K. DEVAKIMMA & ORS.versusTIRUMALA TIRUPATI DEVASTHANAMS & ANR.
- Citation
- 2015 INSC 350
- Decided
- 23 April 2015
- Disposal
- Case Partly allowed
- Bench
- VIKRAMAJIT SEN
Holding
The Supreme Court held that the Reference Court’s escalation method was proper and the compensation should be fixed at a uniform Rs.90 per square foot, overturning the High Court’s reduction.
Summary
The appellants, small shop‑owners in Tirumala, challenged the compensation awarded for their land acquired by the State for the Tirumala Tirupati Devasthanams (TTD) under the Land Acquisition Act, 1894. The Reference Court had fixed a market value of Rs.80‑100 per square foot based on escalation of values of adjacent lands acquired in earlier years, while the High Court reduced it to Rs.30 per square foot. The Supreme Court examined whether escalation could be applied in the absence of contemporaneous sale evidence and whether the High Court was justified in overturning the Reference Court’s award. It held that escalation is permissible when no comparable sales exist and that the Reference Court’s methodology was sound, but the varying rates should be uniformized. Consequently, the Court restored the Reference Court’s award, fixing a uniform compensation rate of Rs.90 per square foot and set aside the High Court’s reduction. The judgment also suggested that TTD may, as a matter of observation, consider providing alternate shop space to the displaced owners.
Issues considered
- Whether the High Court was justified in reducing the compensation rate from Rs.80‑100 per square foot to Rs.30 per square foot.
- Whether escalation of market value based on past transactions of adjacent lands is permissible under the Land Acquisition Act, 1894 when no contemporaneous sale evidence exists.
- Whether the Reference Court should have fixed a uniform rate for all appellants or varied rates per landowner.
Legislation cited
- Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987s. 123
- Land Acquisition Act, 1894s. 18, s. 23, s. 4, s. 54, s. 6, s. 9
Subjects
Judgment
[2015] 5 S.C.R. 759
K. DEVAKIMMA & ORS. A
v.
TIRUMALA TIRUPATI DEVASTHANAMS & ANR.
(Civil Appeal No. 5768 of 2006 etc.)
B
APRIL 23, 2015
[VIKRAMAJIT SEN AND ABHAY
MANOHAR SAPRE, JJ.]
Land Acquisition Act, 1894 - Acquisition of land - C
Compensation for - Determination of - Reference Court
awarded compensation by fixing the rate between Rs. 801-
to Rs. 1001- per sq. ft. - In appeal by beneficiary ofthe
acquisition, High Court reduced the rate to Rs. 301- per sq.
ft. - Held: Where there is no evidence of any D
contemporaneous sale transactions or acquisition of
comparable lads, recourse can be taken in appropriate
cases to the mode of determining the market value of the
acquired land by providing appropriate escalation over the
proved market value of nearby lands in previous years -The E
Reference Court rightly relied on the rates determined by it
in relation to adjacent lands acquired in the past years and
applied the principle giving escalation - It was all the more
because no sale deeds were available due to the statutory F
ban imposed bys. 123 of Andhra Pradesh Act- However,
the Reference Courlwas not right in fixing varying rates from
Rs. 801- to Rs. 1001- - Hence the rate of compensation is
fixed at Rs. 901- per sq. ft. - Compensation - Andhra
Pradesh Charitable and Hindu Religious Institutions and G
Endowments Act, 1987- s. 123.
Partly allowing the appeal, the Court
HELD: 1. Recourse can be taken in appropriate
759 H
760 SUPREME COURT REPORTS [2015] 5 S.C.R.
A cases to the mode of determining the market value of
the acquired land by providing appropriate escalation
over the proved market value of nearby lands in
previous years where there is no evidence of any
contemporaneous sale transactions or acquisition of
B comparable lands in neighborhood. The percentage of
escalation may vary from case to case so also the
extent of years to determine the rates. The Reference
Court, therefore, rightly relied on the rates determined
by it in relation to adjacent lands and applied the
C principle of giving escalation to the rates determined
yearly and worked out the rates between 801- to 1001-
per square feet. It was not in dispute that the public
purpose for acquisition of both the lands was the same
and secondly, all these lands were in the close proximity
0
with each other being situated in Tirumala. [Paras 25 and
26) [773-B-C, E]
General Manager, Oil & Natural Gas Corporation Ltd.
