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2009 Supreme(Mad) 5267
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE B. RAJENDRAN
S.M. Kandasamy & Another
Versus
The Land Acquisition Officer Revenue Divisional Officer Gobichettipalayam Erode District
A.S.No.364 of 1998
Decided on : 03-12-2009
For the Appellants:V. Bharathidasan, Advocate.
For the Respondent: V. Ravi Special Government Pleader.
The main legal point established in the judgment is the determination of fair compensation under The Land Acquisition Act, considering the potential value of the acquired lands and the principles of 'what a willing buyer would like to pay and what a willing seller would like to sell.'
Headnote:
Land Acquisition - Compensation - Section 4 (1) of The Land Acquisition Act - Summary of Acts and Sections: The judgment discusses the application of Section 4 (1) of The Land Acquisition Act and the determination of compensation under Section 18. The court considered the evidence presented by both parties and enhanced the compensation amount from Rs. 61,500/- per acre to Rs. 1,00,000/- per acre. The claimants appealed for further enhancement, and the court partially allowed the appeal, increasing the compensation to Rs. 2,00,000/- per acre.
Fact of the Case:
The Government issued a notification under Section 4 (1) of The Land Acquisition Act for the acquisition of lands for a water supply improvement scheme. The claimants sought reference under Section 18 of the Act, and the Reference Court enhanced the compensation amount. The claimants appealed for further enhancement.
Finding of the Court:
The court partially allowed the appeal, enhancing the compensation from Rs. 1,00,000/- per acre to Rs. 2,00,000/- per acre. The judgment of the lower Court was confirmed in all other respects.
Issues: The issues considered by the court were whether the enhancement made by the Reference Court was in accordance with the law and whether any deductions had to be given in respect of the compensation fixed by the Reference Court.
Ratio Decidendi: The court considered the evidence presented by both parties, including sale deeds and oral testimony, to determine the fair market value of the acquired lands. It emphasized the potential value of the land and the principles of 'what a willing buyer would like to pay and what a willing seller would like to sell.' The court also considered the purpose of acquisition and the potentiality of the conversion of the property into a housing plot.
Final Decision: The appeal was partly allowed, enhancing the compensation from Rs. 1,00,000/- per acre to Rs. 2,00,000/- per acre. The judgment of the lower Court was confirmed in all other respects. No costs were awarded, and it was made clear that the appellant/claimant is entitled to all statutory benefits under the law.
1. The claimants have preferred this appeal against the judgment and decree dated 30.07.1997 made in L.A.O.P.No. 1 of 1996 on the file of the Sub Court, Gobichettypalayam.
2. The Government issued notification under Section 4 (1) of The Land Acquisition Act on 25.06.1992 for acquisition of the lands comprised in survey No.84/1 to an extent of 1.25 acres or 0.50.3 hectares situated in Village No.31, Kottuveerampalayam, Sathyamangalam, Erode District for the purpose of construction of Head works and treatment work under Sathyamangalam water supply improvement scheme. The lands of the claimants in Survey No.84/3 to an extent of 0.50.5 hectares was also sought to be acquired. After complying with the formalities, an award was passed on 110. 1993 fixing the compensation for the acquired lands to an extent of 1.25 acres at Rs.76,172/-. The Land Acquisition Officer, taking into consideration the data sale deed in survey No.71/1 and 71/2, Ex.B5 dated 23.08.1990 fixed the value for the acquired lands. The data sale deed was shown as item No.24 in the sale statistics taken by the Land Acquisition Officer. Aggrieved against the said fixation of land value, the claimants have sought for reference under Section 18 of the Land Acquisition Act and accordingly reference was made and it was taken on file as L.A.O.P.No.1 of 1996 on the file of Sub Court, Gobichettypalayam.
3. Before the Reference Court, the claimants have marked Exs. C1 to C7 and CWs 1 to 5 were examined. On behalf of the Land Acquisition Officer, Exs. A1 to A6 were marked and one Arumugam, Village Administrative Officer was examined as RW1 and Velayudam, Retired Revenue Divisional officer was examined as RW2. The Reference Court, taking into consideration the oral and documentary evidence produced by both sides, enhanced the compensation amount from Rs.61,500/- per acre to Rs,1,00,000/-per acre. Not being satisfied by the enhancement made by the Reference Court, the claimants have preferred the present appeal for enhancement.
4. Heard both the parties. The points for consideration in this appeal are "1.whether the enhancement made by the Reference Court is not in accordance with law
2.Whether any deductions have to be given in respect of the compensation fixed by the Reference Court"
5. Before the Reference Court, it was contended by the claimants that the acqired lands are fit enough for conversion into house site, there are houses situate in and around the acquired lands, very near to the acquired lands the river Bhavani is flowing and Sakthi Bannari Road is situate. Further, there are schools, lorry sheds and other important buildings, including Municipal office are located in and around the acquired lands. It was further contended that Exs. C1 to C3 reflect the true and correct value for the acquired lands and therefore, the claimants prayed for fixing a sum of Rs.25,000/- per cent as compensation. It was also contended that the lands in and around acquired lands were sold at the rate of Rs.35,000/- to Rs.40,000/-per cent during the relevant time and therefore fixing Rs.25,000/- per cent would be reasonable. It was further contended that the claimants have examined CW2 to CW5, who are the adjoining land owners, through whom documents have been marked to show that 4 cents of land were sold at the rate of Rs.20,000/- per cent during the relevant period in the area in question as they were treated as house-sites. Therefore if the sale transactions produced by the claimants in Ex.C1 to C3 are considered, the value of the acquired lands can easily be fixed at the rate of Rs.25,000/- per cent
6. Contra, before the Reference Court, it was contended on behalf of the Land Acquisition Officer that the lands to an extent of 0.50.5 hectares out of 2.06.0 hectares in Survey No.84/3 were acquired from the claimants for the purpose of providing water construction of Head works and treatment work under Sathyamangalam water supply improvement scheme. For the purpose of fixin
