High Court of Kerala
THE HONOURABLE MR. JUSTICE PIUS C. KURIAKOSE & THE HONOURABLE MR. JUSTICE C.K. ABDUL REHIM
State Of Kerala & Another Sushama Kumari
LA. App. No. 222 of 2008
Decided on : 27-05-2010
Land Acquisition Act, 1894 - Section 23 - Whether land value can be fixed at a rate more than what was claimed by claimant before Court - Whether adequate compensation for an old building will be cost of construction of a brand new building - Held, Re-appreciating the entire evidence including the oral evidence adduced by the parties, the commissioner's report, and keeping in mind the reality that valuation in accordance with PWD's schedule of rates is not realistic, we come to the conclusion that the correct compensation payable for the building which existed on the property is Rs.7,28,387/-. - Enhancement granted by the court below towards compensation for the building stands reduced from Rs.3,98,365/- to Rs.3 Lakhs - Appeal Allowed.
Pius C. Kuriakose, J.
1. This appeal is preferred by the Government against the award of enhanced compensation towards value of land and also towards value of the building which existed on the land under acquisition. The property was in Thycaud Village of Thiruvananthapuram District. The acquisition was for the purpose of construction of Jagathy Bridge pursuant to Section 4(1) notification dated 6-11-2000. The Land Acquisition Officer fixed land value at Rs.2,96,400/-per Are and awarded structure value at Rs.4,28,387/-. The reference court re-fixed the land value at Rs.6 lakhs per Are on the basis of the evidence which came on record. The structure value was enhanced by the reference court to Rs.3,98,365/-. Before the reference court the claimant relied mainly on Ext.A5 commission report and Ext.A5(a) valuation prepared by an expert who assisted the commissioner in the matter of Ext.A5 commission report. The claim towards compensation for the building was Rs.40 lakhs. Under Ext.A5 and A5(a) the value of the building was assessed at Rs.9,56,250/-. The court below did not rely on Ext.A5 or A5(a) for the reason that the author of Ext.A5(a) was not examined and that going by Ext.A5(a) the age of the building was only 9 years, while even on the admissions of the claimant the building was 20 years old. Ultimately the court below relied on the valuation prepared by the PWD on the basis of which the awarding officer fixed value for the building. What the court below did was to rely on the judgment of the Supreme Court in Union of India v. Savjiram and another (2004)9 SCC 312 and award enhanced value of Rs.3,98,365/-for the building. That amount was the amount which had been deducted under the PWD valuation towards depreciation for the old age of the building. In other words, the learned Sub Judge relying on Savjiram's case (supra) took the view that in land acquisition cases when old buildings are acquired, depreciation for the age of the building is not liable to be deducted from the value of the building determined as per the current rates for construction.
2. Smt. R. Bindu, learned counsel for the appellant would assail the impugned judgment on the various grounds raised in the appeal memorandum. She submitted that the land value determined is exorbitant. She also submitted that the enhancement granted towards compensation for the building cannot be approved.
3. Having gone through the impugned judgment we find that the evaluation of the evidence to the extent it pertains to land value was proper. But we notice that the rate presently awarded is even more than what was claimed by the party. The claim by the respondent was only Rs.2.25 lakhs per cent. According to us, the land value cannot be fixed at a rate more than what was claimed by the respondent before the court. In that view of the matter we re-fix the value of land under acquisition at Rs.5,55,976/-per Are (the amount claimed by the respondent), in modification of the land value fixed by the court below.
4. The learned Government Pleader Smt. R.Bindu would assail the decision of the Reference Court to enhance the compensation awarded for the building which existed on the property vigorously. She submitted that the court below did not become inclined to rely on the report of the commissioner who conducted inspection with the assistance of an expert. But, what was done was to rely on the valuation taken by the engineers of the Public Works Department itself and to add the amounts which had been deducted under that valuation towards depreciation for this building which was admittedly at least 20 years old. According to Smt.Bindu, the judgment of the Supreme Court in Union of India v. Savjiram And Another ((2004) 9 Supreme Court Cases 312) relied on by the learned Subordinate Judge is not applicable to the facts of the present case. This is a case of acquisition of property by the authorities who are to be guided by the Kerala Land Acquisition Manual and not by th
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