Case Note & Summary
The case involves an appeal by the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation Ltd. against the judgment and award dated 25.8.2000 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.140/95. The government acquired large chunks of land at Nagarcem Palolem, Canacona for the Konkan Railway project under a notification dated 24.7.1991 issued under Section 4 of the Land Acquisition Act, 1894. The respondent, Francisco Leandro Fernandes, owned property bearing survey no.196/2 (Part) admeasuring 1500 square meters, which was a paddy field. The Special Land Acquisition Officer awarded compensation at Rs.9 per square meter by award dated 9.12.1993. Aggrieved, the respondent sought a 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/B) by which the respondent sold part of the same survey number to Sudesh Raikar, fixed compensation at Rs.26 per square meter by giving a 10% increase per year from the date of the sale deed. The appellants challenged this, arguing that the sale deed should not have been relied upon and that the 10% annual increase was unwarranted as the land was a paddy field without building potential. The High Court held that while the sale deed could be considered, the 10% increase was not justified. The court reduced the compensation to Rs.20 per square meter, being the rate as on the date of the sale deed without escalation. The appeal was partly allowed.
Headnote
A) Land Acquisition - Compensation - Market Value - Determination - Sale Deed of Small Portion - The reference court relied on a sale deed dated 7.6.1990 for a small portion of the same survey number to fix compensation at Rs.26 per sq m with 10% annual increase. The High Court held that while the sale deed could be considered, the 10% increase was not justified as the acquired land was a paddy field with no building potential. (Paras 2-4) B) Land Acquisition - Compensation - Annual Increase - Building Potential - The court held that for agricultural land without building potential, an annual increase of 10% is not warranted. The compensation was reduced to Rs.20 per sq m, being the rate as on the date of the sale deed without escalation. (Para 4)
Issue of Consideration
Whether the reference court was justified in relying on a sale deed of a small portion of the same land to determine market value and in granting 10% annual increase for a paddy field without building potential.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.26 per sq m to Rs.20 per sq m. No order as to costs.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Paddy Field
- Building Potential
- Sale Deed
- Annual Increase
