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Mahamaya General Finance Co. Ltd. v. State of Uttar Pradesh

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 5514 of 2014)Decided 8 May 2014
Civil Appeal No. 5514 of 2014
Justice Sudhansu Jyoti Mukhopadhaya · Justice Ranjan Gogoi

Background

A company's land was acquired for industrial development following a 1969 notification, with possession taken in 1970. Its compensation was fixed at Rs. 1.33 per square yard using one sale transaction. The lower courts rejected two nearby sales produced by the company as inflated, and it appealed for a higher valuation.

Decision Breakdown

The Court allowed the appeals and directed compensation based on the average prices in the two sale deeds produced by the company, with statutory solatium and interest. Their proximity in date, location and ownership made them important evidence. The findings that prices had been inflated in anticipation of acquisition lacked supporting material and rested on conjecture. Because decades had elapsed, the Court settled the valuation basis itself instead of ordering another inquiry. The acquisition officer was directed to compute and pay the balance within three months of receiving the order.

Lesson Learnt

Relevant comparable sales cannot be rejected merely by speculating that prices were inflated. A landowner seeking higher compensation should present transactions closely connected to the acquired land and the valuation date.

Official source (sci.gov.in)View Judgment (PDF)

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