Vs. Rameshbhai Jivanbhai Patel & Anr. (2008) 14 SCC 745:
E 2008 (11) SCR 927 & Valliyammal & Anr. Vs. Special
Tahsifdar (Land Acquisition) & Anr. (2011) 8 SCC 91: 2011
(11) SCR 293 - relied on.
2. The High Court having rightly held that the
F Tirumala Tirupati Devasthanam has acquired immense
potential due to its pilgrimage status in the country, was
not right in holding that its potentiality cannot be taken' ·
into consideration for holding that the prices of the land
are also escalated due to such reason. The escalation
G in price of the land which depends upon the nature of
land and its surrounding, its benefit should have been
given for determining the price of the land in question
by taking into account the rate of land fixed by the
H Reference Court in relation to land acquired in past
K. DEVAKIMMA v. TIRUMALA TIRUPATI 761
DEVASTHANAMS
years as was rightly done by the Reference Court. It A
was all the more because no sale deeds were available
for filing due to peculiar reason that there was a
statutory ban imposed by Section 123 of the Andhi'a
Pradesh Charitable & Hindu Religious Institutions &
Endowments Act, 1987, for sale of private land in the B
area in question. It was for this reason, no private sale
had taken place of any parcel of land at the relevant time
barring one or two. [Para 27] [773-F-G; 774-A-B]
3. The High Court further erred in finding fault in the C
orders/awards which were rightly relied on by the
Reference Court. The High Court failed to see that they
were not hearing the appeals arising out of those orders/
awards to examine their legality or/and correctness
which had become final and were also given effect to. D
The High Court was required to see as to whether the
land involved in those cases was similar to the one
which was the subject matter of present proceedings
and secondly, what was the rate fixed therein by the
Reference Court for the lands. The appellants E
(landowners) were, therefore, justified in filing the
copies of orders/awards passed in relation to the
adjacent lands for proving the market rate of the land
in question. Thus, the rate fixed by the Reference Court F
between Rs.BO/- to Rs.100/- per square feet for the lands
in question was just and proper and the High Court
erred in reducing the same to Rs.30/- per squetre feet.
[Paras 27, 28 and 29] [774-C-G]
4. Since the land of all the appellants was more or G
less similar in nature and no evidence was adduced by
the appellants to prove any significant improvement/
addition or/dissimilarity in the land or its quality, the
Reference Court should have fixed one uniform rate for H
762 SUPREME COURT REPORTS [2015) 5 S.C.R.
A the entire land rather than to fix different rates such as
Rs.80/-, Rs.86/-, Rs.90/- and Rs.100/- per square feet for
different landowners. The appellants are entitled to get
the compensation for their respective lands at the rate
of "Rs.90 per square feet". So far as the compensation
B awarded by the Reference Court for super-structure
built on each appellant's land is concerned, it does not
call for any interference. [Paras 30 and 31] [774-G-H;
775-A-D]
C 5. The Court observed that the appellants are all
small shopkeepers who were carrying on their small
business for their livelihood but now due to the
acquisition, they are deprived of their land and therefore
unable to do their business. In case if any of the
D appellants apply for allotment of any land/shop/space
to TIO for doing any business in the area under their
ownership or/and control then the TTD would be at
liberty and may consider their case for providing them
a shop or land or space, as the case may be, pursuant
E to any of their scheme, if any in force, on suitable terms
and conditions alike others as a fine gesture on the part
of the TTD, for compliance. [Paras 32, 33 and 34] [775-
E-F, G-H; 776-A-B]
F Case Law Reference
2008 (11) SCR 927 relied on. Para 25
2011 (11) SCR 293 relied on. Para 25
G · CIVIL APPELLATE JURISDICTION: Civil Appeal No.
