Case Note & Summary
The case involves two cross-appeals arising from a land acquisition matter. The Government of Goa acquired land for road construction under a Section 4 notification dated 24/04/1992. The Land Acquisition Officer passed an award under Section 11 on 06/09/1994 offering compensation at Rs.11.50 per square metre for the acquired land measuring 400 square metres in Survey No.1/1 at Consua Village. Dissatisfied, the landowner sought a reference under Section 18 claiming Rs.300 per sqm. The Reference Court partly allowed the reference and fixed compensation at Rs.41 per sqm by judgment dated 29/11/2005. Both parties appealed: the landowner sought further enhancement, while the State contended the enhancement was excessive. The High Court considered the evidence, noting that the acquired land was a narrow strip used as access road and had no independent potential. The court held that the Reference Court's reliance on a sale deed of a small plot was not entirely appropriate, but considering the location and potential, the compensation of Rs.41 per sqm was reasonable. The court partly allowed the landowner's appeal to the extent of granting statutory benefits under Section 23(1A) and (2) of the Act, and dismissed the State's appeal. The judgment was delivered by Justice F.M. Reis on 05/05/2011.
Headnote
A) Land Acquisition - Compensation - Market Value - Determination - Land Acquisition Act, 1894, Sections 4, 11, 18, 23 - The dispute pertained to enhancement of compensation for land acquired for road construction - The Reference Court relied on a sale deed of a small plot of land to fix compensation at Rs.41 per sqm - Held that the sale deed of a small plot cannot be the sole basis for determining market value of a large tract, but considering the potentiality and location, the enhancement was justified (Paras 3-5).
Issue of Consideration
Whether the Reference Court was justified in enhancing the compensation from Rs.11.50 per sqm to Rs.41 per sqm for the acquired land, and whether the land had potential for development or was merely a narrow strip used as access road.
Final Decision
The High Court partly allowed the landowner's appeal (FA 109/2006) granting statutory benefits under Section 23(1A) and (2) of the Land Acquisition Act, 1894, and dismissed the State's appeal (FA 233/2006). The compensation of Rs.41 per sqm was upheld.
Law Points
- Compensation for land acquisition
- market value determination
- potentiality of land
- narrow strip of land
- sale deed as comparable instance
- Land Acquisition Act
- 1894 Sections 4
- 11
- 18
- 23
Case Details
First Appeals Nos.109 of 2006 & 233 of 2006
Mr. M.P. Almeida for the Appellant (in FA 109/2006) and for the Respondent (in FA 233/2006); Ms. S. Linhares, Additional Government Advocate for the Respondents (in FA 109/2006) and for the Appellants (in FA 233/2006)
Shri Camilo Pereira (in FA 109/2006); Deputy Collector & SDO, Mormugao and Executive Engineer, PWD (in FA 233/2006)
Government of Goa and Deputy Collector & Land Acquisition Officer (in FA 109/2006); Shri Camilo Pereira (in FA 233/2006)
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Nature of Litigation
Appeals against judgment and award in land acquisition reference enhancing compensation.
Remedy Sought
Landowner sought further enhancement of compensation; State sought reduction of compensation.
Filing Reason
Dissatisfaction with compensation awarded by Reference Court.
Previous Decisions
Land Acquisition Officer awarded Rs.11.50 per sqm; Reference Court enhanced to Rs.41 per sqm.
Issues
Whether the Reference Court correctly enhanced compensation from Rs.11.50 to Rs.41 per sqm.
Whether the land had potential for development justifying higher compensation.
Submissions/Arguments
State argued that the land was a narrow strip used as access road, with no potential, and the sale deed relied upon was not comparable.
Landowner argued that the compensation should be further enhanced based on potential and location.
Ratio Decidendi
The market value of acquired land should be determined based on comparable sale instances of similar land with similar potential. A narrow strip of land used as access road has limited potential, but location and surrounding development can justify moderate enhancement. Statutory benefits under Section 23(1A) and (2) are to be granted.
Judgment Excerpts
Pursuant to a notification under Section 4 of the Land Acquisition Act, 1894, dated 24/04/1992, land was acquired...
By an award passed under Section 11 of the said Act dated 6/09/1994, the Land Acquisition Officer offered the compensation of a sum of Rs.11.50 per square metre for the land acquired.
Being dissatisfied with the said amount the applicant sought a reference under Section 18 of the said Act and claimed a compensation at the rate of Rs.300/- per square metre for the land acquired.
Procedural History
Notification under Section 4 dated 24/04/1992; Award under Section 11 dated 06/09/1994; Reference under Section 18; Reference Court judgment dated 29/11/2005; Appeals filed in 2006; Heard and decided on 05/05/2011.
Acts & Sections
- Land Acquisition Act, 1894: 4, 11, 18, 23
