BHARAT SANCHAR NIGAM LIMITED versus M/S. NEMICHAND DAMODARDAS & ANR.

BHARAT SANCHAR NIGAM LIMITED versus M/S. NEMICHAND DAMODARDAS & ANR.

The High Court erred in enhancing compensation by relying on Ready Reckoner rates and the Government Resolution; Ready Reckoner rates are uniform rates fixed for stamp duty purposes and do not reflect actual market values for individual plots; therefore the High Court's order enhancing compensation to Rs.174 per sq. ft. is quashed and set aside and the Reference Court award fixing compensation at Rs.21 per sq. ft. is restored.

Parties
Appellant: Bharat Sanchar Nigam Limited; Respondents, Original Claimants: M/s. Nemichand Damodardas & Anr.
Jurisdiction
India
Judgment Date
11 July 2022
Procedural Posture
Civil Appeal to the Supreme Court / Appeal From Judgment and Order Dated 20.01.2021 of the High Court of Judicature at Bombay, Nagpur Bench in First Appeal No.1302 of 2009
Outcome
Appeal allowed
Legal Topics
Determination of Compensation, Ready Reckoner Rates, Market Value, Reference Proceedings Under Land Acquisition Act, Precedent on Valuation
Land Acquisition Property Valuation Stamp Law Administrative Law Determination of Compensation Ready Reckoner Rates Market Value Reference Proceedings Under Land Acquisition Act +1 more

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Parties

Bharat Sanchar Nigam Limited

Appellant

M/s. Nemichand Damodardas & Anr.

Respondents, Original Claimants

Procedural Posture

Civil Appeal to the Supreme Court / Appeal From Judgment and Order Dated 20.01.2021 of the High Court of Judicature at Bombay, Nagpur Bench in First Appeal No.1302 of 2009

Legal Issues

  1. 1 Whether Ready Reckoner/Basic Valuation Register rates prepared for stamp duty can be the basis for determining compensation under the Land Acquisition Act
  2. 2 Whether the High Court erred in enhancing compensation relying on Ready Reckoner rates and Government Resolution dated 31.10.1994

Ratio Decidendi

The High Court erred in enhancing compensation by relying on Ready Reckoner rates and the Government Resolution; Ready Reckoner rates are uniform rates fixed for stamp duty purposes and do not reflect actual market values for individual plots; therefore the High Court's order enhancing compensation to Rs.174 per sq. ft. is quashed and set aside and the Reference Court award fixing compensation at Rs.21 per sq. ft. is restored.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment and order of the High Court dated 20.01.2021 is quashed and set aside
  • Judgment and order of the Reference Court determining compensation at Rs.21 per sq. ft. is restored