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2022 Supreme(Mad) 1279

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
M/s Oil & Natural Gas Corporation Ltd., Rep. by its Deputy General Manager, Neravy Complex, Karaikkal, Pondicherry - Appellant
Versus
Rajeswari & Others - Respondent
Appeal Suit Nos. 417 to 421 of 2010 & M.P. No. 1 of 2010 (5 petitions)
Decided On : 02-03-2022

Advocates appeared:
For the Appellant:Mohamme Fayaz Ali, Advocate. For the Respondents:R1, T. Susindran, R1 to R8, R. Natarajan, Advocates.

The central legal point established in the judgment is the mandatory entitlement to interest on solatium as part of just and fair compensation under Section 28 of the Land Acquisition Act, 1894.

Headnote:

Land Acquisition - Compensation - Section 54 of the Land Acquisition Act, 1894 - T.S.No.N/4/26/5, T.S.No.N/4/25/3, T.S.No.N/4/25/4 - Summary of Acts and Sections: The court discussed the compensation awarded under the Land Acquisition Act, 1894 for the acquisition of land for Oil and Natural Gas Corporation of India (ONGC) store-yard. The key legal provisions interpreted include Section 28 of the Land Acquisition Act, 1894, which mandates interest on excess compensation, and the principles of just and fair compensation for deprivation of property rights.

Fact of the Case:

The land owners demanded additional compensation for the acquisition of land by the Land Acquisition Officer for ONGC's store-yard. The Reference Court awarded enhanced compensation, which was contested by ONGC in the appeals.

Finding of the Court:

The court found that the Reference Court's award of enhanced compensation was based on the prevailing market value and the potential appreciation of the acquired land, as evidenced by sale deeds. The court also clarified that interest on solatium is a mandatory component of compensation, as per Section 28 of the Land Acquisition Act, 1894.

Issues: The main issues included the adequacy of compensation, the reliance on sale deeds for fixing market value, and the entitlement to interest on solatium.

Ratio Decidendi: The court held that the Reference Court's award of enhanced compensation based on market value and potential appreciation was justified. It also emphasized the mandatory nature of interest on solatium as per Section 28 of the Land Acquisition Act, 1894.

Final Decision: The Appeal Suits were disposed of with a clarification and modification regarding the entitlement to interest on solatium. No order as to costs.

JUDGMENT

(Prayer: Appeal Suit has been filed under Section 54 of the Land Acquisition Act, 1894 against the award passed by the learned Additional District Judge, Puducherry at Karaikkal in L.A.O.P.No.31 of 2000 dated 18.12.2007.

Appeal Suit has been filed under Section 54 of the Land Acquisition Act, 1894 against the award passed by the learned Additional District Judge, Puducherry at Karaikkal in L.A.O.P.No.16 of 2000 dated 18.12.2007.

Appeal Suit has been filed under Section 54 of the Land Acquisition Act, 1894 against the award passed by the learned Additional District Judge, Puducherry at Karaikkal in L.A.O.P.No.17 of 2000 dated 18.12.2007.

Appeal Suit has been filed under Section 54 of the Land Acquisition Act, 1894 against the award passed by the learned Additional District Judge, Puducherry at Karaikkal in L.A.O.P.No.18 of 2000 dated 18.12.2007.

Appeal Suit has been filed under Section 54 of the Land Acquisition Act, 1894 against the award passed by the learned Additional District Judge, Puducherry at Karaikkal in L.A.O.P.No.25 of 2000 dated 18.12.2007.)

Common Judgment

1. Appeal Suit in A.S.No.417 of 2010 is directed against the award passed by the learned Additional District Judge, Puducherry at Karaikal in L.A.O.P.No.31 of 2006 dated 18.12.2007.

Appeal Suit in A.S.No.418 of 2010 is directed against the award passed by the learned Additional District Judge, Puducherry at Karaikal in L.A.O.P.No.16 of 2000 dated 18.12.2007. Appeal Suit in A.S.No.419 of 2010 is directed against the award passed by the learned Additional District Judge, Puducherry at Karaikal in L.A.O.P.No.17 of 2000 dated 18.12.2007.

Appeal Suit in A.S.No.420 of 2010 is directed against the award passed by the learned Additional District Judge, Puducherry at Karaikal in L.A.O.P.No.18 of 2000 dated 18.12.2007.

Appeal Suit in A.S.No.421 of 2010 is directed against the award passed by the learned Additional District Judge, Puducherry at Karaikal in L.A.O.P.No.25 of 2000 dated 18.12.2007.

2. Since all these five appeals are directed against the award passed by the Reference Court in LAOPs arising out a common notification and the point for consideration is one and the same, after hearing the learned counsels for the respective parties in all the appeals, the following common judgment has been passed:-

For the purpose of Oil and Natural Gas Corporation of India (in short “ONGC”) store-yard for drilling and other operational groups, the Land Acquisition Officer acquired to an extent of 1.75.00 hectares of land in T.S.No.N/4/26/5 (in L.A.O.P.No.31 of 2006); to an extent of 1.10.50 hectares of land in T.S.No.N/4/25/3(in L.A.O.P.No.16 of 2000); to an extent of 0.41.00 hectares of land in T.S.No.N/4/25/4 (in L.A.O.P.No.17 of 2000); to an extent of 1.10.50 hectares of land in T.S.No.N/4/25/3 (in L.A.O.P.No.18 of 2000); and to an extent of Rs.1.10.50 hectares of land in T.S.No.N/4/25/3 (in L.A.O.P.No.N/4/25/3) situated at Akkaraivattam Village. The Acquisition Officer awarded compensation of Rs.2,000/- to Rs.2500/- per Are, after taking note of the data value and government guideline value as market value.

3. Aggrieved by that, the land owners have demanded additional compensation at the rate of Rs.10,000/- per kuzhi. Hence, the matter was referred to the Reference Court, as per the Land Acquisition Act, 1894.

4. Before the Reference Court, the Land Acquisition Authority contended that the compensation was fixed on 18.12.2007 in A.S.No.417 of 2010 (L.A.O.P.No.31 of 2006); A.S.No.418 of 2010 (L.A.O.P.No.16 of 2000); A.S.No.419 of 2010(L.A.O.P.No.17 of 2000); A.S.No.420 of 2010 (L.A.O.P.No.18 of 2000); and A.S.No.421 of 2010 (L.A.O.P.No.25 of 2000), based on the guideline value and the date value. The acquired land was an undeveloped piece of wet land and not utilised for cultivation and not used as house site during the past 10 years and it was under the lease of ONGC (appellant herein) for storing materials. The area acquired is located at distance of more than 1

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