5768 of 2006.
From the Judgment and Order dated 05.07 .2004 of the
Division Bench of High Court of Judicature Andhra Pradesh
H at Hyderabad in Appeal No. 120 of 2001 with Cross Objection
K. DEVAKIMMA v. TIRUMALA TIRUPATI 763
DEVASTHANAMS
(SR) No. 17190 of 2001, Appeal No. 1778 of 2011 with Cross A
Objection (SR) 65760 of 2001, Appeal No. 1808 of 2001,
Appeal No. 1927 of 2001 with Cross Objection (SR) No.
66074of2001,Appeal No. 2421of2001 with Cross Objection
(SR) 82152 of 2001, Appeal No. 1975 of 2002 and Appeal
No. 1411of2003. B
With
C. A. No. 5769 and 5770 of 2006
B. Adinarayana Rao, T. V. Ratnam, John Mathew, G. C
Ramakrishna Prasad, Mohd. Wasay Khan, B. Suyodhan,
Filza Moonis for the Appellants.
Guntur Prabhakar, Prerna Singh, T. V. Ratnam, C. K.
Sucharita for the Respondents. D
The Judgment of the Court was delivered by
ABHAY MANOHAR SAPRE, J. 1. These appeals are
filed against the common judgment and order dated E
05.07.2004 passed by the High Court of Judicature, Andhra
Pradesh at Hyderabad in Appeal No. 120 of 2001 with Cross
Objection(SR) No. 17190 of 2001, Appeal No. 1778 of 2001
with Cross Objection(SR) No. 65760 of 2001, Appeal No.
1808 of 2001, Appeal No. 1927 of 2001 with Cross F
Objection(SR) No. 66074 of 2001, Appeal No. 2421 of 2001
with Cross Objection(SR) No. 82152 of 2001, Appeal No.
1975 of 2002, Appeal No. 1411 of 2003, Appeal No. 2304
of 2002, Appeal No. 155 of 2003 and Appeal No. 1279 of
1999 with Cross Objection(SR) No. 87947 of 1999, Appeal G
No. 67 of 2001, Appeal No. 726 of 2001, Appeal No. 1849
of 2001, Appeal No. 2031 of 2001, Appeal No. 1304 of 2001
and Appeal No. 1145 of 2003.
2. By impugned judgmenUorder, the Division Bench of H
764 SUPREME COURT REPORTS [2015] 5 S.C.R.
A the High Court, partly allowed the first appeals filed by the
respondents herein and reduced the rate of compensation
payable to the claimants/landowners (appellants herein) at
Rs.30/- per square feet, which was fixed by the Reference
Court (Civil Court) between Rs.80/- to Rs.100/- per square
B feet for the land acquired by the State under the Land
Acquisition Act, 1894 (hereinafter referred to as "The Act").
Dissatisfied with the judgmenUorder passed by the High
Court, the claimants/land-owners have filed these appeals for
enhancement of the compensation.
c
3. The question that arises for consideration in these
appeals is whether the High Court was justified in partly
allowing the appeals filed by the respondents herein by
reducing compensation at the rate of Rs.30/- per square feet
D for the land which was acquired by the State or the rate should
have been more than Rs.30/- and, if so, how much, i.e., the
one determined by the Reference Court (Civil Court) between
Rs.80/- to Rs.100/- per square feet or it should be more than
that?
E
4. In order to appreciate the controversy involved in these
appeals, it is necessary to state the relevant facts infra. For
the sake of convenience, we shall first advert to the factual
matrix of C.A. No. 5769 of 2006 (P. Sreenivassulu Naidu vs.
F The Special Deputy Collector, Land Acquisition Officer, TIO,
Tirupathi & Anr.)
