Case Note & Summary
The appellants, Special Land Acquisition Officer and Chief Engineer of Konkan Railway Corporation Ltd., challenged the judgment and award dated 31.7.1999 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.139/95. The government acquired large chunks of land at Nagarcem, Palolem in Canacona Taluka for Konkan Railway Corporation Ltd. by notification dated 24.7.1991 under Section 4 of the Land Acquisition Act, 1894. The acquired land included property bearing survey no.196/2 Part admeasuring 3060 square meters belonging to the original applicant Balkust Yessu Sawant (since deceased, represented by his legal representatives). The land was a paddy field. The Special Land Acquisition Officer by award dated 9.12.1993 awarded Rs.9/ per square meter. Aggrieved, the original applicant sought reference under Section 18 of the Act claiming Rs.120/ per square meter. The reference court, relying on a sale deed dated 7.6.1990 (Exhibit AW2/E) by which the original applicant sold part of the same land to Shri Sudesh Raikar at Rs.26/ per square meter, fixed compensation at Rs.26/ per square meter with 10% increase from the date of the sale deed. The appellants argued that the reference court ought not to have relied on that sale deed and that the compensation was excessive. The respondents supported the award. The High Court held that the sale deed of a small portion of the same land is a good comparable instance, but a deduction for development is necessary since the acquired land was a paddy field while the sold land was a small plot. The court allowed a 25% deduction for development and a 10% increase per annum for the time gap between the sale deed and the notification. The compensation was reduced from Rs.26/ to Rs.20/ per square meter. The appeal was partly allowed, and the award was modified accordingly.
Headnote
A) Land Acquisition - Compensation Determination - Comparable Sale Deed - Reference Court relied on sale deed dated 7.6.1990 (Exhibit AW2/E) for part of same land sold at Rs.26/ per sqm - Held that sale deed of small portion of same land is a good comparable instance, but deduction for development and increase for time gap must be applied - Compensation reduced from Rs.26/ to Rs.20/ per sqm (Paras 4-6). B) Land Acquisition - Deduction for Development - When acquired land is paddy field and sold land is small plot, deduction for development is permissible - Held that 25% deduction for development is appropriate (Para 5). C) Land Acquisition - Increase for Time Gap - Between date of sale deed (7.6.1990) and date of notification (24.7.1991), increase of 10% per annum is reasonable - Held that increase of 10% per annum is justified (Para 5).
Issue of Consideration
Whether the reference court correctly relied on a sale deed of a small portion of the same land to determine compensation for a larger acquisition, and whether the compensation awarded was excessive.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.26/ to Rs.20/ per square meter. Award modified accordingly.
Law Points
- Land Acquisition Act
- 1894
- Section 4
- Section 18
- Section 23
- Section 24
- compensation determination
- sale deed as comparable instance
- deduction for development
- increase for time gap
