Case Note & Summary
The appeal arose from a reference under the Land Acquisition Act, 1894, pertaining to the acquisition of land belonging to Communidade of Saligao for setting up a State Remote Sensing Centre. By Notification under Section 4(1) dated 6.3.91, the Government acquired 59,400 sq.m. of land. The Land Acquisition Officer awarded compensation at Rs.14.21 per sq.m. on 10.3.92. Dissatisfied, the landowner sought a reference to the District Court under Section 18, claiming enhancement at Rs.100 per sq.m. Before the Reference Court, the applicant produced two sale deeds: one dated 20.11.82 for 360 sq.m. at Rs.97 per sq.m. and another dated 10.2.89 for 25 sq.m. at Rs.88 per sq.m. The Reference Court dismissed the reference, holding the first sale deed was not proved as per Supreme Court guidelines and the second sale deed pertained to a small plot and could not form a reasonable basis for valuing a large extent of land. The applicant appealed to the High Court. The core legal issues were the admissibility of certified copies of registered sale deeds without examining parties, the use of small plot sale deeds to determine market value of larger tracts, and the effect of pending tenancy claims on compensation. The appellant argued that under Section 51A, certified copies of registered sale deeds are admissible without further proof, relying on Supreme Court decisions including State of Haryana v. Ram Singh and L.A.O. v. V. Narasaiah. The appellant also submitted that with a deduction of 1/3, the small plot sale deed could be used to fix market value. The respondent contended that the nature, situation, and amenities of the sale plots must be compared with the acquired land, and if a small plot sale deed is used, necessary depreciation must be applied, citing Lila Ghosh v. State of W.B. and Vithal Biku Patekar. The High Court analyzed the law and held that the Reference Court erred in both aspects. It noted that a certified copy of a registered sale deed is admissible under Section 51A and does not require proof by calling witnesses. Regarding the small plot sale deed, it was not an absolute bar; a small plot can form the basis for compensation with an appropriate deduction for largeness. Furthermore, the High Court observed that the L.A.O.'s award indicated claims of tenancy by third parties over the acquired land, which had been referred for apportionment under Section 31(2). The Court held that such tenancy claims would affect the marketability of the land as building potential, and the reference for enhancement should be decided only after the tenancy revision applications pending before the Administrative Tribunal were resolved. Accordingly, the High Court allowed the appeal, set aside the Reference Court's order, and remanded the case for a fresh decision in light of the law stated and after the final disposal of the tenancy revision applications.
Headnote
A) Evidence - Admissibility of Documents - Certified Copy of Registered Sale Deed - Land Acquisition Act, 1894, Section 51A - Certified copy of a registered sale deed is admissible in evidence and does not require to be proved by calling witnesses; the Reference Court erred in not considering the sale deed dated 20.11.82 on the ground that it was not proved as per Supreme Court Guidelines. Held that sale deed must be considered (Para 4). B) Land Acquisition - Determination of Market Value - Relevance of Small Plot Sale Deed - Land Acquisition Act, 1894 - Sale deed of a small plot of land can be considered as a basis for determining market value of a larger acquired land, but appropriate deduction should be made for largeness; the Reference Court's view that a small plot cannot be a reasonable basis was incorrect. Held that small plot sale deed can be used with deduction (Paras 4-5). C) Land Acquisition - Compensation - Impact of Tenancy Claims - Land Acquisition Act, 1894, Sections 4(1), 31(2) - Existence of claims of tenancy in respect of acquired land affects its marketability as land with building potential due to restrictions on tenanted land; the Reference Court should postpone decision on enhancement until tenancy revision applications are finally decided, so that if tenancy claims fail, higher compensation may be awarded. Held that reference must await tenancy dispute resolution (Paras 7-8).
Issue of Consideration
Whether the Reference Court erred in rejecting the two sale deeds as basis for determining market value of acquired land; Whether the existence of tenancy claims affects the compensation and its apportionment; Whether the reference should be remanded for fresh decision
Final Decision
Appeal allowed; judgment/award of Reference Court set aside; case remanded to Reference Court to decide afresh in light of law on admissibility of sale deeds and impact of tenancy claims, after pending tenancy revision applications are decided by Administrative Tribunal.
Law Points
- Certified copy of registered sale deed admissible under Section 51A Land Acquisition Act without proving by calling witnesses
- small sale deed can form basis with deduction for largeness
- tenancy claims affect land marketability and building potential
- reference for enhancement should be decided after tenancy disputes are settled
