 5561-93, 5594-5610/94, 3196/95 & 7208-20/95.

           A.S. Nambiar, L.K. Gupta, T.C. Sharma and Mrs. Anil Katiyar, for
      the Appellants
                                                                                     B
           N.R. Choudhury, Somnath Mukherjee, Sanjay Parikh, T.Sridharan,
      and K.K. Gupta for the Respondents.

             The following Order of the Court was delivered :

             Leave granted in the S.L.Ps.                                            c
            We do not propose to express any opinion on merits. Suffice it to
      state that neither the claimants nor the Land Acquisition Officer had
 ·.   adduced any legally admissible evidence in proof of the market value
      prevailing as on the date of notification or in rebuttal. The appellants-
      beneficiaries are entitled to a notice and participation in the award inquiry D
      as well as in the reference and could adduce evidence in rebuttal to the
      claim of higher compensation. Unfortunately, the appellants had no notice
      nor an opportunity to adduce evidence. Both the claimants and the Land
      Acquisition Officer merely marked the sale deeds without examining either
      the vendor or the vendee to bring on record the circumstances in which
      the sale deeds came to be executed, the distance of the lands to the ·E
      acquired lands, the nature of the respective lands and whether they would
      offer comparable sales to determine just and fair market value to the
      acquired lands. In the absence of such relevant and material evidence it
      would be difficult to determine compensation in respect of the acquired
      lands. The appeals are allowed accordingly. The award and decree of the
      Reference Court as confirmed by the High Court stand set aside. The cases F
      are remitted to the reference court for disposal.

           The appellants are directed to appear before the reference court on
      August 28, 1995. Parties are at liberty to adduce such legal evidence as is
      necessary to determine true and correct market value of the land prevailing
      as on the date of the notification. The reference court is directed to G
      consider and dispose of these cases within three months from August 28,
      1995 after giving opportunity to all the parties.

             No costs.

.·    G.N.                                                            Disposed of.


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