High Court of Bombay at Goa Allows Appeal by Special Land Acquisition Officer in Land Acquisition Case — Compensation Reduced from Rs.24 to Rs.9 per sq m for Paddy Field. Reference Court erred in relying on an award for a different purpose and granting 10% annual increase on compounding basis without proper evidence.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The case pertains to an appeal filed by the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation Ltd. against the judgment and award dated 15.3.2001 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.102/95. The Government acquired large chunks of land at Chaudi, Canacona for Konkan Railway Corporation Ltd. by Notification dated 12.8.1991 under Section 4 of the Land Acquisition Act, 1894. The property bearing survey no.89/10 admeasuring 2315 square meters belonging to the respondent Surangabai S. Tubki was part of the acquired land. The Special Land Acquisition Officer by award dated 22.12.1993 awarded Rs.9 per square meter on the ground that the land was paddy field. Aggrieved, the original applicant sought reference under Section 18 of the Act claiming compensation of Rs.100 per square meter. The reference Court relied upon an Award dated 15.3.1989 (Exhibit AW1/B) which was in respect of acquisition for the proposed approach road to Talpona Galjibag bridge and awarded Rs.24 per square meter after holding that the land was paddy field. The reference Court also granted increase of 10% every year on compounding basis. The appellants challenged the award contending that the reference Court erred in relying on an award for a different purpose and granting increase on compounding basis without evidence. The High Court allowed the appeal, set aside the impugned award, and restored the award of the Land Acquisition Officer at Rs.9 per square meter.

Headnote

A) Land Acquisition - Compensation - Paddy Field - Section 4, 18 Land Acquisition Act, 1894 - The reference Court enhanced compensation from Rs.9 to Rs.24 per sq m relying on an award for acquisition for a different purpose (approach road to bridge) without considering the nature of land and purpose. Held that the award relied upon was not comparable as it was for a different purpose and the land was not similarly situated. (Paras 2-3)

B) Land Acquisition - Increase on Compounding Basis - Section 18 Land Acquisition Act, 1894 - The reference Court granted 10% annual increase on compounding basis without any evidence or justification. Held that such increase is not permissible without proper basis and the compensation must be determined based on market value as on date of notification. (Para 3)

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Issue of Consideration

Whether the reference Court was justified in awarding compensation at Rs.24 per square meter with 10% annual increase on compounding basis for acquisition of paddy field under the Land Acquisition Act, 1894.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 15.3.2001 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.102/95 is set aside. The award of the Special Land Acquisition Officer dated 22.12.1993 is restored. No order as to costs.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 18
  • Compensation for paddy field
  • Increase on compounding basis
  • Reliance on previous award for different purpose
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Case Details

2005 LawText (BOM) (04) 114

First Appeal No.47 of 2002

2005-04-27

A.P. Lavande, J.

Mr. E. Afonso for the appellants; Respondent though served absent

Special Land Acquisition Officer (South Goa) Konkan Railway Corporation Limited and Chief Engineer, Konkan Railway Corporation Ltd.

Surangabai S. Tubki

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Nature of Litigation

Appeal against judgment and award of reference Court enhancing compensation for land acquisition.

Remedy Sought

Appellants sought to set aside the award of the reference Court and restore the award of the Land Acquisition Officer.

Filing Reason

The reference Court enhanced compensation from Rs.9 to Rs.24 per square meter with 10% annual increase on compounding basis, which the appellants contended was erroneous.

Previous Decisions

The Special Land Acquisition Officer awarded Rs.9 per square meter on 22.12.1993. The reference Court enhanced it to Rs.24 per square meter on 15.3.2001.

Issues

Whether the reference Court was justified in relying on an award for acquisition for a different purpose (approach road to bridge) to determine compensation for acquisition for Konkan Railway? Whether the reference Court was justified in granting 10% annual increase on compounding basis without any evidence?

Submissions/Arguments

Appellants argued that the reference Court erred in relying on an award for a different purpose and that the increase on compounding basis was without any basis. Respondent did not appear despite service.

Ratio Decidendi

The reference Court cannot rely on an award for acquisition for a different purpose to determine compensation without considering the nature of land and purpose. Granting increase on compounding basis without evidence is impermissible.

Judgment Excerpts

The reference Court relying upon the Award dated 15.3.1989 (Exhibit AW1/B) which was in respect of acquisition for the proposed approach road to Talpona Galjibag bridge awarded Rs.24/ per square meter after holding that the land belonging to the respondent which was acquired was paddy field. The reference Court granted increase of 10% every year on compounding basis and fixed...

Procedural History

Notification under Section 4 dated 12.8.1991. Award by Special Land Acquisition Officer on 22.12.1993 at Rs.9 per sq m. Reference under Section 18 by respondent. Reference Court award on 15.3.2001 enhancing compensation to Rs.24 per sq m with 10% annual increase on compounding basis. Appeal filed on 2002. Heard on 27.4.2005.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18
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