Case Note & Summary
The State of Goa and the Chief Electrical Engineer appealed against the judgment and award dated 20.1.2003 passed by the District Judge, North Goa, Panaji in Land Acquisition Case No.71 of 2000, which partly allowed the claimant's reference under Section 18 of the Land Acquisition Act, 1894. The Government had acquired 1950 sq.metres of land belonging to the respondent, Govind N. Keni, in Goa Velha for a public purpose, with notification under Section 4(1) dated 21.10.1998 published on 4.12.1998. The Land Acquisition Officer awarded compensation at Rs.25 per sq.metre. The claimant sought reference claiming Rs.350 per sq.metre. The Reference Court, relying on four sale deeds exhibited by the claimant, fixed the market value at Rs.350 per sq.metre. The appellants challenged this, arguing that the sale deeds were not comparable as they involved undivided shares in small plots at Neura Pequeno, which were 500-600 metres away, and other plots at Goa Velha 1.5 to 2.2 kms away. The High Court found that the Reference Court erred in relying on sale deeds of undivided shares, which are not comparable to the acquisition of a full plot. It also held that when small plots are sold at higher rates, a deduction for development charges must be applied to determine the value of large tracts. The court applied a 10% deduction and fixed the market value at Rs.200 per sq.metre, reducing the compensation from Rs.350 per sq.metre. The appeal was partly allowed, and the award was modified accordingly.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Deduction for Development Charges - The court held that when small plots are sold at higher rates, a deduction for development charges must be applied to determine the value of large tracts of land - The Reference Court failed to apply such deduction, leading to an inflated compensation - Held that a 10% deduction is appropriate (Paras 5-7). B) Land Acquisition - Compensation - Comparable Sales - Sale Deeds of Undivided Shares - Sale deeds of undivided shares in a plot are not comparable to the acquisition of a full plot of land, as they involve speculative value and cannot be relied upon for determining market value - Held that the Reference Court erred in relying on such sale deeds (Paras 5-6). C) Land Acquisition - Compensation - Market Value - Deduction for Development Charges - The court held that when the acquired land is a large tract and the comparable sales are of small developed plots, a deduction for development charges ranging from 20% to 53% is warranted - In the present case, a 10% deduction was applied considering the location and potential - Held that the market value should be fixed at Rs.200 per sq.metre (Paras 7-8).
Issue of Consideration
Whether the Reference Court erred in fixing the market value of the acquired land at Rs.350 per sq.metre and whether the sale deeds relied upon by the claimant were comparable to the acquired land.
Final Decision
The appeal is partly allowed. The judgment and award dated 20.1.2003 passed by the District Judge, North Goa, Panaji in Land Acquisition Case No.71 of 2000 is modified. The market value of the acquired land is fixed at Rs.200 per sq.metre instead of Rs.350 per sq.metre. The appellants are entitled to other statutory benefits under the Land Acquisition Act, 1894. No order as to costs.
Law Points
- Land Acquisition Compensation
- Determination of Market Value
- Deduction for Development Charges
- Reliance on Sale Deeds of Undivided Shares
- Comparable Sales Method
- Section 18 Reference
- Section 4(1) Notification
