Summary
The Supreme Court restored compensation of ₹120 per square yard, with statutory benefits, for land acquired under the Parishad’s 26 June 1982 notification. The High Court had wrongly adopted ₹297 per square yard from awards involving later acquisitions or different locations without establishing comparability. Market value required evidence proximate to the relevant notification and land, with appropriate deductions for small-plot exemplars and regard to existing potentiality. The comparable sales supported the Reference Court’s valuation.
Issues
- Whether compensation for later or differently situated acquisitions could determine market value for the 1982 Parishad acquisition.
- Whether the sale exemplars and evidence of potentiality justified enhancement from ₹120 to ₹297 per square yard.
Provisions considered
- Section 23(1), first clause; Section 24, fifth and sixth clauses, Land Acquisition Act, 1894Valuation was anchored to the preliminary-notification date and excluded increases attributable to the acquisition scheme; later transactions and awards required careful scrutiny for comparability. (¶¶ 20, 25-33, 39-43)
Held
- Market value reflects what a prudent willing purchaser would pay at the relevant notification date, considering the land’s condition, advantages and reasonable potentiality. Guesswork must have an evidential foundation; proximity to Delhi alone did not establish comparability with other villages. (¶¶ 20-32, 35)
- Small-plot sale prices required suitable deduction when valuing a large acquired area. The deductions used for the pertinent Sahibabad and Jhandapur sales were reasonable, and the resulting ₹120 per square yard was appropriate on the evidence. The Court did not prescribe a universal deduction rate. (¶ 28-33)
- The High Court conflated distinct acquisitions and ignored the material time gap. Compensation based on notifications four or five years later, and awards for other locations without demonstrated inter-village proximity, could not supply the claimed parity. No additional evidence establishing a better comparison was produced after remand. (¶¶ 13, 34-43)
- Neither the sale deeds nor the cited judicial orders justified enhancement to ₹297 per square yard. The Reference Court’s award of ₹120 per square yard, together with statutory benefits, was restored. (¶ 43-44)
Result
Appeals allowed. High Court enhancement set aside; Reference Court compensation of ₹120 per square yard with statutory benefits restored.