5. The appellant in C.A. No.5769 of 2006 is the owner
of the land measuring 4176 square feet as per the State
G whereas 5220 square feet as per the appellant. This land is
situated in T.S. No 40/2 Ward No.3, Block E in village
Tirumala. Likewise, the appellants in other two appeals are
also owners of the similar land as described in the memo of
appeals. The appellants were having their small shops and
H hutments on their land wherein they used to carry on their small
K. DEVAKIMMA v. TIRUMALA TIRUPATI 765
DEVASTHANAMS [ABHAY MANOHAR SAPRE, J.]
business for their livelihood. A
6. In exercise of the powers conferred under Section 4
of the Act, the State Government issued a notification on
15.01.1987 and acquired the appellant's aforementioned land
along with the land of other landowners alike the appellant s
situated in the same area. The land was acquired for the
benefit of the Tirumala Tirupati Devasthanams (in short "the
TTD") to enable them to develop Balaji temple town by
constructing roads, Kalyanamandapam, Choutries and for
providing other civic amenities in the town for the benefit of C
large number of devotees, who regularly visit the temple for
having darshan of Lord Balaji.
7. In other appeals, similar notifications under Section 4
were issued by the State on 19. 06.1985, 23.12.1985, D
26.05.1986, 29.08.1986, 25.05.1987, 05.08.1987,
21.08.1989 and 26.10.1992 for accomplishing the same
public purpose. By these notifications, a large chunk of land
was acquired in the same area where the land of the appellant
in C.A. 5769 of 2006 was situated. So far as the land E
belonging to the present appellants was concerned, it was of
small dimension.
8. Notification under Section 4 was followed by the
declaration under Section 6 of the Act published on F
05.08.1987 and likewise it was published on other dates in
relation to notifications issued under Section 4 of the Act for
adjacent lands.
9. This led to initiation of the proceedings for G
determination of compensation payable to each landowner
including that of the appellants herein by the Land Acquisition
Officer (in short 'the LAO'). Notices under Section 9 of the Act
were issued to the appellants calling upon them .to participate
in the land acquisition proceedings to enable the LAO to H
766 SUPREME COURT REPORTS [20~] 5 S.C.R.
A determine the fair market value of the land on the date of
acquisition as provided under Section 23 of the Act so that
compensation would be paid to the landowners at such
determined rate. Accordingly, the LAO held an enquiry and
after affording an opportunity to the appellants herein passed
B an award on 12.03.1991 and also on different dates as
mentioned in the memo of appeals fixing the market value of
the acquired land at Rs.11/- per square feet. So far as the
structure built by the appellant in C.A. No. 5769 of 2006 on
the land in question was concerned, it was valued at
C Rs.45,936/-. The LAO, therefore, fixed Rs.11/- per square feet
as the uniform rate for awarding compensation for the land
to all the landowners. So far as the compensation for built-up
structure on the land of individual landowners was concerned,
it varied in cases of individual landowner and was accordingly
0
calculated on the basis of extent and quality of construction
made by each landowner. The appellants were, accordingly,
paid the compensation for their land and super-structure
standing on their land in addition to other statutory
E compensation such as solatium, interest etc. payable under
the Act.
10. Feeling aggrieved by the award, the appellants in all
the appeals sought reference to the Civil Court under Section
F 18 of the Act for re-determination of the compensation made
by the LAO. The reference Court, on the basis of the evidence
adduced, partly answered the reference in favour of the
appellants by award dated 15.07 .2002 and accordingly
enhanced the rate of the compensation from Rs.11 /- per
G Square feet to Rs.86/- per square feet. In other words, the
reference Court held that the appellant was entitled to get
compensation for his land at the rate of Rs.86/- per square
feet being the fair market value of his land on the date of
notification issued under Section 4 of the Act. In other two
H appeals, the reference Court by awards passed on different
K. OEVAKIMMA v. TIRUMALA TIRUPATI 767
OEVASTHANAMS [ABHAY MANOHAR SAPRE, J.] .
dates enhanced the compensation and fixed it between A
Rs.80/- to Rs.100/- per square feet.
