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Supreme Court of India

MOHAMMAD RAOFUDDINversusTHE LAND ACQUISITION OFFICER

Citation
2009 INSC 487
Decided
13 April 2009
Disposal
Dismissed

Holding

The Supreme Court held that the High Court's award of compensation was proper and no interference was justified.

Summary

The appellant's 4‑acre land in Medak district was acquired for the Singnoor project and awarded compensation of Rs 9,000 per acre. He sought enhancement to Rs 35 per square yard, relying on a nearby acquisition (Ex A.6) where compensation was Rs 18 per square yard. The High Court dismissed the appeal, preferring its earlier judgment on a similar acquisition in the same village and rejecting Ex A.6. The Supreme Court examined the principles of valuation under Sections 15, 23 and 24 of the Land Acquisition Act, emphasizing the comparable‑sales method and the limited scope of appellate interference. It held that the High Court had correctly considered the relevant factors and that no error of law or omission of material facts warranted interference. Consequently, the appeal was dismissed.

Issues considered

  • Whether the High Court erred in not accepting Ex A.6 as a comparable sale for determining market value.
  • Whether the Supreme Court may interfere with a compensation award under the Land Acquisition Act when the lower court has applied the statutory factors.
  • How Sections 23 and 24 of the Land Acquisition Act guide the valuation of acquired land.
  • Scope of appellate jurisdiction under Article 133 of the Constitution in compensation awards.

Legislation cited

Subjects

Land acquisitionCompensationValuationComparable sales methodSection 15Section 23Section 24Appellate jurisdictionSupreme Court interferencePublic purpose

Judgment

                        [2009] 5 S.C.R. 864
                                                                                '":


A                    MOHAMMAD RAOFUDDIN
                                   v.
                 THE LAND ACQUISITION OFFICER
                   (Civil Appeal No. 2385 of 2009)
                           APRIL 13, 2009                                       •
B
                                                                            <
                [D.K. JAIN AND R. M. LODHA, JJ.]

         Land Acquisition Act, 1894:
     ss.15, 23, 24 - Award of compensation by High Court-
c Scope of interference by Supreme Court - Held: Is very
  limited - Interference is warranted only if it is found that courts
  below applied wrong principles or omitted to take relevant
  factors affecting valuation - On facts, there is no ground to                       .....
  interfere with the award of High Court as it took into                    ..
D consideration an instance which was more closer to
  appellant's land in respect of the date of acquisition was in
  the same village and was acquired for the same purpose.
       Lands measuring 4 acres 2 guntas situated in Survey
E No. 434, Manthoor village of Pulkal Mandal in Medak
  District of Andhra Pradesh were acquired for a public
  purpose, namely for submergence under the Singnoor
  project by issuing a Notification under Section 4(1) of the
  Land Acquisition Act on 15th July, 1987. Land Acquisition
  Officer made an award fixing the compensation at the
F
  rate of Rs. 9,0001· per acre. Appellant sought reference
  under s.18 of the Act. The reference court fixed the
  market value of the acquired land at Rs. 20,0001- per acre.
  Appellant preferred an appeal to the High Court seeking
  enhancement of compensation @ Rs.351- per square
G yard. Appellant relied on Ex. A.6 which was an order of
  the reference court in another case, in respect of land
                                                                        ~   -
  approximately 100 yards, away, which was acquired for
  the same purpose nearly two years before the acquisition

H                                 864
         MOHAMMAD RAOFUDDIN v. LAND ACQUISITION               865
                      OFFICER

