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1994 (7) TMI 372

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..... Smt. Phulma widow of Khem Chand v. Land Acquisition Collector) in which evidence was recorded. RFA No. 112 of 1985 has arisen out of Reference Petition No. 11-S/4 of 1984, whose record we have perused for deciding these appeals. 3. The acquired land is situated in two villages, namely, Bara and Barog. For its acquisition, Notification under Section 4 of Land Acquisition Act (hereinafter called the Act) was issued on 3-12-1979. The Land Acquisition Collector gave two separate awards dated 30-7-1982 and 31-7-1982 for villages Bara and Barog. He had assessed the market value of the land on the basis of five years average sale price. His assessment of market value for different kinds of land in village Bara was:-- Bangar Awal ₹ 4308/- per bigha. Bangar Doam ₹ 2847/- per bigha. All other types ₹ 500/- per bigha. and for village Barog was:-- Bangar II. Ill ₹ 8712/- per bigha. Bangar Kadim ₹ 1734/- per bigha. Ghasni ₹ 525/-per bigha. Gair Mumkin R. 500/- per bigha. 4. Being dissatisfied with the awards of Land Acquisition Collector, the landowners filed reference p .....

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..... was of Ghasni land was sold for a consideration of ₹ 4,000/-and Ext. PW-8/B is another registered sale deed dated 31-3-1979 for sale of 2 biswas of Ghasni land for an amount of ₹ 3,000/-. These two sale transactions have been proved by Tulsi Devi (PW-8) vendor and Karam Singh (PW-9) vendee in sale deed Exhibit PW-8/B. The District Judge has kept in view that these sale transactions pertain to land situated in Kumar Haiti, which is at a distance of about 2-3 kilometers from the acquired land and has given adjustment to this factor in determining the market value of acquired land. So far sale transaction Exhibit PW-14/A is concerned, though it was effected about 2 years after the notification under Section 4 of the Act, yet, it pertains to village Barog, where the acquired land is situated, as such it has been considered relevant by the District Judge again after giving punishment for the probable rise in market value of the land in village Barog during the period of two years. As per these three transactions, the market value of the land comes to ₹ 20,000/- to ₹ 30,000/- per bigha, whereas, the District Judge has assessed it at ₹ 15,000/- per bigha for .....

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..... learned Counsel appearing for Hari Krishan in R.F.A. No. 108 of 1985, have supported the award of the District Judge that in view of the same potential value of plots of acquired land, the market value has rightly been assessed at flat rate for the whole of acquired land Sh. Bhupender Gupta has taken us through the oral evidence of Hari Krishan (PW-1), Professor A. S. Kashyap (PW-2) and Kapur Singh (PW-3), who have made general statements in respect of yield of per bigha of land by growing vegetables or from the fruit trees planted thereon. There is no reliable and cogent evidence in respect of income, which claimant Hari Krishan was getting from the plot of acquired land belonging to him. On such type of evidence, the market value of the acquired land, could not be assessed on the basis of 'Capitalization of Income Method'. So far fruits trees standing on his land are concerned, compensation was awarded to him by the Land Acquisition Collector, which was found just and reasonable. 10. By now, it is well settled that to determine the market value of the land under Section 23(1) of the Act, sales of the land under acquisition, if any, or the sales of land in the ne .....

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..... for his land in the award is inadequate on the basis of the materials produced in the Court. Of course, the materials placed and proved by the other side can also be taken into account for this purpose. (5) The market value of land under acquisition has to be determined as on the crucial date of publication or the notification under Section 4 of the Land Acquisition Act (dates of Notifications under Ss. 6 and 9 are irrelevant). (6) The determination has to be made standing on the date line of valuation (date of publication of notification under Section 4) as if the valuer is hypothetical purchaser willing to purchase land from the open market land is prepared to pay a reasonable price as on that day. It has also to be assumed that the vendor is willing to sell the land at a reasonable price. (7) In doing so by the instances method, the Court has to correlate the market value reflected in the most comparable instance which provides the index of market value. (8) Only genuine instances have to be taken into account. (Sometimes instances are rigged up in anticipation of Acquisition of ' land.) (9) Even post-notification instances .....

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..... he cross-examination of these witnesses or otherwise on record, to show that these sale transactions were not genuine. It is correct that the plots of land sold by these sale deeds are situated at Kumar Haiti on the national highway, which is at a distance of 2 to 3 Kms. from the plots of acquired land situated in villages Barog and Bara, but distance in space is immaterial in the present case, as the plots of acquired land are also situated adjacent to the national highway and potential value of the plots of land sold by these transactions and the plots of acquired land is found same. Like Kumar Haiti, villages Bara and Barog are also fast developing commercial areas, especially, Barog, which has come up as a place of special attraction for tourists after establishment of tourist complex by Himachal Pradesh Tourism. So far the sale deed Ex. PW-14/ A is concerned, the land sold by it is situated in village Barog and it could provide sure hint of market value of acquired land. Though this land was slopy (Dhank) as admitted by Shankar (PW-14), vendee, yet it could fetch ₹ 20,000/-per bigha on 30th October, 1981, that is, after about one year and ten months from the date of noti .....

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..... ng 'Comparable Sales Method of Valuation of Land' as most favoured method, the learned Judges of Supreme Court have reiterated that :-- ..... the comparable sale must, firstly be genuine, secondly it must have taken place at a time proximate to the date of publication of the preliminary notification under Section 4( 1) of the Act, thirdly the land sold under, the sale must be similar to the acquired land, and fourthly the land sold under the sale must be in the vicinity of the acquired land. It has, therefore, to be noted that the location, size, shape, tenure, user or potentiality of land under comparable sale, if do not compare favourably with the acquired land, price fetched in comparable sale cannot furnish the 'price basis for determining the market value of the acquired land. However, if any differing feature or factor in a land covered by comparable sale admits of adjustment in terms of money, depending on whether it is plus factor or minus factor, the market value of the acquired land is determined either by increasing its price or decreasing its price vis-a-vis the price fetched for land under comparable sale. What applies to comparable sale, equally .....

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