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2025 Supreme(Gau) 1637

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH AT ITANAGAR BENCH
ROBIN PHUKAN, J.
Union of India, Rep. by the Defence Secretary, New Delhi – Appellant
Versus
T. Migo Basa S/o Late Tomi Basar – Respondent
L.A. App. Nos. 01, 03, 04 of 2024
Decided On : 08-09-2025

Advocates Appeared:
For the Appellants : S.D. Sanjay, Y. Doloi
For the Respondents: B. Pathak, P. Sangita, D. Soki

The court affirmed the authority of the Reference Court to enhance land compensation under the LARR Act based on statutory guidelines, confirming the validity of multipliers and solatium in land acquisition cases.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 26(2), 30(1), and 69(2) - Enhanced compensation for acquired land - Reference Court enhanced market value to Rs.500/- per sq.m. from Rs.150/- per sq.m. following statutory multipliers, awarding 100% solatium and appropriate interest rates as per laid provisions - The appropriate Government's regulations must be considered alongside judicial precedents regarding solatium and compensation calculations (Paras 13.1, 15.3).

Facts of the case:
The appeal was filed against a Reference Court's ruling which increased the compensation for land acquired for a military project in Arunachal Pradesh, from Rs.150/- to Rs.500/- per square meter, incorporating statutory benefits including solatium and interest. The decision was based on alleged discrepancies in the application of the Land Acquisition Manual and challenges surrounding the legitimacy of powers of attorney used for filing requests for compensation increases.

Findings of Court:
The learned Reference Court properly evaluated statutory provisions, concluding that previous notifications had not been updated as per market trends and that the market value assessment was appropriate (Paras 16.2, 18.1).

Issues: (i) Validity of the Power of Attorney and potential fraud; (ii) Legal standing to file claims without prior protest against the award; (iii) Application of the multiplication factor for compensation determination; (iv) Legitimacy of the final market value calculation; (v) Justification for the awarded solatium and interest rates.

Ratio Decidendi: The Court upheld that the Power of Attorney was valid, confirmed the necessity of protest for a compensation request to hold, endorsed applying the multiplication factor on updated rates for rural compensation, and reinforced that statutory entitlements, such as solatium, are legally mandated and ought to be included in compensation packages (Paras 14.5, 15.11, 16.3, 17.1).

Result: Appeals dismissed.

Table of Content
1. classifications of legal representatives in appeals (Para 1)
2. overview of land acquisition awards and appeals (Para 2 , 3)
3. grounds for appeal and objections regarding compensation (Para 4 , 6)
4. arguments of appellants regarding the award process (Para 5 , 8 , 9 , 10)
5. key issues formulated by the court (Para 12)
6. court's reasoning on power of attorney legitimacy (Para 13 , 14)
7. determining fair compensation and statutory provisions (Para 15 , 16 , 17 , 18)
8. final decision and dismissal of appeals (Para 21)

JUDGMENT :

ROBIN PHUKAN, J.

1. Heard Mr. S.D. Sanjay, learned Senior Counsel cum Additional Solicitor General of India, assisted by Mr. Y. Doloi, learned senior panel counsel for the Govt. of India/appellants and also heard Mr. B. Pathak, learned counsel for the respondent Nos.1-103, Ms. P. Sangita, learned Government Advocate, Arunachal Pradesh, appearing for the respondent No.104 and Mr. D. Soki, learned counsel for the respondent No.105 in L.A. App. No.01/2024.

1.1 Also heard Mr. D. Soki, learned counsel for the appellant, Mr. B. Pathak, learned counsel for the respondent Nos.1-103 and Mr. Y. Doloi, learned senior panel counsel for the Govt. of India/respondent Nos.104-107 in L.A. App. No.03/2024, which is filed by the State of Arunachal Pradesh.

1.2 Also heard Mr. M. Ansari, learned counsel for the appellants and Mr. B. Pathak, learned counsel for the respondent Nos.1-103 in L.A. App. No.04/2024, which is filed by the Deputy Commissioner, Leparada District, Arunachal Pradesh and another.

2. As in all these three appeals, under Section 74 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, the appellant(s) have challenged the same judgment and award, dated 19.10.2024, and the order dated 30.10.2024, passed by the learned Reference Authority-cum-Additional District & Sessions Judge, Basar, Leparada District, Arunachal Pradesh (Reference Court) in Basar Reference Case No.02/2024, it is proposed to dispose of all the three appeals, being L.A. App. Nos. 01, 03 and 04/2024 by this common judgment and order.

3. It is to be noted here that vide impugned judgment and award dated 19.10.2024, and the order dated 30.10.2024, the learned Reference Court had allowed the reference petition, filed by the petitioners/respondents herein and enhanced the market value of the acquired horticultural land at Rs.500/- per sq.m., instead of earlier awarded market value of Rs.150/- per sq.m., as awarded by the proforma respondent, the Deputy Commissioner, Basar, Leparada District. The learned Reference Court has also awarded other statutory benefits of multiplication factor 2 on the market value with 100% solatium on enhanced market value along with interest @12%, under Section 30(3) read with Section 69 (2) as well as Section 72 and 80 of the LARR Act, 2013 on enhanced rate as statutorily provided @9% for first year and thereafter, @15% per annum, respectively.

3.1. For ready reference the impugned award is reproduced herein below:-

AWARD....

185. In view of the material exhibits of the parties, oral evidence as well as oral and written argument, the Awarded rate made by the Collector in his calculation at the rates of Rs. 150, is enhanced to rate of Rs. 500/- as an enhanced market value determined herein with recourse to provisions of Section 69 of the LARR Act, 2013 read with Section 26 of the LARR Act, 2013. And the petitioners should be compensated, accordingly, at the said enhanced rates.

186. Therefore, the compensation for market value payable to the petitioners shall be determined at the round off rate of Rs. 500/- per sqm. which would, thus, stand at around Rs. 1,08,65,80,933/- for total area of 21,73,161.866 sqm. of area acquired as acquired under category of Horticulture land instead of the earlier determined compensation of Rs. 32,59,74,250.80/-. The amount is to be deposited in this Court within one month after proper calculation by the DC Lepara

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