Case Note & Summary
This is an appeal before the High Court of Bombay at Goa arising out of a land acquisition compensation determination. The State, through the Deputy Collector and Town Planner, challenged the Judgment and Award dated 21st August, 2000, passed by the District Judge, North Goa, in Land Acquisition Case No. 113/1992, which enhanced the market value of the acquired land from Rs.8 per square metre fixed by the Land Acquisition Officer to Rs.40 per square metre. The acquisition was initiated by a notification under Section 4 of the Land Acquisition Act published on 27th April, 1982, for a land of 33,390 square metres in Village Corlim, Tiswadi Taluka, for residential development. The original Award under Section 11 was passed on 10th June, 1983, fixing compensation at Rs.8 per square metre. Dissatisfied applicants filed a reference under Section 18 claiming Rs.85 per square metre. The Reference Court, after recording evidence, including a sale deed of a 729 square metre plot, fixed the market value at Rs.40 per square metre after making a 66% deduction towards development charges. The State appealed, contending that the Reference Court erred in relying on an incomparable sale deed with a vast size disparity, that the witnesses gave contradictory accounts of distances from highways and industrial estates, and that the land was landlocked without development potential. Additionally, it was argued that the applicants were not entitled to benefits under Section 23(1-A) as the Award was made before the 1984 Amendment came into force. The claimants filed cross-objections seeking enhancement to Rs.85 per square metre, assailing the high deduction for development, stating the deduction should not exceed 33 1/3%, and asserting that the land had road access and higher potential. They also claimed eligibility for Section 23(1-A) benefits as the Award was passed after the Amendment Bill was introduced in 1982. The High Court heard arguments from both sides, but the provided text ends with submissions; the final decision on the appeal and cross-objections is not included. Hence, the ultimate determination of market value, applicability of benefits, and outcome of the appeals remain unknown from the given text.
Headnote
A) Land Acquisition - Determination of Compensation - Market Value - Land Acquisition Act, 1894, Section 23 - The Reference Court fixed market value at Rs.40 per sq. metre after examining comparable sale deed Exh. Aw.1/A and making deductions for development charges - Appellants (State) contended that the sale deed was not comparable due to size disparity and locational differences, and that the land was landlocked and lacked development potential - Claimants cross-objected for Rs.85 per sq. metre, arguing that deduction of 66% for development was excessive and that the land had access to road - Held, final determination on market value not mentioned in provided text (Paras 4-7).
B) Land Acquisition - Comparable Sale Method - Size Disparity - Land Acquisition Act, 1894, Section 23 - Appellants argued that the sale deed plot (729 sq. metres) could not be a comparable for the acquired land (33,390 sq. metres) due to large size difference, while claimants contended that the Reference Court had failed to properly apply the comparable sale method - The Court examined the evidence regarding the location, access, and potential of the land - Held, no final determination on this issue in the provided text (Paras 6-7).
C) Land Acquisition - Deduction for Development Charges - Principle of Deduction - Land Acquisition Act, 1894, Section 23 - The Reference Court made a deduction of 66% from the value derived from the sale deed, which claimants argued was excessive and should be at most 33 1/3% as per Supreme Court decisions - Appellants argued that no deduction for development was needed as the land was undeveloped - Held, no final decision on the appropriate deduction is mentioned in the provided text (Paras 7).
D) Land Acquisition - Section 23(1-A) Benefits - 1984 Amendment - Land Acquisition Act, 1894, Section 23(1-A) - Appellants contended that the Award under Section 11 was passed before the coming into force of the Amendment Act in 1984, and thus the claimants were not entitled to additional amount under Section 23(1-A) - Claimants asserted that the Award was passed after the Amendment Bill was introduced in 1982, entitling them to benefits - Held, the issue remains unresolved in the provided text (Paras 6).
