Bombay High Court Partly Allows Appeal by Acquiring Body, Reduces Compensation in Land Acquisition Case. Reference Court's Enhancement from Rs.102 to Rs.1000 per sq m Set Aside; Compensation Fixed at Rs.200 per sq m Based on Comparable Sales and Development Deduction.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The case involves an appeal by the Cuncolim Municipal Council against the judgment and award of the Reference Court in Land Acquisition Case No.27/2011, which enhanced compensation for the acquisition of the respondent's property from Rs.102 per square metre to Rs.1000 per square metre. The property, surveyed under No.340/1 (part) admeasuring 17435 square metres at Cuncolim, Salcete Goa, was acquired for a Sewerage Waste Water Treatment Plant. The Land Acquisition Officer had determined compensation at Rs.102 per square metre, considering the property as untenanted bharad land. Dissatisfied, the respondent sought a reference. The Reference Court, relying on an award dated 26th March 2013 in Land Acquisition Case No.36/2011 (Exhibit C-41) and a sale deed dated 22nd October 2010 (Exhibit 17), enhanced the compensation to Rs.1000 per square metre. The appellant challenged this enhancement. The High Court examined the evidence and found that the sale deed relied upon was for a small plot of 100 square metres, which was not comparable to the acquired land of 17435 square metres. Additionally, the award in Land Acquisition Case No.36/2011 was for a different property and could not be a reliable guide. The High Court held that the Reference Court had erred in its approach and that the claimant had failed to discharge the burden of proving the market value. Considering the potential of the land and applying a 30% deduction for development, the High Court determined the market value at Rs.200 per square metre. The appeal was partly allowed, reducing the compensation to Rs.200 per square metre with proportionate costs.

Headnote

A) Land Acquisition - Compensation - Enhancement - Comparable Sales Method - The Reference Court enhanced compensation from Rs.102 to Rs.1000 per sq m relying on a sale deed of a small plot (100 sq m) and an award for a different property. The High Court held that the sale deed was not comparable due to small size and location, and the award was not a reliable guide. Compensation reduced to Rs.200 per sq m with 30% deduction for development. (Paras 6-14)

B) Land Acquisition - Burden of Proof - Claimant must prove market value - The claimant failed to produce reliable evidence of comparable sales. The High Court held that the Reference Court erred in relying on a sale deed of a small plot and an award without proper analysis. (Paras 7-10)

C) Land Acquisition - Deduction for Development - 30% deduction applied - The acquired land was bharad (uncultivated) and required development for building purposes. The High Court applied a 30% deduction from the market value for development costs. (Para 14)

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Issue of Consideration

Whether the Reference Court was justified in enhancing compensation from Rs.102 to Rs.1000 per square metre based on the evidence on record, particularly the sale deed dated 22nd October 2010 and the award in Land Acquisition Case No.36/2011.

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Final Decision

Appeal partly allowed. Compensation reduced from Rs.1000 to Rs.200 per square metre. The impugned judgment and award modified accordingly. Parties to bear their own costs.

Law Points

  • Land acquisition compensation
  • Comparable sales method
  • Deduction for development
  • Burden of proof on claimant
  • Reference Court's discretion
  • Section 4 notification
  • Section 23 of Land Acquisition Act
  • 1894
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Case Details

2020 LawText (BOM) (03) 78

First Appeal No.6 of 2015

2020-03-16

M. S. Sonak, Smt. M. S. Jawalkar

2020:BHC-GOA:682-DB

Mr. Sandesh Padiyar with Mr. S. Bhangui for Appellant, Mr. C. A. Coutinho with Mr. I. Santimano for Respondent No.1

Cuncolim Municipal Council

Shri Wilson Fernandes alias Wilson A. Columbano Dos Doris Fernandes and Special Land Acquisition Officer

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Nature of Litigation

Appeal against enhancement of compensation in land acquisition reference.

Remedy Sought

Appellant sought reduction of compensation from Rs.1000 to Rs.102 per square metre.

Filing Reason

Dissatisfaction with Reference Court's enhancement of compensation from Rs.102 to Rs.1000 per square metre.

Previous Decisions

Land Acquisition Officer awarded Rs.102 per sq m on 25th May 2011; Reference Court enhanced to Rs.1000 per sq m on 3rd April 2014.

Issues

Whether the Reference Court correctly enhanced compensation based on the sale deed dated 22nd October 2010 and award in Land Acquisition Case No.36/2011. What is the appropriate market value of the acquired land considering its nature and potential?

Submissions/Arguments

Appellant argued that the sale deed relied upon was for a small plot and not comparable, and the award was not a reliable guide. Respondent argued that the Reference Court correctly considered the evidence and the enhancement was justified.

Ratio Decidendi

In land acquisition compensation cases, the claimant must prove market value through comparable sales. Small plot sales and awards for different properties are not reliable guides. Deduction for development (30%) is appropriate for undeveloped land.

Judgment Excerpts

The Reference Court in its impugned judgment and award has basically taken into consideration the following :- (a) Award dated 26th March, 2013 in Land Acquisition Case No.36/2011 (Exhibit C-41); (b) The sale deed dated 22nd October, 2010 at Exhibit 17; (c) Evidence of AW1 – Claimant/Respondent herein. The sale deed dated 22nd October, 2010 is in respect of a small plot of 100 square metres. Such a sale deed cannot be a comparable sale for determining the market value of a large tract of land admeasuring 17435 square metres.

Procedural History

Notification under Section 4 of Land Acquisition Act, 1894 issued for acquisition of respondent's property. Land Acquisition Officer made award on 25th May 2011 at Rs.102 per sq m. Respondent sought reference. Reference Court enhanced compensation to Rs.1000 per sq m on 3rd April 2014. Appellant filed First Appeal No.6 of 2015 in High Court of Bombay at Goa. Judgment pronounced on 16th March 2020.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 23
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