Case Note & Summary
The case involves two appeals against the Judgment and Award dated 8th August 2003 passed by the learned District Judge, Margao, in Land Acquisition Case No. 136/1997. The land belonging to the Applicant (Communidade of Nagoa) admeasuring 4,60,375 square metres from survey nos. 40/part, 30/part and 34/part situated at Nagoa Village was acquired for the expansion of the Verna Industrial Estate (Verna Plateau) Phase-II. A Notification under Section 4 of the Land Acquisition Act, 1894 was published on 22nd March 1990. The Land Acquisition Officer by an award dated 19th April 1993 awarded different rates from Rs.2.20 to Rs.10 per square metre for different types of land. Dissatisfied, the Applicant sought a reference under Section 18 claiming compensation at Rs.200 per square metre. The Reference Court partly allowed the reference, awarding Rs.24 per square metre for 30,650 square metres from survey no. 40/part and Rs.14 per square metre for the balance land. Both the acquiring body (Goa IDC) and the Applicant appealed. The High Court examined the evidence and submissions, and held that the classification of land into two categories was not justified as the entire land had similar potential for industrial development. The court modified the award, fixing a uniform rate of Rs.24 per square metre for the entire acquired land, and directed payment of statutory benefits under the Act.
Headnote
A) Land Acquisition - Market Value Determination - Classification of Land - Land Acquisition Act, 1894, Sections 4, 18, 23 - The court considered whether the Reference Court's classification of land into two categories (30,650 sq m at Rs.24 per sq m and balance at Rs.14 per sq m) was proper. Held that the classification was justified based on the potentiality and location of the land, but the rates were modified to Rs.24 per sq m for the entire acquired land uniformly (Paras 4-10).
Issue of Consideration
Whether the Reference Court correctly determined the market value of the acquired land and whether the classification of land into two categories was justified.
Final Decision
Both appeals are partly allowed. The impugned Judgment and Award dated 8th August 2003 is modified. The market value of the entire acquired land is fixed at Rs.24 per square metre uniformly. The Appellant in FA 300/2003 (Goa IDC) is directed to pay the enhanced compensation with all statutory benefits under the Land Acquisition Act, 1894. No order as to costs.
Law Points
- Market value determination
- classification of land
- potentiality of land
- comparable sales method
- Land Acquisition Act
- 1894 Section 4
- Section 18
- Section 23
Case Details
2010 LawText (BOM) (07) 125
First Appeal No. 300 of 2003 with First Appeal No. 317 of 2003
Mr. M. S. Sonak with Mr. J. Supekar for Appellant in FA 300/2003; Mr. F. E. Noronha for Respondent No.1 in FA 300/2003 and Appellant in FA 317/2003; Mr. S. Vahidulla, Government Advocate for Respondent No.2 in FA 300/2003 and Respondent No.1 in FA 317/2003
The Managing Director, Goa IDC (in FA 300/2003) and Communidade of Nagoa (in FA 317/2003)
Communidade of Nagoa and Deputy Collector (LA) (in FA 300/2003); Deputy Collector (LA) and Administrative Officer, Goa IDC (in FA 317/2003)
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Nature of Litigation
Appeals against the Judgment and Award of the Reference Court in a land acquisition compensation matter.
Remedy Sought
The Appellant in FA 300/2003 (Goa IDC) sought reduction of compensation; the Appellant in FA 317/2003 (Communidade of Nagoa) sought enhancement of compensation.
Filing Reason
Dissatisfaction with the compensation awarded by the Reference Court.
Previous Decisions
The Land Acquisition Officer awarded compensation at rates ranging from Rs.2.20 to Rs.10 per square metre. The Reference Court partly allowed the reference and awarded Rs.24 per sq m for 30,650 sq m and Rs.14 per sq m for the balance land.
Issues
Whether the Reference Court's classification of land into two categories for determining market value was justified.
What is the correct market value of the acquired land as on the date of notification under Section 4 of the Land Acquisition Act, 1894?
Submissions/Arguments
The Appellant in FA 300/2003 argued that the Reference Court erred in awarding higher rates and that the classification was arbitrary.
The Appellant in FA 317/2003 argued that the compensation awarded was inadequate and that the entire land should have been valued at a higher uniform rate.
Ratio Decidendi
The classification of land into two categories based on potentiality was not justified as the entire land had similar industrial potential. The market value should be determined uniformly based on comparable sales and potentiality of the land as a whole.
Judgment Excerpts
The above Appeals have been taken up for final disposal together as both challenge the same Judgment and Award dated 8th August, 2003, passed by learned District Judge at Margao, in Land Acquisition Case no. 136/1997.
By a Notification under Section 4 of the land Acquisition Act, 1894, published in the Official Gazette dated 22nd March, 1990, the land belonging to the Applicant admeasuring 4,60,375 square metres was acquired...
Procedural History
Notification under Section 4 of the Land Acquisition Act, 1894 published on 22nd March 1990. Land Acquisition Officer passed award on 19th April 1993. Applicant sought reference under Section 18. Reference Court partly allowed reference on 8th August 2003. Both parties filed appeals before the High Court.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 23
