High Court of Bombay at Goa Upholds Enhanced Compensation for Land Acquisition for Konkan Railway — Sale Deed of Comparable Land Justifies Higher Rate. Reference Court's reliance on sale deed of paddy field at Rs.30 per sq m held proper for determining market value under Section 23 of Land Acquisition Act, 1894.

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

The case pertains to 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.212/95. The government acquired large chunks of land at Nagarcem, Palolem, Canacona for the Konkan Railway project via notification dated 24.7.1991 under Section 4 of the Land Acquisition Act, 1894. The respondent's property bearing survey no.195/1 admeasuring 2500 square meters, a paddy field, was part of the acquired land. The Special Land Acquisition Officer awarded compensation at Rs.9/- per square meter by award dated 9.12.1993. Aggrieved, the original applicant sought a reference under Section 18 of the Act claiming Rs.100/- per square meter. The reference court relied on a sale deed dated 19.1.1987 (Exhibit AW1/A) where one Rosalina Rodrigues purchased a paddy field admeasuring 1455 square meters for Rs.43,650/- i.e. at Rs.30/- per square meter. The reference court held that the land purchased by Rosalina Rodrigues was a paddy field similar to the acquired land and situated in the same vicinity, and thus enhanced compensation to Rs.30/- per square meter. The appellants challenged this enhancement, arguing that the sale deed was not comparable due to the small area and that the land was not similarly situated. The High Court examined the evidence and found that the sale deed was of a paddy field of similar nature and located in the same area. The court noted that the sale deed was a genuine transaction and the land was comparable. The court also considered that the acquired land was a large chunk and some deduction for development might be warranted, but the reference court had already applied a deduction by not granting the full claimed rate. The High Court held that the reference court's determination was based on proper evidence and did not warrant interference. The appeal was dismissed, and the compensation of Rs.30/- per square meter was upheld.

Headnote

A) Land Acquisition - Market Value Determination - Comparable Sale Method - Section 23, Land Acquisition Act, 1894 - The reference court enhanced compensation from Rs.9/- to Rs.30/- per sq m relying on a sale deed of a paddy field of similar nature and proximity - Held that the sale deed was a genuine transaction and the land was comparable, thus the enhancement was justified (Paras 2-5).

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Issue of Consideration

Whether the reference court was justified in enhancing compensation from Rs.9/- to Rs.30/- per square meter based on a sale deed of a comparable paddy field.

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Final Decision

Appeal dismissed; compensation of Rs.30/- per square meter upheld

Law Points

  • Market value determination
  • Comparable sale method
  • Deduction for development
  • Section 23 Land Acquisition Act
  • 1894
  • Section 18 reference
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Case Details

2005 LawText (BOM) (04) 120

First Appeal No.256 of 2000

2005-04-20

A.P. Lavande, J.

Mr. E. Afonso for the appellants, Mr. P.A. Kamat for the respondent

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

Sadashiv Shankar Gaonkar alias Sashiv Dessai (deceased) represented by Akalpita Raut Dessai

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Nature of Litigation

Appeal against enhancement of compensation in land acquisition reference

Remedy Sought

Appellants sought to set aside the reference court's award enhancing compensation from Rs.9/- to Rs.30/- per square meter

Filing Reason

Appellants aggrieved by the reference court's judgment and award dated 25.8.2000

Previous Decisions

Special Land Acquisition Officer awarded Rs.9/- per sq m on 9.12.1993; reference court enhanced to Rs.30/- per sq m on 25.8.2000

Issues

Whether the reference court was justified in relying on the sale deed dated 19.1.1987 to determine market value at Rs.30/- per sq m Whether the acquired land and the sale deed land were comparable

Submissions/Arguments

Appellants argued that the sale deed was of a small area and not comparable to the large acquired land Respondent supported the reference court's reliance on the sale deed as the land was similar paddy field in the same vicinity

Ratio Decidendi

A sale deed of a comparable paddy field in the same vicinity is a reliable basis for determining market value under Section 23 of the Land Acquisition Act, 1894, even if the acquired land is a larger chunk, as long as the nature and location are similar.

Judgment Excerpts

The reference Court relied upon the Sale Deed dated 19.1.987 (Exhibit AW1/A) by which one Rosalina Rodrigues had purchased the paddy field admeasuring 1455 square meters for Rs.43,650/ i.e. at the rate of Rs.30/ per square meter. The reference Court held that the land purchased by said Rosalina Rodrigues which was a paddy field was similar to the acquired land and situated in the same vicinity.

Procedural History

Notification under Section 4 dated 24.7.1991; SLAO award dated 9.12.1993 at Rs.9/- per sq m; Reference under Section 18 filed; Reference Court award dated 25.8.2000 enhancing to Rs.30/- per sq m; First Appeal No.256/2000 filed by SLAO and Chief Engineer; Judgment dated 20.4.2005 dismissing appeal.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18, Section 23
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