High Court of Bombay at Goa Dismisses Appeal by Land Acquisition Officer in Konkan Railway Land Acquisition Case — Compensation Enhanced Based on Previous Comparable Award with Annual Increase. Reference Court's reliance on earlier award for similar land and application of 10% annual increase on compounding basis upheld as proper under Land Acquisition Act, 1894.

High Court: Bombay High Court
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Case Note & Summary

The appellants, the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation Ltd., challenged the judgment and award dated 31.8.2001 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.101/95. The land in question was acquired for the Konkan Railway project via Notification dated 12.08.1991 under Section 4 of the Land Acquisition Act, 1894. The acquired property was survey no. 85/2 admeasuring 1250 square metres, a paddy field belonging to the respondent Babu Datta Naik Dessai (since deceased). The Special Land Acquisition Officer awarded compensation at Rs.9 per square metre by award dated 22.12.1993. Aggrieved, the original applicant sought a reference under Section 18 of the Act, claiming Rs.120 per square metre. The reference court, relying on an earlier award dated 15th March 1989 (Exhibit AW1/C) for similar land in the same area, fixed compensation at Rs.24 per square metre, applying a 10% annual increase on compounding basis from the date of that earlier award. The appellants contended that the reference court erred in relying on that award and in applying the increase. The High Court held that the reference court's approach was proper, as the earlier award was for similar land in the same vicinity and the increase was justified. The appeal was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Compensation Determination - Comparable Sales Method - Reference Court relied on an earlier award dated 15th March 1989 (Exhibit AW1/C) for similar land in the same area to fix compensation at Rs.24 per square metre with 10% annual increase on compounding basis from the date of that award - Held that the approach was proper and the appeal was dismissed (Paras 2-4).

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Issue of Consideration

Whether the reference court was justified in relying on a previous award for similar land and applying a 10% annual increase on compounding basis to determine compensation for acquired land.

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Final Decision

Appeal dismissed with no order as to costs.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 18
  • Compensation determination
  • Previous award as comparable instance
  • Annual increase on compounding basis
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Case Details

2005 LawText (BOM) (06) 2

First Appeal No.7 of 2002

2005-05-04

A.P. Lavande

Mr. E. Afonso for the appellants, Mr. P.A. Kamat for the legal representatives of respondent

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

Babu Datta Naik Dessai since deceased represented by his LRs: Prabhavati Babu Naik Dessai, Shailesh Babu Dessai, Sarita Shailesh Dessai, Rajesh Babu Dessai, Shoba Rajesh Dessai, Dinesh Babu Dessai, Anjani Dinesh Dessai

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Nature of Litigation

Appeal against judgment and award of reference court enhancing compensation for land acquired for Konkan Railway.

Remedy Sought

Appellants sought to set aside the reference court's award enhancing compensation from Rs.9 to Rs.24 per square metre with 10% annual increase.

Filing Reason

Appellants challenged the reference court's reliance on a previous award and application of annual increase.

Previous Decisions

Special Land Acquisition Officer awarded Rs.9 per square metre on 22.12.1993; reference court enhanced to Rs.24 per square metre with 10% annual increase on compounding basis from 15.3.1989.

Issues

Whether the reference court was justified in relying on the earlier award dated 15th March 1989 (Exhibit AW1/C) for determining compensation. Whether the application of 10% annual increase on compounding basis was proper.

Submissions/Arguments

Appellants argued that the reference court erred in relying on the earlier award and in applying the increase. Respondents supported the reference court's decision.

Ratio Decidendi

The reference court's reliance on a previous award for similar land in the same area and application of 10% annual increase on compounding basis is proper and justified.

Judgment Excerpts

The reference Court relying upon the Award dated 15th March 1989 (Exhibit AW1/C) fixed the compensation in respect of the acquired land at the rate of Rs.24/ by giving 10%, increase per year on compounding basis from the date of the Award dated 15th March 1989 (Exhibit AW1/C). In my opinion, the reference Court was justified in relying upon the Award dated 15th March 1989 (Exhibit AW1/C) and in granting 10% increase per year on compounding basis.

Procedural History

Notification under Section 4 of Land Acquisition Act on 12.08.1991; Special Land Acquisition Officer's award on 22.12.1993 at Rs.9 per sq m; Reference under Section 18 by original applicant; Reference court's award on 31.8.2001 enhancing compensation to Rs.24 per sq m with 10% annual increase; Appeal filed by acquiring body on 4.5.2005.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18
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