✦ Madras High Court · 16 Jul 2009

The Special Tahsildar (LA), Salem – Karur Broad Gauge Railway Scheme, Salem v. Subramani

K RAVIRAJA PANDIAN, P P S JANARTHANA RAJAAPPEAL10 min read

Case at a glance

Outcome

Allowed

The appeals are allowed to the extent indicated above

Provisions considered

Key paragraphs

  • Para 1111. We are not able to sustain the argument of the learnedcounsel for the second respondent, that the enhancement of Rs.25/-over and above the value of the land in sl. No.476, because sl. No.476was sold on 15.04.1998, but the 4(1) notification is dated23.02.1999. Hence, there…
  • Para 1212. In all reasonableness, a deduction of Rs.25/- per sq. ft.,in our view, would meet the ends of justice. If such a deduction isgiven, the value of the land would be Rs.100/- per sq. ft. Thus, thevalue of the land is determined at Rs.100/- per…
  • Para 1313. The appeals are allowed to the extent indicated above. Inrespect of other aspects, the order of the Reference Court wouldremain in tact. The connected miscellaneous petitions are closed inview of the order in the appeal suits.* 14. The Government Pleader as well as the…

Judgment

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 16.07.2009Coram :THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIANandTHE HONOURABLE MR.JUSTICE P.P.S.JANARTHANA RAJAAppeal Suits Nos.430 to 454 of 2007,472 to 481 and 597 to 604 of 2008A.S. No.430 of 2007 The Special Tahsildar (LA),Salem – Karur Broad Gauge Railway Scheme, Salem... Appellant/Referring Officer in all Appeals.v.

1.

Subramani.. Respondent/Claimant in AS.430/072.1.Kannan 2. Maadhayyan 3. Chevvanthiammal.. Respondents/Claimants in AS.431/073.1.Mariyappan 2. Andiyappan 3. Karumalai 4. Paramasivam 5.S.Muthu.. Respondents/Claimants in AS.432/074.Ammaciyammal .. Respondent/Claimant in AS.433/075.Palaniyappan .. Respondent/Claimant in AS.434/076.1.Jayapaul 2.S.Manickam.. Respondents/Claimants in AS.435/077.Muthammal.. Respondent/Claimant in AS.436/078.Rajendran.. Respondent/Claimant in AS.437/079.Chinnapoonu.. Respondent/Claimant in AS.438/0710.Pappathi.. Respondent/Claimant in AS.439/0711.Mallika.. Respondent/Claimant in AS.440/0712.Kannammal.. Respondent/Claimant in AS.441/0713.Palaniammal.. Respondent/Claimant in AS.442/0714.Sengodan.. Respondent/Claimant in AS.443/0715.Balakrishnan.. Respondent/Claimant in AS.444/0716.Lakshmi.. Respondent/Claimant in AS.445/0717.Malarvizhi.. Respondent/Claimant in AS.446/0718.Pappa.. Respondent/Claimant in AS.447/0719.Lakshmi.. Respondent/Claimant in AS.448/0720.Allimuthu.. Respondent/Claimant in AS.449/0721.1.Thangaraj 2. Veerammal.. Respondents/Claimants in AS.450/07 https://hcservices.ecourts.gov.in/hcservices/

22.

Hamsha.. Respondent/Claimant in AS.451/0723.Iyyandurai.. Respondent/Claimant in AS.452/0724.T.K.Ramasamy.. Respondent/Claimant in AS.453/0725.Vaithi @ Chinn Vaithi.. Respondent/Claimant in AS.454/0726.Palaniammal.. Respondent/Claimant in AS.472/0827.1.Vairavan 2. Rajendiran.. Respondents/Claimants in AS.473/0828.Prakash.. Respondent/Claimant in AS.474/0829.Chinnaponnu.. Respondent/Claimant in AS.475/0830.Ganesan.. Respondent/Claimant in AS.476/0831.Kamala.. Respondent/Claimant in AS.477/0832.Valliammal.. Respondent/Claimant in AS.478/0833.Jeya.. Respondent/Claimant in AS.479/0834.Rangaraj.. Respondent/Claimant in AS.480/0835.Iyyammal.. Respondent/Claimant in AS.481/0836.1.Krishnan 2. Subramani 3. Kandasamy 4. Danapal.. Respondents/Claimants in AS.597/0837.Raja.. Respondent/Claimant in AS.598/0838.Patchamuthu.. Respondent/Claimant in AS.599/0839.Susila.. Respondent/Claimant in AS.600/0840.Kaliappan.. Respondent/Claimant in AS.601/0841.Chinnaponnu.. Respondent/Claimant in AS.602/0842.Peria Vaithi.. Respondent/Claimant in AS.603/0843.1.Perumal 2.