    of the subject land whereunder compensation was paid A
'
    @ Rs.18/- per square yard.
        High Court preferred to rely on its earlier judgment
    and declined to rely on Ex. A.6, and dismissed the appeal.
    Hence the appeal.
                                                                     B
         Dismissing ttw appeal, the Court
          HELD: 1. Section 15 of the Land Acquisition Act
     mandates that in determining the amount of
     compensation, the Collector shall be guided by the
     provisions contained in Sections 23 and 24 of the Act.          C
     Section 23 contains the list of positive factors and Section
     24 has a list of negatives factors. The first step is the
     determination of the market value of the land on the date
     of publication of s.4 Notification. One of the principles for
     determination of the market value of the acquired land          D
     would be the price an interested buyer would be willing
     to pay if it is sold in the open market at the time of issue
     of s.4 Notification. But finding a direct evidence in this
     behalf is not an easy exercise and, therefore, the Court
     has to take recourse to other known methods for arriving        E
    at the market value of the land acquired. One of the
    preferred and well accepted methods adopted for
    working out the market value of the land in acquisition
    cases is the comparable sales method. The comparable
    sales i.e. the lands sought to be compared must be               F
    similar in nature and potentiality. Again, in the absence
    of sale deeds, the judgments and awards passed in
    respect of acquisition of lands, made in the same village
    and/or neighbouring villages can be accepted as valid
    piece of evidence and provide a sound basis to                   G
    determine the market value of the land after suitable
    adjustments with regard to positive and negative factors
    enumerated in Sections 23 and 24 of the Act.
    Undoubtedly, an element of some guess work is involved
    in the entire exercise. While ascertaining compensation,         H
    866          SUPREME COURT REPORTS           [2009] 5 S.C.R.
                                                                         )-,




A it is the duty of the Court to see that the compensation
    so determined is just and fair not merely to the individual                ,
    whose property has been acquired but also to the public
    which is to pay for it. [Paras 9 and 12] [871-F-H, 872-A-E,
    875-D-E]
B                                                                         •
        Pal Singh & Ors. v. Union Territory of Chandigarh; (1992)   .,"

    4 SCC 400; Shaji Kuriakose & Anr. v. Indian Oil Corpn. Ltd.
    & Ors. (2001) 7 SCC 650 and Viluben Jhalejar Contractor (D)
    by LRs. v. State of Gujarat (2005) 4 SCC 789, referred to.

c       2.1. If the judgment of the High Court revealed that it
  had taken Into consideration the relevant factors
  prescribed by the Act, then in appeal under Article 133
  of the Constitution of India, assessment of market value
  made should not be disturbed by this Court. The scope
                                                                         ~


D of interference is very limited and it is only in cases where
  it is found that the authorities below have either applied        .A


  wrong principles or have omitted to take into consi-
  deration some important point affecting valuation, that
  this Court can interfere. [Paras 13 and 15] [875-F-G, 876-
  E-F]
E
          Kamta Prasad Singh v. State of Bihar (1976) 3 SCC 772,
    relied on.
         Food Corporation of India through its District Manager,
    Faridkot, Punjab & Ors. v. Makhan Singh and Anr. (1992) 3        '
F                                                                   ~




    sec 67' referred to.
       2.2. Ex. A.6 is the judgment of Subordinate Judge in
  another land acquisition case fixing the rate of
  compensation for the land, stated to be contiguous to the
G land of the appellant, at Rs.18/- per square yard. Ex. A.7
  is the certified copy of the decree in the said original
  petition. The High Court relied on its earlier decision on
  the ground that the land in question in the said suit was
                                                                    .-
  acquired by Notification under Section 4 of the Act dated
H 4th January, 1987; the area of the land was 3 acres 9
                               MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                                                                           867
          ;i                                OFFICER

                           guntas; the land was situated in the same village and was A
                           acquired for the same very public purpose of
                           construction of Singnoor project. The High Court noted
                           that the Notification under Section 4 of the Act in the case
                           of the appellant having been published within 6 months
                           of the date of Notification, it was not possible and B
                           permissible to take a different view other than the one
                           taken in the said suit. While discarding Exs. A.6 and A.7,
                           the High Court noted that the lands, subject matter of that
                           acquisition, were not situated in the same village. [Para
                           17] [876-G-H, 877-A-D]                                       C