11. Challenging the legality and correctness of the awards
of the Reference Court, the no, for whose benefit the land
was acquired, filed appeals before the High Court under B
Section 54 of the Act. So far as the appellants (landowners)
were concerned, they filed cross-objections and prayed for
enhancement in the compensation at the rate of Rs.150/- per
square feet as against Rs.SO/~ to Rs.100/- per square feet
awarded by the Reference Court. C
12. The Division Bench of the High Court, by common
impugned judgment/order partly allowed the appeals filed by
no (respondent herein) and reduced the compensation
payable to the appellants toRs.30/- per square feet. In other o
words, in the opinion of the High Court, the Reference Court
was not right in determining the compensation payable
between Rs.80/- to Rs.100/- per square feet instead it should
have been paid at the rate of Rs.30/- per square feet uniformly
to all the landowners (appellants). In this way, the appellants E
were held entitled to get the compensation at the uniform rate
of Rs.30/- per square feet for their respective lands. As a
consequence, the cross objections filed by the appellants
herein (landowners) for enhancement of the compensation at
Rs.150/- per square feet were dismissed. Against this F
judgment/order, the claimants/landowners have filed these
appeals by way of special leave petitions.
13. Heard learned Counsel for the parties.
G
14. Mr. B. Adinarayana Rao, learned senior counsel
appearing for the appellants in C.A. No. 5769 of 2006
contended that the High Court erred in partly allowing the
appeals filed by the no.According to the learned counsel,
no case was made out by the noeither on facts or in law H
768 SUPREME COURT REPORTS (2015] 5 S.C.R.
A for reduction of rate of compensation, which was rightly fixed
by the Reference Court between Rs.80/- to Rs.100/- per
square feet. He submitted that the Reference Court had rightly
appreciated the evidence on record for enhancing the rate of
compensation and on such appreciation itself, it could have
B awarded still higher than what was awarded but in no case it
could have been less than the same as was done by the High
Court, which has no basis. Learned counsel further pointed
out that apart from the evidence adduced by the claimants-
appellants herein before the Reference Court to prove the fair
C market value of the land, even the counsel appearing for TTD
did not raise any objection for payment of compensation at
the rate of Rs.90/- per squaie feet. !..earned counsel also
pointed out that by virtue of ban contained in Section 123 of
D the Andhra Pradesh Charitable & Hindu Religious Institutions
& Endowments Act 1987 (for short 'the AP Act') for sale of
the land situated in Tirumala Hills, it was not possible to any
person to sell his land privately and it was for this reason, the
appellants were not able to file copies of any sale deeds of
E the lands which did not take place between the two private
parties except one or two. This aspect, according to the
learned counsel, was rightly taken note of by the Reference
Court while determining the value of the land but was not so
taken note of in its proper perspective by the High Court
F resulting in committing an error while determining the value
of the land. Learned counsel, therefore, contended that this
Court should restore the award of Reference Court.
15. Learned counsel for the appellants in other two
G appeals adopted the arguments of Mr. Adinarayana Rao.
16. In contra, Mr. G. Prabhakar, learned counsel for the
respondent (TTD) supported the impugned judgment and
contended that no case is made out on facts or/and in law to
H call for any interference in the impugned judgment of the High
K. DEVAKIMMA v. TIRUMALA TIRUPATI 769
DEVASTHANAMS [ABHAY MANOHAR SAPRE, J.]
Court. This submission was elaborated by the learned A
counsel by referring to the reasoning contained in the
impugned judgment.
