TaxTMI 
TaxTMI 
1972 (1) TMI 104
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....r awarded compensation of Rs. 1,20,419-6-11 in respect of the first acquisition and Rs. 47,648-13-6 in respect of the second. Thereafter, at the instance of the claimant, a reference under section 18 of the Act was made to the Judicial Commissioner of Chhota Nagpur, Ranchi who. while maintaining the market value, of the land, awarded by the Collector, gave further compensation for severance at the rate of 5% and 10% in respect of potential value of the land. The Judicial Commissioner, however, did not grant the 15% solatium under section 23(2) of the Act. Being dissatisfied, the claimants preferred appeals to the High Court. The High Court revised the compensation and awarded Rs. 90,000/-per acre and 15% as solatium on the market value under section 23(2) of the Act but did not grant them the 5% towards severance. Interest at 6% per annum on the amount of enhanced compensation from 23-9-1954 together with costs was also decreed. Against the judgment and decree, the claimants have filed Civil Appeals 661 & 1380/67 while the State has filed Civil Appeals 1885- 86/67. The lands in question which have been acquired were earlier leased on 22-9-1944 to the Military authorities on a re....
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....he objections from both the appellant and the respondent were taken into account in respect of each of these and most of them were considered as not furnishing a proper or adequate valuation either having regard to the distance of the lands which were the subject-matter of the sale or the inadequacy of the information pertaining thereto. The High Court, however, adopted the price in the sale deed Ex-C-1 executed on 6-5-1953 by the Ranchi Club Ltd., in favour of the President of India in respect of 1.085 acres 3 bighas 5 kathas 10 chhataks in Plot No. 1221 for Rs. 45,000/:as the basis for arriving at the market value of the acquired land. Though the land in question was situated on the main Ranchi- Chaibasa Road, a strong objection was taken against adopting the price as a basis because it was not only 1/2 mile away from the land under acquisition but what was sold was only the leasehold right in the land. These objections were rejected on the ground that for all, practical purposes the interest that was held or sold by the Ranchi Club under Ex.C-1 was not inferior to an absolute title. The area of the land, the subject matter of the sale, was considered to be fairly large being ....
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.... to make an estimate judged by an objective standard. The land acquired has, therefore, to be valued not only with reference to its condition at the time of the declaration under section 4 of the Act but its potential value also must be taken into account. The sale-deeds of the lands situated in the vicinity and the comparable benefits and advantages which they have, furnish a rough and ready method of computing the market value. This, however, is not the only method. The rent which an owner was actually receiving at the relevant point of time or the rent which the neighbouring lands of similar nature are fetching can be taken into account by capitalising the rent which according to the present prevailing rate of interest is 20 times the annual rent. But this also is not a conclusive method.This Court had in Special Land Acquisition Officer, Bangalore v. T. Adinarayan Setty (1959) (Supp1. 1) S.CR. 404, indicated at page 412 the methods of valuation to be adopted in scertaining the market value of the land on the date of the notificatioa under section 4(1) which are : (i) opinion of experts, (ii) the price paid within a reasonable time in bona fide transactions of purchase ,of the l....
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....of 1 bigha 17 kathas equal to .617 acres for Rs. 1,45,000/. After deducting Rs. 15,403/- the price of the structures according ;to the Engineer's report in 1959 (Ex-25), the net value of the land is Rs. 1,29,697/-. This value would work out to Rs. 2,08,135.70 per acre. The High Court rejected this computation on the ground that though the land was contiguous to the land under acquisition, neither the value of the pump and the other structures belonging to Burmah Shell nor the value of the structures that might have been on the land on the date of the sale which were built by the vendees as lessees could be ascertained either from the sale-deed or the evidence. Ex.10 is a lease in respect of 1/3 acre granted by the owners to Thakur Chandra Bali Shah and others executed on 20-2-1950 on a monthly rent of Rs. 157/-. The High Court calculated the monthly rental of the land under acquisition at that rate to be not less than Rs. 2,000/- per month or Rs. 24,000/- per year. On the basis of 20 times the annual rent if computed Rs. 4,80,000/as the market value which works out at Rs. 1,03,226/per acre. It is, however, pointed out on behalf of the claimants that the High Court made a mistak....