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NON-REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.474 OF 2013

Patel Jathabhai Punajbhai ...  Appellant(s)

Vs.

North Gujarat University & Anr.       ... Respondents

WITH

C.A. No. 475/2013;  C.A. No. 476/2013; C.A. No. 477/2013;  C.A. No. 478/2013; C.A. No. 482/2013; C.A. No. 483/2013;  C.A. No. 484/2013; C.A. No. 485/2013; C.A. No. 487/2013;  C.A. No. 514/2013; C.A. No. 515/2013; C.A. No. 517/2013;  C.A. No. 518/2013; C.A. No. 519/2013; C.A. No. 520/2013;  C.A. No. 521/2013; C.A. No. 522/2013; C.A. No. 523/2013;  C.A. No. 526/2013; C.A. No. 527/2013; C.A. No. 528/2013;  C.A.  No.  529/2013;  C.A.  No.  1339/2013;  and  S.L.P.  [C]  Nos.16925-16936/2013.   

J U D G M E N T

ARUN MISHRA, J.

1. The appeals  arise  out  of  the  third  group of  matters  

wherein a common judgment and order dated 7.8.2012  

has  been  passed  by  the  High  Court  of  Gujarat  at  

Ahmedabad,  determining  the  compensation  for  

agricultural land at the rate of Rs.60/- per sq.m. and for

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non-agricultural  land  at  the  rate  of  Rs.78/-  per  sq.m.  

situated  at  village  Samalpati  and  Matarwadi  of  Taluka  

Patan acquired vide notification dated 23.5.1987 issued  

under  Section  4  of  the  Land  Acquisition  Act,  1894  

(hereinafter  referred to as ‘the Act’)  for  the purpose of  

campus  of  North  Gujarat  University.  The  modified  

notification  under  Section  4  had  been  issued  on  

13.8.1987.  The  award  was  passed  on  21.9.1990  

determining the price from Re.1/- to Rs.5/- per sq.m. On a  

reference being made under section 18 of the Act,  the  

Reference  Court  determined  the  compensation  at  

Rs.109.30 per sq.m. for the agricultural land and Rs.184/-  

per sq.m. for non-agricultural land. On appeal, the High  

Court  has  reduced  the  compensation,  as  aforesaid.  

Aggrieved  thereby,  the  claimants  have  come  up  in  

appeals before us.

2. The main question for our consideration is : what  

would be the compensation to be awarded on the date of  

notification under section 4 of the Act.  

3. It  is  not  in  dispute  that  around  the  land  in  

question, development has already been made. Nearby to

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the land in  question are colleges like Polytechnic,  Arts,  

Science and Commerce. On the Eastern side of the land is  

the State Highway Deesa-Patan-Chanasma-Viramgam and  

on Southern side of the road is the road to enter Patan  

city. Railway station is also nearby. On the Western side in  

the  nearby  area  are  bus  stand,  T.V.  relay  centre,  

Telephone and telegraph head office.  

4. In  short,  the  land  is  surrounded  by  housing  

societies, industrial zone, offices, college campus, roads,  

bus  service,  other  transport  facilities  and  marketing  

facilities.  G.I.D.C.  is  hardly  500  meters  away  from the  

acquired land which forms part of Municipal area, hence,  

it was contended that the area is virtually a part of Patan  

Municipality  for  all  purposes.  The  agricultural  land  

possesses high potentiality to be used for residential and  

commerce purposes. The High Court has found out that  

the  area  touches  the  extended  limits  of  Patan  city.  

Reliance has been placed on Ex. D-87 and D-88, the sale-

deeds of the area at 500 metres of distance where the  

land was sold on 10.12.1985 at the rate of Rs.239.20 per  

sq.m.,  after  applying  10%  increase  on  the  date  of

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notification  under  Section  4,  the  market  value  of  non-

agricultural land comes to Rs.275.08 per sq.m. and on the  

strength of sale-deed Ex. D-88, the price would come to  

Rs.184.04  per  sq.m.  It  was  also  submitted  that  the  

highest consideration fetched in the exemplar sale-deed  

ought  to  have  been  taken  into  consideration  for  

determining the just compensation.  

5. Per  contra,  adequate  compensation  has  been  

worked  out.  The  High  Court  has  rightly  reduced  the  

compensation  as  determined  by  the  Reference  Court  

considering the fact that the land acquired was a large  

chunk of land.

6. In the instant case, the Land Acquisition Officer,  

Reference Court as well as the High Court, in the peculiar  

facts and circumstances of the case, have determined the  

compensation  on  the  basis  of  price  of  the  land at  per  

sq.m.  The area in question is not within the municipal  

limits  but  adjacent  to  the  extended  limits  of  Patan  

municipality.  The  fact  that  various  educational  

institutions, houses, railway station, bus stands and other  

offices are in close vicinity and the entire land has the

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potentiality like that of non-agricultural land on the date  

of notification under Section 4 of the Act, is not disputed.  

7. In the appeals, we are concerned with the third  

group  of  matters.  The  High  Court  has  found  that  

comparable sale instances in the third group of matters  

are in the shape of sale-deed Ex. 45, 46 and 47. The price  

per  square  meter  comes  to  Rs.118.34,  Rs.119.47  and  

104.93. The lands which were sold were non-agricultural  

land. The High Court while considering the aforesaid sale-

deeds,  after  deducting  30%  value  for  determining  the  

price  of  the  agricultural  land  per  sq.m.  and  thereafter  

adding 10% from the date of  sale-deed to  the  date of  

notification under Section 4 of the Act, has arrived at a  

finding that the price per sq.m. for land would come to  

Rs.108/-,  Rs.101/-  and  Rs.89/-  respectively,  averaging  

approximately  Rs.100/-  per  sq.m.   Further  deduction of  

10% from the value so arrived at as land is large chunk,  

the price per sq.m. on strength of said sale deeds had  

been  arrived  at  Rs.97,  Rs.  90  and  Rs.  80  respectively.  

However, considering the sale-deeds filed for the purpose  

of  first  and  fourth  group  of  matters  had  averaged  the

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price  and  thus  it  has  arrived  at  value  of  Rs.60/-  for  

agricultural land and Rs.78/- for non-agricultural land.

8. In  our  view,  we  have  to  consider  the  sale  

instances available for the third group of matters. In the  

peculiar  facts  and  circumstances,  it  would  have  been  

appropriate to deduct approximately 30% of the amount  

for  development  etc.  Further  deduction for  determining  

the valuation of the land was not called for. In our opinion,  

it would be appropriate and just to award compensation  

at the rate of Rs.100/- per sq.m. for entire land.  

9. Reliance placed by the appellants on sale-deeds Ex. 87  

and 88 is of no avail as they are with respect to the area  

inside the extended limits of the municipality.  We have  

comparable  sale  deeds  Ex.  P45  to  47  of  the  area  in  

question itself.  

10. Consequently,  appeals  are  partly  allowed,  the  

compensation determined by the High Court with respect  

to the third group of matters is modified to the aforesaid  

extent.  

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11. Coming  to  S.L.P.  [C]  Nos.16925-36/2013,  in  

respect of other group of matters, admittedly no appeal  

or  cross-objection  was  preferred  as  against  the  order  

passed by  the  Reference Court  to  the  High  Court.  The  

High  Court  has,  thus,  rightly  declined  to  enhance  the  

compensation.  We agree with the reasons given by the  

High Court and dismiss the SLPs.   

No costs.

.................................CJI (H.L. Dattu)

...................................J. (A.K. Sikri)

New Delhi;        ....................................J. January 28, 2015. (Arun Mishra)