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1996 (1) TMI 446

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..... both sides, we are satisfied that manifest errors of law have been committed in this case. Consequently, all the orders passed by this Court are set aside; contempt petition and the interlocutory applications are dismissed; and the main appeal is revived. We have heard the counsel on both sides on merits. Notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, the Act ) and Section 17(4), dispensing with the enquiry under Section 5A was published on March 8, 1973 acquiring land measuring 0.23 acres for setting up a pumping station to drain out flood water from low lying areas of Buster Palace, Ziamou. The acquired lands bear plot Nos. 97 to 100. Declaration under Section 6 was published on October 9, 1973. Possess .....

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..... Shri Gopal Subramanyam, the learned senior counsel, who has sought for and granted 15 adjournments on the ground that matter is being settled, has informed the Court that the settlement has not been reached and it is under process. He has sought further extension of time. Since the case has been adjourned several times, we are not inclined to adjourn the case. In his usual fairness, he has stated that he does not stand on technicalities. The respondent has purchased the land in question. The acquisition covered about 10,000 square feet in addition, the respondent had purchased another 5,000/- square feet which was also taken possession of by the respondent under the notification but the same does not from part of the acquisition. He contend .....

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..... Section 9possession was taken, since urgency was acute, viz., pumping station house was to be constructed to drain out flood water. Consequently, the land stood vested in the State under Section 17 [2] free from all encumbrances. It is further settled law that once possession is taken, by operation of Section 17(2), the land vests in the State free from all encumbrances unless a notification under Section 48(1) is published in the Gazette withdrawing from the acquisition. Section 11A, as amended by Act 68 of 1984, therefore, does not apply and the acquisition does not lapse. The notification under Section 4(1) and the declaration under Section 6, therefore, remain valid. There is no other provision under the Act to have the acquired land di .....

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..... f the acquired land would be determined on the basis of basic valuation register maintained by the Collector for the purpose of levy of stamp duty under the Stamps Act and the method of valuation on that basis is valid in law. This question was considered in extensor in the context of the power of the State under Section 47A of the Stamps Act to fix the basic valuation for stamp duty. After elaborate survey of the amendments made by the State legislature by local amendment to the Stamps Act under Section 47a, this Court had held that the market value shall be determined only on the basis of the evidence adduced by the claimant and in rebuttal thereof by the State, as to the prevailing market value of that particular land. The basic valuatio .....

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..... t the acquired land was not situated in a developed area, while Shri Gopal Subramaniam contended that it is at the corner of a developed area and that, therefore, the land commands higher market value. Even the contention of Gopal Subramaniam of the situation of the land is accepted. The admitted circumstance that can be taken into consideration, is that the land was acquired to establish pump station to drain out flood water in the low-lying area. In other words, as on 1973, the lands were not in a developed condition and that the lands are near the submerged area and the acquisition is to set up pump station to drain out flood water. It would be obvious that in course of time, there would be development and as in 1992, the area might have .....

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..... es, we are of the considered view that no useful purpose would be served by remitting the case to the High Court or by directing the Land Acquisition Officer to determine compensation. We are of the view that the respondents would be entitled to a total compensation of ₹ 25,000/-. The respondent is also entitled to interest @ 6% from the date of taking possession till the date of deposit of the amount in the Court. The respondent is also entitled to 15% solatium on ₹ 25,000/- determined as compensation. The appellant is directed to deposit the said amount within six months from the date of the receipt of this order. If possession of any land in excess of the land covered by Section 4 [1] has been taken, our order would not cover .....

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