Case Note & Summary
The case involves an appeal by the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation Limited against the judgment and award dated 26.4.1999 passed by the Additional District Judge III (South Goa), Margao, in Land Acquisition Case No. 153/95. The Government acquired large chunks of land at Nagarcem-Palolem in Canacona Taluka for the Konkan Railway project under a notification dated 24.7.1991 issued under Section 4(1) of the Land Acquisition Act, 1894. The respondent, Smt. Rosalina Leao Rodrigues, owned an area of 746 sq. metres bearing Survey No.195/1 which was part of the acquired land. The Special Land Acquisition Officer, by his award dated 9.12.1993, awarded compensation at Rs.9/- per sq. metre, along with Rs.2000/- for fruit value and Rs.60.50 for wood value. Dissatisfied, the respondent sought a reference under Section 18 of the Act. The Reference Court enhanced the compensation to Rs.42/- per sq. metre, relying on a sale deed dated 19.1.1987 by which the respondent had purchased 1455 sq. metres of the same survey number at Rs.30/- per sq. metre. The Reference Court also granted a 10% annual increase to arrive at Rs.42/- per sq. metre. The appellants challenged this enhancement, arguing that the sale deed of a small plot could not be the basis for determining the market value of a large acquisition. The High Court agreed, holding that the sale deed of a small plot is not comparable to a large acquisition and that a deduction of 1/3rd for development charges is necessary. Applying this principle, the court calculated the market value as Rs.20/- per sq. metre (Rs.30/- minus 1/3rd) as on 19.1.1987, and then added 10% annual increase for the period from 19.1.1987 to 24.7.1991 (4 years and 6 months), resulting in Rs.28/- per sq. metre. The court also noted that the Reference Court had not awarded any amount for fruit value or wood value, but since the appellants did not challenge those awards, they were not disturbed. The appeal was partly allowed, reducing the compensation from Rs.42/- to Rs.28/- per sq. metre, with the respondent entitled to all statutory benefits under Sections 23 and 28 of the Act.
Headnote
A) Land Acquisition - Compensation Determination - Comparable Sale Method - Sale deed of a small plot of 1455 sq. metres cannot be the sole basis for determining market value of a large acquisition of 746 sq. metres when the acquired land is part of a larger chunk - The court held that the Reference Court erred in relying on the sale deed dated 19.1.1987 without considering the size disparity and the need for deduction for development charges (Paras 3-5). B) Land Acquisition - Market Value - Deduction for Development - When relying on a small plot sale, a deduction of 1/3rd for development charges is warranted to arrive at the market value of a large acquired land - The court applied a deduction of 1/3rd from the sale price of Rs.30/- per sq. metre, resulting in Rs.20/- per sq. metre, and then added 10% annual increase to reach Rs.28/- per sq. metre as on the date of notification (Paras 5-6).
Issue of Consideration
Whether the compensation fixed by the Reference Court at Rs.42/- per sq. metre is legal and justified, and if not, what is the compensation payable?
Final Decision
Appeal partly allowed. Compensation reduced from Rs.42/- to Rs.28/- per sq. metre. Respondent entitled to statutory benefits under Sections 23 and 28 of the Land Acquisition Act, 1894. No order as to costs.
Law Points
- Land Acquisition Act
- 1894
- Section 4(1)
- Section 23
- Section 24
- compensation determination
- comparable sale method
- small plot sale deed not reliable for large acquisition
- deduction for development charges
