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2025 Supreme(Gau) 1781

IN THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH
MRIDUL KUMAR KALITA, J.
Sri Alok Bagaria, S/o Late Prahladrai Bagaria - Appellant
Vs.
The Collector cum Deputy Commissioner, Dibrugarh - Respondent
L.A. Appeal No. 3 Of 2019
Decided On : 01-11-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. D.Das, Senior Advocate, Mr. S.Deka, Advocate
For the Respondent:Mr. D. Mazumder, Additional Advocate General, Assam, Ms. D.D. Barman, Additional Senior Government Advocate, Mr. M. Nath, Senior Counsel, Mr. A. Bhattacharjee

Compensation for acquired land must assess market value separately from zirat compensation, as dictated by specific sections of the Land Acquisition Act, 1894.

Headnote:(A) Land Acquisition Act, 1894 - Sections 54 and 23(1) - Appeal against compensation for land acquisition - Predecessor-in-interest of appellants owned a tea estate acquired for a gas cracker project - Compensation for land assessed at Rs.3,00,000/- per bigha which appellants contested as inadequate, seeking higher compensation based on comparable land sold nearby - Court confirmed assessment but found deductions for already paid zirat compensation improper under law, which must be calculated separately. (Paras 25, 27, 42, 60, 62)

(B) Assessment of Compensation - Standard for market value determination laid down, including consideration of encroachment and zirat value distinction, requiring evidence to avoid inflation of valuations. (Paras 47-50)

Facts of the case:
The appellants’ predecessor owned a tea estate which was partially acquired for a gas cracker project; the compensation initially awarded prompted appeals for reevaluation based on market value and differing assessments compared to encroachers' compensation. (Paras 3-17)

Findings of Court:
The Reference Court's assessment was upheld but its deduction of zirat compensation from total compensation was deemed contrary to statutory provisions; zirat and market value must be treated distinctly. (Paras 60, 62)

Issues: The primary questions addressed were the correctness of the market value assessment, the rationale behind zirat compensation calculations, and whether the deduction of zirat compensation from market value was lawful. (Paras 21, 45)

Ratio Decidendi: The court emphasized that while assessing compensation, the method must reflect market realities, including the proximity and nature of the land, along with adhering strictly to legislative requirements pertaining to compensation components. (Paras 47-48, 60)

Result: Appeal partly allowed; zirat compensation cannot be deducted from market value compensation awarded.

Table of Content
1. land acquisition background and ownership details. (Para 2 , 3 , 6 , 9 , 10)
2. previous legal contests over land ownership. (Para 4 , 5 , 8)
3. compensation calculations and disputes. (Para 11 , 12 , 13)
4. arguments for compensation value and discrepancies. (Para 24 , 25 , 26)
5. counterarguments regarding compensation assessments. (Para 36 , 37 , 41)
6. court's reasoning on market value assessments. (Para 46 , 48 , 59)
7. conclusion and outcome of the appeal. (Para 62 , 63)

JUDGMENT AND ORDER :

MRIDUL KUMAR KALITA, J.

1. Heard Mr. D. Das, the learned Senior Counsel, assisted by Mr. S. Deka, the learned counsel for the appellants. Also heard Mr. D. Mazumder, the learned Additional Advocate General, Assam assisted by Ms. D.D. Barman, the learned Additional Senior Government Advocate for the State respondents as well as Mr. M. Nath, the learned Senior Counsel, assisted by Mr. A. Bhattacharjee, the learned counsel for the respondent No. 2.

2. This appeal under Section 54 of the LAND ACQUISITION ACT , 1894 has been preferred by the appellants, impugning the judgment and order dated 21.03.2016, passed in L.A. Case No. 44/2010, along with order dated 16.05.2016, passed in Misc. (J) Case No. 17/2016 by the Court of the learned District Judge, Dibrugarh.

3. The facts relevant for consideration of the instant appeal, are that the predecessor-in-interest of the appellants, namely, Bhawani Shankar Bagaria was the absolute owner and possessor of a Tea Estate, namely, Beheating Tea Estate, which consists of several bighas of land, including land measuring 228 bighas 2 kathas 18 lechas under Dag No. 500,501,502,503,504,505,506,507,508,509,510,511,641,642,643,6 44,645,646,647,648,649,650,651,652,653,654,655 and 656 of Patta No. 13OR Grant (B) of village Lepetkata Kachari Gaon of Mankata Khanikar Mouza. The aforesaid land measuring 228 bighas 2 kathas 18 lechas has been acquired by the respondent No. 1 under the provisions of LAND ACQUISITION ACT , 1894 for Gas Cracker Project at Lepetkata, Dibrugarh. The respondent No. 1, i.e. the Collector-cum-Deputy Commissioner of Dibrugarh District, acted as the Land Acquisition Officer and respondent No. 2 is the requisitioning authority for whom the land has been acquired.

4. The predecessor-in-interest of the appellants, namely, Bhawani Shankar Bagaria purchased the aforesaid land from the Upper Assam Tea Company vide registered sale deed No. 2560/1960. It has been alleged that during resettlement operation, the revenue authority fraudulently entered the names of five numbers of person in respect of few bighas of vacant land of the aforesaid Tea Estate and issued katchakhatian in their names. However, on an appeal preferred by the predecessor-in-interest of the appellants the khatian issued in favour of those five persons were cancelled holding them to be the encroachers.

5. In the year 1987 the aforesaid five persons along with seventeen others claimed tenancy khatians in their favour before the Additional Deputy Commissioner, Dibrugarh by filing a Misc. Case No. 70/1987, which was dismissed by the learned Additional Deputy Commissioner, Dibrugarh. Against the said rejection order the aforementioned twenty-two persons preferred a revenue appeal before the Assam Board of Revenue. However, the appeal was also dismissed.

6. In the meanwhile, the Government of Assam proposed to acquire 228 bighas 2 kathas 18 lechas of land of the aforesaid Tea Estate for Gas Cracker Project and accordingly, on 16.11.2000, a notification was issued to that effect under the provision of LAND ACQUISITION ACT , 1894.

7. It is alleged that on coming to know about the proposed acquisition of the aforesaid land some persons forcefully occupied few bighas of land of the aforesaid Tea Estate. Thereafter, the predecessor-in-interest of the present appellants preferred twenty numbers of title suit against the aforesaid encroachers before the Court of the learned Civil Judge, Dibrugarh seeking declaration of right, title a

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