Bombay High Court Allows Appeal in Land Acquisition Case — Reduces Compensation from Rs.15 to Rs.9 per sq. metre. Reference Court erred in relying on an award for different land without considering potential and location differences.

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 Limited against the judgment and award dated 25.08.2000 passed by the Additional District Judge III (South) Margao in Land Acquisition Case No.134/95. The government acquired large chunks of land for the Konkan Railway Corporation Ltd. by notification dated 12.08.1991 under Section 4(1) of the Land Acquisition Act, 1894. Among the acquired lands were paddy fields belonging to the respondents, Sunil Datta Bhagat and Amar Datta Bhagat, bearing Survey Nos. 117/11, 105/9 and 106/2 admeasuring 1492 sq. metres situated at Chaudi-Canacona. The Special Land Acquisition Officer awarded compensation at Rs.9/- per sq. metre. Dissatisfied, the respondents sought a reference. The Reference Court relied upon an award dated 15.3.1989 and, after holding that the acquired lands were similar to the lands in that award, fixed compensation at Rs.15/- per sq. metre. The appellants challenged this enhancement. The High Court observed that the Reference Court had not properly appreciated the evidence. The earlier award relied upon was for lands acquired in 1986, whereas the present acquisition was in 1991. Moreover, the acquired lands were paddy fields with no potential for development, whereas the lands in the earlier award had potential for building purposes. The High Court held that the Reference Court erred in relying on that award without considering the potential and location of the acquired lands. Consequently, the appeal was allowed, the impugned judgment and award were set aside, and the compensation was restored to Rs.9/- per sq. metre as awarded by the Land Acquisition Officer. The respondents were absent despite service.

Headnote

A) Land Acquisition - Compensation - Market Value - Determination - Reference Court enhanced compensation from Rs.9/- to Rs.15/- per sq. metre relying on an award dated 15.3.1989 for different land - Held that the Reference Court erred in not considering the potential and location of the acquired lands which were paddy fields, and the earlier award was for lands with different potential - Appeal allowed, compensation restored to Rs.9/- per sq. metre (Paras 2-5).

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Issue of Consideration

Whether the Reference Court was justified in enhancing compensation from Rs.9/- to Rs.15/- per sq. metre by relying on an earlier award for different land without proper comparison of potential and location.

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Final Decision

Appeal allowed. Impugned judgment and award dated 25.08.2000 set aside. Compensation restored to Rs.9/- per sq. metre as awarded by the Special Land Acquisition Officer.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4(1)
  • Section 18
  • Section 23
  • Section 24
  • compensation determination
  • market value
  • comparable sales method
  • potential of land
  • location
  • paddy fields
  • burden of proof
  • reference court
  • award
  • similarity of land
  • appreciation of evidence
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Case Details

2005 LawText (BOM) (04) 123

First Appeal No. 258 of 2000

2005-04-01

A. P. Lavande, J.

Mr. E. Afonso for the appellants; Respondents though served, absent.

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

Sunil Datta Bhagat and Amar Datta Bhagat

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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.15/- per sq. metre.

Filing Reason

Appellants challenged the Reference Court's reliance on an earlier award for different land without proper comparison.

Previous Decisions

Special Land Acquisition Officer awarded Rs.9/- per sq. metre; Reference Court enhanced to Rs.15/- per sq. metre.

Issues

Whether the Reference Court was justified in relying on an award dated 15.3.1989 for different land to determine compensation for the acquired paddy fields. Whether the compensation of Rs.15/- per sq. metre was excessive and should be reduced to Rs.9/- per sq. metre.

Submissions/Arguments

Appellants argued that the Reference Court erred in relying on an award for lands with different potential and location, and that the acquired lands were paddy fields with no development potential. Respondents did not appear despite service.

Ratio Decidendi

In determining compensation for land acquisition, the Reference Court must consider the potential and location of the acquired land. Relying on an award for different land without proper comparison is erroneous. Paddy fields with no development potential cannot be equated with lands having building potential.

Judgment Excerpts

The Reference Court relied upon the Award dated 15.3.1989 and after holding that the acquired lands were similar to the lands in the said Award dated 15.3.1989, fixed the compensation in respect of the acquired lands at the rate of Rs.15/- per sq. metre. In my opinion, the Reference Court has not properly appreciated the evidence on record. The earlier award relied upon by the Reference Court was in respect of lands acquired in the year 1986, whereas the present acquisition is of the year 1991. Moreover, the acquired lands are paddy fields and have no potential for development, whereas the lands in the earlier award had potential for building purposes.

Procedural History

Notification under Section 4(1) dated 12.08.1991 for acquisition of land for Konkan Railway. Special Land Acquisition Officer awarded Rs.9/- per sq. metre. Respondents sought reference. Reference Court (Additional District Judge III, South Margao) enhanced compensation to Rs.15/- per sq. metre vide judgment and award dated 25.08.2000 in Land Acquisition Case No.134/95. Appellants filed First Appeal No.258 of 2000 before the High Court of Bombay at Goa.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 18
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