                              3. It difficult to accept the stand of the appellant that
                       the High Court should have relied on Ex. A.6 instead of
                i:?' · its earlier decision. It may be true that in the absence of
          J     . ~, the instance relied upon by the High Court, Ex. A.6 could
               's ibe•taken into consideration as one of the comparable                                                                                  D
               lo tsale :instances· but at the same time reliance on its earlier
               Mit judgment in respect ofjl . land :sitt.1ated in the same village,
                 ·rlt acquired only six1months·ago, could nqt be said to be an
               · ,J irrele"Vant'factor,affecting;the3 cletermina!i~l!,,<?,f market                                                                       E
               .::i:>:valuelcompensation·;in1 re$p.~ct,~.f..i,the1 1 1~!,1~. ~f. the
              1
                 ss appeUant.-Merely because,,a diff~rel)t,F~IJ<:lusion,,f.OUld
                       be possible on two sets of s~le/a_?~~jsiti~!11in~t'!P,~e~, is
                      no ground to interfere with the award of the High Court
              Y!:'!'iwhen if1has'·take·n infu 0 conslderati<>nca11:instance which
           ~. ~'.JI       "is-more      blose"'r'°'tb ap'pellcint's'.olaritl irf respect of the:· date                                                   F
                 ;    Ofacquisition;''haf>1l'e·ned' to~be in the1same. v'illage1and
                     C'


              .- ,ri a'cquire'd for. the ·same ~urpose:t[Para·i.18): :[87·7;;oE.H;'878-
               .~~;A-Sj Jl. :W'r.r _. ;,• 1r1 n~ •"\ !> ! - JJG 1ubnu r:o1ts::.':i.'.;
                \ L . I --,:<:il~i"ro'.~\· -, ~·rt° :JO i:2pi.) ···'"
                                                                          f ·+·' 1r .C-f'~ ~(?':l2""--
                                                                                              ..... ,. .... ( C·fi f
                                          1
                                                                      .
                                               '
                                                                 .                                                             J   j   '         ....,

              n,. ·~ "• · 1., t ... .t - ~ Case Lair{ ~e erenc~; o: "., l,,;'IJC! <,                                                                     G
               : ,,i e·:°(1996) :5 sec· 591                                  ii_,:·        Referred to ·111 "F 'Para13
         --r
                1,, !:)!        'i. . • ~,1;          •..:..r·., .. ;~,! ~
                                                   '"-:
                                                    , ... ~                     · ·
                                                                                      I(
                                                                                           ·~ ~
                                                                                                  •    i   · _.,_~
                                                                                                      i...:t"j.;?. "·,,
                                                                                                                          \.., ""  1
                                                                                                                           ;~_·u G~~·      !S
               '., : · ·c·' (1996) 5 SCC 591 u - · . , , Referr~~ tc;>.                                                   , .~: .~<!~~ 22
                               (2008) 9 SCC 677                                            Referred to                             Para 2~               H

    r.
I
    868          SUPREME COURT REPORTS           [2009] 5 S.C.R.


A       CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    2385 of 2009.

        From the Judgment & Order dated 16.09.2004 of the High
    Court of Andhra Pradesh in Appeal Suit No. 1472 of 1999.
B       D. Rama Krishna Reddy and Asha Gopalan Nair for the              •
    Appellant.

       Anoop G. Choudhary, Manoj Saxena, Rajnish Kr. Singh,
    Rahul Shukla and T.V. George for the Respondents.
c         The Judgment of the Court was delivered by

          D.K. JAIN, J. 1. Leave granted.

       2. Challenge in this appeal by the claimant-land owner is
D to the judgment and order dated 16th September, 2004
  rendered by the High Court of Judicature Andhra Pradesh at
  Hyderabad in AS. No. 1472of1999 filed under Section 54 of
  the Land Acquisition Act, 1894 (hereinafter referred to as "the
  Act") for enhancement of the amount of compensation. By the
E impugned judgment, the High Court has affirmed the award
  made by the Reference Court, Medak in O.P. No.25 of 1993
  dated 31st December, 1998 and dismissed the appeal
  preferred by the appellant.

F      3. Lands measuring 4 acres 2 guntas situated in Survey
  No. 434, Manthoor village of Pulkal Mandal in Medak District      ,_
  of Andhra Pradesh were acquired for a public purpose, namely
  for submergence under the Singnoor project by issuing a
  Notification under Section 4 (1) of the Act on 15th July, 1987.
G The possession of the land was taken on 19th November, 1987.
  Pursuant to the notice issued under Section 9 of the Act, the
  appellant filed a statement claiming compensation for the land
  at Rs.25/- per square yard. An additional amount at the rate of   ,_
  Rs.5,000/- per year was claimed as damages on account of
H
                    MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                869
                            OFFICER [D.K. JAIN, J.]