Senguttuvan.. Respondents/Claimants in AS.604/082. The Deputy Chief Engineer (Construction), Southern Railway, Salem Railway BroadGauge Railway Scheme, Salem 5... Respondents/Beneficiaryin all appeals. Appeal Suits filed under section 54 of the Land Acquisition Actagainst the judgment and decree of the Additional District & SessionsJudge (Fast Track Court No.I), Salem dated 19.05.2003 made in LAOPNo.251 to 256, 260, 261 to 269, 275, 276, 278, 287 to 289, 296 to298, 257, 292, 248, 249, 281 to 285, 291, 259, 271, 273, 274, 280,294, 295 and 299 of 2002.For appellant: Mr.V.Ravi, Special Government PleaderFor respondentsRailways: Mr.A.Thiagarajan, Senior Counsel for Mr. V.G. Suresh KumarFor respondents/claimants: Mr.Kasturi Rangan, for M/s.Sampath Kumar Associates for R1 in AS.431,472 476/08 for RR1 to 5 in 432/07, for RR1 & 2 inAS.450/07 https://hcservices.ecourts.gov.in/hcservices/ Mr.P.Jagadeesan for R1 in AS.474,475,477 to 481/08 for R2 in 473,474/08for RR1 & 2 in AS.601 to 604/08, AS.597 to 604/08 Mr.N.S.Sivakumar for R1 in AS.436/07,438 to 441,444,445,447,448 and 451/07JUDGMENT(Judgment of the Court was delivered byK.RAVIRAJA PANDIAN, J.)These appeals are filed by the acquisition authority against theenhanced compensation determined by the Reference Court in respect ofthe lands acquired for the purpose of laying railway track from Salemto Karur in an extent of 2.01.0 hectare of land in various surveynumbers (survey No.19/3A1A etc.,) in the village of Amanikondlampatti, Salem Taluk, has been acquired by invoking theurgency provision of the Land Acquisition Act.

The Requisitioningbody is Railways.2. The notification under section 4(1) of the Act was issued on23.02.1999. The Land Acquisition Officer, after following the dueprocedure contemplated under the Land Acquisition Act passed an awardon 28.10.1999. While passing the award, the land acquired has beenclassified in three categories by the Land Acquisition Officer, viz.,(1) an extent of 1.36.0 hectares as dry agricultural land; (2) anextent of 5480.5 sq. m., as house sites and (3) 994.5 sq. mt., asnatham. In respect of dry agricultural land, the Land AcquisitionOfficer determined the compensation at the rate of Rs.46,359/- peracre, which works out to Rs.1 06 per square feet. The compensationso awarded in total in respect of the first category isRs.1,55,706.40. The second and the third categories have beenconsidered together and a sum of Rs.140.70 per sq. mt. has beendetermined which works out to Rs.13.83 per sq. ft.

The totalcompensation determined under these two categories works out toRs.7,66,885.35. 3. The claimants, not satisfied with the compensation awarded bythe Land Acquisition Officer in the award dated 28.10.1999 got thematter referred under section 18 of the Land Acquisition Act beforethe Reference Court. The Reference Court, after taking intoconsideration the material evidence – both oral and documentary, adduced before it, determined the value of the land at Rs.125/- persq. ft., irrespective of the classification made by the LandAcquisition Officer by treating all the lands on par with each other. In respect of the claimants whose lands have been severed from theirremaining land, a compensation at the rate of 25% of the value hasbeen granted. In respect of persons whose dwelling house have beenacquired, 25% of the value has been granted. As stated in thesummation of facts, the compensation so determined has been put inissue in these appeals both by the acquisitioning body as well as bythe requisitioning body. https://hcservices.ecourts.gov.in/hcservices/

4.

Heard the learned Special Government Pleader for theappellant, learned Senior Counsel appearing for the acquisitioningbody (Railways), and learned counsel who appeared for the claimants-respondents and perused the materials available on record.

