- (1.) In pursuance of notification published on 25.1.1978 under section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) some and including the land measuring 2 kanals 12 marlas. on which the petitioner. was running a flour mill and other factory located in the municipal limits of Khanna town was sought to be acquired for the extension of new grain market. This declaration was followed by a notification dated 2.7.1979 under section 6 of the Act. The Land Acquisition Collector vide his supplementary award No. 1 dated 30.1.1983 awarded the following compensation. 1. Compensation for 2 kanals 12 marlas of land at the rate of Rs. 1,60,060/- per acre. Rs. 52,000/- 2. Compensation for removal of machinery and equipment. Rs. 2,000/- 3. Compensation, for structures including the compensation for electric fitting. Rs. 75,991/- 4. Compensation for fruit trees eta. Rs. 630/- 5. Good will of business. Rs. 5,000/- Total :- Rs. 1,35,621/- Solatium at the rate of 15% Rs. 20,343.15/- Grand Total Rs. 1,55,964.15 Being aggrieved against the adequacy of the compensation awarded by the Land Acquisition Collector, the petitioner along with his mother successfully sought a referrence under section. 1.8 of the Act to the Court of District Judge, Ludhiana. The reference was disposed of by the learned Additional District Judge on 24-8-1984 by awarding the following Compensation : 1. Compensation for the acquired land at the rate of Rs. 2,80,000/- per acre. Rs. 94,250/- 2. Compensation of the building, foundations fixture, electricity fittings etc. Rs. 96,458/- 3. Compensation for dismantling machinery and carriage charges. Rs 6,750/- 4. Compensation for loss of business. Rs. 16,000/- 5. Compensation for loss of good will of Flour Mill and Industry. Rs. 10,000/- 6. Compensation for the payment of minimum electric charges. Rs. 5987/- However, the compensation of Rs. 630/- awarded by the Collector for the fruit trees was maintained. The claimant was also awarded 15 solatium and interest at the rate of 6 per annum on the enhanced amount of compensation from the date of dispossession. It is noteworthy that Smt. Bhagwanti mother of Baldev Krishnan, appellant, died during the pendency of the reference before the Additional District Judge and Baldev Krishan, appellant, being her sole legal representative was allowed to contest this reference. Still being dissatisfied with the adequacy of the compensation awarded by the learned Additional District Judge, the claimant, has prefered this Regular First Appeal.
(2.) Shri T.S. Doabia, learned counsel for the appellant, contends that as already two types of factories were installed on the acquired land and that it abutted on the two main roads in the area of Khanna town itself, the learned Additional District Judge had wrongly ignored. the evidence of A.W. 6 Swaran Singh, Kanungo of the Colonisation Department, to the effect that after developing the acquired land, it was sold in the shape of plots in open auction at the rate of Rs. 300/- per square yard. He further maintained that the evidence of Shri S.S. Jawanda (A.W. 8), retired Director of Inspection and Control, Pong Dam, was Wrongly discarded by the learned Additional District Judge to some extent. Mr. H. S. Bedi. the then Sr. D.A.G. assisted by Shri H S Riar, Sr. D.A.G. Punjab, on the other hand, supported the award of the Additional District Judge contending that developed plots would certainly attract more buyers and fetch more price than a large chunck of land measuring 2 kanals 12 marlas. The approach of the Additional District Judge in working out the average of the estimates worked out by Shri S.S. Jawanda and Shri Gurdev Singh, R.N. 2 Building Inspector regarding the structure etc, was also supported.
(3.) There it no dispute between the parties that the property in dispute abutted on two main roads and is located in Khanna town itself and was being used for running a flour mill and another factory. Facilities of electricity and water-supply were already available. In para No. 18 of the judgment, the learned Additional District Judge had discussed the location of this property as well as the fixing of market price of the acquired land as under "A combined reading of the aforesaid evidence proves that the acquired land of Baldev Krishan Singh was a very valuable piece of land. Its location was ideal. It was already being used for commercial purpose. Two factories were being run on it. One was Balak Ram Flour and Oil Mills and the other was Punjab Wooden Industries. It adjoins the New Grain Market and has been acquired for its extension. The very purpose for which it has been acquired itself shows its importance. It was already duly developed. Facilities of electricity and water already existed on it. There was no need to develop it further. The District Collector intimated that the average rate of Gair Mumkin land situated in the revenue limits "of Khanna Kalan was Rs. 2,64,110/- per acre. The acquired land was a small compact piece of land. It was not only Gair Mumkin, but was already being used for commercial purpose for the last more than 30 years. It was already fully developed. The grain market Khanna is the greatest grain market in the country. It is thus apparent that the acquired land was of better quality than the ordinary Gair Mumkin land. Thus, I am of the considered opinion that even the rate of Rs. 2,64,110/- per acre for the Gair Mumkin land intimated by the District Collector did not represent the correct market value of the acquired land. I would make an addition at the rate of 10 per cent therein to make the correct and fair market value of the acquired land. Adding this amount the rate comes to Rs, 2,90,000/- per acre. I would hold the market value of the acquired land on the date the notification under section 4 of the Act was issued, was not less than Rs. 2,90,000/- per acre and calculated at this rate the price of 2K 12 Ms, of land comes to Rs. 94250/-. Both these issues are decided accordingly and in favour of the claimant holding that the compensation already granted was inadequate and the applicant was entitled to compensation of Rs. 94,250/- as the market price of the land on the relevant date." Thus it appears that the learned Additional District Judge had fixed the market value of the acquired (sic) District Collector. The sale deeds Exhibits A.W. 9/1 to AW 9/16 ranging from the years 19/71 to 1978 were discarded by the Additional District Judge in para 16 of the judgment by holding that these sales being pertaining to small plots of land were not comparable sales. The sale transaction exhibited by mutation Exhibited R-2 relied upon by the respondents was discarded on the ground that the land abutted on a link road only, The relevant date for fixing the market price of the acquired land in the case in hand is 25-1-1978 when the notice under section 4 of the Act was published. Although the sale transactions Exhibits AW 9/1 to AW 9/16 pertain to small pieces of land but all the same these will provide sufficient criteria for assessing the market value of the acquired land especially when there is no evidence on the file that the District Collector while working out the average rates of the acquired land had taken into consideration all the relevant sale transactions of this arm However, keeping in view that small pieces of land attract more. buyers and fetch more price than a large tract of land, some suitable cut has to be applied while working out the compensation of the large piece of land on the basis of sale transaction relating to small pieces of land. The average price of these sale transactions works up to Rs. 204.12 per sq. yard. Even if this price is slashed by 1/2 in order to assess the compensation of the acquired land, it will work up to Rs. 100/- pet square yard.;