High Court of Bombay at Goa Upholds Compensation Enhancement in Land Acquisition Case — Sale Deed of Nearby Land Held Comparable for Determining Market Value. The court dismissed the appeal by the acquiring authority, affirming the Reference Court's award of Rs.60/- per sq.metre based on a proximate sale instance.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The case arises from a land acquisition proceeding under the Land Acquisition Act, 1894. The Special Land Acquisition Officer and the Executive Engineer appealed against the judgment and award dated 18.12.2002 passed by the Additional District Judge, South Goa, Margao, in Land Acquisition Case No.32 of 1993. The acquired land was 300 sq.metres bearing survey no.25/2 of village Seraulim, notified under Section 4 of the Act on 31.1.1990. The Land Acquisition Officer awarded compensation at Rs.30/- per sq.metre. The respondents (claimants) sought a reference under Section 18, claiming Rs.60/- per sq.metre. In the reference, the claimants examined three witnesses and produced two sale deeds: one dated 11.5.1989 for 4000 sq.metres at Rs.75/- per sq.metre (Exhibit AW.1/A) and another dated 25.9.1989 for 200 sq.metres at Rs.210/- per sq.metre. They also produced a rectification deed dated 9.4.1990 correcting the first sale deed. The Reference Court relied on the sale deed dated 11.5.1989, noting that the land sold was only 15-20 metres away from the acquired land, and fixed the market value at Rs.60/- per sq.metre. The appellants contended that the sale deed was not comparable and that the rectification deed undermined its reliability. The High Court, after hearing arguments, found no perversity in the Reference Court's approach. It held that the sale deed was a comparable instance due to its proximity and that the rectification deed did not affect its evidentiary value. The appeal was dismissed, confirming the enhanced compensation.

Headnote

A) Land Acquisition - Market Value Determination - Comparable Sale Method - Section 18, Land Acquisition Act, 1894 - The Reference Court relied on a sale deed of a nearby land (15-20 metres away) sold at Rs.75/- per sq.metre in May 1989, and after considering the time gap and potential for development, fixed the market value at Rs.60/- per sq.metre. The High Court upheld this determination, finding no perversity or error in the approach. (Paras 2-4)

B) Land Acquisition - Rectification Deed - Effect on Original Sale Deed - Section 18, Land Acquisition Act, 1894 - The appellants argued that the rectification deed dated 9.4.1990 affected the reliability of the original sale deed dated 11.5.1989. The High Court held that the rectification deed did not invalidate the original sale deed as a comparable instance, and the Reference Court's reliance on the original sale deed was justified. (Para 4)

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Issue of Consideration

Whether the Reference Court was justified in relying upon the sale deed dated 11.5.1989 (Exhibit AW.1/A) for determining the market value of the acquired land at Rs.60/- per sq.metre.

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Final Decision

The High Court dismissed the appeal, upholding the judgment and award of the Reference Court dated 18.12.2002, which fixed the market value of the acquired land at Rs.60/- per sq.metre.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 18
  • Market value determination
  • Comparable sale method
  • Rectification deed
  • Burden of proof
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Case Details

2010 LawText (BOM) (09) 128

First Appeal No.125 of 2003

2010-09-16

A. P. Lavande

Shri Guru Shirodkar (Government Advocate for Appellants), Mr. Ryan Menses (Advocate for Respondents)

Special Land Acquisition Officer, (S.I.P) I.D. Complex, Gogal, Margao, Goa and Executive Engineer, Works Division VI P.W.D., Fatorda, Margao-Goa

Smt. Cecelia Noronha and Shri Damaciano A.J.J. Costa Noronha

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Nature of Litigation

Appeal against judgment and award in land acquisition reference under Section 18 of the Land Acquisition Act, 1894.

Remedy Sought

Appellants sought to set aside the Reference Court's award enhancing compensation from Rs.30/- to Rs.60/- per sq.metre.

Filing Reason

Appellants challenged the Reference Court's reliance on a sale deed (Exhibit AW.1/A) for determining market value, arguing it was not comparable and that a rectification deed affected its reliability.

Previous Decisions

The Land Acquisition Officer awarded Rs.30/- per sq.metre. The Reference Court partly allowed the reference and fixed market value at Rs.60/- per sq.metre.

Issues

Whether the Reference Court erred in relying on the sale deed dated 11.5.1989 (Exhibit AW.1/A) for determining the market value of the acquired land. Whether the rectification deed dated 9.4.1990 invalidated the original sale deed as a comparable instance.

Submissions/Arguments

Appellants argued that the land sold under Exhibit AW.1/A was not comparable to the acquired land and that the rectification deed undermined its reliability. Respondents supported the Reference Court's finding that the sale deed was of a nearby land and was a proper comparable instance.

Ratio Decidendi

A sale deed of a nearby land (15-20 metres away) executed about eight months before the Section 4 notification is a comparable instance for determining market value under the Land Acquisition Act, 1894. A subsequent rectification deed does not per se invalidate the original sale deed as evidence of market value.

Judgment Excerpts

The Reference Court placed reliance upon sale deed dated 11.5.1989 (Exhibit AW.1/A) which was at a distance of about 15 to 20 metres from the acquired land and fixed the market rate of the acquired land at Rs.60/- per sq.metre. Mr. Shirodkar further submitted that in any event, the deed of rectification dated 9.4.1990 whereby the sale deed dated 11.5.1989 was rectified, the Reference Court ought not to have relied upon the said sale deed.

Procedural History

The Land Acquisition Officer made an award granting Rs.30/- per sq.metre. The respondents sought a reference under Section 18, which was partly allowed by the Additional District Judge on 18.12.2002, enhancing compensation to Rs.60/- per sq.metre. The appellants filed First Appeal No.125 of 2003 before the High Court of Bombay at Goa, which was dismissed on 16.09.2010.

Acts & Sections

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