Case Note & Summary
The case involves an appeal by the Executive Engineer and Special Land Acquisition Officer against the judgment of the Reference Court dated 6/01/2005 in Land Acquisition Case No.37/1994. The Government acquired a strip of 10 metres width admeasuring about 935 square metres of Survey No.255/2 of Raia village belonging to the respondent, Sara Gracious, for the Selaulim Water Supply Project. The Land Acquisition Officer awarded compensation at Rs.25 per square metre. Dissatisfied, the respondent sought enhancement to Rs.250 per square metre, which was declined. However, the Reference Court awarded additional compensation of Rs.78,000/- with interest at 6% for the cost of constructing a culvert to connect the western and eastern portions of the property that were severed by the acquisition. The appellants challenged this award. The High Court held that the cost of constructing a culvert is not a separate head of compensation under Section 23(1) of the Land Acquisition Act, 1894. The proper measure is the diminution in market value of the remaining land due to severance. The court allowed the appeal, setting aside the award of Rs.78,000/- and interest.
Headnote
A) Land Acquisition - Compensation for Severance - Section 23(1) Land Acquisition Act, 1894 - Heads of Compensation - The court considered whether the cost of constructing a culvert to connect severed portions of land is a separate head of compensation. Held that such cost is not a separate head under Section 23(1) and must be considered as part of the diminution in market value of the remaining land. The Reference Court erred in awarding separate compensation for the culvert. (Paras 1-6)
B) Land Acquisition - Market Value - Diminution in Value - Section 23(1) Land Acquisition Act, 1894 - The court held that the proper approach is to assess the diminution in market value of the remaining land due to severance, not to award specific costs for remedial measures. The appeal was allowed and the award of Rs.78,000/- for culvert was set aside. (Paras 5-6)
Issue of Consideration
Whether the cost of constructing a culvert to connect severed portions of acquired land can be awarded as separate compensation under Section 23(1) of the Land Acquisition Act, 1894.
Final Decision
Appeal allowed. The award of Rs.78,000/- with interest at 6% for cost of constructing a culvert is set aside. No order as to costs.
Law Points
- Compensation for severance
- Section 23(1) Land Acquisition Act 1894
- heads of compensation
- cost of culvert not separate head
- diminution in value
- market value
Case Details
2010 LawText (BOM) (11) 3
First Appeal No.158 of 2005
Mr. G. Shirodkar, Government Advocate for the Appellants; Mr. C.A. Coutinho, Advocate for the Respondent
The Executive Engineer, Works Division XXV (NH) PWD, Fatorda, Margao, Goa and Special Land Acquisition Officer (SIP) IP Complex, Gogal, Margao, Goa
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against judgment/award of Reference Court in land acquisition compensation matter.
Remedy Sought
Appellants sought to set aside the award of additional compensation of Rs.78,000/- with interest for cost of constructing a culvert.
Filing Reason
The Reference Court awarded compensation for cost of culvert which appellants contended was not a separate head under the Act.
Previous Decisions
Land Acquisition Officer awarded compensation at Rs.25 per sq m. Reference Court awarded additional Rs.78,000/- for culvert cost.
Issues
Whether the cost of constructing a culvert to connect severed portions of acquired land can be awarded as separate compensation under Section 23(1) of the Land Acquisition Act, 1894.
Submissions/Arguments
Appellants argued that the cost of culvert is not a separate head of compensation under Section 23(1) of the Act.
Respondent argued that the acquisition fragmented the property and the cost of culvert was necessary to connect the severed portions.
Ratio Decidendi
The cost of constructing a culvert to connect severed portions of land is not a separate head of compensation under Section 23(1) of the Land Acquisition Act, 1894. The proper measure is the diminution in market value of the remaining land due to severance.
Judgment Excerpts
Challenge in this appeal is to the judgment/award of the learned Reference Court dated 6/01/2005 in Land Acquisition Case No.37/1994 by which the respondent has been awarded additional compensation of Rs.78,000/- with interest at the rate of 6% in terms of clause fourthly of sub-section (1) of Section 23 of Land Acquisition Act, 1894.
The learned Reference Court has awarded to the applicant the compensation of Rs.78,000/- with interest at the rate of 6%, being the costs which would be required by the applicant to build a culvert to connect the western portion with the eastern portion of the applicant's property.
Procedural History
Land Acquisition Officer awarded compensation at Rs.25 per sq m on 30/09/1988. Respondent sought reference. Reference Court awarded additional compensation of Rs.78,000/- for culvert cost on 6/01/2005. Appellants filed First Appeal No.158 of 2005 in High Court of Bombay at Goa.
Acts & Sections
- Land Acquisition Act, 1894: Section 4(1), Section 23(1)
