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2024 Supreme(Ker) 389

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. MUHAMED MUSTAQUE, M.A. ABDUL HAKHIM, JJ.
The State of Kerala – Appellant
Versus
V.J. Mathew S/o Varkey Joseph – Respondent
L.A.A. Nos. 46, 107 of 2019, 49 of 2023, Cross Objection No. 58 of 2023
Decided On : 04-04-2024

Advocates:
Advocate Appeared:
For the Appellant : T.K. Shajahan.
For the Respondents: C.P. Wilson, Manu Vyasan Peter, Rose Michael, P.B. Krishnan, P.B. Subramanyan, Sabu George, K. Jayakumar.

IMPORTANT POINT
The court clarified the authority's competence to re-determine compensation, the method for determining the average sale price, and the award of additional market value for structures under Act 30 of 2013.

Headnote:

Land Acquisition - Determination of Market Value - Act 30 of 2013 - Section 26, 30(3) - The court discussed the determination of market value under Section 26 of the Act 30 of 2013, the reliance on sale deeds, and the award of additional market value for structures under Section 30(3).

Fact of the Case:

The appeals involved the determination of market value under Section 26 of the Act 30 of 2013 for land acquired for the Metro Rail Project. The claimant and the State appealed against the reference court's decision to enhance the market value and award additional market value for structures.

Finding of the Court:

The court found that the authority in a reference under Section 64 of Act 30 of 2013 is competent to re-determine the amount of compensation. It also discussed the method for determining the average sale price, the reliance on sale deeds, and the scope of discounting indicative value in a deed for calculating market value. The court affirmed the award of additional market value for structures.

Issues: The issues included the authority's competence to re-determine compensation, the determination of average sale price, reliance on sale deeds, and the award of additional market value for structures.

Ratio Decidendi: The court held that the authority in a reference under Section 64 of Act 30 of 2013 is competent to re-determine the amount of compensation. It also clarified the method for determining the average sale price and the reliance on sale deeds beyond three years. The court affirmed the award of additional market value for structures.

Final Decision: The court ordered a remand of the appeals for fresh consideration in determining the market value of the land in the light of the discussions. It affirmed the award of 12% additional market value for structures and granted the claimant's appeals and cross objection, entitling them to a refund of the court fee.

 

 

1. These appeals are filed under Section 74 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 [for short the “Act 30 of 2013”]. The common question involved in all these cases is how the value has to be determined under Section 26 of the Act 30 of 2013.

L.A.A. Nos. 46/2019 and 107/2019:

2. These appeals are filed by the claimant and the State respectively. On a reference under Section 64 of the Act 30 of 2013, the reference authority the Additional District Judge, Ernakulam, enhanced the market value. The claimant V.J. Mathew was the owner of 2.06 Ares of land in Ernakulam Village in the heart of Ernakulam town. This was acquired pursuant to the notification issued under Section 4(1) of the Land Acquisition Act, 1894 dated 25/12/2012 for the purpose of Seematti Corridor of the Metro Rail Project. The Land Acquisition Officer passed an award under Section 24(1) of the Act 30 of 2013 on 5/4/2017 awarding Rs. 52,12,721/- per Are and also awarded compensation of Rs. 21,52,784/- for the structural value. The land value was enhanced by the reference court to a sum of Rs. 3,82,66,253/-. The reference court also awarded a 12% additional market value under Section 30(3) of the Act 30 of 2013 in respect of value of structures. The reference court placed reliance on the Ext.A1 document executed on 15/11/2007 and gave a cumulative increase of 12% each per year of the land value shown in Ext.A1. The land value in Ext.A1 is Rs. 1,16,09,907/-. Challenging the award as above, the State has preferred the appeal. The claimant also preferred the appeal as not satisfied with the award. The claimant claimed further enhancement based on Ext.A3 to Ext.A5 judgments. Exhibit A2 is the certified copy of the sale deed dated 19/1/2011. Exhibits A3 and A4 are the judgments in the land acquisition matter under Land Acquisition Act, 1894. The reference court did not rely on Exhibits A2 to A5 as the Commissioner had not referred to the potentiality of the land.

L.A.A. No. 49/2023 and Cross Objection No. 58/2023:

3. In this appeal also the land belonging to the claimant having an extent of 0.73 Ares with a building was acquired for the purpose of widening Banerji Road in connection with Kochi Metro Rail Project. Section 4(1) notification under the Land Acquisition Act, 1894 was issued on 15/6/2011. Land value was awarded at Rs. 65,10,725/- per Are and Rs. 2,16,58,858/- towards the value of the building. The reference court gave a further enhancement of the land value at Rs. 62,29,922/-. The reference court also allowed 12% market value under Section 30(3) to the building. While fixing the land value, the reference court relied on Ext.A1 a sale deed executed on 15/11/2007 and also Ext.A2 dated 20/1/2011. Ext.A2 was not relied by the Land Acquisition Officer stating that the value in Ext.A2 is fancy price. The claimant also filed cross objection as the reference court did not rely on Exts.A3 and A4 judgments in reference under the Land Acquisition Act, 1894.

4. The submissions of the learned Government Pleader as well as the Senior Counsel Shri P.B. Krishnan who appeared for the requisition authority - Metro are as follows:

 

    According to the learned Senior Counsel, the reference authority can only decide whether the determination of the amount of compensation by the Collector is by following the procedure and parameters under Section 26 to 30 of Chapter V of the Act 30 of 2013. The learned Counsel further submits that the manner in which determination of compensation is regulated is in accordance with the parameters under Section 26, and therefore no sale deed beyond three years can be considered by the authority for determination of the compensation. According to the learned Counsel, the authority cannot award a cumulative rate of increase of 12% based on the market value of land in prior deeds at the relevant time to calculate market value of the land acquired as on the date of notification. It is fu

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