AHSANUL HODAversusSTATE OF BIHAR

                       [2013] 8 S.C.R. 312


A                       AHSANUL HODA
                                v.
                        STATE OF BIHAR
                 (Civil Appeal No.5311 of 2012)
                          JULY 1, 2013
B
            [G.S. SINGHVI AND SUDHANSU JYOTI
                    MUKHOPADHAYA, JJ.]

        Land Acquisition Act, 1894 - Acquisition of land -
C Compensation - High Court reduced compensation awarded
  to claimant-appellant, by fixing lower market rate of the land
  and set aside the part of the order passed by the Reference
  Court granting Rs.10,0001- towards damages of standing
  crops- Justification - Held: On facts, not justified -
D Determination of market value by High Court was not based
  on any evidence but on mere presumption and surmises -
  High Court set aside compensation towards damages of
  standing crops by wrongly placing reliance on the statement
  of an Officer of the State (OP-W-1 ), who was posted elsewhere
E at the time of acquisition of the land - Order passed by the
  High Court set aside and the award passed by the Reference
  Court restored.

       The High Court, vide the impugned order, reduced
  the compensation awarded to the claimant-appellant, by
F fixing lower market rate of the land and set aside the part
  of the order passed by the Reference Court granting
  Rs.10,000/- towards damages of standing crops.

      The appellant challenged the judgment passed by
G the High Court on the grounds: (i) determination of market
  value was not based on any evidence but on mere
  presumption and surmises; and (ii) that the High Court
  wrongly relied on the statement of OP-W-1, who was
  posted elsewhere at the time of acquisition of the land.
H                            312
        AHSANUL HODA v. STATE OF BIHAR                 313

    Allowing the appeal, the Court                            A

     HELD: 1. This Court in number of cases has taken
judicial notice of the fact that there is a steady increase
in the market value of the land and has also adopted the
procedure for determining the increased market value
                                                              B
and relied upon the transaction at a given rate per year.
[Para 16] [319-C]

     General Manager, Oil and Natural Gas Corporation
Limited vs. Rameshbhai Jilvanbhai Patel and Another (2008)
14 SCC 745: 2008 (11) SCR 927; SardarJoginderSingh vs.        C
State of Uttar Pradesh and Another (2008) 17 SCC 133 -
relied on

    2. Mere reliance made by a Court on sale deeds of
smaller residential area for determination of market value    0
of larger agricultural area will not render the
determination illegal until and unless it is shown that the
determination was not proper. [Para 19] [320-D-EJ

    Haridwar Development Authority vs. Raghubir singh and
Others (2010)11 SCC 581: 2010 (2) SCR 201 - relied on.        E

     3. In the instant case, as the sale-deeds relied upon
by the Reference Court (Ext.1 and Ext.11b) were in
relation to smaller plots, deduction of 37% was made by
the Reference Court and thereafter, by allowing               F
appropriate 10% increase in the value of the land from
the date of the sale deeds upto the date of Notification
under Section 4 of the Act, the Reference Court arrived
at a figure of Rs.250/- per decimal. The High Court while
arriving at figure of Rs. 100/- per decimal considered only   G
the fact that the sale deeds relied upon were in relation
to smaller plots and those sale deeds(Ext.1 and Ext.1/b)
were related to homestead land and hence fixed Rs.
10,0001- per acre as compensation. It completely failed to
consider the increase in price of land and the deduction
                                                              H
    314     SUPREME COURT REPORTS              [2013] 8 S.C.R.


A made by the High Court is nearly 75% which is not in
  accordance with law. As Ext.1 and Ext.1/b which were
  related to smaller area, were the only sale deeds available
  for comparison, the same were relied upon by the
  Reference Court, but the High Court erred completely in
s disregarding the said sale-deeds and thus arrived at a
  finding of Rs.100/- per decimal as market value on mere
  presumption and surmises. The High Court also
  committed error in holding that the sale deeds (Ext.1 and
  Ext.1/b) relate to homestead land. No citation was found
c in Ext.1 showing the land as homestead land. On the
  other hand Ext.1/b specifically cites that the land is an
  agricultural land for which the annual revenue rent of
  Rs.25 is payable. [Paras 20, 21] [320-F-H; 321-A-B, D-E]

         4. The High Court disregarded the evidence adduced
D   by the claimants in its entirety without any reason;
    however, it relied on evidence of an officer of the State
    (OP-W-1) and set aside the compensation in relation to
    the standing crops. The Reference Court has clearly
    recorded in its order that the said State Officer was not
E   posted in that area at the time of acquisition and his
    knowledge was limited to the official record. The fact that
    the Collector had not allowed any amount towards
    damage of standing crops and that no such amount is
    mentioned in the Khatiyan does not mean that no
F   standing crop was there at the time of taking possession
    of the land. On the contrary, the witnesses AW-1 to AW-
    5 appeared and supported the statement of claimant that
    at the time of the possession, standing crops were there
    which were damaged causing loss to the extent of
G   Rs.10,000 to Rs. 12,000/-. [Para 22] [321-E-G; 322-A]

         5. In view of the finding as recorded above, the order
    passed by the High Court is set aside and the award passed
    by the Reference Court is restored. [Para 23] [322-B]

H
        AHSANUL HODA v. STATE OF BIHAR                    315


                     Case Law Reference:                          A

    2008 (11) SCR 927         relied on             Para 17
    (2008) 11 sec 133         relied on             Para 18
    2010 (2) SCR 201          relied on             Para 19
                                                                  B
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5311
of 2012.

