Summary
The Supreme Court enhanced compensation for land acquired for expansion of an industrial estate to Rs.18,900 per gunta. The land’s developed surroundings, road access, building potential and adjacent sale exemplars supported a gross value of Rs.21,000 per gunta, subject to a 10% development deduction. Compensation and statutory benefits were to be recalculated and paid within three months. The connected appeal received the same terms.
Issues
- Whether the High Court justifiably reduced the Reference Court’s valuation and imposed a 30% development deduction.
- What market value and consequential payment directions were appropriate on the evidence.
Held
- The acquisition officer’s findings established building potential, a developed urban setting, proximity to factories and housing colonies, and main-road access. Ten adjacent sale exemplars further supported the valuation. (¶¶ 13, 14, 16, 17)
- The High Court had no justifiable basis to reduce the gross value to Rs.14,500 per gunta and then deduct 30%. On the total evidence, the proper gross value was Rs.21,000, with a 10% development deduction yielding Rs.18,900 per gunta. (¶¶ 18, 19, 20)
- The authorities must recalculate compensation and the other statutory benefits on that rate, verify entitlement and pay the total within three months. (¶¶ 20, 21)
- The connected appeal, in which compensation had been reduced on parity with the adjoining acquisition, was disposed of on the same terms. (¶ Connected appeal, unnumbered concluding paragraphs)
Result
Principal appeal allowed and High Court order set aside. Compensation fixed at Rs.18,900 per gunta plus recalculated statutory benefits, payable within three months. Connected appeal disposed of on the same terms.