• Land compensation pertaining to Mohammedpur Munirka

Please read the case carefully and give the most accurate answer possible. Please provide evidence for the estimations you make. 

The Case: A plot area of 3830 Square Yards in Mohammedpur Munirka (New Delhi) was willed to my Father by his Mother's Sister. However in the 1950's or 60's (Exact date has to be determined) the Government of India took the land away for its own purposes. A compensation of 40% of that land measuring upto 1532 Square Yards is legally due to us under the rules at that time. Repeated letters were sent till the 1980's on the subject matter, but no action was taken. I am in a position today where me and my Father wants to get it back. We have all the requisite documents. And soon we will move to the Land Acquisition Collector...and if dissatisfied with his estimate, we will move to court. But I want to know this from the knowledge-pool of the lawyers here: 
1. What will be the estimative fair monetary compensation I must eventually expect? Be as precise as possible..Give a range for the bare minimum to the realistic maximum. Please give me proof for your estimations wherever possible. Here is one resource I found: https://indiankanoon.org/doc/501234/
2. Is it too late? Could it be possible they will reject the appeal because of some time expiry for compensation? And if so, should we appeal against that injustice too? 
3. In your opinion what's the course of action that should be taken.
Asked 7 years ago in Property Law
Religion: Hindu

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2 Answers



CIVIL APPEAL NOS. 2545-2546/2012

MAJ. GEN. KAPIL MEHRA & ORS. ..Appellants


UNION OF INDIA & ANR. ..Respondents

10) While fixing the market value of

the acquired land, the Land Acquisition Officer is required to

keep in mind the following factors:- (i) existing geographical

situation of the land; (ii) existing use of the land; (iii) already

available advantages, like proximity to National or State

Highway or road and/or developed area and (iv) market value

of other land situated in the same locality/village/area or

adjacent or very near to the acquired land.

11. The standard method of determination of the

market value of any acquired land is by the valuer evaluating

the land on the date of valuation publication of notification

under Section 4(1) of the Act, acting as a hypothetical

purchaser willing to purchase the land in open market at the

prevailing price on that day, from a seller willing to sell such

land at a reasonable price. Thus, the market value is

determined with reference to the open market sale of

comparable land in the neighbourhood, by a willing seller to a

willing buyer, on or before the date of preliminary notification,

as that would give a fair indication of the market value.

In Viluben Jhalejar Contractor v. State of Gujarat

(2005) 4 SCC 789, this Court laid down the following

principles for determination of market value of the acquired

land: (SCC pp.796-97, paras 17-20)

“17. Section 23 of the Act specifies the matters

required to be considered in determining the

compensation; the principal among which is the

determination of the market value of the land on the

date of the publication of the notification under subsection

(1) of Section 4.

18. One of the principles for determination of the

amount of compensation for acquisition of land would

be the willingness of an informed buyer to offer the

price therefor. It is beyond any cavil that the price of

the land which a willing and informed buyer would

offer would be different in the cases where the owner is

in possession and enjoyment of the property and in

the cases where he is not.

19. Market value is ordinarily the price the property

may fetch in the open market if sold by a willing seller

unaffected by the special needs of a particular

purchase. Where definite material is not forthcoming

either in the shape of sales of similar lands in the

neighbourhood at or about the date of notification

under Section 4(1) or otherwise, other sale instances

as well as other evidences have to be considered.

20. The amount of compensation cannot be

ascertained with mathematical accuracy. A

comparable instance has to be identified having regard

to the proximity from time angle as well as proximity

from situation angle. For determining the market value

of the land under acquisition, suitable adjustment has

to be made having regard to various positive and

negative factors vis-à-vis the land under acquisition by

placing the two in juxtaposition.….

The courts adopt comparable sales method for

valuation of land while fixing the market value of the acquired

land. Comparable sales method of valuation is preferred rather

than methods of valuation of land such as capitalization of net

income method or expert opinion method, because it furnishes

the evidence for determination of the market value of the

acquired land at which the willing purchaser would pay for the

acquired land if it had been sold in the open market at the

time of issuance of notification under Section 4 of the Act.

2) In Karnataka Urban Water Supply and Drainage Board

and Ors. v. K.S. Gangadharappa & Anr., (2009) 11 SCC 164,

factors which merit consideration as comparable sales are,

interalia, laid down as under:-

“It can be broadly stated that the element of

speculation is reduced to minimum if the underlying

principles of fixation of market value with reference to

comparable sales are made:

(i) when sale is within a reasonable time of

the date of notification under Section


(ii) It should be a bona fide transaction;

(iii) It should be of the land acquired or of the

land adjacent to the land acquired; and

(iv) It should possess similar advantages.

It is only when these factors are present, it can merit a

consideration as a comparable case (See Special Land

Acquisition Officer v. T. Adinarayan Setty (AIR 1959 SC 429)

These aspects have been highlighted in Ravinder Narain v.

Union of India (2003) 4 SCC 481.

3) we cannot lay any estimate what would be monetary compensation payable to you as it would depnd upon market value of land

4) you will have to explain reasons for delay in filing appeal before collector

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

It seems you have kept quite or slept over the issue for over four decades.

If this property was acquired by Delhi/GOI during the year between 1950 and 1960 and your father had been following it up till 1980,what was the result of his follow up and what is the present position of it.

What is the confirmation that he has not availed the benefits during the year 1980 itself?

In my opinion your case is barred by the limitations.

If you are confident of certain issues, you may consult a local lawyer with all the relevant papers in your possession and take his advise on further course of action, if it is feasible.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

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