Case Note & Summary
The case involves a First Appeal filed by the Executive Engineer, Works Division VII, Public Works Department, Government of Goa, challenging the Judgment and Award dated 4/5/2012 of the Reference Court in Land Acquisition Case No.5/2009. The State had acquired the respondent's property admeasuring 23120 sq. metres at Chimbel, Tiswadi, Goa for the public purpose of 'Ribandar by-pass' vide notification dated 5/9/2003 under Section 4 of the Land Acquisition Act, 1894. The Land Acquisition Officer, by Award dated 16/2/2008, determined the market rate at ₹200 per sq. metre. The Reference Court enhanced this rate to ₹450 per sq. metre, against the respondent's claim of ₹1200 per sq. metre. The appellant argued that the enhancement was unsustainable as the respondent was a Devasthan (religious trust) with restrictions on dealing with its properties, relying on the precedent in Executive Engineer v. Shri Mahals Sausthan where a 10% deduction was applied. The appellant also contended that the sale instances relied upon by the respondent were not comparable as they involved smaller developed plots (1193 and 1091 sq. metres) and that no adequate deductions were made for size and development potential. The respondent argued that the acquired land had development potential due to its location near a highway and within an industrial area. The High Court held that a 10% deduction was warranted due to the restrictions on Devasthan property, and an additional 10% deduction was appropriate for the large size of the acquired land compared to the smaller sale instances. The Court reduced the compensation from ₹450 to ₹360 per sq. metre, allowing the appeal in part.
Headnote
A) Land Acquisition - Compensation - Devasthan Property - Deduction - The Court considered whether a deduction should be applied to compensation for land belonging to a Devasthan (religious trust) due to restrictions on alienation under the Devasthan Regulation. Held that a 10% deduction is warranted based on precedent in Executive Engineer v. Shri Mahals Sausthan (Paras 5, 7-8). B) Land Acquisition - Compensation - Comparable Sale Instances - Deduction for Size - The Court examined whether the Reference Court erred in relying on sale instances of smaller developed plots without making adequate deductions for size and development. Held that a further deduction of 10% is appropriate for the large size of the acquired land (23120 sq. m) compared to smaller plots (1193 and 1091 sq. m) (Paras 6, 9-10). C) Land Acquisition - Compensation - Development Potential - Evidence - The Court assessed whether the Reference Court correctly considered the development potential of the acquired land. Held that the land had development potential due to its location near a highway and within an industrial area, but the Reference Court's enhancement was excessive without proper evidence of yield or income (Paras 6, 11).
Issue of Consideration
Whether the Reference Court erred in enhancing compensation from ₹200 to ₹450 per sq. metre without proper deduction for restrictions on Devasthan property and without adequate comparison of sale instances.
Final Decision
Appeal is partly allowed. The compensation is reduced from ₹450 per sq. metre to ₹360 per sq. metre. The impugned Judgment and Award dated 4/5/2012 is modified accordingly. No order as to costs.
Law Points
- Land Acquisition
- Compensation
- Deduction for Devasthan Property
- Comparable Sale Instances
- Development Potential