               "ill" dispossession by the government. After following the A
               requisite procedure, the Land Acquisition Officer made an
               award on 18th March, 1989, fixing the compensation at the rate
               of Rs.9,000/- per acre.
     1               4. Being aggrieved by the award, the appellant sought a B
         'r     reference under Section 18 of the Act for enhancement of
                compensation. According to the appellant, the village in which
                his land is located was fully developed and on the date of
                Notification, the market value of similar land, meant for house
               sites, was not less than Rs.35/- per square yard. Upon
               appreciation of the material available on record, the reference
                                                                                 c
               Court fixed the market value of the acquired land at Rs.20,000/
               - per acre i.e., an additional amount of Rs.11,000/- over and
               above what had been awarded by the Land Acquisition Officer,
•'   ...       alongwith the statutory benefits, viz. 30% solatium on the
                                                                                 D
           \   enhanced amount of compensation; interest at 9% per annum
               for one year from 18th March, 1989, i.e., date of passing
               award; interest at 15% per annum after one year of passing of
               award till the date of realization and additional interest at 12%
               per annum from 18th July, 1987 to 18th March, 1989.
                                                                                 E
                     5. Being not satisfied, the appellant preferred an appeal
i
               to the High Court seeking enhancement of compensation at the
               rate of Rs.35/- per square yard. Relying on Ex. A.6, an order
               of the Reference Court in another O.P. No. 112 of 1987, in
               respect of land approximately 100 yards away, which was F
               acquired for the same purpose vide Section 4 (1) Notification
               dated 31st August, 1985, i.e., nearly two years before the
               acquisition of the subject land whereunder compensation was
               paid at the rate of Rs.18/- per square yard, the stand of the
               appellant before the High Court was that the minimum amount G
               of compensation had to be at the rate of Rs.18/- per square
     ~t
               yard. As noted earlier, by reason of the impugned order, the
               High Court has dismissed the appeal, maintaining the amount
               of compensation determined by the Reference Court. Dealing
                                                                                 H
    870           SUPREME COURT REPORTS               [2009] 5 S.C.R.


A with the evidence adduced by the appellant, in particular, Ex.
  A6, the High Court observed as follows:

          "Admittedly, the lands that were acquired leading to the
          judgment of the Reference Court under Exs. A.6 and A. 7
           are nC>t situated in the same village. The lands that are
B
           acquired thereunder were situated in Seripeddareddy
          Village. However, according to the appellant, the distance
          between the lands acquired leading to the judgment under
           Ex. A.6 and the acquired lands are at a distance of just
           about hundred yards. The lands are contiguous to each
c          other. It is unnecessary to further dilate on this subject in
          view of the decision of this court in A.S. No. 2336 of 1998
          wherein this court confirmed the judgment of the Senior
          Civil Judge, Medak in O.P. No. 109 of 1987 dated
          7.10.1997 whereunder compensation has been awarded
D         at the rate of Rs.8,300 per acre. In the said O.P ., an extent
          of Ac.3.09 1/3 guntas of land belonging to the claimants
          therein situated at the same Manthoor Village which was
          acquired for the very same public purpose of construction
          of Singnoor Project under the draft Notification dated
E         4.1.1987. This court assessed the market value of the
          acquired land therein at the rate of Rs.8,300 per acre. The
          Notification in this case was published on 15.7.1987. In
          such view of the matter, it is not possible and permissible
          to take a different view other than the one taken by this
F         court in A.S. No. 2336 of 1998.

          For~the aforesaid reasons, we find no merit in this appeal
          and the same shall accordingly stand dismissed without
          costs. The appellant however shall be entitled to payment
G         of interest on 30% solatium, apart from other statutory
          benefits that were already granted by the Reference Court."

