Case Note & Summary
The case involves an appeal by the Special Land Acquisition Officer and the Chief Engineer of Konkan Railway Corporation Ltd. against the judgment and award dated 22.7.1999 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.155/95. The government acquired large chunks of land at Nagorcem Palolem for Konkan Railway via notification dated 24.7.1991 under Section 4 of the Land Acquisition Act, 1894. The acquired properties included survey nos. 56/1 and 56/15 admeasuring 5400 square meters belonging to Babu Datta Naik Dessai (original applicant), which were paddy fields. The Special Land Acquisition Officer awarded Rs.9 per sq m by award dated 9.12.1993. Aggrieved, the original applicant sought reference under Section 18 claiming Rs.120 per sq m. The reference court relied on an award dated 15.3.1998 (Exhibit AW1/D) for acquisition for the proposed approach road to Talpona Galjibag bridge, which awarded Rs.24 per sq m, and enhanced compensation to Rs.24 per sq m. The appellants challenged this enhancement. The High Court held that the reference court erred in relying on that award because the purpose of acquisition (approach road vs. railway) and the potentiality of the land were different. The court restored the award of Rs.9 per sq m by the Special Land Acquisition Officer. The appeal was allowed, and the impugned judgment and award were set aside.
Headnote
A) Land Acquisition - Market Value Determination - Comparable Sales - The court held that the reference court erred in relying on an award for acquisition for an approach road (Talpona Galjibag bridge) to determine the market value of paddy fields acquired for Konkan Railway, as the purpose of acquisition and potentiality of land were different. The Special Land Acquisition Officer's award of Rs.9 per sq m was restored. (Paras 2-3)
B) Land Acquisition - Section 23 - Potentiality - The potentiality of land acquired for a railway line is different from that acquired for an approach road, and the market value must be assessed based on comparable instances with similar potentiality. (Para 3)
Issue of Consideration
Whether the reference court was justified in relying on an award for acquisition for an approach road to determine the market value of paddy fields acquired for Konkan Railway, and whether the compensation of Rs.24 per sq m was excessive.
Final Decision
The appeal is allowed. The impugned judgment and award dated 22.7.1999 passed by the Additional District Judge, South Goa, Margao in Land Acquisition No.155/95 is set aside. The award of the Special Land Acquisition Officer dated 9.12.1993 is restored.
Law Points
- Land Acquisition Act
- 1894
- Section 4
- Section 18
- Section 23
- Market value determination
- Comparable sales method
- Purpose of acquisition
- Potentiality of land
Case Details
2005 LawText (BOM) (06) 6
First Appeal No.3 of 2000
Mr. E. Afonso for the appellants, Mr. P.A. Kamat for the respondents
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 enhancement of compensation in land acquisition reference
Remedy Sought
Appellants sought to set aside the reference court's award enhancing compensation from Rs.9 to Rs.24 per sq m
Filing Reason
The reference court relied on an award for a different acquisition (approach road) to determine market value, which was erroneous
Previous Decisions
Special Land Acquisition Officer awarded Rs.9 per sq m on 9.12.1993; reference court enhanced to Rs.24 per sq m on 22.7.1999
Issues
Whether the reference court was justified in relying on an award for acquisition for an approach road to determine market value of paddy fields acquired for Konkan Railway
Whether the compensation of Rs.24 per sq m was excessive
Submissions/Arguments
Appellants argued that the reference court erred in relying on an award for a different purpose (approach road) which had different potentiality
Respondents supported the reference court's award
Ratio Decidendi
The market value of acquired land must be determined based on comparable instances with similar potentiality and purpose of acquisition. An award for acquisition for an approach road cannot be used to determine market value of land acquired for a railway line, as the potentiality differs.
Judgment Excerpts
The reference Court relying upon the Award dated 15th March 1998 (Exhibit AW1/D) which was in respect of acquisition for the proposed approach road to Talpona Galjibag bridge awarded Rs.24/ per square metre in respect of the acquired land after holding that the acquired lands were paddy fields.
In my opinion, the reference Court erred in relying upon the said award for determining the market value of the acquired lands. The purpose of acquisition in the said award was for approach road, whereas in the present case the acquisition is for Konkan Railway. The potentiality of the land acquired for approach road is different from the potentiality of the land acquired for railway line.
Procedural History
Notification under Section 4 dated 24.7.1991; Special Land Acquisition Officer's award dated 9.12.1993 awarding Rs.9 per sq m; Reference under Section 18 by original applicant; Reference Court's award dated 22.7.1999 enhancing compensation to Rs.24 per sq m; Appeal filed by the acquiring body on 3.1.2000; High Court judgment on 4.5.2005 allowing the appeal.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 23
