Supreme Court Dismisses Appeal by U.P. Avas Evam Vikas Parishad in Land Acquisition Compensation Case. Market Value Fixed at Rs.99 per sq. yard Upheld as Just and Reasonable Based on Comparable Sale Deeds and Location of Land.

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Case Note & Summary

The case pertains to the acquisition of land by U.P. Avas Evam Vikas Parishad (the appellant) under the Land Acquisition Act, 1894 for a housing scheme. The notification under Section 4(1) was issued on 29.9.1979, and the declaration under Section 6 was made on 20.12.1980. The Land Acquisition Officer passed an award on 11.10.1984, fixing compensation at Rs.29.08 per sq. yard. Dissatisfied, the respondents-claimants sought a reference under Section 18 to the Civil Court. The Reference Court (District Judge, Bulandshahr) in L.A.R. No.128 of 1987 enhanced the compensation to Rs.99 per sq. yard by judgment dated 19.12.1994, along with statutory benefits. The appellant filed a First Appeal before the Allahabad High Court, which was dismissed on 19.01.2010 without re-appreciating the evidence. The appellant then appealed to the Supreme Court. The Supreme Court noted that the High Court had not re-appreciated the evidence as required in a First Appeal. However, considering that the notification was issued as early as 1979, the Court decided to examine the evidence itself rather than remit the matter. The Court observed that the Land Acquisition Officer had admitted that the acquired land was adjacent to Abadi and suitable for residential houses, and spot inspection revealed residential and commercial buildings nearby. Sale deeds prior to the notification showed market values ranging from Rs.100 to Rs.200 per sq. yard. The Reference Court, after considering the evidence, fixed the market value at Rs.99 per sq. yard. The Supreme Court held that this fixation was just, reasonable, and represented the true market value as on the date of the Section 4(1) notification. Consequently, the appeals were dismissed.

Headnote

A) Land Acquisition - Compensation - Market Value - Section 4(1), Land Acquisition Act, 1894 - The Supreme Court upheld the market value fixed by the Reference Court at Rs.99 per sq. yard for land acquired under a housing scheme, considering sale deeds of comparable lands ranging from Rs.100 to Rs.200 per sq. yard prior to the notification, and the location of the land within municipal limits near residential and commercial buildings. Held that the fixation was just and reasonable (Paras 8-10).

B) Land Acquisition - First Appeal - Re-appreciation of Evidence - Section 54, Land Acquisition Act, 1894 - The High Court dismissed the First Appeal without re-appreciating the evidence, but the Supreme Court, instead of remitting the matter, examined the evidence itself due to the age of the case (notification dated 29.9.1979). Held that the High Court's failure to re-appreciate evidence did not warrant interference as the Reference Court's findings were supported by evidence (Paras 8-10).

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Issue of Consideration

Whether the High Court erred in dismissing the First Appeal without re-appreciating the evidence on record, and whether the market value fixed by the Reference Court at Rs.99 per sq. yard is just and reasonable.

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Final Decision

The Supreme Court dismissed all the appeals, upholding the market value fixed by the Reference Court at Rs.99 per sq. yard along with statutory benefits. The Court held that the fixation was just, reasonable, and represented the true market value as on the date of the Section 4(1) notification.

Law Points

  • Land Acquisition
  • Compensation
  • Market Value
  • Reference Court
  • First Appeal
  • Re-appreciation of Evidence
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Case Details

2021 LawText (SC) (2) 58

Civil Appeal No. 2562 of 2019 (@ SLP(C) No. 14973 of 2010) and connected appeals

2019-02-26

R. Banumathi, R. Subhash Reddy

U.P. Avas Evam Vikas Parishad

Ganga Saran (Dead) Through LRs. and Ors.

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Nature of Litigation

Civil appeal against dismissal of First Appeal by High Court in land acquisition compensation matter.

Remedy Sought

Appellant sought setting aside of High Court judgment dismissing its First Appeal and reduction of compensation fixed by Reference Court.

Filing Reason

Appellant aggrieved by High Court's dismissal of its First Appeal without re-appreciating evidence and by Reference Court's enhancement of compensation to Rs.99 per sq. yard.

Previous Decisions

Land Acquisition Officer awarded Rs.29.08 per sq. yard on 11.10.1984; Reference Court enhanced to Rs.99 per sq. yard on 19.12.1994; High Court dismissed First Appeal on 19.01.2010.

Issues

Whether the High Court erred in dismissing the First Appeal without re-appreciating the evidence on record. Whether the market value fixed by the Reference Court at Rs.99 per sq. yard is just and reasonable.

Submissions/Arguments

Appellant argued that the High Court dismissed the First Appeal without re-appreciating evidence, warranting setting aside of the impugned judgment. Respondents argued that the compensation fixed by the Reference Court was just and reasonable, supported by documentary evidence of sale deeds showing higher values, and that the matter was old (notification from 1979).

Ratio Decidendi

In land acquisition cases, the market value fixed by the Reference Court based on comparable sale deeds and location evidence, even if the High Court fails to re-appreciate evidence in a First Appeal, can be upheld by the Supreme Court if the evidence supports the fixation as just and reasonable. The Court may examine the evidence itself instead of remitting the matter, especially in old cases.

Judgment Excerpts

It is true that though the appeal preferred by the appellant before the High Court is the First Appeal, the High Court has dismissed the same without appreciating evidence on record. Market value fixed by the Reference Court at Rs.99/- per sq. yard is just, reasonable and represents the true market value, as on the date of Section 4(1) Notification.

Procedural History

Notification under Section 4(1) of Land Acquisition Act, 1894 issued on 29.9.1979; declaration under Section 6 on 20.12.1980; Land Acquisition Officer passed award on 11.10.1984 fixing compensation at Rs.29.08 per sq. yard; respondents sought reference under Section 18; Reference Court (District Judge, Bulandshahr) in L.A.R. No.128 of 1987 enhanced compensation to Rs.99 per sq. yard on 19.12.1994; appellant filed First Appeal No.354 of 1995 before Allahabad High Court, which was dismissed on 19.01.2010; appellant filed SLP(C) No.14973 of 2010 before Supreme Court, which was converted to Civil Appeal No.2562 of 2019 and decided on 26.02.2019 along with connected appeals.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 6, Section 18, Section 54
  • Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965:
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