1974 (8) TMI 127 - HC - Indian Laws

Summary

Issues Involved
1. Determination of the market value of the land acquired.
2. Validity of the notifications under Sections 4 and 6 of the Land Acquisition Act.
3. Procedural errors in the issuance of notices under Section 9 of the Land Acquisition Act.
4. Assessment of potential value and compensation for the acquired land.
5. Admissibility and relevance of sale transactions as evidence.
6. Burden of proof in determining the market value.

Detailed Analysis

1. Determination of the Market Value of the Land Acquired
The principal question was the determination of the market value of the land acquired on the date of notification under Section 4(1) of the Land Acquisition Act. The Land Acquisition Officer initially made the award based on a multiple per rupee rental, considering the agricultural lands' market value at Rs. 2,000/- to Rs. 3,000/- per acre. However, the Additional District Judge valued the land as a building site, considering the proximity to the abadi and other amenities, and divided the land into two categories, valuing the first category at Rs. 12,000/- per acre and the second at Rs. 7,000/- per acre.

2. Validity of the Notifications under Sections 4 and 6 of the Land Acquisition Act
The court found no invalidity attached to the notifications under Sections 4 and 6 of the Land Acquisition Act. The crucial date for determining the market value was the date of the publication of the notification under Section 4(1) of the Act, i.e., the 4th December 1959.

3. Procedural Errors in the Issuance of Notices under Section 9 of the Land Acquisition Act
The Land Acquisition Officer initially erred by not issuing fresh notices under Section 9 after the publication of the notification under Section 6. This led to the quashing of the previous awards. However, the procedural errors were rectified in the subsequent proceedings, and the third award made on the 4th August 1969 was not challenged on procedural grounds.

4. Assessment of Potential Value and Compensation for the Acquired Land
The Additional District Judge considered the land's potential value as a building site due to its proximity to the abadi and other amenities. The claimants argued for a higher valuation, while the Government contended for a lower valuation based on agricultural use. The court ultimately determined the market value based on comparable sales and potential value, fixing the value at Rs. 5,500/- per acre for lands contiguous to the Uttai-Durg Road, Rs. 4,800/- per acre for lands close to Kasaridih abadi, and Rs. 4,400/- per acre for interior lands.

5. Admissibility and Relevance of Sale Transactions as Evidence
The court scrutinized the sale transactions presented by both parties. The claimants' evidence was found unhelpful as the sales were not comparable due to differing conditions and amenities. The Government's evidence was also questioned due to potential collusion. Ultimately, the court admitted additional evidence, including sale-deeds from previous proceedings, to determine the market value accurately.

6. Burden of Proof in Determining the Market Value
The burden of proving that the valuation made by the Land Acquisition Officer was insufficient and unfair was on the claimants. The court emphasized that the claimants' position was that of a plaintiff, and they failed to discharge the onus of proving the market value satisfactorily.

Conclusion
The court concluded that the lands must be valued on an acreage basis, with the market value fixed at Rs. 5,500/- per acre for lands contiguous to the Uttai-Durg Road, Rs. 4,800/- per acre for lands close to Kasaridih abadi, and Rs. 4,400/- per acre for interior lands. The appeals were disposed of accordingly, with the State's appeal allowed and the claimants' appeal dismissed. The direction as to interest was maintained.