IMPORTANT POINT
Acquisition of land – Purpose for which acquisition is made is also a relevant factor for determining market value.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 06.12.2013 passed by the High Court of Andhra Pradesh at Hyderabad in respective first appeals No. 1634 of 2001 and other allied appeals, the original land owners/claimants have preferred the present appeals seeking enhancement of the amount of compensation for the lands acquired.

2. Large extent of land in different survey number in Adrial Village of Manthani Mandal, Karimnagar District came to be acquired by the State Government for the benefit of Singareni Collieries Company Limited. The lands were acquired for the purposes of excavation of coal. Notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act, 1894’) came to be issued on 13.05.1985. Declaration under Section 6 of the Act 1894 was issued on 31.07.1985. The Land Acquisition Officer passed the awards in the year 1987, fixing the market value for the acquired lands at Rs.7,000/per acre for Category 1 – Dry Lands under Cultivation and at Rs.6000/per acre for Category 2 – Dry Lands Left Fallow. Not satisfied with the compensation awarded by the Land Acquisition Officer, the land owners sought references under Section 18 of the Act, 1894. The land owners claimed the compensation at Rs.2 lakhs per acre. The Reference Court fixed the market value at Rs.30,000/per acre and Rs.50,000/per acre. The Reference Court also awarded the compensation @ Rs.15,000/per acre towards subsoil mineral rights. By the impugned common judgment and order the High Court has determined and awarded the compensation @ Rs.80,000/per acre considering the market value of the land Rs.1,23,000/per acre and thereafter deducting 1/3rd. The High Court has also in addition awarded Rs.10,000/per acre as part of the market value for subsoil rights.

2.1 Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the High Court determining and awarding the compensation at Rs.80,000/per acre and Rs.10,000/per acre for subsoil rights on account of the coal deposits, the original claimants – land owners have preferred the present appeals.

2.2 At the outset, it is required to be noted that against the very impugned common judgment and order the beneficiary – Singareni Collieries Company Limited approached this Court by way of special leave petitions which have been dismissed. The review applications are also dismissed. Therefore, the short question which is posed for consideration before this Court is whether the amount of compensation determined / awarded by the High Court is required to be enhanced in the appeals preferred by the original claimants/land owners?

3. Learned Counsel appearing on behalf of the appellants has submitted that while determining/awarding the compensation the Hon’ble High Court has not appreciated that the petitioners were the absolute owners of the land including the subsoil minerals and were not merely tenure holders. It is submitted that therefore while determining the amount of compensation for the land acquired claim for subsoil minerals rights was also required to be considered. It is submitted that in the impugned judgment and order the Hon’ble High Court has also specifically given the findings that the nature of deposits existing on the surface or the subsoil of a land would play an important role and if there are any deposits of rare minerals or precious stones, that would add to the market value of the land. It is submitted that though the Hon’ble High Court has observed that it is not proper for the Land Acquisition Officer or the Civil Court to separately award the compensation towards subsoil mineral rights, thereafter it is observed that it is permissible to take the fact or into account, while determining the market value.

3.1. It is further submitted by learned counsel appearing on behalf of the land owners/claimants that even otherwise the acquisition was solely for the purpose of excavation o