    From the Judgment and Order dated 10.02.2011 of the           ·t.
High Court of Judicature at Patna in First Appeal No. 189 of      c·
2005.

    Gaurav Agrawal for the Appellant.

    Manish Kumar for the Respondent.
                                                                  D
    The Judgment of the Court was delivered by:

     SUDHANSU JYOTI MUKHOPADHAYA, J. 1. This
appeal has been filed by the claimant-appellant against the .
judgment and order of the Patna High Court dated 10.2.2011 E
by which the High Court reduced the compensation awarded
to the claimant, by fixing the lower market rate of the land in
question and set aside the part of the order passed by the
Reference Court granting Rs.10,000/- towards damages of
standing crops.
                                                                  F
      2. Certain lands in Mauja Mothabari, Thana Katoria,
Pargana Sarohi, District Bhagalpur (now Banka) were acquired
for the construction of the Orni-reservoir. Land measuring 3.54
acres of Khata No.111, Khasra No.2925 of same village
belonging to the appellant was also acquired_, The Collector by   G
an award order dated 16.10.1984 fixed the compensation of
Rs.6513.60 for the entire land based on market rate at Rs.16
per decimal. No amount was awarded towards damages of
standing crops.
                                                                  H
    316          SUPREME COURT REPORTS             [2013] 8 S.C.R.


A      3. The Reference Court to which the claims of the land
  owners for higher compensation were referred, determined the
  market value as Rs. 250/- per decimal i.e. Rs. 25,000/- per
  acre. The Reference Court based its decision on two sale
  transactions submitted by the claimant dated 25.11.1980 and
B 16.10.1975 (Ext.1 and Ext.1/b) relating to sale of plots in the
  neighbouring area. Considering the fact that the sale deeds
  were related to small extent of land of nearby village and the
  acquisition was related to a larger extent, the Reference Court
  was of the view that certain percentage could be deducted while
c determining the value of the land in question. However, as sale
  deeds were of the earlier period, after such deduction,
  appropriate increase in the value of the land from the date of
  the sale deed to the date of the Notification under Section 4 of
  the Land Acquisition Act, 1894 (hereinafter referred to as 'the
  Act') was made.
0
       4. The respondent preferred an appeal before the High
  Court. The High Court disposed of the said appeal by
  impugned judgment dated 10.2.2011. The High Court modified
  the judgment of the Reference Court with regard to the market
E value by reducing the market rate from Rs.250/- per decimal
  to Rs.100/- per decimal and set aside the part of the order
  whereby sum of Rs.10,000/- was granted by the Tribunal as
  damages of standing crops.

F      5. During the pendency of the appeal before the High
  Court and after 23 years of the acquisition, the appellant
  received a sum of Rs. 5,69,531/- on 4.7.2007 as per
  determination of the Reference Court and paid a sum of Rs
  56,953/- towards tax. The effect of impugned judgment passed
G by the High Court is that the claimant has to refund part of the
  amount received by the claimant as compensation.

          6. The questions that arise for our consideration are:

           (i)     Whether the market value as fixed by the Tribunal
H                  is excessive as contended by the State of Bihar;
         AHSANUL HODA v. STATE OF BIHAR                   317
       [SUDHANSU JYOTI MUKHOPADHAYA, J.]
      (ii)   Whether the Tribunal rightly compensated the A
             claimant for damages of standing crops.

    ?: The High Court by its impugned judgment modified the
compensation and set aside the part of the order relating to
compensation for standing crops on three counts, namely; (a)
                                                                  8
The sale deeds dated 25.11.1980 (Ext.1) and 16.10.1975
(Ext.1/b) related to smaller area of 25 and 6 Yz decimals of land
respectively; (b) Aforesaid sale deeds do not relate to
agricultural land but homestead land as in the boundary of one
of the sale-deed 'Masjid' and 'road' is shown; (c) OP-W-1, Shri C
Ratneshwar Pd. Singh has stated that there was no crop
standing on the land at the time of the possession.

