Case Note & Summary
The judgment arises from two cross-appeals concerning the acquisition of land for the re-alignment of the Mardol-Ponda road on National Highway 4A (Mardol Bye-pass) in Ponda Taluka, Goa. The Government of Goa issued a notification under Section 4 of the Land Acquisition Act, 1894 on 16/8/1991, published in the Official Gazette on 18/10/1991, acquiring 2275 sq.m. of land from survey no.20/2 of village Veling belonging to the claimants (Naguesh Govind Alvani and Mangala Naguesh Alvani). The Land Acquisition Officer made an award on 20/12/1994, granting compensation at Rs.30 per sq.m. The claimants sought a reference under Section 18 of the Act, claiming Rs.300 per sq.m. In Land Acquisition Case No.9/1999, the Additional District Judge, Damodar Alvani (son of claimant no.1) examined himself and relied on three sale deeds: two executed on 26/4/1995 and 10/10/1991 at Rs.261 and Rs.225 per sq.m. respectively, and one dated 19/6/1986 (Exhibit 16) at Rs.168 per sq.m. for a smaller plot. The Reference Court awarded compensation at Rs.225 per sq.m., leading to appeals by both sides. The High Court analyzed the evidence and held that the sale deed dated 19/6/1986 was the best comparable, being nearest to the date of notification and for land in the same village. The court rejected the post-notification sale deeds as unreliable due to the steep rise in prices after the notification. Applying a 20% deduction for development costs, the market value as on 19/6/1986 was Rs.134 per sq.m. Allowing a 10% annual escalation for 5 years (1986 to 1991), the market value as on 16/8/1991 was determined at Rs.200 per sq.m. The court set aside the Reference Court's award and directed compensation at Rs.200 per sq.m. with all statutory benefits under the Act, including solatium, additional compensation, and interest. Both appeals were disposed of accordingly.
Headnote
A) Land Acquisition - Compensation - Market Value - Determination - Comparable Sale Method - Section 4, 18, 23 Land Acquisition Act, 1894 - The court considered the market value of acquired land based on a sale deed of similar land in the vicinity executed near the date of notification. The sale deed dated 19/6/1986 at Rs.168 per sq.m. was held to be the best comparable, with appropriate deductions for development. Held that the Reference Court erred in relying on post-notification sale deeds without considering the steep rise in prices. (Paras 3-6) B) Land Acquisition - Compensation - Enhancement - Deduction for Development - Section 23 Land Acquisition Act, 1894 - The court applied a deduction of 20% for development costs from the comparable sale price, resulting in a market value of Rs.134 per sq.m. as on 19/6/1986. Applying a 10% annual escalation for 5 years (1986 to 1991), the market value as on 16/8/1991 was determined at Rs.200 per sq.m. Held that the claimants are entitled to compensation at Rs.200 per sq.m. with all statutory benefits. (Paras 6-7)
Issue of Consideration
Whether the compensation awarded by the Reference Court for acquisition of land under the Land Acquisition Act, 1894 was adequate and based on correct market value.
Final Decision
Both appeals are disposed of. The compensation is fixed at Rs.200 per sq.m. The claimants are entitled to all statutory benefits under the Land Acquisition Act, 1894, including solatium, additional compensation, and interest. The Reference Court's award is modified accordingly.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Comparable Sale Method
- Section 4 Notification
- Section 18 Reference
