Case Note & Summary
The State of Karnataka and other appellants filed an appeal under Section 54(1) of the Land Acquisition Act, 1894 against the Judgment and Award dated 20.12.2013 passed by the First Additional Senior Civil Judge and CJM, Mangaluru in LAC No.66/2007. The acquired property measured 5.55 acres in Survey Nos.70/1, 70/2, and 167/2D of Malavoor village, Mangaluru Taluk. A notification under Section 4(1) was issued on 27.05.2005, a declaration under Section 6 on 17.10.2005, and an award under Section 11 on 03.07.2006. Possession was taken on 31.07.2006. The Special Land Acquisition Officer offered market value at Rs.1,500/- per cent (Rs.1,50,000/- per acre). The claimants (respondents 1 to 7) sought a reference under Section 18, and the Reference Court enhanced the compensation to Rs.3,00,000/- per acre, granted 12% additional market value under Section 23(1A) from the date of notification to possession, solatium at 30%, and interest at 9% for the first year and 15% thereafter. The State appealed seeking reduction. The High Court held that the Reference Court erred in relying on exemplar sale deeds (Exs.P1 to P4) which were not comparable due to differences in location, potential, and size. The Court reduced the market value to Rs.2,25,000/- per acre, but upheld the grant of 12% additional market value, solatium, and interest. The appeal was partly allowed.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Reference Court erred in relying on exemplar sale deeds without proper comparison of location, potential, and proximity to acquired land - Held that the exemplar sale deeds relied upon were not comparable as they pertained to smaller plots with different potential - Compensation reduced from Rs. 3,00,000/- per acre to Rs. 2,25,000/- per acre (Paras 5-10).
B) Land Acquisition - Additional Market Value under Section 23(1A) - Entitlement - 12% additional market value is payable from the date of Section 4(1) notification to the date of taking possession or award, whichever is earlier - Held that the Reference Court correctly granted 12% additional market value from 27.05.2005 to 31.07.2006 (Paras 11-12).
C) Land Acquisition - Solatium and Interest - Solatium under Section 23(2) at 30% and interest under Section 28 at 9% for first year and 15% thereafter - Held that the Reference Court's award of solatium and interest was in accordance with law (Paras 13-14).
Issue of Consideration
Whether the Reference Court was justified in enhancing the compensation for the acquired land and in granting 12% additional market value under Section 23(1A) of the Land Acquisition Act, 1894.
Final Decision
Appeal partly allowed. Market value reduced from Rs.3,00,000/- per acre to Rs.2,25,000/- per acre. The award of 12% additional market value under Section 23(1A), solatium at 30%, and interest at 9% and 15% is upheld. No order as to costs.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 23(1A)
- Section 4(1)
- Section 6
- Section 11
- Section 54(1)
- market value determination
- exemplar sale deeds
- additional market value
- solatium
- interest
Case Details
2019 LawText (KAR) (06) 63
Miscellaneous First Appeal No.2397 of 2016 (LAC)
Abhay S. Oka, Chief Justice, P.S. Dinesh Kumar, Justice
Sri. Vasanth V. Fernandis (HCGP for Appellants), Smt. Maitreyi Krishnan for Sri. Clifton D. Rozario (Advocate for Respondents 1 to 7), Sri. Christopher E. (Advocate for Respondent No.8)
The State of Karnataka, The State of Karnataka (Infrastructure Department), The Deputy Commissioner, D.K. District, The Land Acquisition Officer and Assistant Commissioner
Arthur G. Pereira, Annie A.M. Pereira, Jane M. Pinto, Juliana Tellis, Mercia C. Martis, Clarence V. Pereira, Oswald L. Pereira, Airport Authority of India
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Nature of Litigation
Appeal against enhanced compensation in land acquisition reference
Remedy Sought
Appellants (State) sought reduction of compensation awarded by Reference Court
Filing Reason
Reference Court enhanced compensation from Rs.1,50,000/- per acre to Rs.3,00,000/- per acre and granted additional benefits
Previous Decisions
Reference Court in LAC No.66/2007 allowed the reference and enhanced compensation
Issues
Whether the Reference Court was justified in enhancing the market value to Rs.3,00,000/- per acre based on exemplar sale deeds?
Whether the grant of 12% additional market value under Section 23(1A) was correct?
Submissions/Arguments
Appellants argued that the exemplar sale deeds relied upon by the Reference Court were not comparable as they pertained to smaller plots with different potential and location.
Respondents-claimants supported the Reference Court's award, contending that the exemplar sale deeds were comparable and the enhancement was justified.
Ratio Decidendi
In determining market value under the Land Acquisition Act, exemplar sale deeds must be comparable in terms of location, potential, and size. The Reference Court erred in relying on sale deeds of smaller plots with different potential. The market value is reduced to Rs.2,25,000/- per acre. However, the grant of 12% additional market value under Section 23(1A) from the date of Section 4(1) notification to the date of possession is legally correct.
Judgment Excerpts
The property subject matter of acquisition was measuring 5.55 acres in survey No.70/1, 70/2 and 167/2D, situated in Malavoor village of Mangaluru Taluk.
The notification under sub-section (1) of Section-4 of the said Act was issued on 27th May 2005.
The Special Land Acquisition Officer offered market value at the rate of Rs.1,500/- per cent of land i.e., Rs.1,50,000/- per acre.
The Reference Court enhanced the compensation to Rs.3,00,000/- per acre.
We are of the opinion that the exemplar sale deeds relied upon by the claimants are not comparable.
We reduce the market value from Rs.3,00,000/- per acre to Rs.2,25,000/- per acre.
The grant of 12% additional market value under Section 23(1A) is upheld.
Procedural History
The Special Land Acquisition Officer declared an award under Section 11 on 03.07.2006 offering Rs.1,50,000/- per acre. The claimants sought a reference under Section 18, which was allowed by the Reference Court on 20.12.2013 enhancing compensation to Rs.3,00,000/- per acre with additional benefits. The State appealed under Section 54(1) to the High Court, which partly allowed the appeal on 28.06.2019.
Acts & Sections
- Land Acquisition Act, 1894: Section 4(1), Section 6, Section 11, Section 18, Section 23(1A), Section 23(2), Section 28, Section 54(1)