    8. Learned counsel for the appellant assailed the judgment
passed by the High Court on the following grounds:
                                                                 D
    (i) In the absence of any other evidence except the sale
    deeds (Ext.1 and Ext.1/b), the determination of market
    value is not based on any evidence but on mere
    presumption and surmises.

    (ii) The High Court wrongly relied on the statement of OP- E
    W-1, Ratneshwar Pd. Singh, who was posted elsewhere
    at the time of acquisition of the land. On the other hand,
    the Reference Court decided the quantum of payment
    towards damages of standing crops on the basis of
    evidence on record.                                        F

     9. Learned counsel for the State justified the order passed
by the High Court. It was contended that the compensation with
regard to larger area cannot be determined on the basis of sale
deeds related to smaller area. As the sale deeds at Ext.1 and G
Ext.1/b related to homestead land having shown 'road' or
'masjid' in the boundary, no comparison can be made with the
agricultural land acquired for other purpose.

     10. Before the Reference Court claimant produced seven
witnesses, AW-1 to AW-7 and three sale deeds, Ext.1, Ext.1 /a    H
    318      SUPREME COURT REPORTS                  [2013] 8 S.C.R.


A   and Ext.1/b. On behalf of the State, one witness OP-W-1,
    Ratneshwar Pd. Singh, an assistant to the Land Acquisition
    Officer, Medium Irrigation Project, Bhagalpur and the two
    valuation Khatiyans, Ext. A and A/1 were produced.

B        11. AW-6, the claimant, himself in his deposition stated that
    3.54 acres of his land acquired is 'three fasla' (produced three
    crops in an area) and was irrigated from the Orni river. At the
    time of taking possession by State, potato, wheat and sugar-
    cane were standing crops which were damaged causing a loss
C   of Rs. 10,000/- to Rs.12,000/-. The market value of the land at
    the time of acquisition was between Rs. 50,000/- to            Rs.
    60,000/- per acre. Similar statements were made by other
    witnesses i.e. AW-1 to AW-5. They supported the claim of the
    claimant.

D        12. Kanhaiya Lall Ghosh, A.W.7, a deed writer proved sale
    deeds Ext. 1 dated 25.11.1980, Ext. 1/a dated 6.10.1980 and
    Ext.1/b dated 16.10.1975. He stated that he was the deed writer
    of Exts.1, 1/a and 1/b. By Ext.1/a, Bibi Rahana Sultana and
    others sold 70 decimals of land for consideration of Rs.
E   7,000/- on 6.10.1980. By Ext.1/b dated 16.10.1975, Seikh
    Janual and others sold 6 Y2 decimals of land for consideration
    of Rs. 1500/- .

          13. Ratneshwar Pd. Singh, OP-W-1 deposed before the
F   Reference that the land of the appellant measuring 3.54 acres
    had been acquired by the State vide L.A. Case No. 76/81-82
    and department paid Rs. 5664/- towards value of the land and
    Rs. 849.60 as additional compensation; a sum of Rs. 6513.60
    in total was paid as compensation. He specifically stated that
    he was not posted at the time of acquisition and whatever he
G   stated is based on the official record.

          14. Ext. A and Ext. A/1, valuation Khatiayan mainly contains
    Khata No., Khesra No., area acquired, rate per acre, value of
    the land determined and other statutory benefits provided to one
H   or other claimant. Those Exts. A and A/1 do not show anything
        AHSANUL HODA v. STATE OF BIHAR                     319
      [SUDHANSU JYOTI MUKHOPADHAYA, J.]
about the market value of any land of the village or the nearby    A
village.

     15. The Reference Court, based ·on the:sale deeds Ext.1
and Ext.1 /b and considering the evidence on record,
determined the market value at Rs.250/- per decimal and
                                                                   8
allowed a sum of Rs.10,000/- towards damage of standing
crops.

     16.This Court in number of cases has taken judicial notice
of the fact that there is a steady increase in the market value
of the land and has also adopted the procedure for determining     C
the increased market value and relied upon the transaction at
a given rate per year.

     17. In General Manager, Oil and Natural Gas Corporation
Limited vs. Rameshbhai Jilvanbhai Patel and Another 0
reported in (2008) 14 SCC 745, this Court observed that in the
absence of other acceptable evidence, a cumulative increase
of 10 to 15 per cent is permissible with reference to
acquisitions in 1990. In the decades preceding 1990s, the
quantum of increase was considered to be less than 10 per E
cent per annum.

     18. This Court in Sardar Joginder Singh vs. State of Uttar
Pradesh and Another (2008) 17 sec 133, noticed that the said
case related to acquisition in the year 1979 and relying upon
the award related to an acquisition of 1969 observed that the      F
general increase between 1969-79 can be taken to be around
8-10 per cent per annum. If this increase is calculated
cumulatively, the total increase in 10 years would be around 100
per cent.
                                                                  G
     19. The question relating to the value of larger extent of
agricultural land, if required to be determined with reference to
price fixed for small residential plot, came for consideration
before this Court in Haridwar Development Authority Vs.
Raghubir singh and Others (2010)11 SCC 581. In the said H
    320      SUPREME COURT REPORTS                 [2013] 8 S.C.R.