17. Having heard learned counsel for the parties and on
perusal of the record. of the case, we find force in tlie B
submission of learned senior counsel appearing for the
appellants (land-owners) and hence are inclined to allow these
appeals in part by restoring the award of the Reference Court
with part modification as detailed infra by enhancing the
compensation. C
18. In our considered opinion, the reasoning and the
conclusion arrived at by the Reference Court (civil court) while
fixing the rate of compensation between Rs.80 to Rs.100/- per
square feet for the land in question was just and proper and o
hence the same should not have been disturbed by the High
Court in appeals filed by the TTD for reducing the rate to
Rs.30/- per square feet. In other words, hour considered view,
if the reference Court was right in fixing the rate of
compensation between Rs.80 to Rs.100/- per square feet for E
the entire acquired land in question, the High Court was not
right in interfering with this finding of the Reference Court and
reducing it to Rs.30/- per square feet. This we say so for the
following reasons.
F
19. In order to prove the market rate of the land in
question, the appellants-landowners had adduced evidence
by filing certified copies of sale deeds and several awards
passed by the Reference Court (Civil Court) wherein the
Reference Court had determined the fair market value of the G
adjacent similar lands which were acquired prior to acquisition
of the lands in question. Exs.B-7, 8, 9, 10 and 11 (marked in
Award No.46/90-91) are the copies of the orders/awards
passed by the Reference Court in relation to the lands which
H
770 SUPREME COURT REPORTS (2015] 5 S.C.R.
A were acquired in the years 1957, 1962 and 1976. The rate
fixed by the Reference Court for the lands acquired in the year
1957 was at Rs.30/- per square feet. Likewise the rate fixed
for the land acquired in the year 1962 was at Rs.40/- per
square feet and for the lands acquired in the year 1976, the
B rate. was at Rs.73/- per square feet. Exs. B-12, 13 and 15 are
the copies of the orders/awards passed by the Reference
Court in relation to the lands acquired in 1986 and 1987. The
rate fixed for the land acquired in the year 1986 was at
Rs.100/- per square feet and for the land acquired in the year
C 1987, the rate was Rs.106/- per square feet.
20. It is not in dispute that so far as the orders/awards
(Exs. 8-7 to 8-11) were coiiCSiTu::J, ii pertained to lands
adjacent to the lands in question and had attained finality
D whereas the orders/awards (Exs.8-12,13 and 15) were sub
judiced in pending appeal.
21. The Reference Court, therefore, took into
consideration the rates of lands prevailing in the years 1957,
· E 1962 and 1976 (without taking into account the rates of lands
prevalent in the years 1986 and 1987 though they related to
lands sold in near proximity with acquisition of the lands in
question on the ground that the appeals were pending in
relation to these lands against the orders/awards) and then
F taking into account the appreciation in the value of land in the
last 25 years at Rs.3/- per square feet per annum fixed the
fair market value of land in question between Rs.80 to Rs.100/
- per square feet.
G 22. It is pertinent to mention that the learned counsel
appearing for the no had given his no objection to the rate
fixed by the Reference c.ourt which was duly recorded by the
Court in Para 8 of the award dated 14.3.2001 (Award No.46/
90-91). It reads as under:
H
K. DEVAKIMMA v. TIRUMALA TIRUPATI 771
DEVASTHANAMS [ABHAY MANOHAR SAPRE, J.]
"8. The advocate for the claimants argued that the · A
market value of the site at Tirumala during 1962
was Rs.40/- per sq. foot as per Ex.8-3 and since
the site in question is acquired in 1987, i.e., 25
years after the land acquisition covered by Ex.8-
3, the market value of the site acquired in this case B
can be fixed more than Rs.100/- per sq. foot by
considering the appreciation in the value of the site
since 25 years at Rs.3/- per sq. foot per annum. The
advocate for R.2/8eneficiary argued that in similar
cases, this court fixed the market value of the site C
at Rs.90/- per sq. foot and he has no objection to
fix the same market value at Rs.90/- per sq. foot for
the site acquired in this case ........ "
(Emphasis supplied) ·D
23. The High Court, however, while reversing the
aforesaid view of the Reference Court held that the
Reference Court erred in relying upon the orders/awards
passed in other cases for determining the value of the lands E
in question. The High Court then went on to the extent of ·
finding fault in the orders/awards. The High Court also did not
agree with the Reference Court to hold that the prices of the
. land escalate in passage of time every year though it held that
the Tirupati (Tirumala) has acquired potential due to F
pilgrimage. It is apposite to state what the High Court held
on this issue:
