IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
R. Devdas, Rajesh Rai K, JJ.
Nalini W/o Manjunath Kamat - Appellant
Versus
The Chief Secretary and Ors. – Respondents
MFA NO. 102248 of 2015, MFA NO.103444 of 2016
Decided On : 20-04-2023
Land Acquisition Act, 1894 - Section 54(1), 4(1), 6(1), 12(2), 18(1) - Acquire land - Enhancement of award - MFA filed by petitioner/appellant to modify judgment and award passed for enhancement of award – Land is acquired for purpose of construction of Court complex and land under acquisition was situated in area which was adjacent to land already developed and within city - Para 26.
Finding of the Court:
Reference Court erred in fixing deduction of development charges at rate of 65% for acquired land – Court is of opinion that rate of compensation fixed supra i.e. at rate of Rs.2000/per sq. ft must be subject to deductions towards development charges that will have to be incurred by respondent-State - However, much development is not required for said land, since land is acquired for purpose of construction of Court complex and already developed piece of land as discussed supra, Court may allow 20% towards development charges on market value of acquired land fixed by this Court which would work out to Rs.1,600/per sq. ft. after deduction – Court modify compensation for acquired land of petitioner/appellant at Rs.2,000/per sq. ft. with a deduction at rate of 20% towards development charges which would meets ends of justice - Accordingly, point for consideration is answered and order of Reference Court is modified.
Result: MFA allowed in part.
JUDGMENT :
RAJESH RAI K., J.
These two appeals arise out of the judgment and award passed in LAC No.87/2013 dated 21.01.2015 passed by the by the III Addl. Senior Civil Judge Hubballi (for short ’Reference Court’).
2. MFA No.102248/2015 is filed by the petitioner/appellant to modify the judgment and award passed in LAC No.87/2013 for enhancement of the award granted by the Reference Court and MFA No.103444/2016 is filed by the Government praying to set aside the judgment and award passed in LAC No.87/2013 by the Reference Court and thereby restore the award passed by the Land Acquisition Officer in award No.LAQ/CR/68/20122013 dated 14.03.2013. Both appeals are filed under Section 54(1) of Land Acquisition Act, 1894 (for short’ the Act’).
3. Brief facts which are relevant for the purpose of disposal of these appeals are that the appellant in MFA No.102248/2015 was the owner of the land measuring 2 acres 12 guntas comprised in R.S.No.34/2 of Mariyan Thimmasagar village, Hubballi taluk. The respondent No.2 in the appeal i.e. the Principal Secretary to the Revenue Department, Government of Karnataka took out Gazette Notification dated 22.11.2012 under Section 4(1) of the Land Acquisition Act, 1894 (for short ‘Act’), proposing to acquire the entire extent of the land in R.S.No.34/2 i.e to the total extent of 5 acres 15 guntas for the purpose of construction of Hubballi Court Complex. The appellant filed objections for the said Gazette Notification for acquisition of 2 acres 12 guntas of her land in R.S.No.34/2 contending that she has no other properties and if the Government provides alternative sites, she has no objection to acquire her land. However, the respondents-authorities without considering her objection issued final Notification under Section 6(1) of the Act by confirming the acquisition and published the said Notification in Karnataka Gazette on 14.02.2013. Being aggrieved by the same, appellant filed W.P.No.77980/2013 before this Court challenging the said acquisition proceedings. However, subsequently, she withdraw the said writ petition.
4. Accordingly, the respondents-authorities issued notice under Section 12(2) of the Act and thereafter award was passed in respect of the acquired land measuring 5 acres 15 guntas and quantified the compensation at Rs.57,55,749/- in total. The appellant being the owner of the land to an extent of 2 acres 12 guntas got her share of Rs.25,50,197/- out of total award amount. Nevertheless, the appellant filed her objection with the second respondent and put forth her claim to receive the award, subject to her objections and received her part of the award amount. However, it is contended that the compensation awarded towards the acquisition of her land is very meager and as such she sent a reference application dated 21.09.2013 under Section 18(1) of the Act to the respondents-authorities as per Ex.P.11 requesting the respondents–Authorities to refer the matter to the Prl. Senior Civil Judge, Hubballi for determination of correct market value and award compensation accordingly. In pursuance of the same, respondent No.3 i.e. the Deputy Commissioner, Dharwad District, Dharwad referred the matter to Prl. Senior Civil Judge, Hubballi under his letter dated 11.10.2013. Consequently, the said matter was referred and numbered as LAC No.87/2013 on the file of III Addl. Senior Civil Judge, Hubballi and the parties are notified. The respondents-authorities filed their objection to the reference application.
5. Before the Reference Court, in order to prove the claim of the appellant, the appellant examined her husband, power of attorney holder, as PW.1 and produced 22 documents as per Ex.P1 to P.22. On behalf of the respondents, the Assistant Engineer of PWD, Hubballi is examined as RW.1 and produced one document as Ex.R1. The Reference Court after appreciation of the evidence available on record and
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State of Punjab v. Hansraj (1994) 5 SCC 734
Court should look into sale instances of smaller pieces of land while applying reasonable element of deduction.
The main legal point established in the judgment is the relevance of sale instances/exemplars from the acquired land for determining the market value and the appropriateness of deductions towards dev....
[The determination of compensation for land acquisition must be based on the market value at the time of notification, considering comparable sales and the land's potential, with reasonable deduction....
The highest sale instance must be considered for compensation valuation, and deductions for development charges must reflect the land's actual condition.
The court reaffirmed that compensation for acquired land must reflect fair market value, taking into account adequate comparable sales while establishing that evidence must support any deductions for....
Acquisition of land – Generally, sale instances with respect to small plots/parcels of land are not comparable to a large extent of land for the purpose of determining compensation.
Market value in land acquisition must reflect fair compensation by considering local comparable sales despite development charges; enhancements by tribunal upheld as reasonable.
Compensation for land acquisition cannot be restricted to the amount claimed by the landowner; courts must ensure just and fair compensation reflecting true market value.
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