High Court of Bombay at Goa Disposes of Land Acquisition Appeals and Cross Objections; Determines Market Value of Acquired Land in Sancoale Village. Court Considers Deduction from Sale Deed Price and Comparability of Post-Notification Sale Transaction.

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

The appeals and cross objections arose from a common land acquisition for construction of a road from NH-17 near Sesa Goa Workshop to join Pale-Birla Airport road near MES College in Sancoale village. By notification under Section 4 of the Land Acquisition Act, 1894 published on 30.4.1992, land admeasuring 2050 sq.m. belonging to the respondents (claimants) was acquired. Each respondent held a 1/5 share. Before the Land Acquisition Officer, the claimants claimed compensation at Rs.250 per sq.m. The Land Acquisition Officer passed an award on 16.12.1994 fixing compensation at Rs.35 per sq.m. Aggrieved, the claimants sought references under Section 18 of the Act claiming Rs.250 per sq.m. The Reference Court registered cases and conducted trial. Claimants examined Pandurang Kantak, the vendor Abdul Aziz Shaikh Mohidin (AW.2) who produced sale deed dated 29.1.1993 (Exhibit AW.2/A) selling 340 sq.m. at Rs.250 per sq.m., and civil engineer/valuer Ravindra Tamba (AW.3). The State led no evidence. The claimants also relied on two pre-notification sale deeds (Exhibits AW.1/B and AW.1/C) showing rates of Rs.307 and Rs.300 per sq.m. The Reference Court, while noting the post-notification sale deed, found the land comparable, but held that the acquired land was interior and distant from NH-17, and deducted 50% from the sale price, arriving at Rs.125 per sq.m. The claimants did not press the area challenge. Dissatisfied, the State filed appeals contending the sale deed plot was developed and not comparable, and that even if comparable, 75% deduction was warranted. Claimants filed cross objections seeking enhancement to Rs.249 per sq.m. based on expert report and arguing that no deduction was required as the acquired area was less than 4000 sq.m. and no subdivision was required under Town and Country Planning regulations. The High Court heard the parties but the judgment copy is incomplete, and no final decision or ratio is available. The arguments focused on comparability, extent of deduction, and reliability of expert evidence.

Headnote

A) Land Acquisition - Determination of Market Value - Comparability of Sale Deed - Land Acquisition Act, 1894, Sections 4, 18, 23 - The Reference Court adopted a post-notification sale deed (Exhibit AW.2/A) after holding it comparable to the acquired land; the State challenged comparability on grounds that the sale plot was developed and sold for residential purpose unlike acquired land (Paras 7-8).

B) Land Acquisition - Determination of Market Value - Deduction for Development - Land Acquisition Act, 1894, Section 23 - The Reference Court applied 50% deduction from the sale deed price to arrive at compensation of Rs.125 per sq.m.; the State argued for 75% deduction; the claimants sought enhancement based on expert valuation (Paras 7-8, 12).

C) Evidence - Expert Opinion - Approved Valuer Report - Land Acquisition Act, 1894, Section 23 - The claimants produced an expert report from a civil engineer (AW.3) to support compensation at Rs.249 per sq.m.; the Reference Court did not rely on the expert report; the claimants argued for its consideration (Paras 3, 12).

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Issue of Consideration

Whether the Reference Court correctly determined market value of acquired land by relying on post-notification sale deed; whether 50% deduction from sale deed price was appropriate; whether expert report should be considered for compensation determination.

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Law Points

  • Market value determination
  • comparability of sale deeds
  • deduction for development
  • post-notification sale instances
  • expert evidence
  • burden of proof
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Case Details

2010 LawText (BOM) (09) 126

First Appeal No.45 of 2003 with Cross Objection, First Appeal No.46 of 2003 with Cross Objection, First Appeal No.47 of 2003 with Cross Objection, First Appeal No.48 of 2003 with Cross Objection, First Appeal No.49 of 2003 with Cross Objection

2010-09-14

A.P. Lavande, J

Ms. Sushan Linhares for Appellants, Mr. A.R. Kantak for Respondents

The Land Acquisition Officer PWD (Cell), Altinho, Panaji-Goa and Executive Engineer, W.D. VI, PWD, Fatorda, Margao, Goa

Shri Shantaram J.S. Kantak, Shri Anand J.S. Kantak, Shri Ajit J.S. Kantak, Shri Pandurang J.S. Kantak, Shri Dinanath J.S. Kantak

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Nature of Litigation

Appeals under Land Acquisition Act against reference court's enhancement of compensation for acquired land

Remedy Sought

State seeks reduction of compensation awarded by reference court; claimants seek enhancement through cross objections.

Filing Reason

Dissatisfaction with compensation of Rs.35 per sq.m. awarded by Land Acquisition Officer and subsequent enhancement to Rs.125 per sq.m. by reference court.

Previous Decisions

Reference Court awarded compensation at Rs.125 per sq.m. after 50% deduction from sale instance.

Issues

Whether the Reference Court correctly determined market value by relying on post-notification sale deed (Exhibit AW.2/A)? Whether 50% deduction from sale deed price was appropriate or should higher deduction be applied? Whether expert report and other pre-notification sale deeds should be considered for higher compensation?

Submissions/Arguments

State argued no evidence of comparability; sale plot was developed residential while acquired land was interior; 75% deduction warranted. Claimants argued sale deed plot comparable; expert report justified Rs.249 per sq.m.; no deduction required as area less than 4000 sq.m. under regulations.

Judgment Excerpts

The Reference Court held that Exhibit (AW. 2/A) though a post notification sale deed was comparable to the acquired land and held that the land sold by the said sale deed was similar to the acquired land and considering that the acquired land was situated in the interior at a long distance from National Highway 17, deducted 50% from the price mentioned in the said sale deed and arrived at compensation at the rate of Rs.125/- per sq.metre. Ms. Linhares... submitted that there is absolutely no evidence on record to establish that the acquired land was similar to the plot in sale deed (Exhibit AW2/A) and the Reference Court has erred in comparing the acquired land with the sale deed plot...

Procedural History

Notification under Section 4 of Land Acquisition Act, 1894 published on 30.4.1992; Land Acquisition Officer passed award on 16.12.1994 at Rs.35 per sq.m.; Claimants filed references under Section 18 seeking Rs.250 per sq.m.; Reference Court registered cases nos. 27-31 of 1996; Trial held; Reference Court enhanced compensation to Rs.125 per sq.m.; State filed appeals and claimants filed cross objections before High Court.

Acts & Sections

  • Land Acquisition Act, 1894: 4, 18, 23
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