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2021 Supreme(SC) 786

SUPREME COURT OF INDIA
(From the High Court of Kerala at Ernakulam)
Ajay Rastogi, Abhay S. Oka, JJ.
Soman – Appellant
Versus
Inland Waterways Authority of India & Anr. – Respondents
Civil Appeal No. 2825 of 2011 with Civil Appeal No. 2826 of 2011 with Civil Appeal No. 2827 of 2011 and Civil Appeal No. 7599 of 2011 [@ SLP (Civil) No. 387 of 2013]
Decided on : 10-12-2021

Advocates appeared:
For the Appellant :P.V. Dinesh, Ashwini Kumar Singh, Bineesh K., Nishe Rajen Shonker, Anu. K.Joy, Alim Anvar, Advocates
For the Respondent:Naveen Chawla, Surabhi Rana, T. Mahipal, M. T. George, C. K. Sasi, Meena K.P., Advocates

IMPORTANT POINT
Acquisition of land – Fixation of market value in a Reference under Section 18(1) of L.A. Act necessarily involves some guesswork – However, guesswork is required to be made by adopting one of well-recognized methods, such as comparison method or capitalization method.

Headnote:

Land Acquisition Act, 1894 – Section 18 – Acquisition of land – Compensation – Determination of market value of land – Fixation of market value in a Reference under Section 18(1) of Act necessarily involves some guesswork – However, guesswork is required to be made by adopting one of well-recognized methods, such as comparison method or capitalization method – Category ‘A’ lands were dry lands having frontage on National Highway No.47. Category ‘B’ was of reclaimed lands with road frontage which had access to river through reclaimed portions – Considering these factors, in facts of the case, it is not possible to find fault with approach of High Court of fixing market value of Category ‘B’ lands at 52% of market value fixed for Category ‘A’ lands – There is no scope to interfere with Judgment of High Court. (Para 11)

Facts of the case:

Civil Appeal Nos.2825, 2826 and 2827 of 2011 take exception to common Judgment and order dated 25th August 2009 passed by a Division Bench of the High Court of Kerala in LA Appeal nos. 829 of 2006, 1005 of 2007 and 1000 of 2007 arising out of the awards made by a Civil Court in References under Section 18(1) of the Land Acquisition Act,1894 in respect of the lands in village Mullackal in District Allapuzha. The purpose of the acquisition was of widening of National Waterway no.III in Kerala. Civil Appeal No. 2826 of 2011 takes an exception to the Judgment and order dated 5th March 2010 passed by a Division Bench of the High Court of Kerala in LA. Appeal No. 637 of 2001 arising out of an Award made by a Civil Court in a Reference under Section 18(1) of the said Act in respect of a land in village Maradu, Kanayannur Taluka in Ernakulam District. The purpose of the acquisition was of setting up of Inland Water Transport Terminal. In one of the cases, compensation was granted in respect of the building on the acquired land. In one case, compensation was claimed on account of severance of the remaining land. But in these appeals which are filed by the landowners/claimants, Court is concerned only with land value. There is no dispute about the grant of statutory benefits under Sections 23(1-A), 23(2) and 28 of the said Act.

Findings of Court:

Civil Appeal Nos. 2826 and 2827 of 2011 are allowed and market value of the dry lands fixed by the Reference Court at Rs.60,000/- per Are is restored; Civil Appeal No. 2825 of 2011 is partly allowed by setting aside that part of the impugned Judgment and order by which market value of Rs.40,000/- per Are of dry land was reduced to Rs.34,158/-. The market value of the dry land at rate of Rs.40,000/- per Are fixed by the Reference Court is restored. However, the finding of the High Court that the market value of wetland was Rs.1,500/- per Are is confirmed; In Civil Appeal Nos. 2825, 2826 and 2827 all of 2011, appellants will be entitled to statutory benefits in accordance with sub-section (1-A) of Section 23, sub-section (2) of Section 23 and Section 28 of said Act; Civil Appeal arising out of Special Leave Petition No. 387 of 2013 is hereby dismissed.

Result : Civil Appeals Partly allowed.

JUDGMENT

Abhay S. Oka, J.

