{"id":271004,"date":"2022-08-02T09:00:56","date_gmt":"2022-08-02T03:30:56","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=271004"},"modified":"2022-08-02T07:40:17","modified_gmt":"2022-08-02T02:10:17","slug":"ready-reckoner-price-cannot-be-basis-for-determining-for-compensation-of-land-acquisition-bsnl-bombay-high-court-supreme-court-india-legal-update-news-research","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/02\/ready-reckoner-price-cannot-be-basis-for-determining-for-compensation-of-land-acquisition-bsnl-bombay-high-court-supreme-court-india-legal-update-news-research\/","title":{"rendered":"Ready Reckoner Price cannot be the basis for determining compensation for land acquisition: SC declares Bombay HC\u2019s decision per incuriam\u00a0\u00a0"},"content":{"rendered":"

Supreme Court:<\/span><\/b> While reversing the impugned decision of the Bombay High Court, <\/span>M.R. Shah*<\/span><\/b> and B.V. Nagarathna, JJ., held that the prices mentioned in the Ready Reckoner cannot be the basis for determining compensation for the land acquired under the Land Acquisition Act, 1894.<\/span>\u00a0<\/span><\/p>\n

By the instant appeal, Bharat Sanchar Nigam Limited (BSNL) had assailed the impugned order of the Bombay High Court enhancing amount of compensation for the acquired land by mainly relying upon the prevailing Ready Reckoner rates of the land.<\/span>\u00a0<\/span><\/p>\n

Background\u00a0<\/b>\u00a0<\/span><\/h4>\n

The respondents\u2019 land was acquired by the State Government for BSNL. The Land Acquisition Officer declared the award determining the total compensation at Rs.14,33,703\/- (at Rs.13.32 per sq. ft.). At the instance of the respondents, a reference was made to the Reference Court, which enhanced the amount of compensation to Rs.21\/- per sq. ft.\u00a0<\/span>\u00a0<\/span><\/p>\n

In appeal, the Bombay High Court enhanced the amount of compensation to Rs.174\/- per sq. ft. (more than 800% of the Reference Court compensation and about 1300% of the compensation awarded by the Land Acquisition Officer).\u00a0<\/span>\u00a0<\/span><\/p>\n

The Rule for Determination of Compensation\u00a0<\/b>\u00a0<\/span><\/h4>\n

In <\/span>Jawajee Nagnatham<\/span><\/i>\u202fv.\u202f<\/span>Revenue Divisional Officer, A.P.<\/span><\/i>,\u202f<\/span>(1994) 4 SCC 595<\/span><\/a>, and <\/span>Krishi Utpadan Mandi Samiti <\/span><\/i>v.\u202f<\/span>Bipin Kumar<\/span><\/i>,\u202f<\/span>(2004) 2 SCC 283<\/span><\/a>, the Court while determining whether the prices mentioned in the Ready Reckoner can be the basis for determining the compensation for the land acquired under the Land Acquisition Act had observed and held that the amount of compensation for the land under the Land Acquisition Act is determined by adopting the method of valuation namely,\u00a0<\/span>\u00a0<\/span><\/p>\n

(1) opinion of experts;\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

(2) the price paid within a reasonable time in bona fide transactions of purchase of the land acquired or the land adjacent to the land acquired and possessing similar advantages; and\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

(3) a number of years purchase of the actual or immediately prospective profits of the land acquired.\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

It was observed that in determining the market value, the Court has to take into account either one or the other of the three methods to determine the market value of the land appropriate to the facts of a given case to determine the market value. Subsequently, in <\/span>Lal Chand v. Union of India, <\/span><\/i>(2009) 15 SCC 769<\/span><\/i><\/a>, the Court observed that the market value of the land under Section 23 of the Land Acquisition Act cannot be fixed on the basis of the rates mentioned in the Basic Valuation Registers’ maintained for the purpose of collection of proper stamp duty.\u00a0<\/span>\u00a0<\/span><\/p>\n

