Case Note & Summary
The Land Acquisition Officer (LAO) appealed against the judgment and award of the Reference Court (District Judge-2, Panaji) dated 29 October 2015 in Land Acquisition Case No.32/2013, which enhanced compensation for the respondents' acquired land from Rs.20 per square metre to Rs.160 per square metre. The acquired land, measuring 3392 square metres in Survey No.332/1 of Marcaim Village, Ponda Taluka, was acquired for construction of a bypass road from Kundaim Industrial Estate to Marcaim Industrial Estate. The LAO had determined compensation at Rs.20 per sqm. Dissatisfied, the respondents sought a reference under Section 18 of the Land Acquisition Act, 1894. The Reference Court relied on two sale deeds of small plots in the same village to enhance compensation. The appellant argued that the respondents failed to discharge the burden of proving market value, the sale instances were not comparable, and even if comparable, deductions for development should have been substantial (about 67%) rather than the minimal 5% applied. The High Court held that the Reference Court erred in relying on the sale deeds without evidence of comparability and in making inadequate deductions. Applying a 50% deduction for development charges, the High Court reduced the compensation to Rs.80 per square metre, thereby partially allowing the appeal.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Comparable Sale Instances - The burden of proving the market value of acquired land lies on the claimant; mere location in the same village does not make a sale instance comparable without evidence of similarity in potential and other factors (Paras 5-7). B) Land Acquisition - Compensation - Deductions for Development - For undeveloped land with potential for development, deductions of 1/3rd to 2/3rd are warranted; the Reference Court erred in making only 5% deduction when the acquired land was undeveloped and required significant development (Paras 8-10). C) Land Acquisition - Compensation - Enhancement - The High Court reduced compensation from Rs.160 to Rs.80 per square metre, applying a 50% deduction for development charges, as the sale instances were of small plots with development potential (Paras 11-12).
Issue of Consideration
Whether the Reference Court was justified in enhancing compensation from Rs.20 to Rs.160 per square metre based on two sale instances without proper evidence of comparability and without making adequate deductions for development charges.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.160 to Rs.80 per square metre. No order as to costs.
Law Points
- Burden of proof on claimant to establish market value
- Comparable sale instances must be proximate in time and similar in potential
- Deductions for development charges must be substantial for undeveloped land
- Reference court cannot rely on sale deeds without evidence of comparability
