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2023 Supreme(J&K) 602

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
M.A.Chowdhary, J.
General Manager Northern Railways New Delhi - Appellant
Vs.
Abdul Majeed Wani - Respondent
CFA No. 09 of 2018
Decided On : 28-12-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr. Nazir Ahmad Bhat, CGC.
For the Respondent: Mr.M.Y.Bhat, Sr. Adv. With Mr. Sajid Ahmad, Adv.

The court ruled that compensation for land acquisition must be based on thorough assessment and expert opinions, rejecting arbitrary enhancements by lower courts.

Headnote:(A) Land Acquisition Act - Section 18 - Appeal against Reference Court's decree enhancing compensation for land acquisition - The Reference Court awarded Rs. 37,48,000/- without proper assessment, whereas the Collector had assessed Rs. 18,42,000/- based on expert opinion. The appeal contends the Reference Court's enhancement was arbitrary and lacked legal justification. (Paras 2, 20)

(B) Compensation Assessment - The Collector's assessment was based on market value and damages, while the Reference Court's decision lacked reasoning and failed to consider expert assessments. (Paras 4, 12, 20)

Facts of the case:
The appeal arises from a land acquisition for a railway track, with disputes over the compensation awarded for a poultry unit. The Collector's award was challenged for being too low, leading to the Reference Court's enhancement.

Findings of Court:
The Reference Court's judgment was set aside, and the compensation was modified to Rs. 35.41 lacs with solatium and interest.

Issues: The main issues were the validity of the Reference Court's enhancement of compensation and adherence to proper assessment procedures.

Ratio Decidendi: The court emphasized the necessity of proper assessment based on expert opinions and market value, rejecting the Reference Court's arbitrary enhancement.

Result: Appeal allowed.

JUDGMENT :

1. The instant appeal is directed against the judgment/decree dated 23.01.2018 passed by Principal District Judge, Pulwama (hereinafter ‘Reference Court’ for short) in a Land Acquisition Reference U/S 18 of the Land Acquisition Act against the Final Award dated 23.07.2004 passed by the Collector Northern Railways ( ADC) Pulwama, in acquisition proceedings in terms of State Land Acquisition Act, for acquisition of land for Railway track in village Nihama of District Pulwama.

2. The impugned judgment has been assailed on the grounds; that the judgment is legally untenable and erroneous insofar as the trial court has not appreciated the objections, pleadings and the evidence in its right perspective by coming to the conclusion that the respondents are entitled to compensation of Rs. 37,48,000/- inclusive of Rs. 21.00 lacs received by the respondents under protest with 15% Jabirana alongwith 6% interest from the date of acquisition, till payment of the entire awarded amount; that the compensation enhanced to Rs. 37,48,000/- is totally bad in law as against the expert opinion without meticulously examining the record pertaining to various opinions and final expert opinion rendered by Superintending Engineer PWD (R&B) Anantnag vide his communication No. 5713-15 dated 11.10.2021; that the final award has been passed in the year 2004 and compensation stands already received by the respondents in the same year, as such, the application filed by the respondents was time barred and ought to have been dismissed; that the award passed by the Collector was legal and sustainable as the same has been passed after following proper procedure in accordance with law; that the reasons for enhancing the compensation given by the Reference Court do not subscribe to the mandate of Section 23 of the Land Acquisition Act; that it is quite amazing to find out as there was no reason or evidence to pass the impugned judgment and finally it was prayed to allow the appeal and set aside the impugned judgment/decree passed by the Reference Court.

3. Learned Counsel for the appellant vehemently argued that the Collector while awarding compensation had granted an amount of Rs. 18,42,000/- for compensation of the poultry unit of the respondents situated at Village Nihama of District Pulwama which had been acquired based on the indent of the appellants Northern Railways, for railway project and alleged that the Reference Court without leading any evidence by the respondents/owners had enhanced the amount of compensation of this Poultry unit in favour of the respondents (herein) to an amount of Rs. 37,48000/-. He has argued that the compensation had been got assessed by the Collector from Superintending Engineer PWD Circle Anantnag, which he had assed at Rs. 18,42,000/-and against this expert assessment by an officer of the engineering department formulated by the Executive Engineer of PWD Division Pulwama, and approved by Superintending Engineer, Anantnag the amount had been accepted by the Collector at Rs. 18,42,000/- .

4. He further argued that on a reference made on the application moved by the respondents to the District Court Pulwama, the reference court vide impugned judgment/decree without assigning any reason in a mechanical manner, enhanced the compensation for the poultry unit of the respondents for an amount of Rs. 37,48,000/-. He argued that the appellants are aggrieved of the impugned judgment/decree passed by the Reference Court in a mechanical and arbitrary manner without looking into the provisions of Section 23 of the State Land Acquisition Act which governs the principles and provides the mechanism for determination of compensation in respect of the acquisition made and certain valid points of consideration like market value at the time of notification; damages sustained at the time of taking possession; damages by reasons of separating such land from the other land; damages to the property movable or immovable or earnings; interested per

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