       6. Thus, the High Court preferred to rely on its earlier
  judgment and declined to rely on Ex. A.6, heavily relied upon
H by the appellant-land owner in support of his claim. Aggrieved,
             MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                871
,--!                 OFFICER [D.K. JAIN, J.]
       the claimant-land owner is before us.                             A
             7. Learned counsel appearing for the appellant submitted
       that the Reference Court as well as the High Court erred in
       ignoring a decree of the Court (Ex. A.6) which was tendered
       in evidence by the appellant. It was pointed out that appellant's B
•      land was acquired at the rate of Rs.9,000/- per acre whereas
  }
       in respect of another strip of land situated only 100 yards away
       from his land, acquired about two years back, compensation
       was paid at the rate of Rs.18/- per square yard. In support of
       the proposition that a judgment of the Court in a land acquisition
       case, determining the market value of a land in the vicinity of
                                                                          c
       the acquired lands, even though not inter partes, could be
       admitted in evidence either as an instance or one from which
       the market value of the acquired land could be deduced or
       inferred, reliance was placed on a decision of this Court in Pal
<I
                                                                          D
       Singh & Ors. Vs. Union Territory of Chandigarh 1 • Learned
       counsel strenuously urged that before relying on its earlier
       decision, the High Court also failed to ascertain whether there
       was any similarity between the land, subject matter of A.S. 2336
       of 1998 and the present suit lands. Learned Senior Counsel
                                                                          E
       appearing on behalf of the respondent, on the other hand,
       supported the view taken by the High Court.

            8. Before we enter into the merits of the case, we may note
       a few broad principles to be kept in view while determining the
  J    amount of compensation payable on acquisition of land for a F
       public purpose.

             9. Section 15 of the Act mandates that in determining the
       amount of compensation, the Collector shall be guided by the
       provisions contained in Sections 23 and 24 of the Act. Section G
       23 contains the list of positive factors and Section 24 has a
       list of negatives, vis-a-vis the land under acquisition, to be taken
       into consideration while determining the amount of
       1.   (1992) 4 sec 400.
                                                                         H
    872            SUPREME COURT REPORTS            [2009] 5 S.C.R.


A compensation, the first step being the determination of the
  market value of the land on the date of publication of
  Notification under sub-Section (1) of Section 4 of the Act. One
  of the principles for determination of the market value of the
  acquired land would be the price an interested buyer would be
s willing to pay if it is sold in the open market at the time of issue   •
  of Notification under Section 4 of the Act. But finding a direct
  evidence in this behalf is not an easy exercise and, therefore,
  the Court has to take recourse to other known methods for
  arriving at the market value of the land acquired. One of the
c preferred and well accepted methods adopted for working out
  the market value of the land in acquisition cases is the
  comparable sales method. The comparable sales i.e. the lands
  sought to be compared must be similar in nature and
  potentiality. Again, in the absence of sale deeds, the judgments
o and awards passed in respect of acquisition of lands, made
  in the same village and/or neighbouring villages can be
  accepted as valid piece of evidence and provide a sound basis
  to determine the market value of the land after suitable
  adjustments with regard to positive and negative factors
E enumerated in Sections 23 and 24 of the Act. Undoubtedly, an
  element of some guess work is involved in the entire exercise.

        10. In Shaji Kuriakose & Anr. vs. Indian Oil Corpn. Ltd. &
           2
    Ors. this Court had observed as under:

F          "While fixing the market value of the acquired land,
           Comparable Sales Method of valuation is preferred than
           other methods of valuation of land such as Capitalisation
           of Net Income Method or Expert Opinion Method.
           Comparable Sales Method of valuation is preferred
G          because it furnishes the evidence for determination of the
           market value of the acquired land, (sic) which a willing
           purchaser would pay for the acquired land if it has been
           sold in open market at the time of issue of Notification

H   2.    (2001) 1 sec 650.
                MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                    873
                        OFFICER [D.K. JAIN, J.]

                under Section 5 of the Act. However, Comparable Sales             A
                Method of valuation of land for fixing the market v~lue of
                the acquired land is not always conclusive. There are
                certain factors which are required to be fulfilled and on
                fulfillment of those factors the compensation can be
~
                awarded, according to the value of the land reflected in the      B
    y           sales. The factors laid down inter a/ia are: (1) the sale must
                be a genuine transaction, that (2) the sale deed must have
                been executed at the time proximate of the date of issue
                of Notification under Section 4 of the Act, that (3) the land
                covered by the sale must be in the vicinity of the acquired       c
                land, that (4) the land covered by the sales must be similar
                to the acquired land and that (5) the size of plot of the land
                covered by the sales be comparable to the land acquired.
                If all these factors are satisfied, then there is no reason why
..              the sale value of the land covered by the sales be not given      D
                for the acquired land. However, if there is dissimilarity in
                regard to locality, shape, site or nature of land between
                land covered by sales and land acquired, it is open to
                Court to proportionately reduce the compensation for
                acquired land than what is reflected in the sales depending       E
                upon the disadvantages attached with the acquired land".

