Point of Law: Land Acquisition and Requisition – Determination of market value - When market value is sought to be ascertained with reference to a transaction which took place some years before the acquisition, method adopted is to calculate year to year increase

JUDGMENT :

MFA No.24829/2010 is filed by the land loser challenging the judgment and award dated 6.4.2010 passed by the Additional Civil Judge (Sr.Dn.), Gadag sitting at Laxmeshwar in LAC No.135/2008.

2. MSA Nos.579/2012, 580/2012, 581/2012, and 598/2012 are filed by the land losers challenging the judgment and award dated 19.4.2012 passed by the District and Sessions Judge, Gadag in LAC (Appeal)/MA Nos.3/2011, 4/2011, 5/2011 and 6/2011 confirming the judgment and award dated 5.4.2010 passed by the Additional Civil Judge (Sr.Dn.) Gadag sitting at Laxmeshwar in LAC Nos.136/2008, 121/2008, 137/2008 and 133/2008.

3. The following lands belonging to the appellants are the subject matter of these appeals.

4. The lands belonging to the appellants were acquired by the 1st respondent by issuing a preliminary notification dated 29.9.2005 under Section 4(1) of Land Acquisition Act which culminated in passing of an award dated 6.7.2007. The possession of the lands in question was taken on 14.6.2006 i.e prior to passing of the award. The Special Land Acquisition Officer (for short `SLAO’) passed an award determining the market value of the lands in question at Rs.58,000/-per acre except land bearing R.S.No.221/1, the market value of which was fixed at Rs.32,000/-per acre.

5. Being aggrieved, the appellants filed petitions under Section 18(1) of the Land Acquisition Act before the Reference Court seeking enhancement of compensation. The Reference Court passed an award enhancing the market value of the lands in question which were the subject matter of LAC Nos.133, 135 and 136 of 2008 at Rs.87,000/-per acre. The market value of the land which was the subject matter of LAC No.137/2008 was enhanced to Rs.48,000/-per acre.

6. The appellant in LAC No.135/2008 has filed an appeal in MFA No.24829/2010 before this Court seeking enhancement of compensation.

7. The appellants in LAC Nos.121, 133, 136 and 137 of 2008 filed appeals before the District and Sessions Judge, Gadag seeking enhancement of compensation. The learned District Judge confirmed the market value determined by the Reference Court. Being aggrieved, the appellants have filed these appeals in MSA Nos.579, 580, 581 and 598 of 2012, seeking for enhancement of compensation.

8. Since all the appeals arise out of the common judgment and award passed by the Reference Court, the same are heard and taken up for disposal.

9. Learned counsel for the appellants submits that the Special Land Acquisition Officer in the award passed by him at Ex.R1 has categorically stated that the lands in question have got NA potentiality and the market value of residential land in the village in question is fixed at Rs.18/per square feet by the Sub-Registrar. However, the Reference Court has re-determined the market value of the lands in question ignoring the Ex.P1 i.e. comparable sale deed at Ex.P1, Ex.P5 photographs and award passed by the SLAO. She further submits that having regard to the fact that the entire extent of acquired lands in question are utilized for the purpose for which it was acquired, development like in the case of lay out for housing colony is not required, the market value may be fixed by treating the lands as NA potential lands by deducting 20% towards development cost.

10. In support of her submission, she has placed reliance on the following decisions:

1. Land Acquisition Officer and Mandal Revenue Officer vs. V Narasaiah reported in AIR 2001 SC 1117;

2. Tris