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2003 Supreme(SC) 1245

Supreme Court Of India
S.N. VARIAVA AND H.K. SEMA, JJ.
COMMUNIDADE OF MOROMBI-O-PEQUENO -Appellant
Versus
STATE OF GOA -Respondent.
Civil Appeal No. 7853 of 1997. decided on December II, 2003

Important Points

The court emphasized the importance of considering developmental costs and comparability of lands in land acquisition cases, and clarified the application of solatium and interest under the Land Acquisition Act, 1894.

Subject

Property Law - Land Acquisition

Act Referred

LAND ACQUISITION ACT : S.29, S.28, S.23, S.18, S.23(2), S.23(1)(a), S.30

Headnote

Land Acquisition - Museum Establishment - Section 4 - Summary of Acts and Sections: Land Acquisition Act, 1894 - Sections 4, 23(2), 23(1-A), 28, 30(2) - The court discussed the process of land acquisition for establishing a museum, the valuation of different types of land, the apportionment of compensation, the consideration of developmental costs, and the award of solatium and interest under the Land Acquisition Act, 1894.

Fact of the Case:

The case involved the acquisition of land for establishing a museum, with disputes over the valuation of different types of land and the apportionment of compensation. The Reference Court awarded solatium and interest, which was appealed by the respondents.

Finding of the Court:

The High Court allowed the appeal, holding that the acquired land was not suitable for construction activity and lacked evidence on developmental costs. It also found that the lands used for comparison were not comparable. The Supreme Court disagreed with the High Court's findings and reinstated the Reference Court's judgment.

Issues: Disputes over the valuation of different types of land, the suitability of the acquired land for construction activity, comparability of lands used for comparison, and the award of solatium and interest under the Land Acquisition Act, 1894.

Ratio Decidendi: The court found that there was evidence of developmental costs and comparability of lands, and reinstated the Reference Court's judgment. It also clarified the award of interest and the total compensation area.

Final Decision: The Supreme Court set aside the High Court's judgment and restored that of the Reference Court, clarifying the compensation area and the award of interest.

ORDER

1. This appeal is againsl the judgment of the High Court dated 7-5-1997. 2. Briefly stated, the facts are as follows:

Section 4 notification was issued on 11-11-1977 for the purposes of acquiring 6640 sq metres land in Panaji. The land was being acquired for the purpose of establishing a museum. It is an admitted position that out of 6640 sq metres land 1125 sq metres land were paddy land, 2240 sq metres were salt pans and 3320 sq metres were a nallah, An award came to be passed by the Land Acquisition Officer on 21-3-1978. He fixed a price atRs 11 per sq metre for paddy land, Rs 10 per sq metre for salt pan and Rs 6 per sq metre for nallah. The Land Acquisition Officer also apportioned the compensation on the basis that 1/3 of the compensation, for paddy land, was to be given to the appellants (herein) and the rest was to be given to the tenant; for the salt pan 4/5 to the appellants and 1/5 to the tenant and for the nallah the entire compensation was given to the appellants.

3. The appellants filed a reference which was disposed of by a judgment dated 27-2-1990. Before the Reference Court the appellants led the evidence of two witnesses AWl and A W 2. AW l was the power-of-attorney holder of the appellants. AW 2 was a Civil Engineer who gave evidence of valuation of the acquired land and proved a certificate dated 5-2-1963 which showed that the acquired land was within commercial zone. The appellants also relied upon other awards passed in respect of other lands which had been acquired.One of the awards, in LA Case NO.2 of 1979 was marked as "Ext. A-3" by consent of the parties.

4. The Reference Court considered the entire evidence and noted that it a was proved that there was development all around the acquired land. The Reference Court took into account the other award which was in respect of acquisition of the land of the appellants itself for the Tourism Department. This land was situated just 200 metres from this land. On the basis of evidence before it, the Reference Court concluded that the figures given by AW 2 were reliable figures. The Reference Court accepted those figures and b fixed price at Rs 80 per sq metre for paddy land, Rs 60 per sq metre for the salt pan and Rs 20 per sq metre for the nallah. The Reference Court apportioned compensation 50:50 between the appellants and the tenant in respect of paddy field. The Reference Court awarded solatium under Section 23(2) and interest under Sections 28 and 23(1-A).

5, The respondents filed an appeal before the High Court. The High C Court has, by the impugned judgment, allowed this appeal. The High Court has held that the paddy field was subject to tenancy rights. The High Court has held that unless this land was made suitable by necessary filling of mud and other necessary development, it could not be presumed that the land would be suitable for construction activity. The High Court held that there was no material on record to show as to what would be the cost of transforming the paddy field and salt pan into a land suitable for construction activity. The High Court has held that in the absence of any evidence on this point, there was no scope for argument that the land was suitable for construction activity. The High Court has held that even though the lands in Case No. 2 of 1979 were merely 200 metres away that by itself was not sufficient to establish comparability of those lands with the acquired land. The High Court has held that merely because those lands were also paddy land was not sufficient to draw a conclusion that the acquired land should also be awarded at the same rate. The High Court has held that factors such as length and width of the land, the level of the land, type of the soil, location, etc. are the various factors which are required to be looked into and considered for the purposes of comparison between the land in question with f the land which was the subject-matter of Land Acquisition Case No. 2 of 1979. The High Court has held that




















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