Bombay High Court Allows Appeal in Land Acquisition Compensation Case — Potentiality of Land for Non-Agricultural Use Considered Despite Restrictions Under Goa Land Use Act. Deduction of 50% from Sale Price of Unrestricted Land Accepted as Basis for Compensation.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The appellant, Shri Pandhari D'Souza Kuttikar, filed an appeal against the judgment and award dated 30.05.2006 passed by the Reference Court, which rejected his reference for enhanced compensation for land acquired by the respondents, Deputy Collector (REV) and Land Acquisition Officer and Inspector General of Prisons. The land was acquired for a public purpose, and the appellant sought higher compensation based on the potentiality of the land for non-agricultural use. The Reference Court rejected the reference, holding that the land was subject to restrictions under the Goa Land Use (Regulations) Act, 1991, which limited its potential for non-agricultural development. The appellant's counsel argued that the Apex Court had recently held that even a sale deed of land with potential for non-agricultural use can form the basis for determining compensation, and a deduction of 50% from the price of unrestricted land is acceptable. The respondents' counsel did not dispute this legal position. The High Court, after hearing both sides, set aside the impugned judgment and remanded the matter to the Reference Court for fresh consideration, directing that the Reference Court consider the compensation in light of the Apex Court judgment and apply a 50% deduction from the sale price of unrestricted land. The appeal was allowed with no order as to costs.

Headnote

A) Land Acquisition - Compensation - Potentiality - Goa Land Use (Regulations) Act, 1991 - The appellant challenged the rejection of his reference for compensation on the ground that the acquired land had potential for non-agricultural use despite restrictions under the Goa Land Use (Regulations) Act, 1991. The Court held that even a sale deed of land with potential for non-agricultural use can form the basis for determining compensation, and a deduction of 50% from the price of unrestricted land is acceptable as per Apex Court judgment. (Paras 2-4)

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Issue of Consideration

Whether the Reference Court erred in rejecting the reference for compensation on the ground that the acquired land had potential for non-agricultural use despite restrictions under the Goa Land Use (Regulations) Act, 1991, and whether a sale deed of land with such potential can form the basis for determining compensation with appropriate deduction.

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Final Decision

Appeal allowed. Impugned judgment and award dated 30.05.2006 set aside. Matter remanded to Reference Court for fresh consideration in light of Apex Court judgment, directing that compensation be determined with 50% deduction from sale price of unrestricted land. No order as to costs.

Law Points

  • Land acquisition compensation
  • potentiality of land
  • non-agricultural use
  • Goa Land Use (Regulations) Act 1991
  • deduction for restrictions
  • sale deed as basis
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Case Details

2012 LawText (BOM) (01) 76

First Appeal No. 264 of 2006

2012-01-10

F. M. Reis, J

Mr. R. G. Ramani for appellant, Ms. S. Linhares for respondents

Shri Pandhari D'Souza Kuttikar

Deputy Collector (REV) and Land Acquisition Officer, Inspector General of Prisons

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Nature of Litigation

Appeal against rejection of reference for enhanced compensation in land acquisition

Remedy Sought

Appellant sought enhanced compensation for acquired land based on its potential for non-agricultural use

Filing Reason

Reference Court rejected the reference on ground that land was subject to restrictions under Goa Land Use (Regulations) Act, 1991

Previous Decisions

Reference Court rejected the reference by award dated 30.05.2006

Issues

Whether the Reference Court erred in rejecting the reference for compensation on the ground that the acquired land had potential for non-agricultural use despite restrictions under the Goa Land Use (Regulations) Act, 1991 Whether a sale deed of land with potential for non-agricultural use can form the basis for determining compensation with appropriate deduction

Submissions/Arguments

Appellant's counsel argued that Apex Court has held that even a sale deed of land with potential for non-agricultural use can form basis for compensation, and a deduction of 50% from price of unrestricted land is acceptable Respondents' counsel did not dispute the legal position

Ratio Decidendi

Even land subject to restrictions under the Goa Land Use (Regulations) Act, 1991 can have potential for non-agricultural use, and a sale deed of such land can form the basis for determining compensation, with a deduction of 50% from the price of unrestricted land as accepted by the Apex Court.

Judgment Excerpts

The learned Counsel further pointed out that the Apex Court by the recent judgment has held that even a sale deed which had potentiality of being used for non-agricultural purpose can form the basis for determining the compensation for the land acquired which was subject to the restrictions under the Goa Land Use ( Regulations ) Act, 1991. The learned Counsel as such submitted that on perusal of the said judgment, a deduction of 50% on the price fetched for the land which is not subjected to such restrictions has been accepted by the Apex Court in the said Judgment.

Procedural History

The appellant filed a reference for enhanced compensation for land acquired by the respondents. The Reference Court rejected the reference by award dated 30.05.2006. The appellant then filed the present appeal before the High Court of Bombay at Goa.

Acts & Sections

  • Goa Land Use (Regulations) Act, 1991:
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