Issue of Consideration
Correct market value of acquired land as on date of Section 4 notification; whether Reference Court properly applied principles for determining compensation; eligibility for additional benefits under Section 23(1-A) as per 1984 Amendment
Law Points
- Determination of market value under Section 23 of Land Acquisition Act
- comparability of sale deeds for fixing compensation
- deduction for development charges in land acquisition cases
- application of Amendment Act 1984 for benefits under Section 23(1-A) when award is passed after introduction of Bill
Case Details
2010 LawText (BOM) (07) 123
First Appeal No. 103 of 2001 with Cross Objection No. 5 of 2009 and Cross Objection No. (Stamp No. 2489 of 2001)
Mr. M. Salkar, Additional Government Advocate (for Appellants), Mr. Joseph Vaz, Advocate (for Respondent nos. 1 to 4 and 6), Mr. M. B. D'Costa, Senior Advocate with Mr. John A. Lobo, Advocate (for LR's of Respondent no.5 and Cross Objectors)
Deputy Collector (L.A.) & L.A.O., Panaji and The Town Planner, Town & Country Planning Dept., Panaji
Joaquim Francis Fernandes (dead) represented by legal representatives (including Visitacao Rose Fernandes, Aloysium Paul Fernandes, Bosco Bruno Fernandes, Bernard Fernandes, Remedios James Fernandes, Maria Juliana Fernandes, Michael Gregory Valerian Fernandes, Teresa Fernandes, Joaquim Fernandes) and other respondents including Ana Maria Joanita Fernandes (deceased) through legal heirs, Martina Adelis Fernandes, Arcanjela Fernandes, Domingos Jose Crisanto Fernandes (deceased) through legal representatives, and Agostinho Matias Balbino Fernandes (deceased) through legal representative
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Nature of Litigation
Appeal against enhancement of compensation in land acquisition reference
Remedy Sought
Appellants (State) sought quashing of Reference Court's enhancement and restoration of LAO's award; Claimants cross-objected for further enhancement to Rs.85 per square metre
Filing Reason
The Reference Court fixed market value at Rs.40 per sq m, which both the State and the claimants found incorrect
Previous Decisions
Land Acquisition Officer awarded Rs.8 per sq m; Reference Court (District Judge, North Goa) in Land Acquisition Case No. 113/1992 vide award dated 21.08.2000 enhanced to Rs.40 per sq m
Issues
What is the correct market value of the acquired land as on the date of Section 4 notification?
Whether the Reference Court properly applied the comparable sale method and what deduction for development is justified?
Whether the claimants are entitled to additional benefits under Section 23(1-A) of the Land Acquisition Act?
Submissions/Arguments
For Appellants (State): The Reference Court erred in fixing market value at Rs.40/- per sq. m. by relying on an incomparable sale deed of a much smaller plot (729 sq. m. vs. 33,390 sq. m.) with discrepancies in evidence regarding distances from highway (2-3 metres vs. 60-70 metres) and industrial estate, indicating the land was landlocked and unsuitable for development; no justification for Rs.80/- per sq. m. before deduction; claimants not entitled to Section 23(1-A) benefits as the Award was passed before the 1984 Amendment came into force; the LAO's award was just and proper.
For Claimants (Cross-Objectors): The land had access to a road and potential for higher value; the Reference Court's finding of accessibility was correct; the 66% deduction for development charges was excessive, as the sale deed plot was also undeveloped, and normally only 33 1/3% deduction should apply as per Supreme Court; the market value should be Rs.85/- per sq. m.; benefits under Section 23(1-A) are applicable as the Award was passed after the Amendment Bill was introduced in 1982.
Judgment Excerpts
The Reference Court after framing the issues and recording of evidence by the impugned Judgment and Award dated 21st August, 2000, fixed the market value of land belonging to the Applicants at the rate of Rs.40/- per square metre.
Being dissatisfied by the said Award, the Applicants sought a reference under Section 18 of the said Act for enhancement of compensation and claimed that the market value of the land acquired as on the date of the Section 4 Notification was Rs.85/- per square metre.
The learned Counsel further submitted that the Reference Court erred in relying upon the Sale Deed dated 29th November, 1982, exhibit A.w.1/A as a comparable Sale Deed as the land which was the subject matter of the said Sale Deed, was not at all comparable with the acquired land.
The learned Senior Counsel has further submitted that there is no justification for the Reference Court to make a deduction of 66 percent on account of development charges as the land, which was the subject matter of the said Sale Deed, was an undeveloped plot and, as such, the question of such high deduction on account of development, does not arise at all.
Procedural History
Notification under Section 4 of Land Acquisition Act dated 27.04.1982 for acquisition of 33,390 sq. m. in Village Corlim, Tiswadi Taluka. Land Acquisition Officer passed Award on 10.06.1983 fixing market value at Rs.8 per sq. m. Applicants sought reference under Section 18 claiming Rs.85 per sq. m. Reference Court (District Judge, North Goa, Panaji) in Land Acquisition Case No. 113/1992, vide Judgment and Award dated 21.08.2000, enhanced market value to Rs.40 per sq. m. State filed First Appeal No. 103/2001 challenging enhancement. Claimants filed Cross Objection No. 5/2009 and Cross Objection (Stamp No. 2489/2001) seeking further enhancement. High Court of Bombay at Goa heard the matter and reserved judgment on 09.06.2010, pronounced on 05.07.2010.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 11, Section 18, Section 23, Section 23(1-A)
