Case Note & Summary
The case involves a land acquisition dispute where the Government of Goa acquired 1635 square metres of land belonging to the respondent, Smt. Victoria Fernandes, from survey no.573/1 in village Calapur for the construction of a playground at Santa Cruz (Calapur). The notification under Section 4 of the Land Acquisition Act, 1894 was issued on 22/3/1993 and published in the Official Gazette on 6/5/1993. The Land Acquisition Officer made an award on 10/10/1996 fixing the market rate at Rs.30 per sq.metre. Dissatisfied, the respondent sought a reference under Section 18, claiming Rs.300 per sq.metre. In Land Acquisition Case No.44/1999, the Additional District Judge, North Goa at Panaji, partly allowed the reference and enhanced the compensation to Rs.263.20 per sq.metre, relying on sale deeds dated 6/12/1989 (Exhibit 19) for Rs.300 per sq.metre and 12/10/1990 (Exhibit 20) for Rs.367.50 per sq.metre, as well as an earlier award in Land Acquisition Case No.57/86 fixing Rs.150 per sq.metre for a 1984 notification. The appellants, the Deputy Collector (LA) and the Directorate of Sports and Youth Affairs, appealed against this enhancement. The High Court of Bombay at Goa examined the evidence and found that the Reference Court had erred. The acquired land was a paddy field below road level by 60-70 cms, located about 1.5 kms from Panaji town limits, with amenities like Santa Cruz market at 400 metres and a road at 55 metres. The sale deeds relied upon were for small plots (300 sq.metres and 417 sq.metres) sold 3-4 years before the notification, and the earlier award was for a different notification year. The High Court held that the Reference Court failed to apply proper deductions for development and size, and that the market value should be determined based on the potential of the land as on the date of notification. The High Court set aside the Reference Court's award and reduced the market rate to Rs.150 per sq.metre, considering the earlier award as a reasonable guide, and directed that the respondent be entitled to statutory benefits under the Act.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Comparable Sales Method - The court must consider sale deeds of comparable lands in the vicinity near the date of notification under Section 4 of the Land Acquisition Act, 1894. In this case, the sale deeds relied upon by the respondent were of small plots sold in 1989 and 1990, whereas the notification was in 1993, and the acquired land was a large paddy field requiring development. Held that the Reference Court erred in relying on those sale deeds without making proper deductions for development and size. (Paras 5-8) B) Land Acquisition - Compensation - Potential Value - The potential value of land for building purposes can be considered, but when the land is a paddy field and not yet ripe for development, a deduction for development charges is necessary. The court must assess the market value as on the date of notification under Section 4. Held that the Reference Court failed to apply the correct principles for determining market value. (Paras 6-8) C) Land Acquisition - Compensation - Previous Award as Guideline - An earlier award in Land Acquisition Case No.57/86 fixing market rate at Rs.150 per sq.metre for a notification in 1984 can be a relevant guide, but escalation must be justified. In this case, the High Court found that the Reference Court's enhancement to Rs.263.20 per sq.metre was excessive and reduced it to Rs.150 per sq.metre, considering the nature of the land and lack of comparable evidence. (Paras 7-9)
Issue of Consideration
Whether the Reference Court was justified in enhancing the compensation for the acquired land from Rs. 30 per sq.metre to Rs. 263.20 per sq.metre, and what is the correct market value of the acquired land as on the date of Section 4 notification.
Final Decision
The High Court allowed the appeal, set aside the judgment and award dated 28/02/2003 passed by the Additional District Judge, North Goa at Panaji in Land Acquisition Case No.44/1999, and fixed the market rate of the acquired land at Rs.150 per sq.metre. The respondent is entitled to statutory benefits under the Land Acquisition Act, 1894.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Comparable Sales
- Deduction for Development
- Potential Value
- Section 4 Notification
- Section 18 Reference
- Land Acquisition Act
- 1894
