IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.1367-1368/2018
ALL INDIA TEA AND TRADING CO. LTD APPELLANT
VERSUS
INDIAN OIL CORPORATION LTD. & ORS. RESPONDENTS
O R D E R
1. The present Appeals arise out of impugned order
dated 22.02.2017 passed by the Gauhati High Court
(Principal Bench at Guwahati) in L.A. 31/2002 & 32/2002
whereby the HC deducted 10% from the awarded compensation
towards the development charges.
2. The land measuring 248 bighas 8 cottahs and 9
chittakhs situated at village Harinccherra Cha Bagicha,
District Gachar and land measuring 1 bigha 7 cottahs and
13 chittakhs of village Bhitor, Gangapur was acquired for
the public purpose of construction of LPG Bottling Plant
by the respondent – Indian Oil Corporation Ltd. (in
short, the “IOC”). The Notification under Section 4 of
Signature Not Verified
Digitally signed by the Land Acquisition Act, 1894 (in short, the “Act”) was
ARJUN BISHT
Date: 2025.02.21
17:04:06 IST
Reason:
issued on 01.06.1989 followed by declaration under
1
Section 6 of the Act on 06.06.1989 and 28.08.1989.
3. Thereafter, the Land Acquisition Collector passed
an award in April 1990 determining the valuation of the
land at Rs.5,000/- per bigha for garden land (also known
as ‘Charra class land’) and Rs.3,000/- per bigha for the
patit class of land. The dissatisfied land owner(s) filed
reference under Section 18 of the Act and the Reference
Court vide award dated 19.03.1999 enhanced the
compensation to the extent of Rs.14,000/- per bigha for
the charra class of land and Rs.5,000/- per bigha for
patit class of land.
4. The aforesaid award was challenged by the IOC in a
First Appeal before the High Court, which was allowed
vide judgment dated 06.06.2000 to the extent that the
matter was remanded back to the Reference Court for fresh
adjudication.
5. Thereafter, the District Judge, Cachar, Silchar
vide award dated 24.12.2001 determined the market value
of the acquired land at Rs.14,000/- per bigha for charra
class of land and Rs.5,000/- for the patit class of land.
6. IOC again preferred appeal before the High Court
and vide impugned judgment dated 22.02.2017, the High
Court after applying a cut of 10% towards development
charges, has reduced the compensation to Rs.12,600/- per
bigha for charra class of land and Rs.4,500/- per bigha
for patit class of land.
2
7. The aggrieved land owners are before us.
8. We have heard learned senior counsel on behalf of
the appellant-Company as well as learned Additional
Solicitor General of India on behalf of the respondent –
IOC. The record has been perused.
9. It may be mentioned, at the outset, that the
appellant – land owner was satisfied with the
compensation awarded by the Reference Court as no appeal
was preferred against the same. Similarly, no cross-
objections were filed in the First Appeal, preferred by
IOC. It is only when the High Court reduced the
compensation by imposing 10% development charges, that
the appellant has come before this Court.
10. The short question, thus, that falls for
consideration is whether the High Court was justified in
imposing the 10% development charges?
11. The undisputed facts, as noticed by the High Court
in paragraph 4 of the impugned judgment are that the
acquired land is part of the Harinchherra Division of
Ballacherra Tea Estate. The appellant produced some
exemplars to substantiate its claim of Rs.25,000/- per
bigha before the Reference Court. The High Court has
observed and rightly so that out of the sale instances,
relied upon by the appellant, Exts.P-5 to P-11 are
agricultural lands, whereas the acquired land is a tea
garden land having different potentialities. As no sale
3
instance of tea estate land was produced before the High
Court, the sale deed (Ext.P-11 i.e., sale deed
No.52/1989), which was for a small area measuring little
more than 1 bigha, was found to be the best exemplar.
Vide that sale deed, the plot of land was sold for a sum
of Rs.15,500/-.
12. There can be no quarrel and it has not been
disputed on behalf of respondent – IOC also that in light
of a decision of this Court in Numaligarh Refinery Ltd.
vs. Green View Tea & Industries and another, (2007) 9 SCC
242, the tea estate land shall have higher potentiality
than the agricultural land and, thus, the market value of
the tea garden land will also be more than that of the
agricultural land.
13. Following the aforesaid principle, it can be safely
inferred that the market value of the subject tea estate
land in the year 1989 was undoubtedly more than
Rs.15,500/- per bigha. The reason to arrive at such
conclusion is that the sale instance (Ext.P-11) executed
in the year 1989 itself, though pertains to a small size
plot, fetched the price of Rs.15,500/- per bigha for
agricultural land. Even applying the development charges
on the analogy that the acquired land is a big chunk of
land as compared to a small plot of land sold vide Ext.P-
11, there can be no doubt that the market value of the
tea estate land, even after deduction of 10% or more,
4
would not be less than Rs.14,000/-.
14. The Reference Court, in our considered view, was
thus justified in awarding the market value of
Rs.14,000/- per bigha for charra class of land and
Rs.5,000/- per bigha for patit class of land along with
the increased Zirat valuation.
15. For the reason aforestated, the appeals are allowed
in part. The impugned judgment of the High Court to the
extent of imposing a cut of 10% towards development
charges is set aside and the compensation as awarded by
the District Judge, Cachar, Silchar vide award dated
24.12.2001 is restored. The appellant shall be entitled
to compensation along with other statutory benefits,
including interest at the rate as determined by the
Reference Court. The Reference Court-cum-District Judge,
Cachar, Silchar is directed to calculate the compensation
payable to the appellant in terms of the directions laid
out hereinabove. On doing so, the IOC is directed to
deposit the enhanced amount of compensation before the
Reference Court within six weeks from the date of such a
determination.
16. Before parting with this case, we would like to
clarify that since the appellant did not question the
judgment of the High Court in respect of land measuring 1
bigha 7 cottahs and 13 chittakhs of village Bhitor,
5
Gangapur, the impugned judgment qua that land shall
remain unaffected. Ordered accordingly.
..........................J.
(SURYA KANT)
..........................J.
(NONGMEIKAPAM KOTISWAR SINGH)
New Delhi;
February 18, 2025
6
ITEM NO.8 COURT NO.3 SECTION XIV-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s).1367-1368/2018
ALL INDIA TEA AND TRADING CO. LTD Appellant(s)
VERSUS
INDIAN OIL CORPORATION LTD. & ORS. Respondent(s)
(IA No.260082/2024 - EARLY HEARING APPLICATION, IA No.219023/2023 -
EARLY HEARING APPLICATION)
Date : 18-02-2025 These matters were called on for hearing today.
CORAM : HON'BLE MR. JUSTICE SURYA KANT
HON'BLE MR. JUSTICE NONGMEIKAPAM KOTISWAR SINGH
For Appellant(s) : Mr. P.S. Datta, Sr. Adv.
Mr. Sanjay Kumar, Adv.
Ms. Anwesha Saha, Adv.
Mr. Fuzail Ahmad Ayyubi, AOR
For Respondent(s) :Mrs. Aishwarya Bhati, A.S.G.
Mrs. Priya Puri, AOR
Mr. Sachin Dubey, Adv.
Mrs. Pinki Aggarwal, Adv.
Mr. Sharad Kumar Puri, Adv.
Mr. Vibhav Srivastava, Adv.
UPON hearing the counsel the Court made the following
O R D E R
1. The appeals are allowed in part in terms of the signed order.
2. All pending applications, if any, also stand disposed of.
(ARJUN BISHT) (PREETHI T.C.)
ASTT. REGISTRAR-cum-PS ASSISTANT REGISTRAR
(signed order is placed on the file)
