High Court of Bombay at Goa Upholds Enhanced Compensation for Land Acquisition for Konkan Railway — Market Value Determined Based on Comparable Sale Deeds and Potential for Development. The court affirmed the Reference Court's award of Rs.30/- per sq. metre for developed land acquired under Section 4 of the Land Acquisition Act, 1894, rejecting the acquiring body's appeal.

High Court: Bombay High Court In Favour of Accused
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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 20.2.1999 passed by the Additional District Judge, Margao in Land Acquisition Case No.126/1995. The land in question, measuring 8350 sq. metres in Survey No.272/1 of Cuncolim Village, Salcete Taluka, was acquired for the Konkan Railway project pursuant to a notification under Section 4 of the Land Acquisition Act, 1894 dated 20.1.1992. The Special Land Acquisition Officer made an award on 6.5.1994, granting compensation at Rs.4/- per sq. metre for 8275 sq. metres and Rs.2/- per sq. metre for 75 sq. metres of nallah. The respondent-claimant, Rui Fernandes, sought a reference claiming compensation at Rs.100/- per sq. metre. Before the Reference Court, the claimant examined himself as AW.1 and the Sub-Registrar of Margao, Shri Pandharinath, as AW.2, and relied on several sale deeds, including one dated 29.4.1991 (Exh.AW1/B) showing a sale at Rs.30/- per sq. metre for a plot of 200 sq. metres in the same village. The Reference Court enhanced the compensation to Rs.30/- per sq. metre for the entire acquired land, rejecting the appellants' argument that the sale deed was for a small plot and not comparable. The High Court, in appeal, upheld the enhancement, noting that the acquired land was adjacent to a tar road, had access to electricity and water, and was near the village panchayat and a highway, indicating potential for development. The court found that the sale deed dated 29.4.1991 was a comparable instance and that no deduction for development charges was warranted as the land was already developed. The court also granted additional compensation under Section 23(1A) at 12% per annum from the date of notification till the date of award or possession, and interest under Section 28 at 9% per annum for the first year and 15% thereafter from the date of possession till payment. The appeal was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Market Value Determination - Comparable Sales Method - The court considered sale deeds of similar lands in the vicinity to determine market value, emphasizing that the sale deed dated 29.4.1991 (Exh.AW1/B) for Rs.30/- per sq. metre was a comparable instance, and the acquired land had potential for development being near a highway and village panchayat. Held that the Reference Court's enhancement to Rs.30/- per sq. metre was justified, with deduction of 1/3rd for development charges not applicable as the land was already developed. (Paras 2-8)

B) Land Acquisition - Deduction for Development Charges - When land is already developed with roads and other amenities, no deduction for development charges is warranted. The court found that the acquired land was adjacent to a tar road and had access to electricity and water, thus no deduction was required. (Paras 6-8)

C) Land Acquisition - Additional Compensation under Section 23(1A) and Interest under Section 28 - The court held that the claimant is entitled to additional compensation at 12% per annum under Section 23(1A) from the date of notification (20.1.1992) till the date of award or possession, and interest under Section 28 at 9% per annum for the first year and 15% thereafter from the date of possession till payment. (Paras 9-10)

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Issue of Consideration

Whether the Reference Court correctly enhanced the compensation for acquired land from Rs.4/- per sq. metre to Rs.30/- per sq. metre based on the evidence on record, particularly the sale deeds and the potential of the land for development.

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Final Decision

The High Court dismissed the appeal, upholding the Reference Court's award of Rs.30/- per sq. metre as compensation, with additional compensation under Section 23(1A) at 12% per annum from 20.1.1992 till date of award or possession, and interest under Section 28 at 9% per annum for the first year and 15% thereafter from date of possession till payment. No order as to costs.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 23
  • Section 24
  • market value determination
  • comparable sales method
  • potential for development
  • deduction for development charges
  • solatium
  • additional compensation
  • interest
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Case Details

2005 LawText (BOM) (02) 287

First Appeal No. 80 of 1999

2005-02-11

A.P. Lavande, J.

Mr. Emerico Afonso for the appellants, Mr. Shivan Dessai for the respondent

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

Rui Fernandes

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Nature of Litigation

Appeal against enhancement of compensation in land acquisition for Konkan Railway

Remedy Sought

Appellants sought to set aside the Reference Court's award enhancing compensation from Rs.4/- to Rs.30/- per sq. metre

Filing Reason

Appellants challenged the legality of the judgment and award dated 20.2.1999 passed by the Additional District Judge, Margao in Land Acquisition Case No.126/1995

Previous Decisions

Special Land Acquisition Officer awarded Rs.4/- per sq. metre for 8275 sq. metres and Rs.2/- per sq. metre for 75 sq. metres of nallah on 6.5.1994; Reference Court enhanced to Rs.30/- per sq. metre on 20.2.1999

Issues

Whether the Reference Court correctly enhanced compensation to Rs.30/- per sq. metre based on sale deed dated 29.4.1991? Whether deduction for development charges should be applied? Whether the claimant is entitled to additional compensation under Section 23(1A) and interest under Section 28?

Submissions/Arguments

Appellants argued that the sale deed dated 29.4.1991 was for a small plot of 200 sq. metres and not comparable to the large acquired area of 8350 sq. metres, and that deduction for development charges should be made. Respondent argued that the acquired land was developed with road access, electricity, and water, and the sale deed was a comparable instance; no deduction was warranted.

Ratio Decidendi

The market value of acquired land should be determined based on comparable sale deeds of similar lands in the vicinity, considering the potential for development. When the land is already developed with roads and amenities, no deduction for development charges is warranted. The claimant is entitled to additional compensation under Section 23(1A) and interest under Section 28 of the Land Acquisition Act, 1894.

Judgment Excerpts

The sale deed dated 29.4.1991 (Exh.AW1/B) is a comparable instance and the acquired land had potential for development being near a highway and village panchayat. No deduction for development charges is warranted as the land was already developed with road, electricity and water. The claimant is entitled to additional compensation under Section 23(1A) at 12% per annum from the date of notification till the date of award or possession.

Procedural History

Notification under Section 4 of the Land Acquisition Act, 1894 dated 20.1.1992; Award by Special Land Acquisition Officer on 6.5.1994 at Rs.4/- per sq. metre; Reference by claimant to District Court; Reference Court enhanced compensation to Rs.30/- per sq. metre on 20.2.1999; Appeal by acquiring body to High Court; High Court dismissed appeal on 11.2.2005.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 23(1A), Section 28
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