5.

Mr.Thiagarajan, learned senior counsel for the acquisitioningbody contended that having regard to the number of sales that tookplace within the period of three years prior to the date of 4(1)notification and having regard to the further fact that 90% of thesales that took place were made on square feet basis, in respect ofthe land adjoining the land under acquisition, the treatment made bythe Reference Court in determining the compensation at square feetbasis for the lands cannot be said to be faulty or irregular, but thecompensation determined at Rs.125/- per sq. ft., is without anybasis. There is absolutely no material available before the Reference Court to determine the compensation at Rs.125/- per sq. ft. He further contended that Sl. No.476 of the data document was sold on15.04.1998, which is in an extent of 389 sq. m., as house site (4187sq. ft.), at the rte of Rs.100.55, which is a smaller extent andwhich cannot form a basic document to determine the value of thelarger extent of land which has been acquired in this case. Hefurther contended that the Reference Court failed to deduct any sumtowards development charges. The counsel for the acquiring bodyadopted the argument of the counsel for requisitioning body.

6.

The learned counsel for the claimants argued for sustainingthe order of the Reference Court.

7.

From the arguments of the learned counsel on either side, thepoints that arise for consideration in this case are as to whetherthe value of the land determined at Rs.125/- per sq. ft., isreflecting the fair market price and whether any deduction should begiven from the value determined towards development charges andlargeness of the area acquired? 8. As contended by the learned counsel for the secondrespondent, the sales that took place in and around the land underacquisition, which are 615 in number, were sold on sq. ft. basis ashouse sites for the purpose of putting up the construction ofbuilding. That is the reason for the counsel for the secondrespondent to concede that they cannot object for determination ofthe compensation by square feet basis.

9.

We also find, on facts, that almost all the 615 sales weremade on the basis of sq. ft. only. It is seen from paragraph 9 ofthe judgment of the Reference Court, wherein it has categoricallybeen admitted by the appellant - Special Tahsildar, who deposed asDW1 that the lands which are the subject matter of LAOP No.252, 257,281 to 285, 287, 288 of 2002 were all house sites. He furtheradmitted that the lands under acquisition, though differentlyclassified in the revenue records, they are house sites only and thelands in and around the acquired lands have been sold as house sitesonly. The claimants, who deposed before the Reference Court, have https://hcservices.ecourts.gov.in/hcservices/ also spoken to about this fact that though the land in surveyNo.19/3A1A has been classified as agricultural dry and natham, thesales that were effected during the period were on the sq. ft., basistreating the lands as house sites. Hence, on the basis of thedocuments supported by the evidence adduced by as many as 10claimants which has been supported by the evidence of DW1, the Special Tahsildar, we can safely come to the conclusion that theaction of the Reference Court in determining the compensation at sq.ft., basis is correct and cannot be stated to be faulty.

10.

In respect of the value determined by the Reference Court, it is true that before the Reference Court, sl. No.476 a documentdated 15.04.1998 in which land has been sold at Rs.100.55 per sq.ft., has not been marked by the claimant, but the fact remains thatthe very document was available before the Reference Court as it wastaken as one of the several data lands. By taking into the totalityof the circumstances of the case, as to the lie of the land suitablefor immediate construction and that Sl. No.476 document is also oneof the several documents gathered by the Land Acquisition Officer forthe purpose of determining the value of the land which, on par withthe acquired land in all aspects, is more suitable for determiningthe value of the subject land. As already stated, under thatdocument, a square foot has been sold at Rs.100.55. On that basis, the Reference Court has determined the value at Rs.125/- per sq. ft.,by enhancing the value by Rs.25/-.

11.

We are not able to sustain the argument of the learnedcounsel for the second respondent, that the enhancement of Rs.25/-over and above the value of the land in sl. No.476, because sl. No.476was sold on 15.04.1998, but the 4(1) notification is dated23.02.1999. Hence, there must be some escalation in the price of thehouse sites. As per section 23 of the Land Acquisition Act, the valuehas to be determined by taking into consideration the market value ofthe land on the date of publication of the notification under section4(1) of the Act. As the date of the notification under section 4(1)of the Act is nearly one year after the date of sale of land underSl. No.476, the enhancement of Rs.25/-, in our view, would reflectthe fair market value. If that be so, we are of the view that thedetermination of the value of the land at Rs.125/- per sq.ft., is afair market value of the land and it cannot be regarded as on thehigher side.