               11. Yet again in Viluben Jhalejar Contractor (D) by LRs.
          vs. State of Gujarafl, making reference to a number of cases
          on the point, it was observed as follows:
     _)                                                                       F
                "18. One of the principles for determination of the amount
                of compensation for acquisition of land would be the
                willingness of an informed buyer to offer the price therefor.
                It is beyond any cavil that the price of the land which a
                willing and informed buyer would offer would be different G
                in the cases where the owner is in possession and
_,..            enjoyment of the property and in the cases where he is not.
                19. Market value is ordinarily the price the property may
          3.   (2005) 4 sec 789.                                                  H
    874           SUPREME COURT REPORTS             [2009) 5 S.C.R.


A         fetch in the open market if sold by a willing seller
          unaffected by the special needs of a particular purchase.
          Where definite material is not forthcoming either in the
          shape of sales of similar lands in the neighbourhood at or
          about the date of Notification under Section 4(1) or
          otherwise, other sale instances as well as other evidences
                                                                         •
B
          have to be considered.

          20. The amount of compensation cannot be ascertained
          with mathematical accuracy. A comparable instance has
          to be identified having regard to the proximity from time
c         angle as well as proximity from situation angle. For
          determining the market value of the land under acquisition,
          suitable adjustment has to be made having regard to
          various positive and negative factors vis-a-vis the land
          under acquisition by placing the two in juxtaposition. The    \-

D         positive and negative factors are as under:

          Positive factors                    Negative Factors

      (i) smallness of size                 (i) largeness of area
E
      (ii) proximity to a road             (ii) situation in the
                                            interior at a distance
                                           from the road

      (iii) frontage on a road             (iii) narrow strip of land
F                                           with very small
                                            frontage compared to
                                            depth

      (iv) nearness to developed           (v) lower level requiring
G                                          area the depressed
                                            portion to be filled up

      (v) regular shape                    (v) remoteness from
                                            developed locality
H
             MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                  875
,.,J                 OFFICER [D.K. JAIN, J.)
            (vi) level vis-a-vis land under   (vi) some special            A
                                               acquisition
                                               disadvantageous
                                               factors which would
                                               deter a purchaser
"\-                                                                        B
            (vii) special value for an
                  owner of an adjoining
                  property to whom it
                  may have some very
                  special advantage".
                                                                           c
             12. Thus, comparable sale instances of similar lands in the
        neighbourhood at or about the date of Notification under
       Section 4( 1) of the Act are the best guide for determination of
..     the market value of the land to arrive at a fair estimate of the
       amount of compensation payable to a land owner. D
       Nevertheless, while ascertaining compensation, it is the duty
       of the Court to see that the compensation so determined is just
       and fair not merely to the individual whose property has been
       acquired but also to the public which is to pay for it.
                                                                         E
             13. The next question is as to the scope of interference
       by this Court in an award granting compensation. The scope
       of interference by this Court was delineated by the decision in
       Kamta Prasad Singh vs. State of Bihar' wherein this Court held
  J    that there was an element of guesswork inherent in most cases
                                                                         F
       involving determination of the market value of the acquired land.
       If the judgment of the High Court revealed that it had taken into
       consideration the relevant factors prescribed by the Act, in
       appeal under Article 133 of the Constitution of India,
       assessment of market value thus made should not be disturbed
       by this Court.                                                    G

             14. The following observations of this Court in Food

       4.   (1976) 3 sec 112.
                                                                           H
    876          SUPREME COURT REPORTS                (2009] 5 S.C.R.
                                                                            ....
    Corporation of India through its District Manager, Faridkot,
A
    Punjab & Ors. Vs. Makhan Singh and Anr. 5 are quite apposite:
          "This Court as the last Court of appeal, will ordinarily not
                                                                                     -
          interfere in an award granting compensation unless there

