Case Note & Summary
The case arises from a land acquisition proceeding initiated by the Government for the Konkan Railway Corporation Ltd. under the Land Acquisition Act, 1894. By a notification dated 5.12.1991 issued under Section 4 of the Act, large chunks of land at Nagorcem and Palolem in Canacona were acquired. Among the acquired properties was survey no. 57/8 (Part) measuring 1000 square metres belonging to Babu Datta Naik Desai, the original applicant before the Reference Court. The land was a paddy field. The Special Land Acquisition Officer, by his award dated 31.3.1994, awarded compensation at Rs. 9 per square metre. Aggrieved, the original applicant sought a reference under Section 18 of the Act. The Reference Court (Additional District Judge, South Goa, Margao) by judgment and award dated 25.11.1999 in Land Acquisition No. 340/95 enhanced the compensation to Rs. 45 per square metre. The appellants, the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation, challenged the award, seeking reduction of compensation. The respondents were the legal representatives of the deceased original applicant. The High Court considered the evidence, including a sale deed dated 21.10.1991 of the very same acquired land (a small portion) at Rs. 30 per sq m, and a sale deed of another property at Rs. 45 per sq m. The court held that the sale deed of the acquired land itself is the best evidence for determining market value, and the Reference Court erred in relying on the other sale deed. The court allowed the appeal, reducing the market value to Rs. 30 per sq m, with proportionate reduction in statutory benefits including solatium and interest under Sections 23 and 28 of the Act. The court also directed that the appellants pay the costs of the respondents.
Headnote
A) Land Acquisition - Market Value Determination - Comparable Sale Deed - Best Evidence - The sale deed of the acquired land itself, being a small portion, is the best piece of evidence for determining market value, and the Reference Court erred in relying on a sale deed of another property to fix a higher rate. Held that the market value should be fixed at Rs. 30 per sq m based on the sale deed of the acquired land (Paras 5-8). B) Land Acquisition - Section 4 Notification - Date of Valuation - The market value of the acquired land is to be determined as on the date of the Section 4 notification, i.e., 5.12.1991. The sale deed dated 21.10.1991 of the acquired land is proximate in time and location, and thus the best evidence (Para 5). C) Land Acquisition - Enhancement of Compensation - Reduction by Appellate Court - The appellants, being the acquiring body, sought reduction of compensation awarded by the Reference Court. The High Court allowed the appeal and reduced the compensation from Rs. 45 to Rs. 30 per sq m, with proportionate reduction in statutory benefits (Paras 8-9).
Issue of Consideration
Whether the Reference Court was justified in fixing the market value of the acquired land at Rs. 45 per square metre, and whether the appellants have made out a case for reduction of compensation.
Final Decision
Appeal allowed. The market value of the acquired land is fixed at Rs. 30 per sq m instead of Rs. 45 per sq m. The appellants are entitled to proportionate reduction in statutory benefits under Sections 23 and 28 of the Land Acquisition Act. The appellants shall pay costs of the respondents.
Law Points
- Market value determination
- Comparable sale deed
- Best evidence
- Land Acquisition Act
- Section 4 notification
- Section 18 reference
- Enhancement of compensation