An attempt was made to contend that no amount wasdeducted from the value determined towards development charges, byrelying on the Supreme Court decisions in the cases of Basavva v.Spl. Land Acquisition Officer, (1996) 9 SCC 640 and Land AcquisitionOfficer, Kammarapally Village V. Nookala Rajamallu, AIR 2004 SC 1031.Here again, we are not able to concur with the argument. The publicpurpose for which the land was acquired in the present case is forformation of railway track from Salem to Karur, which require nodevelopment except strengthening the track land and laying the railtrack. It is apt, we think to quote certain observations made by theapex Court in the case of Nelson Fernandes v. Special LandAcquisition Officer, 2007 (9) SCC 447: https://hcservices.ecourts.gov.in/hcservices/ "We are not, however, oblivious of the fact that normally 1/3rddeduction of further amount of compensation has to be directedin some cases.

However, the purpose for which the landacquired must also be taken into consideration. In the instantcase the land was acquired for the construction of new B.G.line for Konkan Railway. This Court, in Hasanali Khanbahi &sons v. State of Gujarat, (1995) 2 SCC 422 and Land AcquisitionOfficer v. Nookala Ramamallu, 2003 (12) SCC 334 had, noticedthat where lands are acquired for specific purposes deductionby way of development charges is permissible. In the instantcase, acquisition is for laying a railway line. Therefore, thequestion of development charges thereof would not arise. "But the Reference Court has not taken into consideration thelargeness of the area which has been acquired, while arriving at thevalue with reference to small piece of land in sl. No.476. The extentof lands sold by document dated 15.04.1998 in s.No.476 is 398 sq. m.,(4187 sq. ft), whereas the land acquired is an extent of 2.01.0hectares. Hence, definitely certain percentage in the value has to bededucted towards the largeness of the area acquired.

12.

In all reasonableness, a deduction of Rs.25/- per sq. ft.,in our view, would meet the ends of justice. If such a deduction isgiven, the value of the land would be Rs.100/- per sq. ft. Thus, thevalue of the land is determined at Rs.100/- per sq. ft.

Operative part

13.

The appeals are allowed to the extent indicated above. Inrespect of other aspects, the order of the Reference Court wouldremain in tact. The connected miscellaneous petitions are closed inview of the order in the appeal suits.* 14. The Government Pleader as well as the counsel for the Housing board are entitled to individual fees in respect ofthese cases. i.e., separate fee for each of the case. Sd/-Asst. Registrar 27.8.2009* Para No.14 is added as per orderdated.19.12.09Sd/-Asst. Registrar22.1.2010/True Copy/Sub. Asst. Registrarmf https://hcservices.ecourts.gov.in/hcservices/ To.1. The Additional District and Sessions Judge, Corrected order to Fast Track Court No.1, Salem.be substituted for the order already2. The Special Tahsildar(LA), despatched on Salem & Karur Broad Gauge Railway Scheme, 02.10.2009 Salem.3. The Deputy Chief Engineer(Construction) Southern Railway, Salem-Karur Broad Gauge Railway Scheme, Salem-5.+ 43 CCs to Mr.V.G.Suresh Kumar, Advocate, SR.32591 to 32633+ 3 CCs to M/s.Sampath Kumar Associates, SR.31689+ 1 CCs to Government Pleader, High Court, Madras.SR.32112 A S Nos.430 to 454 of 2007,472 to 481 & 597 to 604 of 2008KA(CO)EM/31.8.09EM/25.1.10

Questions this judgment answers

What did the Court decide in this case?

The Court recorded the following disposition: The appeals are allowed to the extent indicated above

Which statutory provisions did this judgment involve?

Land Acquisition Act — ss. 18, 23.

Which court decided this case, and when?

Madras High Court, on 16 Jul 2009. The bench was K RAVIRAJA PANDIAN, P P S JANARTHANA RAJAAPPEAL.

Precedent status how later indexed judgments have treated this case

No known negative treatment found in the Courts & Cases corpus.

This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.

Why is this linked?

This is the original judgment text, reproduced from the public court record. Always verify it against the official record before relying on it in a filing — check it on Madras High Court or eCourts case status. ← Search more judgments