Punjab-Haryana High Court
Smt. Raminder Kaur Widow Of Devinder ... vs The State Of Punjab Through The District ... on 25 September, 2012
Author: K. Kannan
Bench: K. Kannan
RFA No.1331 of 1990 -1-
IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT
CHANDIGARH
RFA No.1331 of 1990
Date of Decision.25.09.2012
Smt. Raminder Kaur widow of Devinder Singh (through LRs) and others
.....Appellants
Versus
The State of Punjab through the District Collector, Jalandhar and others
.....Respondents
2. RFA No.1367 of 1990
Gian Singh s/o S. Santa Singh, Partner Steelman, Kapurthala Road,
Jalandhar .....Appellant
Versus
The State of Punjab through the Secretary, Local Government, Punjab,
Chandigarh and others .....Respondents
3. RFA No.2050 of 1990
Municipal Corporation, Jalandhar through its Executive Officer and
another .....Appellants
Versus
Smt. Raminder Kaur wd/o S. Devinder Singh and others
.....Respondents
Present: Mr. Hemant Sarin, Advocate
for the appellants in RFA No.1331 of 1990 and
for respondent Nos.1 to 3 in RFA No.2050 of 1990.
Mr. Vijay Lath, Advocate and
Mr. Naveen Sharma, Advocate
for the appellants in RFA No.1367 of 1990.
Mr. Sandeep Khunger, Advocate
for the appellants in RFA No.2050 of 1990
and for the Municipal Corporation in RFA No.1331 and 1367
of 1990.
Mr. Ram Lal Gupta, Addl. A.G., Punjab.
CORAM:HON'BLE MR. JUSTICE K. KANNAN
1. Whether Reporters of local papers may be allowed to see the
judgment ? No
2. To be referred to the Reporters or not ? No
3. Whether the judgment should be reported in the Digest? No
-.-
K. KANNAN J.(ORAL)
RFA No.1331 of 1990 -2-
1. The two appeals by the land owners and one appeal by the Municipal Corporation are respectively for enhancement and for reduction of the compensation awarded by the Reference Court for acquisition of property after a notification dated 25.11.1981. The property acquired was 84 kanals 17 marlas of land for laying link road. The property acquired was in Basti Mithu, Tehsil and District Jalandhar. The Collector had passed an award on 15.09.1986, which came to be amended subsequently on 13.10.1986 providing for ` 1,28,840/- per acre for Chahi and ` 1,06,830/- per acre for gair mumkin. The Reference Court awarded a compensation of ` 1400/- per marla with solatium and interest on additional amount. The learned counsel appearing on behalf of the land owners would argue that the respondent-Municipal Corporation placed no evidence either documentary or oral, and the case came to be decided only on the basis of documents filed by the land owners. The tabulation of sale transactions would require to be reproduced to get an immediate hang of of the prices relating to the transactions:-
Ex. Date Area Consideration Rate per sq. yard Rate per marla Ex.P2 25.4.80 11 marla 123 ` 32,464/- ` 102 per sq. yd. ` 2750/-
sq. ft.
Ex.P3 25.4.80 11 marla 123 ` 32,464/- ` 102 per sq. yd. ` 2750/-
sq.ft.
Ex.P4 1.12.80 10 marla 30 ` 40,000/- ` 153/- per sq. ` 4,000/-
sq. ft. yd.
Ex.P5 6.12.81 10 marla 30 ` 42,000/- ` 162/- per sq. ` 4200/-
sq. ft. yd.
Ex.P6 10.2.81 10 marla 30 ` 35,000/- ` 162/- per sq. ` 4200/-
sq.ft. yd.
Ex.P7 28.4.81 12 marla 116 ` 35,000/- ` 104/- per sq. ` 2940/-
sq. ft. yd.
Ex.P8 23.11.81 15 marla 95 ` 45,000/- ` 111/- per sq. ` 3,000/-
sq. ft. yd.
RFA No.1331 of 1990 -3-
2. It can be noticed that Ex.P5 is for transaction dated 06.12.1981 for 10 marlas 30 sq. ft. which is a post notification sale. The learned counsel would point out that transactions covered through Ex.P3 to P6 are in relation to property in Basti Shekh which is about ¾ kms from the property acquired while Ex.P7 and P8 are situate in Basti Mithu, the very same basti from where the acquired property is situate.
If we eschew the transaction brought through post-notification sale namely Ex.P5, the average value of the property comes to ` 3230/- per marla. The contention of the appellants is, therefore, that since the sale transactions verily reflect the proper valuation of properties in the immediate vicinity of the acquired lands and also pertain to the very same period when the property was acquired, that the average price must be taken and the compensation awarded.
3. Learned counsel appearing on behalf of the Municipal Corporation would argue with reference to the rough plan that the period acquired was only an agricultural land and it was a small piece of land at the far end of the link road and it is the purpose of acquisition that lent value to the property as such and even the assessment made by the Reference Court is high.
4. I find that it is not denied that the property, which is acquired falls within the Municipal Corporation limits. The extent of properties, which are owned by the various owners, are themselves small. All the transactions of properties relating to Basti Mithu and the property adjoining are in respect of small parcels of land. The learned counsel appearing for the land owners would argue that where the acquired property falls within the municipal limits, it must be assumed RFA No.1331 of 1990 -4- that there had been already a development for residential and non- agricultural purposes and consequently the valuation itself must factor the imminent potentiality of the land for such use. I have no difficulty in accepting the contention that the property must be valued not merely as agricultural land and there is no better means of assessing the value than averaging the value of the properties during the relevant time. In Anjani Molu Desai Vs. State of Goa (2010) 13 SCC 710, the Supreme Court held that in cases of several exemplars, usually highest exemplars should be considered and where the several sales of similar lands whose prices range in a narrow bandwidth, it shall be safe to take average of such valuation. The Supreme Court, however, cautioned that the principle of averaging will not be resorted to where the sale prices are markedly different. I notice from the transactions of sales which are brought through Ex.P3 to P8 with the exception of Ex.P5 are in about the same range of 100 to 150 sq. yd. in the year 1980 and 105 to 160 per sq. yd in the year 1981. I would, therefore, apply the average of prices and take the appropriate valuation to be ` 3230/- per marla. The Reference Court relied on a price which the auction sale fetched in relation to property nearby and took the valuation at ` 1570/- per marla. There is no consistent line of authority for the position of whether an auction sale could be an appropriate exemplar. Several factors may come into play for the prices brought through competitive bids. When there are transactions of sales which have come about by private negotiation, they ought to be taken as the best bargain between the parties at arms length and even if an auction sale price could form the basis, I would invoke the rule in Anjani Molu Desai's case (supra) RFA No.1331 of 1990 -5- referring to the exigency of taking the highest price or take the average price to be more appropriate in this case.
5. Learned counsel for the respondents says that some cut must be imposed on the valuation. I do not find find any justification for the same, for the properties which are acquired from the owners are in respect of small parcels of land within the municipal area and in a developed colony that exists already. I do not think, therefore, there is any scope for applying a cut.
6. The valuation determined by the Reference Court would, therefore, stand enhanced to ` 3230/- per marla with all the statutory benefits. The appeals filed by the land owners are allowed with costs and the appeal filed by the Municipal Corporation seeking for reduction of the compensation already determined shall stand dismissed. The appellants will have two months time to pay the deficiency in Court fee and the decree shall be drafted on such payment only.
(K.KANNAN) JUDGE September 25, 2012 Pankaj*