High Court of Bombay at Goa Dismisses Appeal by Executive Engineer in Land Acquisition Case — Enhanced Compensation of Rs.202 per sqm Upheld. Reference Court's reliance on comparable sale deed and deduction for development held proper under Section 18 of the Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The case pertains to an appeal filed by the Executive Engineer, Works Division XVIII (Roads), P.W.D., Ponda, Goa, challenging the order dated 12.9.2011 passed by the learned Ad-hoc District Judge-1, North Goa at Panaji in Land Acquisition Case No. 35/2010. The respondent, Ulhas Gopinath Raikar, owned 140 square metres of land in survey no. 43/7 at Madkai Village, Ponda Taluka, which was acquired for the construction of a road from main road Madkai, Tonca to Satki Lake in V.P. Madkai. The Land Acquisition Officer issued notification under Section 4(1) on 29.12.2005 and under Section 6 on 18.8.2006. The award was passed on 31.12.2007, granting compensation at Rs.58 per square metre. Possession was taken on 6.09.2010 after payment. Aggrieved, the respondent made a reference under Section 18 of the Land Acquisition Act, 1894, claiming that the land had building potential and similar land was sold at Rs.300 per square metre. The Reference Court enhanced the compensation to Rs.202 per square metre. The appellant contended that the Reference Court erred in relying on a sale deed of a smaller plot (Exh. A-2) and that the compensation was excessive. The High Court examined the evidence, noting that the sale deed was for a plot in the same village, executed on 29.12.2005, the same date as the Section 4 notification. The sale deed showed a rate of Rs.300 per square metre for a 100 sqm plot. The Reference Court applied a deduction of 1/3rd for development and arrived at Rs.202 per sqm. The High Court held that the Reference Court's approach was correct and the findings were based on evidence. The appeal was dismissed, and the enhanced compensation was upheld.

Headnote

A) Land Acquisition - Compensation - Market Value Determination - Comparable Sale Method - Section 18, Land Acquisition Act, 1894 - The Reference Court enhanced compensation from Rs.58 to Rs.202 per sqm based on a sale deed of a smaller plot in the same village, applying necessary deductions for development. The High Court upheld the enhancement, holding that the sale deed was a reliable indicator of market value and the deductions were reasonable. (Paras 1-10)

B) Land Acquisition - Reference Court - Appreciation of Evidence - Section 18, Land Acquisition Act, 1894 - The Reference Court's reliance on a sale deed of a smaller plot (Exh. A-2) was justified as it was proximate in time and location. The High Court found no perversity in the findings and dismissed the appeal. (Paras 6-10)

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Issue of Consideration

Whether the Reference Court was justified in enhancing the compensation from Rs.58 per square metre to Rs.202 per square metre for the acquired land under the Land Acquisition Act, 1894.

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Final Decision

The High Court dismissed the appeal and upheld the order of the Reference Court dated 12.9.2011, confirming the enhanced compensation of Rs.202 per square metre.

Law Points

  • Land Acquisition
  • Compensation
  • Market Value
  • Comparable Sale Method
  • Section 18 Reference
  • Enhancement of Compensation
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Case Details

2016 LawText (BOM) (01) 92

First Appeal No.44 of 2012

2016-01-22

K. L. Wadane

Ms. Susan Linhares, Additional Government Advocate for the appellant; Mr. R. G. Ramani, Advocate for the respondent

The Executive Engineer, Works Division XVIII(Roads) P.W.D, Ponda, Goa

Shri Ulhas Gopinath Raikar

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Nature of Litigation

Appeal against enhancement of compensation in land acquisition reference under Section 18 of the Land Acquisition Act, 1894.

Remedy Sought

The appellant (Executive Engineer) sought to set aside the Reference Court's order enhancing compensation from Rs.58 to Rs.202 per square metre.

Filing Reason

The appellant challenged the Reference Court's order dated 12.9.2011 in Land Acquisition Case No. 35/2010, which enhanced compensation for the acquired land.

Previous Decisions

The Land Acquisition Officer awarded compensation at Rs.58 per square metre on 31.12.2007. The Reference Court enhanced it to Rs.202 per square metre on 12.9.2011.

Issues

Whether the Reference Court was justified in enhancing the compensation from Rs.58 per square metre to Rs.202 per square metre. Whether the Reference Court correctly relied on the sale deed (Exh. A-2) as a comparable instance.

Submissions/Arguments

The appellant argued that the Reference Court erred in relying on a sale deed of a smaller plot (100 sqm) and that the compensation was excessive. The respondent argued that the sale deed was a genuine and comparable instance, and the enhancement was justified.

Ratio Decidendi

In land acquisition cases, the market value of acquired land can be determined by reference to comparable sale deeds of similar land in the vicinity. A sale deed of a smaller plot can be a reliable indicator if it is proximate in time and location, and appropriate deductions for development are applied. The Reference Court's enhancement of compensation from Rs.58 to Rs.202 per sqm was based on such evidence and was not perverse.

Judgment Excerpts

The appellants challenges the order dated 12.9.2011 passed by the learned Ad-hoc District Judge-1, North Goa at Panaji in Land Acquisition Case No. 35/2010 by which the learned Reference Court has allowed the reference of the respondent under Section 18 of the Land Acquisition Act and enhanced the compensation to the extent of Rs.202/- per square metre. The sale deed at Exh. A-2 is of the year 2005 and the land is situated in the same village. The sale deed shows the rate of Rs.300/- per square metre. The Reference Court has deducted 1/3rd amount towards development and arrived at Rs.202/- per square metre.

Procedural History

The Land Acquisition Officer passed an award on 31.12.2007 granting compensation at Rs.58 per sqm. The respondent made a reference under Section 18 of the Land Acquisition Act, which was allowed by the Reference Court on 12.9.2011, enhancing compensation to Rs.202 per sqm. The appellant filed the present First Appeal No.44 of 2012 before the High Court of Bombay at Goa, which was dismissed on 22.1.2016.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 6, Section 18
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