"As observed above, the very basis in determining
the market value of the land by the reference courts G
is erroneous in law and is contrary to the settled
principles. Reference Courts have proceeded in the
matter assuming abnormal rise in prices and
erroneously placed reliance upon the judgments
in P.P. No.34 of 1964 or O.P. No.23 of 1969 and H
772 SUPREME COURT REPORTS [2015] 5 S.C.R.
A batch. Reliance was placed erroneously on the
alleged statement of LAO made in O.P. No. 30 of
1982. There was no evidence adduced by the
claimants evidencing any escalation in price from
1957 till respective dates of acquisition. Evidence
B on record, as discussed above, suggest that prices
have remained static at Tirumala irrespective of the
place gaining considerable importance or the
place being visited by innumerable pilgrims.
Pilgrims visit the Holy Place only for the purpose
c to have darshan of the deity and not with a view
to settle there. No evidence is left in to show that
there was heavy demand for land in the area.
Therefore, there was no justification on the part of
the Reference Courts in fixing the market value on
D
the basis of the market value fixed in the earlier
judgments. May be that in one case, i.e., in 0.P.
No.23 of 1969 and batch appeals were filed and
there was no interference by this Court in the
E assessment of the market value, but, that alone
could not have been made the basis for arriving at
the market value in these cases. There was
absolutely no evidence to have proceeded to fix
the market value more than what was offered by
F the LAO. Considering the facts and circumstances
of the case and fixing the market value at Rs.23/-
per sq. ft. we are inclined to take in all cases the
market value of the land at Rs.30/- per sq. ft. which
would be just, fair and equitable and to that extent
G the respective awards of the reference courts
deserve to be modified."
24. We do not agree with the aforesaid finding of the High
Court for the following reasons detailed infra.
H
K. DEVAKIMMA v. TIRUMALA TIRUPATI 773
DEVASTHANAMS [ABHAY MANOHAR SAPRE, J.]
25. As mentioned above, the reasoning of the Reference A
Court is in conformity with the principle of law laid down by
this Court wherein this Court has in no uncertain held that
recourse can be taken in appropriate cases to the mode of
determining the market value of the acquired land by
providing appropriate escalation over the proved market B
value of nearby lands in previous years where there. is no
evidence of any contemporaneous sale transactions or
acquisition of comparable lands in neighborhood. The
percentage of escalation may vary from case to case so also
the extent of years to determine the rates (see General c
Manager, Oil & Natural Gas Corporation Ltd. Vs.
Rameshbhai Jivanbhai Patel & Anr., (2008) 14 SCC 745
& Valliyammal & Anr. Vs. Special Tahsildar (Land
Acquisition) & Anr., (2011) 8 SCC 91).
~· D
26. We find that the Reference Court, therefore, rightly
relied on the rates determined by it in relation to adjacent lands
and applied the principle of giving escalation to the rates
determined yearly and worked out the rates between 80/- to
100/- per square feet. It was not in dispute that the public E
purpose for acquisition of both the lands was the same and
secondly, all these lands were in the close proximity with each
other being situated in Tirumala.