A   case, this Court held as follows:

          "When the value of a large extent of agricultural land has
          to be determined with reference to the price fetched by
          sale of a small residential plot, it is necessary to make
          an appropriate deduction towards the development cost, ·
B
          to arrive at the value of the large tract of land. The
          deduction towards development cost may vary from 20%
          to 75% depending upon various factors. Even if the
          acquired lands have situational advantages, the
          minimum deduction from the market value of a small
c         residential plot, to arrive at the market value of a larger
          agricultural land, in the usual course, will be in the range
          of 20% to 25%. In this case, the Collector has himself
          adopted a 25% deduction which has been affirmed by the
          Reference Court and the High Court. We, therefore, do
D         not propose to alter it."

         Therefore, it is clear that mere reliance made by a Court
    on sale deeds of smaller residential area for determination of .
    market value of larger agricultural area, the same will not render
E   the determination illegal until and unless it is shown that the
    determination was not proper.

         20. In the instant case, the average value of the sale-deeds
    relied upon by the Reference Court (Ext.1 and Ext.1/b) was Rs.
    401/- at the time of acquisition. Therefore, as the sale-deeds
F   were in relation to smaller plots, the deduction of 37% was
    made by the Reference Court and thereafter, by allowing
    appropriate 10% increase in the value of the land from the date
    of the sale deeds upto the date of Notification under Section 4
    of the Act, the Reference Court arrived at a figure of Rs.250/-
G   per decimal. The High Court while arriving at figure of Rs. 100/
    - per decimal considered only the fact that the sale deeds relied
    upon were in relation to smaller plots and those sale
    deeds(Ext.1 and Ext.1 /b) were related to homestead land and
    hence fixed Rs. 10,000/- per acre as compensation. It
H   completely failed to consider the increase in price of land and
              AHSANUL HODA v. STATE OF BIHAR                         321
            [SUDHANSU JYOTI MUKHOPADHAYA, J.]
     the deduction made by the High Court is nearly 75% which is             A
     not in accordance with law.

          As Ext.1 and Ext.1 /b which were related to smaller area,
     were the only sale deeds available for comparison, the same
     were relied upon by the Reference Court, but the High Court
                                                                     8
     erred completely in disregarding the said sale-deeds and thus
     arrived at a finding of Rs.100/- per decimal as market value
     on mere presumption and surmises. There was no evidence
     on record to arrive at this value and, even if it was a case of
     deduction, the High Court has not given any reason in support C
     of the same.

          21. The High Court also committed error in holding that the
     sale deeds (Ext.1 and Ext.1/b) relate to homestead land, on the
     ground that a 'road' and a 'masjid' has been shown in the
     boundary of one of the exhibits. From the copies of Ext.1 and           D
     Ext. 1/b on record (Annexure P-12 Colly), we find no citation in
     Ext.1 showing the land as homestead land. On the other hand
     Ext.1 /b specifically cites that the land is an agricultural land for
     which the annual revenue rent of Rs.25 is payable.
                                                                          E
           22. The High Court disregarded the evidence adduced by
     the claimants in its entirety without any reason; however, it relied
     on evidence of an officer of the State (OP-W-1) Ratneshwar
     Pd. Singh and set aside the compensation in relation to the
     standing crops. The Reference Court has clearly recorded in
     its order that the said State Officer was not posted in that area F
     at the time of acquisition and his knowledge was limited to the
     official record. The record was silent as to the standing crops.
     The Khatiyans (Ext.A and Ext.-A/1) were also not relating to
-,   standing crops. The fact that the Collector had not allowed any
     amount towards damage of standing crops and that no such G
     amount is mentioned in the Khatiyan does not mean that no
     standing crop was there at the time of taking possession of the
     land. On the contrary, the witnesses AW-1 to AW-5 appeared
     and supported the statement of claimant that at the time of the
                                                                          H
    322      SUPREME COURT REPORTS                [2013) 8 S.C.R.


A   possession, standing crops were .there which were damaged
    causing loss to the extent of Rs.10,000 to Rs. 12,000/-. During
    their cross examination the respondents could not extract any
    other material evidence against the claimants.

B       23. In view of the finding as recorded above, we have no
    other alternative but to set aside the order passed by the High
    Court and restore the award passed by the Reference Court.
    The impugned judgment passed by the High Court is
    accordingly set aside and the appeal is allowed. The
C   respondents are directed to pay the appellant the
    compensation in terms of the award passed by the Reference
    Court after adjusting the amount already paid within three
    months. There shall be no separate order as to costs.

    B.B.B.                                        Appeal allowed.
D