B
          is something to show not merely that on the balance of                ..
          evidence it is possible to reach a different conclusion, but     -1
          that the judgment cannot be supported by reason of a
          wrong application of principle or because some important
          point affecting valuation has been overlooked or
          misapplied. Besides, generally speaking, the appellate
c         court interferes not when the judgment under appeal is not
          right but only when it is shown to be wrong. See in this
          connection, The Dollar Company, Madras v. Collector of
          Madras, (1975) 2 SCC 730. Added thereto are other rules

D
          of prudence that the courts do not treat at par land situated
          on the frontage having special advantage and the land
                                                                            ..
          situated in the interior undeveloped area, or to compare
          smaller plots fetching better price with large tracts of land.
          See in this connection Periyar and Pareekanni Rubbers
          Ltd. v. State of Kera/a, (1991) 4 SCC 195: AIR 1990 SC
E         2192."
       15. Therefore, the scope of interference in such matters
  is very limited and it is only in cases where it is found that the
  authorities below have either applied wrong principles or have
  omitted to take into consideration some important point
F affecting valuation, that this Court can interfere.
         16. Bearing these principles in mind, we may now advert
    to the facts. of the present case.
          17. In the instant case before the Reference Court, the
G appellant had examined 4 witnesses including himself as PW-
    1. In support of his claim, he brought on record Ex. A.1 to A.8.
    However, presently we are required to consider Ex. A.6, the
    judgment of Subordinate Judge, Medak in O.P. No.112of1987
    5. (1992) 3 sec a1.
H
                        MOHAMMAD RAOFUDDIN v. LAND ACQUISITION                 877
        ,,-'                    OFFICER [D.K. JAIN, J.]
                   dated 25th April, 1991, fixing the rate of compensation for the A
                   land, stated to be contiguous to the land of the appellant, at
                   Rs.18/- per square yard. Ex. A7 is the certified copy of the
                   decree in the said original petition. As is clear from its afore-

'       .          extracted order, the High Court relied on its decision in AS .
                   No.2336of1998 on the ground that the land in question in the B
~
~         '        said suit was acquired vide Notification under Section 4 of the
                   Act dated 4th January, 1987; the area of the land was 3 acres
                   9 guntas; the land was situated in the same village and was
                   acquired for the same very public purpose of construction of
                   Singnoor project as in the present case. The High Court noted c
                   that the Notification under Section 4 of the Act in the case of
                   the appellant having been published within 6 months of the date
~
                   of Notification in the afore-mentioned suit i.e. 15th July, 1987,
    /
                   it was not possible and permissible to take a different view other
                   than the one taken in the said suit. While discarding Exs. A6 D
         "     ~   and A7, the Court has noted that the lands, subject matter of
                   that acquisition, were not situated in the same village.
                          18. Therefore, the question for consideration is whether in .
                    the light of the said finding of the High Court, it could be said
                    that the High Court has applied a wrong principle of law or has E
                    taken into conside.ration irrelevant material, warranting
LC
    r               interference by this Court. H~ving gone through the evidence
                                                  ,•

                    on record, we find it difficult to.accept the stand of the appellant
            ,_     that the High Court should.have relied on Ex. A6 instead of its
                   earlier decision in AS. Nci.2336of1998. It may be true that in F
                   the absence of the instance relied upon by the High Court, Ex.
                   A6 could be taken into consideration as one of the comparable
                   sale instances but at the same time reliance on its earlier
                   judgment in respect of a land situated in the same village,
                   acquired only six months ago, could not be said to be an G
                   irrelevant factor affecting the determination of market value/
         ~         compensc;ition in respect of the. land of the appellant. As
                   observed in Pal Singh's case (supra), said~udgment is a valid
                   instance from which the market value of the subject land could
                   be deduced. Merely because a different conclusion could be H
    878         SUPREME COURT REPORTS             [2009) 5 S.C.R.


A possible on two sets of sale/acquisition instances, in our
  judgment, is no ground to interfere with the award of the High
  Court when it has taken into consideration an instance which
  is more closer to appellant's land in respect of the date of
  acquisition; happened to be in the same village and acquired
B for the same purpose.                                              .
         19. In the light of above discussion, we do not find any
    ground to interfere with the decision of the High Court. There
    is no merit in the appeal, which is dismissed accordingly. W~
    make no order as to costs.
c
    D.G.                                      Appeal dismissed.


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