High Court of Bombay at Goa Dismisses Appeal by Konkan Railway Corporation in Land Acquisition Compensation Case — Enhancement of Compensation from Rs.9 to Rs.41 per sq. metre Upheld. Reference Court's reliance on comparable sale deed and rejection of belated sale instances upheld as proper exercise of discretion under Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: BOMBAY
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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 Limited against the judgment and award dated 19.07.1999 passed by the Additional District Judge III (South) at Margao-Goa in Land Acquisition Case No. 24/96. The Government acquired large chunks of land for the Konkan Railway Corporation at Chaudi Canacona, including the respondents' land bearing Survey No. 145/1 (part) admeasuring 725 sq. metres, by notification dated 12.8.1991 under Section 4(1) of the Land Acquisition Act, 1894. The Special Land Acquisition Officer awarded Rs.9 per sq. metre by award dated 22.12.1993. Dissatisfied, the respondents sought reference under Section 18 of the Act, claiming Rs.200 per sq. metre for the acquired land and Rs.200 per sq. metre as severance charges for the balance area of 125 sq. metres. The Reference Court enhanced compensation to Rs.41 per sq. metre, relying on a Sale Deed dated 19.6.1991 for a small plot at Rs.60 per sq. metre, and rejecting the appellants' reliance on sale deeds of 1993 and 1994. The appellants challenged the enhancement, arguing that the sale deed relied upon was for a small plot and not comparable, and that the court should have considered the subsequent sale deeds showing lower value. The High Court held that the Reference Court was justified in relying on the sale deed dated 19.6.1991 as it was proximate in time to the notification and was a comparable instance. The court also held that the sale deeds of 1993 and 1994 were after the notification and could not be considered. The High Court further noted that the Reference Court had applied a deduction of 1/3rd for development charges, which was proper. The appeal was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Compensation Enhancement - Market Value Determination - Reference Court enhanced compensation from Rs.9 to Rs.41 per sq. metre relying on Sale Deed dated 19.6.1991 for a small plot - Held that the sale deed was proximate in time to the Section 4(1) notification dated 12.8.1991 and was a comparable instance, and the court was justified in relying on it (Paras 4-6).

B) Land Acquisition - Evidence - Belated Sale Instances - Appellants produced sale deeds of 1993 and 1994 to show lower value - Held that these were after the notification and could not be considered as comparable instances, and the Reference Court rightly rejected them (Para 7).

C) Land Acquisition - Compensation - Deduction for Development - Sale deed of small plot cannot be directly applied to large acquisition without deduction - However, the Reference Court applied a deduction of 1/3rd for development charges, which was proper (Para 8).

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Issue of Consideration

Whether the Reference Court was justified in enhancing compensation from Rs.9 to Rs.41 per sq. metre based on a sale deed of a small plot, and whether the rejection of sale instances produced by the appellants was proper.

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Final Decision

The High Court dismissed the appeal with no order as to costs, upholding the Reference Court's enhancement of compensation to Rs.41 per sq. metre.

Law Points

  • Land Acquisition
  • Compensation Enhancement
  • Comparable Sale Deed
  • Belated Sale Instances
  • Market Value Determination
  • Section 4(1) Notification
  • Section 18 Reference
  • Section 23 Factors
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Case Details

2005 LawText (BOM) (04) 130

First Appeal No. 130 of 2000

2005-04-27

A.P. Lavande, J.

Mr. E. Afonso for the appellants, Mr. R.S. Sardessai for the respondents

1. Special Land Acquisition Officer (South Goa), Konkan Railway Corporation Limited, Amey Guest House, Davorlim Road, P.O. Navelim, Salcete, Goa, 403 707, and 2. Chief Engineer, Konkan Railway Corporation Ltd., Rawnfond, near Margao Railway Station, Margao, Goa.

1. Shantaram S. Rane, r/o. Cottamorda- Aquem Baixo, Rawnfond – Margao, Goa. 2. Prashad S. Rane, r/o. Cottamorda – Aquem Baixo, Rawnfond- Margao, Goa.

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Nature of Litigation

Appeal against enhancement of land acquisition compensation by Reference Court.

Remedy Sought

Appellants sought to set aside the Reference Court's award enhancing compensation from Rs.9 to Rs.41 per sq. metre.

Filing Reason

Appellants challenged the Reference Court's reliance on a sale deed of a small plot and rejection of their sale instances.

Previous Decisions

Special Land Acquisition Officer awarded Rs.9 per sq. metre on 22.12.1993; Reference Court enhanced to Rs.41 per sq. metre on 19.07.1999.

Issues

Whether the Reference Court was justified in enhancing compensation from Rs.9 to Rs.41 per sq. metre based on a sale deed of a small plot? Whether the Reference Court erred in rejecting the sale instances produced by the appellants?

Submissions/Arguments

Appellants argued that the sale deed dated 19.6.1991 relied upon by the Reference Court was for a small plot and not comparable, and that the court should have considered subsequent sale deeds of 1993 and 1994 showing lower value. Respondents supported the Reference Court's judgment, contending that the sale deed was proximate in time and comparable.

Ratio Decidendi

The Reference Court was justified in relying on a sale deed dated 19.6.1991 which was proximate in time to the Section 4(1) notification dated 12.8.1991, and the sale deeds of 1993 and 1994 were after the notification and could not be considered as comparable instances. The deduction of 1/3rd for development charges was proper.

Judgment Excerpts

The Reference Court has relied upon Sale Deed dated 19.6.1991 in respect of a small plot at Rs.60 per sq. metre. The sale deeds relied upon by the appellants are of the years 1993 and 1994, which are after the notification under Section 4(1) of the Act. The Reference Court has applied deduction of 1/3rd for development charges.

Procedural History

Notification under Section 4(1) dated 12.8.1991; Award by Special Land Acquisition Officer dated 22.12.1993 at Rs.9 per sq. metre; Reference under Section 18 by respondents; Reference Court judgment dated 19.07.1999 enhancing compensation to Rs.41 per sq. metre; Appeal by appellants to High Court on 27.04.2005.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 18, Section 23
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