Trees To Be Valued Separately When Acquired Land Value Is Determined With Reference To Sales Statistics: Supreme Court

The Supreme Court observed that the trees have to be valued separately in a case where the land value for the purpose of its acquisition is determined with reference to the sales statistics.

In this case, the appellant's land was acquired under the proceedings initiated under Land Acquisition Act, 1894. Dissatisfied with the compensation awarded, he approached the High Court in appeal. His claim in respect of 100 mango trees at the rate of Rs. 1000/­ per tree was rejected by the High Court.

Before the Apex Court, the appellant contended that the compensation in this case has been determined with reference to sales statistics and that being so, trees will have to be valued separately and this what has been held by this Court in Ambya Kalya Mhatre(Dead) Vs. State of Maharashtra 2011(9) SCC 325.

The bench noted the following observations made in Ambya Kalya Mhatre:

If the land value had been determined with reference to the sale statistics or compensation awarded for a nearby vacant land, then necessarily, the trees will have to be valued separately. But if the value of the land has been determined on the basis of the sale statistics or compensation awarded for an orchard, that is land with fruit­-bearing trees, then there is no question of again adding the value of the trees. Further, if the market value has been determined by capitalising the income with reference to yield, then also the question of making any addition either for the land or for the trees separately does not arise. In this case, the determination of market value was not with reference to the yield. Nor was the determination of market value in regard to the land with reference to the value of any orchard but was with reference to vacant agricultural land. In the circumstances, the value of the trees could be added to the value of the land.

In this case, the court noted, admittedly, for 2 hectares of land, compensation has not been awarded and it is not disputed that the land value has been determined with reference to sales statistics.

This Court in Ambya Kalya Mhatre held that in a case where the land value has been determined with reference to the sales statistics, the trees will have to be valued separately, the bench of Justices Ajay Rastogi and Abhay S. Oka observed while partly allowing the appeal.

Case: Bhupendra Ramdhan Pawar vs. Vidarbha Irrigation Development Corporation ; CA 5611­-5612 OF 2021
Citation: LL 2021 SC 439
Coram: Justices Ajay Rastogi and Abhay S. Oka

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