Following the aforementioned views, the Court opined that the <\/span>prices mentioned in<\/span><\/b> the Ready Reckoner for the purpose of calculation of the stamp duty, which are fixed for the entire area, cannot be the basis for determination of the compensation under the Land Acquisition Act.\u00a0\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

Relying on <\/span>Chimanlal Hargovinddas v. LAO<\/span><\/i>, <\/span>(1988) 3 SCC 751<\/span><\/a>, the Court opined that there may be various factors, which are required to be considered for determining the market value of the land. <\/span>The market value of the land depends upon the location of the land; area of the land; whether the land is in a developed area or not; whether the acquisition is of a small plot of land or a big chunk of land and the number of other advantageous and disadvantageous factors are required to be considered.<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n

Hence, the Court held that there cannot be a uniform market value of the land for the purpose of determination of the compensation for the land acquired under the Land Acquisition Act and that the market value of the different land varies from place to place and it depends upon various factors as observed hereinabove.\u00a0<\/span>\u00a0<\/span><\/p>\n

Analysis of the Impugned Decision\u00a0<\/b>\u00a0<\/span><\/h4>\n

Finding the impugned decision per incuriam, the Court noted that the High Court had not followed the decisions laid down in Jawajee Nagnatham (supra) and Krishi Utpadan Mandi Samiti, Sahaswan (supra), on whether while determining the compensation for the land acquired under the Land Acquisition Act, the Ready Reckoner prices, which are for the determination of the stamp duty can be considered or not. Hence, the Court held that the High Court had seriously erred in not following the aforementioned decisions which were binding on it under Article 141 of the Constitution.\u00a0<\/span>\u00a0<\/span><\/p>\n

Therefore, the Court held that the High Court was wrong in enhancing the amount of compensation by 800% from Rs. 21\/- per sq. ft. to Rs. 174\/- per sq. ft. relying upon the rates mentioned in the Ready Reckoner.<\/span>\u00a0<\/span><\/p>\n

Conclusion\u00a0<\/b>\u00a0<\/span><\/h4>\n

In view of the above, the appeal was allowed and the impugned decision was set aside. The judgment passed by the Reference Court determining the compensation at Rs.21\/- per sq. ft. was restored.<\/span>\u00a0<\/span><\/p>\n

[BSNL v. Nemichand Damodardas, <\/span>2022 SCC OnLine SC 815<\/span><\/a>, decided on 11-07-2022]\u00a0<\/span>\u00a0<\/span><\/p>\n

\n

Judgment by: Justice M.R. Shah<\/span>\u00a0<\/span><\/h4>\n
\n

Appearance:<\/span><\/b>\u00a0<\/span><\/p>\n

For BSNL: Senior Advocate R.D. Agrawala\u00a0<\/span>\u00a0<\/span><\/p>\n

For State: Advocate Sachin Patil\u00a0<\/span>\u00a0<\/span><\/p>\n

For Respondents: Senior Advocate Kiran Suri<\/span>\u00a0<\/span><\/p>\n

\n

Kamini Sharma, Editorial Assistant has put this report together<\/span><\/b>\u00a0<\/span><\/p>\n

\n

\n","protected":false},"excerpt":{"rendered":"

