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SUPREME COURT OF INDIA
KURIAN JOSEPH, R. BANUMATHI, JJ.
Madhusudan Kabra & Ors. - Appellants
Versus
The State if Maharashtra & Ors. - Respondents
Civil Appeal No. 18001 of 2017 [@ Special Leave Petition (C) No. 24199 of 2016]
Decided On : 06-11-2017
Land Acquisition - Compensation - Annual Increase - Exemplar - Canal - Simple or Compound Basis
Fact of the Case:
The appellants sought enhancement of land value for a canal acquisition, based on the difference between the exemplar year and the acquisition year. The High Court granted a 10% annual increase on the exemplar and further compensation, totaling Rs.32,000/- per hectare.
Finding of the Court:
The Court found that in the peculiar facts of the case, justice would be served by fixing a 15% annual increase at a compounding rate. The Court also noted that separate compensation for fruit bearing trees was not granted and that the appellant would not be entitled to statutory benefits for the period of delay.
Issues: Percentage of enhancement and whether it should be on a simple or compound basis.
Ratio Decidendi: In the peculiar circumstances, a 15% annual increase at a compounding rate was deemed appropriate for the canal acquisition.
Final Decision: The order passed by the High Court was modified to reflect the 15% annual increase at a compounding rate. The respondents were directed to deposit the amount before the Executing Court within three months. The appeal was disposed of with no orders as to costs.
JUDGMENT :
Kurian, J.
Leave granted.
2. The appellants are before this Court, aggrieved by the order passed by the High Court, declining to grant land value to the extent they had prayed before the Reference Court. The acquisition is pursuant to the Notification under Section 4(1) of the Land Acquisition Act, 1894 in 1992. The Land Acquisition Collector relied on exemplar of 1988 and granted compensation to the tune of Rs.23,500/- per hectare. The Reference Court declined to grant any enhancement. The High Court, taking note of the fact that the acquisition is of the year 1992 but the exemplar taken is of 1988, granted 10% annual increase on the exemplar and thus granted a further amount of Rs.8,400/- thus total compensation of Rs.32,000/- per hectare was granted towards acquisition for the purpose of a canal. Though the appellants took several contentions before this Court, while issuing notice by order dated 12.08.2016 we have made it clear that the scope of inquiry by this Court would be limited to two aspects, one the percentage of enhancement and the other, whether it should be on the simple or compound basis.
3. Having regard to the facts and circumstances of this case, we are of the view that the interests of justice would be served by fixing annual increase on the exemplar, in the peculiar facts of this case by 15% at compounding rate.
4. We are conscious of the fact, while granting relief, as above, the appellants have not been granted separate compensation for the fruit bearing trees.
5. Accordingly, the order passed by the High Court will stand modified to the above extent. As we have already made it clear vide our order dated 12.08.2016, the appellant would not be entitled for any statutory benefits for the period of delay.
6. The respondents are directed to deposit the amount before the Executing Court within a period of three months.
7. The appeal is, accordingly, disposed of.
8. Pending applications, if any, shall stand disposed of.
9. There shall be no orders as to costs.
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