Case Note & Summary
The Union of India, Ministry of Defence, imposed restrictions under Section 7(b) of the Works of Defence Act, 1903, on a property admeasuring 20,350 sq. mtrs. belonging to M/s Rajaram Estate and Mr. Suvarn Bandekar, for creating a safety zone near the Naval Armament Depot. The Collector determined the market value at Rs. 28 per sq. mtr. and valued the restrictions at 5% i.e., Rs. 1.40 per sq. mtr. Dissatisfied, the claimants sought a reference under Section 18 of the Works of Defence Act, 1903. The Reference Court enhanced the compensation to 50% of the market value, i.e., Rs. 14 per sq. mtr., and also awarded interest under Section 23 of the Land Acquisition Act, 1894. The Union of India appealed, arguing that the enhancement was excessive and that interest was not payable under the Works of Defence Act. The High Court dismissed the appeal, holding that the Reference Court's determination was based on evidence and not perverse. It further held that the claimants are entitled to interest under Section 23 of the Land Acquisition Act, 1894, as the Works of Defence Act, 1903 does not provide for interest, and the reference under Section 18 of the Works of Defence Act, 1903 is akin to a reference under the Land Acquisition Act, 1894. The cross-objections filed by the claimants were also dismissed as they were not pressed.
Headnote
A) Land Acquisition - Compensation for Restrictions - Works of Defence Act, 1903, Section 7(b) - Market Value - The Reference Court enhanced compensation from 5% to 50% of market value for restrictions imposed on land near Naval Armament Depot. The High Court held that the Reference Court's determination was based on evidence and not perverse, and thus upheld the enhancement. (Paras 2-5)
B) Interest - Entitlement - Land Acquisition Act, 1894, Section 23 - The High Court held that the claimants are entitled to interest under Section 23 of the Land Acquisition Act, 1894, as the Works of Defence Act, 1903 does not provide for interest, and the reference under Section 18 of the Works of Defence Act, 1903 is akin to a reference under the Land Acquisition Act, 1894. (Paras 6-8)
Issue of Consideration
Whether the Reference Court was justified in enhancing the compensation for restrictions imposed under Section 7(b) of the Works of Defence Act, 1903, and whether the appellants are entitled to interest under Section 23 of the Land Acquisition Act, 1894.
Final Decision
The High Court dismissed the appeal filed by the Union of India and also dismissed the cross-objections as not pressed. The Reference Court's award enhancing compensation to 50% of market value and awarding interest under Section 23 of the Land Acquisition Act, 1894 was upheld.
Law Points
- Compensation for restrictions under Section 7(b) of Works of Defence Act
- 1903
- Market value determination
- Interest under Section 23 of Land Acquisition Act
- 1894
Case Details
2022 LawText (BOM) (02) 107
First Appeal No.67/2015 with Cross Objections No.6/2015
Mr. Mahesh Amonkar, Standing Counsel for Central Government/Appellants; Ms. Sulekha Kamat, Additional Government Advocate for Respondent No.3
Union of India, Ministry of Defence, Through the Defence Estate Officer, Head Quarters, Goa Naval Area, Vasco-Da-Gama, Mormugao Goa; The Flag Officer Commanding, Head Quarters, Goa Naval Area, Vasco-Da-Gama, Mormugao Goa
M/s Rajaram Estate, Swatantra Path, Vasco da Gama, Goa; Mr. Suvarn Bandekar, Swatantra Path, Vasco da Gama, Goa; Collector and District Magistrate, South Goa District, Margao Goa
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against Judgment and Award of Reference Court in Land Acquisition Case No.35/2002 under Section 18 of Works of Defence Act, 1903.
Remedy Sought
Appellants (Union of India) sought to set aside the Reference Court's award enhancing compensation and awarding interest.
Filing Reason
Appellants were aggrieved by the Reference Court's enhancement of compensation from 5% to 50% of market value and award of interest under Section 23 of Land Acquisition Act, 1894.
Previous Decisions
Collector's award under Section 12 of Works of Defence Act, 1903 determined market rate at Rs.28 per sq. mtr. and valued restrictions at 5% i.e., Rs.1.40 per sq. mtr. Reference Court in Land Acquisition Case No.35/2002 enhanced compensation to 50% of market value i.e., Rs.14 per sq. mtr. and awarded interest.
Issues
Whether the Reference Court was justified in enhancing the compensation for restrictions imposed under Section 7(b) of the Works of Defence Act, 1903 from 5% to 50% of the market value?
Whether the claimants are entitled to interest under Section 23 of the Land Acquisition Act, 1894 in a reference under the Works of Defence Act, 1903?
Submissions/Arguments
Appellants argued that the Reference Court's enhancement was excessive and not based on evidence.
Appellants argued that interest under Section 23 of the Land Acquisition Act, 1894 is not payable under the Works of Defence Act, 1903.
Respondents/Claimants supported the Reference Court's award and cross-objected for further enhancement, but did not press the cross-objections.
Ratio Decidendi
The Reference Court's determination of compensation for restrictions under Section 7(b) of the Works of Defence Act, 1903 is based on evidence and not perverse, hence not interfered with. Interest under Section 23 of the Land Acquisition Act, 1894 is payable as the Works of Defence Act, 1903 does not provide for interest and the reference under Section 18 of the Works of Defence Act, 1903 is akin to a reference under the Land Acquisition Act, 1894.
Judgment Excerpts
There is no dispute that the appellants i.e. the Government of India, Ministry of Defence by notification dated 16.03.1992 imposed restrictions under Section 7(b) of the said Act upon the use and enjoyment of the property of respondent nos.1 and 2 admeasuring 20,350 sq. mtrs. surveyed under No.126/1 at Chicalim, Mormugao Taluka (restricted property ) for the creation of a safety zone near Naval Armament Depot.
The Reference Court has determined the compensation at 50% of the market value. This determination is based on evidence and is not perverse. Hence, no interference is called for.
The claimants are entitled to interest under Section 23 of the Land Acquisition Act, 1894, as the Works of Defence Act, 1903 does not provide for interest, and the reference under Section 18 of the Works of Defence Act, 1903 is akin to a reference under the Land Acquisition Act, 1894.
Procedural History
On 16.03.1992, Union of India imposed restrictions under Section 7(b) of Works of Defence Act, 1903 on the property. Collector made award under Section 12 determining market value at Rs.28 per sq. mtr. and restrictions at 5%. Claimants sought reference under Section 18, leading to Land Acquisition Case No.35/2002. Reference Court on 18.04.2015 enhanced compensation to 50% of market value and awarded interest. Union of India filed First Appeal No.67/2015 and claimants filed Cross Objections No.6/2015. High Court heard and dismissed the appeal and cross-objections on 24.02.2022.
Acts & Sections
- Works of Defence Act, 1903: Section 7(b), Section 12, Section 18
- Land Acquisition Act, 1894: Section 23