Supreme Court: While reversing the impugned decision of the Bombay High Court, M.R. Shah* and B.V. Nagarathna, JJ., held that the prices <\/p>\n","protected":false},"author":67011,"featured_media":271005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[5611,2518,30493,2728,3260,2723,3025,3590,50643,5951],"class_list":["post-271004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-article-142","tag-Bombay_High_Court","tag-bsnl","tag-compensation","tag-Constitution","tag-Land_Acquisition","tag-per_incuriam","tag-property","tag-ready-reckoner","tag-stamp-duty"],"yoast_head":"\nReady Reckoner Price cannot be the basis for determining compensation for land acquisition: SC declares Bombay HC\u2019s decision per incuriam\u00a0\u00a0 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/02\/ready-reckoner-price-cannot-be-basis-for-determining-for-compensation-of-land-acquisition-bsnl-bombay-high-court-supreme-court-india-legal-update-news-research\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ready Reckoner Price cannot be the basis for determining compensation for land acquisition: SC declares Bombay HC\u2019s decision per incuriam\u00a0\u00a0\" \/>\n<meta property=\"og:description\" content=\"Supreme Court: While reversing the impugned decision of the Bombay High Court, M.R. 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Gangapurwala and Vinay Joshi, JJ., expressed that only because 83% of the property for the project is acquired, it would be egregious not to apply the provision of the statute for determination of compensation. Further, the Bench added that, if by private\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/CompBom.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/CompBom.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/CompBom.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/CompBom.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/CompBom.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":328770,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/08\/16\/bombay-hc-interim-compensation-land-acquisition-owner-uncompensated-36-years-mhada\/","url_meta":{"origin":271004,"position":1},"title":"Inside Bombay HC verdict ordering compensation to owner after 36 years since land acquisition by MHADA","author":"Editor","date":"August 16, 2024","format":false,"excerpt":"No justification was offered for inordinate and insensitive delay and not paying any compensation for almost 36 years. Such conduct amounts to virtual expropriation of a citizen\u2019s property without the authority of law and without paying any compensation and violates Articles 14, 21 and 300-A of the Constitution.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":337202,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/13\/section-28-a-land-acquisition-act-limitation-period-supreme-court\/","url_meta":{"origin":271004,"position":2},"title":"Limitation for application for redetermination of compensation under S. 28-A of Land Acquisition Act starts from date of award: Supreme Court reaffirms","author":"Apoorva","date":"December 13, 2024","format":false,"excerpt":"Supreme Court highlighted that the judgment in Union of India v. Pradeep Kumari, (1995) 2 SCC 736 has been rendered after considering the relevant provisions of the Statute and the principles of interpretation. However, the judgment in Ramsingbhai Jerambhai v. State of Gujarat, (2018) 16 SCC 445 is a short\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Section 28-A Land Acquisition Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-28-A-Land-Acquisition-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-28-A-Land-Acquisition-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-28-A-Land-Acquisition-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-28-A-Land-Acquisition-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":264601,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/28\/consent-award-cannot-be-the-basis-to-determine-compensation-in-other-acquisition-especially-when-there-are-other-evidences-on-record-sc\/","url_meta":{"origin":271004,"position":3},"title":"Consent award cannot be the basis to determine compensation in other acquisition, especially, when there are other evidences on record: SC","author":"Prachi Bhardwaj","date":"March 28, 2022","format":false,"excerpt":"Supreme Court: The bench of MR Shah* and BV Nagarathna , JJ has held that a consent award cannot be the basis to award and\/or determine the compensation in other acquisition, more particularly, when there are other evidences on record. The Court was dealing with a case relating to a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-114.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-114.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-114.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-114.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-114.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":302814,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/10\/03\/irrevocable-vesting-of-land-in-state-regardless-of-non-utilization-for-intended-purpose-calcutta-hc-scc-blog\/","url_meta":{"origin":271004,"position":4},"title":"Subsequent purchase of land acquired by State does not give purchaser right to challenge acquisition: Calcutta High Court","author":"Ritu","date":"October 3, 2023","format":false,"excerpt":"Calcutta High Court held that the issuance of a subsequent notification and the notice by the National Highway Authority did not affect the validity of the earlier acquisition.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":108681,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/02\/22\/person-interested-in-the-matter-of-determination-of-compensation-under-la-act-does-not-include-post-acquisition-allottee\/","url_meta":{"origin":271004,"position":5},"title":"\u2018Person interested\u2019 in the matter of determination of compensation under LA Act does not include post-acquisition allottee","author":"Prachi Bhardwaj","date":"February 22, 2017","format":false,"excerpt":"Supreme Court: The Bench of A.K. Goel and U.U. Lalit, JJ held that a post-acquisition allottee of land is necessary or proper party or has any locus to be heard in the matter of determination of compensation under the scheme of the Land Acquisition Act, 1894. In the present case,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/271004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=271004"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/271004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/271005"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=271004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=271004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=271004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}