Case Note & Summary
The case pertains to the acquisition of a plot of land admeasuring 391 sq. metres in village Sancoale for a four-lane road. The Land Acquisition Officer determined compensation at ₹30 per sq. metre. On reference, the Reference Court enhanced it to ₹1000 per sq. metre based on a sale instance dated 20/7/1995, which it construed as relating to a property of 3984.35 sq. metres, yielding a rate of ₹1600 per sq. metre. The appellants (State) challenged the enhancement, arguing that the sale instance actually related to a larger property of 25,608 sq. metres, and the correct rate was ₹295 per sq. metre. They also argued that the respondents suppressed their own purchase deed, warranting an adverse inference. The respondents filed cross-objections seeking further enhancement. The High Court, after hearing both sides, found that the Reference Court had misconstrued the sale instance. The correct area of the sold property was 25,608 sq. metres, and the sale consideration was ₹75,55,000, yielding a rate of ₹295 per sq. metre. Applying this rate to the acquired land, the compensation was calculated at ₹1,15,345. The Court also noted the suppression of the purchase deed but did not dismiss the reference, instead partly allowing the appeal and reducing the compensation to ₹295 per sq. metre with proportionate costs and interest. The cross-objections were dismissed.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Sale Instance - The Reference Court misconstrued the sale instance by applying it to a smaller area than actually sold, leading to an erroneous rate of ₹1600 per sq. metre instead of the correct rate of ₹295 per sq. metre - Held that the correct rate based on the sale instance is ₹295 per sq. metre (Paras 5-7). B) Land Acquisition - Suppression of Evidence - Adverse Inference - The respondents suppressed the sale deed by which they purchased the acquired plot - Held that an adverse inference may be drawn against them, but in the facts, the appeal is partly allowed on merits (Paras 4, 8).
Issue of Consideration
Whether the Reference Court correctly enhanced compensation based on a misconstrued sale instance, and whether adverse inference should be drawn for suppression of the purchase deed.
Final Decision
Appeal partly allowed; compensation reduced to ₹295 per sq. metre; cross-objections dismissed.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Sale Instance
- Adverse Inference
- Suppression of Evidence
