Case Note & Summary
The appellant, Valmiki Faleiro, owned 3042 sq.mts. of land in Survey No. 194/1 (part) which was acquired by the Special Land Acquisition Officer for the construction of a guest house under a Section 4 notification dated 07/10/2008 under the Land Acquisition Act, 1894. The Land Acquisition Officer awarded compensation at ₹84 per sq.mt. The appellant sought a reference, claiming the market value should be ₹2000 per sq.mt. based on the land's location on the boundary of Ward No.6 of Margao city, where rates were ₹2000 per sq.mt. The Reference Court partly allowed the reference, enhancing compensation to ₹990 per sq.mt., relying on an award in Land Acquisition Case No.72/2005 dated 16/11/2009 for land in Raia village. The appellant appealed to the High Court. The High Court found that the Reference Court erred in relying on the award for Raia village land, as the acquired land was on the boundary of Ward No.6 of Margao city, which had a higher prevailing rate. The Court held that the market value should be determined based on the land's potentiality and location, and allowed the appeal, setting aside the Reference Court's award and directing compensation at ₹2000 per sq.mt. with all statutory benefits.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Land Acquisition Act, 1894, Section 23 - The appellant's land was situated on the boundary of Ward No.6 of Margao city and Raia village. The Reference Court erroneously relied on an award for land in Raia village, ignoring the higher prevailing rate of ₹2000 per sq.mt. in Ward No.6. Held that the market value should be determined based on the potentiality and location of the land, and the appellant was entitled to compensation at ₹2000 per sq.mt. (Paras 2-5).
Issue of Consideration
Whether the Reference Court erred in determining the market value of the acquired land at ₹990 per sq.mt. instead of ₹2000 per sq.mt. claimed by the appellant, considering the land's location on the boundary of Ward No.6 of Margao city and Raia village.
Final Decision
Appeal allowed. The judgment and award of the Reference Court dated 21/12/2013 is set aside. The appellant is entitled to compensation at the rate of ₹2000 per sq.mt. for the acquired land, with all statutory benefits under the Land Acquisition Act, 1894.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Comparable Sales Method
- Potentiality of Land
- Section 4 Notification
- Land Acquisition Act
- 1894
Case Details
2017 LawText (BOM) (06) 122
First Appeal No. 81 of 2016
Shri N.N. Sardessai, Senior Advocate with Ms. G. Kamat, Advocate for the appellant; Shri P. Faldessai, Additional Government Advocate for the respondents
Special Land Acquisition Officer, Salaulim Irrigation Project, Gogol, Margao, Goa & The Executive Engineer, Works Division IX, PHE, Public Works Department, Borda, Margao, Goa
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Nature of Litigation
Appeal against judgment and award of Reference Court in land acquisition compensation matter.
Remedy Sought
Appellant sought enhancement of compensation from ₹990 per sq.mt. to ₹2000 per sq.mt. for acquired land.
Filing Reason
Appellant aggrieved by Reference Court's award of ₹990 per sq.mt. instead of claimed ₹2000 per sq.mt.
Previous Decisions
Land Acquisition Officer awarded ₹84 per sq.mt.; Reference Court enhanced to ₹990 per sq.mt.
Issues
Whether the Reference Court erred in determining market value at ₹990 per sq.mt. instead of ₹2000 per sq.mt. based on location and potentiality of the land.
Submissions/Arguments
Appellant argued that the acquired land was on the boundary of Ward No.6 of Margao city where rate was ₹2000 per sq.mt., and Reference Court wrongly relied on award for Raia village land.
Respondents supported the Reference Court's award.
Ratio Decidendi
In determining market value of acquired land, the court must consider the land's location, potentiality, and prevailing rates in the vicinity. Reliance on an award for a different village (Raia) was erroneous when the acquired land was on the boundary of a city ward (Ward No.6 of Margao) with a higher prevailing rate.
Judgment Excerpts
The Reference Court relied on an award in the Land Acquisition Case No.72 /2005 dated 16/11/2009, where the land was in Raia village and not on the boundary of Ward No.6 of Margao city.
The learned Reference Court did not consider the position of the acquired land which was on the boundary of the Ward no.6 of Margao city and Raia village and that the rate prevailing in the Ward No.6 of the Margao City was ₹2000/- per sq. mt.
Procedural History
Land Acquisition Officer awarded ₹84 per sq.mt. on 07/10/2008 notification. Appellant filed reference; Reference Court partly allowed on 21/12/2013, enhancing to ₹990 per sq.mt. Appellant filed First Appeal No. 81 of 2016 in High Court of Bombay at Goa. Judgment pronounced on 23/06/2017.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 23
