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Supreme Court of India

ADAVALA SATHAIAH AND ORS.versusTHE SPECIAL DY. COLLECTOR, LAND ACQUISITION UNIT I AND ORS.

Citation
1996 INSC 1388
Decided
26 November 1996
Disposal
Appeal(s) allowed

Holding

Compensation for land acquired under the Land Acquisition Act, 1894 must be fixed at the prevailing market value of the agricultural land, here uniformly set at Rs 6,000 per acre.

Summary

The Supreme Court heard an appeal by special leave against the Andhra Pradesh High Court’s order remanding a compensation dispute for 71 acres of agricultural land acquired for the National Thermal Power Corporation. The Land Acquisition Officer had initially awarded Rs 4,000 and Rs 4,500 per acre for two groups of land, which a subordinate judge later enhanced to Rs 10,000 and Rs 11,500 per acre. The High Court set aside the enhancement and sent the matter back for reconsideration. The Court examined the prevailing market value of the agricultural lands, which ranged between Rs 6,000 and Rs 6,500 per acre, and held that compensation must reflect this market value. Consequently, it fixed a uniform compensation of Rs 6,000 per acre for all the acquired lands. The appeal was allowed and no costs were awarded.

Issues considered

  • What is the proper basis for determining compensation under the Land Acquisition Act, 1894 for agricultural land?
  • Can a lower court enhance the compensation awarded by the Land Acquisition Officer beyond the market value?
  • Should lands classified in different groups receive different compensation rates when their market values are similar?

Legislation cited

Subjects

Land acquisitionCompensationMarket valueAgricultural landNational Thermal Power CorporationUniform compensationSupreme CourtAppeal

Judgment

                   ADAVALA SATHAIAH AND ORS.                                   A
                                       v.
                  THE SPECIAL DY. COLLECTOR,
                LAND ACQUISITION UNIT I AND ORS.

                           NOVEMBER 26, 1996
                                                                               B
             [K. RAMASWAMY AND G.T. NANAVATI,JJ.]

        Land Acquisition Act, 1894 :

       La11d acquisition-Compensation-Detem1i11ation of-Land acqulSl- C
tion for erection of National 1hennal Power Corporation-Award for com-
pensation by Land Acquisition Officer @ Rs. 4000 and Rs. 4500 per acre for
Group l and Group II respectively-Enhancement of compensatio11 by Ref-
erence Court to Rs. 10, 000 and Rs. 11, 500 for Group I and II respectivelr
High Cowt remanded the matter to T1ial Court for reconsideration- Ap-
peal-Held, all the la1tds were agricultural lands at the time of acquisition D
and their prevaili11g market value varies betwee11 Rs. 6, 000 to Rs. 6,500 per
acre-Held, just a11d proper compe11satio11 in the circumstances would be @
Rs. 6000 per acre unifom1ly for all the lands.

        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 15487 of E
1996.

     From the Judgment and Order dated 3.3.92 of the Andhra Pradesh
High Court in A. No. 2660 of 1985.

        A. Subba Rao and Annam Q.N. Rao for the Appellants.
                                                                               F
        K.C. Dua and G. Prabhakar for the Respondents.

        The following Order of the Court was delivered :

      Respondent Nos. 2, 3, 5, 6, 11 to 14 and 18 have, left their respective · G
places without any instructions as per endorsement made by the Postal
authorities. Under these circumstances, notice on them is not necessary.
Regarding respondent Nos. 4, 7 to 10, 15 to 17 and 19 to 20, it is stated
that neither unserved envelops nor AD. Cards have been received back by
the Registry. Under these circumstances, they must be deemed to have
been served. Even though the petitioners succeed, these respondents can- H
                                    209
    210                    SUPREME COURT REPORTS (1996) SUPP. 9 S.C.R.
A not get the same benefit because they did not challenge the award. They
    being pro forma respondents, notice on them is not necessary.

          Leave granted.
                ' <<<
          Heard learned counsel on both sides.
B
        This appeal by special leave arises from the judgment and decree of
  the A.P. High Court, made on March 3, 1992 in the Appeal NO. 2660/85.
  A notification under Section 4(1) of the Land Acquisition Act, 1894 was
  published on D~cember 8, 1979, acquiring 71 acres 12 cents of land for the
  public purpose, namely, erection of National Thermal Power Corporation.
C The Land Acquisition Officer awarded Rs. 4000 and Rs. 4500 per acre for
  Group I and Group II of the lands. On reference, the subordinate Judge
  enhanced the compensation tO Rs. 10,000 and Rs. 11,500 per acre for
  Group I and Group II respectively. On appeal, the High Court set aside
  the judgment and remanded the matter to the trial court for reconsidera-
D tion. Thus ·this appeal by special leave.
         It is seen that all the lands were agricultural lands at the time of
  acquisition and their prevailing market value varies between Rs. 6,000 to
  Rs. 6,500 per acre. Under these circumstances, it would be just and proper
  if the compensation is fixed at Rs. 6,000 per acre uniformly to all the lands.
E It is ordered accordingly.
          The appeal is allowed. No costs.

    T.N.A.                                                     Appeal allowed.


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