Delay condoned. Leave granted in Special Leave Petition No. 387 of 2013.

FACTUAL ASPECTS

1. Civil Appeal Nos.2825, 2826 and 2827 of 2011 take exception to the common Judgment and order dated 25th August 2009 passed by a Division Bench of the High Court of Kerala in LA Appeal nos. 829 of 2006, 1005 of 2007 and 1000 of 2007 arising out of the awards made by a Civil Court in References under Section 18(1) of the Land Acquisition Act, 1894 (for short "the said Act") in respect of the lands in village Mullackal in District Allapuzha. The purpose of the acquisition was of widening of National Waterway no.III in Kerala. Civil Appeal No. 2826 of 2011 takes an exception to the Judgment and order dated 5th March 2010 passed by a Division Bench of the High Court of Kerala in LA. Appeal No. 637 of 2001 arising out of an Award made by a Civil Court in a Reference under Section 18(1) of the said Act in respect of a land in village Maradu, Kanayannur Taluka in Ernakulam District. The purpose of the acquisition was of setting up of Inland Water Transport Terminal. In one of the cases, compensation was granted in respect of the building on the acquired land. In one case, compensation was claimed on account of severance of the remaining land. But in these appeals which are filed by the landowners/claimants, we are concerned only with the land value. There is no dispute about the grant of statutory benefits under Sections 23(1-A), 23(2) and 28 of the said Act.

2. Facts of Civil Appeal Nos. 2825 to 2827 of 2011 are more or less identical. The relevant factual aspects in nutshell are as under:

    Civil Appeal No. 2825 of 2011

    (i) The date of the Notification under Section 4(1) of the said Act: 24th August 1999.

    (ii) Survey number of the acquired land: 867/5A1-2 of village Mullackal.

    (iii) Area of the acquired land: 10 Acres of wetland and 0.80 Ares of dry land,

    (iv) Market value of the acquired land fixed by the Award under Section 11 of the said Act: Rs.11,386/- per Are for dry land and Rs.370/- per Are for the wetland,

    (v) Market value of the acquired land fixed by the Civil Court in a Reference under Section 18(1) of the said Act: Rs.40,000/- per Are for dry land and Rs. 10,000/- per Are for the wetland,

    (vi) Market value of the acquired land fixed by the High Court: Rs.34,158/-per Are for dry land and Rs.1,500/- per Are for the wetland.

    Civil Appeal No. 2826 of 2011

    (i) The date of the Notification under Section 4(1) of the said Act: 3rd May 1999.

    (ii) Survey number of the acquired land: 867/1F-1 of village Mullackal.

    (iii) Area of the acquired land: 7.60 Ares of dry land.

    (iv) Market value of the acquired land fixed by the Award under Section 11 of the said Act: Rs.11,386/-per Are for dry land,

    (v) Market value of the acquired land fixed by the Civil Court in a Reference under Section 18(1) of the said Act: Rs.60,000/- per Are for dry land,

    (vi) Market value of the acquired land fixed by the High Court: Rs.34,158/- per Are for dry land.

    Civil Appeal No. 2827 of 2011

    (i) The date of the Notification under Section 4(1) of the said Act: 3rd May 1999.

    (ii) Survey number of the acquired land: 867/5 A2-1 of village Mullackal.

    (iii) Area of the acquired land: 5.10 Ares of dry land,

    (iv) Market value of the acquired land fixed by the Award under Section 11 of the said Act: Rs.11,386/-per Are for dry land,

    (v) Market value of the acquired land fixed by the Civil Court in a Reference under Section 18(1) of the said Act: Rs.60,000/- per Are for dry land,

    (vi) Market value of the acquired land fixed by the High Court: Rs.34,158/-per Are for dry land.

    Civil Appeal arising out of Special Leave Petition No. 387 of 2013

    (i) The date of the Notification under Section 4(1) of the said Act: 5th March 1998.

    (ii) Survey numbers of the acquired land: 3/7, 3/12, 3/17 and 3/18 of village Maradu.

    (iii) Area of the acquired land: 39.21 Ares of dry land.

    (iv) Market value of the acquired land fixed by the Award under Section 11 of the said Act: Rs.85,543/

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