27. The High Court having rightly held that the Tirumala F
Tirupati Devasthanam has acquired immense potential due
. to its pilgrimage status in the country was not right in holding
that its potentiality cannot be taken into consideration for
holding that the prices of the land are also escalated due to
such reason. As held by this Court in O.N.G.C. and G
Valliyammal's cases (supra), the escalation in price of the
land which depends upon the nature of land and its
surrounding, its benefit should have given for determining the
price of the land in question by taking into account the rate of
H
774 SUPREME CO! IRT REPORTS (2015] 5 S.C.R.
A land fixed by the Reference Court in relation to land acquired
in past years as was rightly done by the Reference Court. It
was all the more because no sale deeds were available for
filing due to peculiar reason that there was a statutory ban
imposed by Section 123 of the AP. Act for sale of private land
B in the area in question. It was for this reason, no private sale
had taken place of any parcel of land at the relevant time
barring one or two. Similarly, the High Court further erred in
finding fault in the orders/awards which were rightly relied on
by the Reference Court. The High Court failed to see that they
C were not hearing the appeals arising out of those orders/
awards to examine their legality or/and correctness which had
become final and were also given effect to. The High Court
was required to see as to whether the land involved in those
cases was similar to the one which was the subject matter of
0
present proceedings and secondly, what was the rate fixed
therein by the Reference Court for the lands.
28. The appellants (landowners) were, therefore, justified
in filing the copies of orders/awards passed in relation to the
E adjacent lands for proving the market rate of the land in
question because as mentioned above, these lands were
situated in the same area nearer to the lands in question and
were also acquired for the same public purpose.
F 29. In the light of foregoing discussion, we are of the
considered opinion that the rate fixed by the Reference Court
between Rs.80/- to Rs.100/- per square feet for the lands in
question was just and proper and the High Court erred in
reducing the same to Rs.30/- per square feet.
G
30. We are, however, of the view that the Reference Court
having held that the appellants were entitled to compensation
at the rate varying between Rs.80/- to Rs.100/- per square
feet, should have fixed one uniform rate for the entire land
H rather than to fix different rates such as Rs.80/-, Rs.86/-,
K. DEVAKIMMA v. TIRUMALA TIRUPATI 775
DEVASTHANAMS [ABHAY MANOHAR SAPRE, J.]
Rs.90/- and Rs.100/- per square feet for different landowners. A
In our view, since the land of all the appellants was more or
less similar in nature and no evidence was adduced by the
appellants to prove any significant improvement/addition or/
dissimilarity in the land or its quality, the Reference Court
should have fixed one uniform rate. B
31. Having regard to the totality of factual undisputed
scenario which has emerged from the evidence and taking
into account the extent of the land held by each landowner,
we are of the considered opinion that the appellants are C
entitled to get the compensation for their respective lands at
the rate of "Rs.90 per square feet". So far as the
compensation awarded by the Reference Court for super-
structure built on each appellant's land is concerned, it does
not call for any interference. In our view, it was rightly upheld D
by the High Court and we also uphold the same, calling no
interference.
32. Learned senior counsel for the appellants
(landowners) then submitted that the appellants are all small E
· shopkeepers who were carrying on their small business for
their livelihood but now due to the acquisition, they are
deprived of their land and therefore unable to do their
business. Learned counsel, therefore, submitted that the TTD
may be directed to provide any alternate space/shop/land to F
the appellants herein in the nearby area on any terms and
conditions which will enable them to start business for their
livelihood. Learned counsel for the TTD has, however,
opposed this prayer.
G
33. Having taken note of the submission of the learned
counsel for the appellants, all that we wish to observe is that
in case if any of the appellants apply for allotment of any land/
shop/space to TTD for doing any business in the area under
their ownership or/and control then the TTD would be at liberty H
776 SUPREME COURT REPORTS [2015] 5 S.C.R.
A and may consider their case for providing them a shop or land
or space, as the case may be, pursuant to any of their
scheme, if any in force, on suitable terms and conditions alike
others as a fine gesture on the part of the TTD, for
compliance.
B
34. We, however, make it clear that the observations
made in para 33 are only in the nature of observations and
not an order/writ issued against the TTD.
c 35. In view of foregoing discussion, the appeals succeed
and are allowed in part. The impugned judgment/order of the
High Court is set aside and the awards passed by the
Reference Court (civil court) are restored with the modification
indicated above. The respondents are directed to calculate
o the payment of compensation payable to each appellant
(landowner) as directed above and pay the compensation
money to each of the appellant within three months from the
date of the receipt of copy of this judgment.
Kalpana K. Tripathy Appeal partly allowed.
E
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.