IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.N. MANJULA, J.
The Land Acquisition Officer & District Collector, Kancheepuram & Another - Appellant
Versus
Alaguvel & Another - Respondent
C.R.P. Nos. 1409, 1396, 1398, 1382, 1395, 1393, 1380, 1419 and 1410 of 2022
Decided On : 01-09-2022
Land Acquisition - Compensation - Kolkata Metropolitan Development Authority Vs. Gobinda Chandra Makal (2011) 9 SCC 207 - The court discussed the application of development charges in determining the market value of acquired lands and emphasized that deductions for development are only applicable when the subject lands are unusable waste lands. The court held that the claimants deserve enhanced compensation based on the actual market value and that no acceptable reason was stated for allowing deductions.
Fact of the Case:
The revision petitioners, who are the Referring Officers, sought to set aside the judgment and decree passed in land acquisition proceedings for enhancement of compensation. The dispute arose when the Land Acquisition Tribunal fixed the market value of the lands at a higher rate than the compensation awarded by the Land Acquisition Officer. The petitioners contended that the Tribunal's reliance on a sample sale deed for fixing the land value was excessive and that development charges should have been deducted. The respondent claimants argued that the acquired lands were already developed approved house sites and hence no deduction for development charges was necessary.
Finding of the Court:
The court found that the claimants deserved enhanced compensation based on the actual market value and that no acceptable reason was stated for allowing deductions. The court confirmed the order of the Land Acquisition Tribunal and dismissed the Civil Revision Petitions filed by the Referring Officer.
Issues: The main issues revolved around the determination of the market value of the acquired lands and the applicability of development charges in the compensation calculation.
Ratio Decidendi: The court held that deductions for development are only applicable when the subject lands are unusable waste lands. Since the acquired lands were already developed approved house sites, the court found no justification for allowing deductions for development charges.
Final Decision: The Civil Revision Petitions filed by the Referring Officer were dismissed, and the order of the Land Acquisition Tribunal was confirmed. The respondents/claimants were granted liberty to withdraw the proportionate compensation due to them by making proper applications before the appropriate Court.
JUDGMENT
(Prayer: Civil Revision Petition is filed under Article 227 of the Constitution of India, to set aside the judgment and decree in LAOP No.6 of 2016 dated 20.03.2017 on the file of the Additional Subordinate Judge, Chengalpattu.)
Common Order
1. These Civil Revision Petitions have been preferred to set aside the judgment and decree passed in LAOP Nos.4,5,6,7 of 2016, LAOP No.1,2,3 of 2015, LAOP No.5 of 2014 dated 20.03.2017 and LAOP No.3 of 2016 dated 28.04.2017 on the file of the Additional Subordinate Judge, Chengalpattu.
2. Heard Mr.T.Chandrasekaran, learned Special Government Pleader appearing for the petitioners and Mr.A.Babu, learned counsel for the first respondent in all Civil Revision Petitions and also perused the materials placed on record.
3. The short facts of the case in all Civil Revision Petitions are as follows:
The revision petitioners are the Referring Officers. The reference was made by the first revision petitioner who is the District Collector-cum-Land Acquisition Officer, Kancheepuram for enhancement of compensation in connection with the land acquisition proceedings. An award was passed in Award No.6 of 2010 dated 31.08.2010, for acquiring the lands belonging to the first respondent and others for the purpose of formation of Railway over bridge. The lands of the respondent claimants are situated in S.Nos.553/7B, 553/9F2, 553/22, 133/1A1B, 552/23, 205B/3B2, 205B/3A1, 205B/4C, 553/9F3, 553/9C2 in Chengalpattu town.
3.1. The compensation was given by fixing the land value at the rate of Rs.1351/- per Sq.ft. Not being satisfied with the compensation so awarded, the respondent claimants raised objections. Hence, reference was made to the Land Acquisition Tribunal for enhancement of compensation. The Land Acquisition Tribunal has fixed the market value of the lands by enhancing it to Rs.5500/- per Sq.ft. and enhanced the award on that basis. Aggrieved over that, the petitioners have filed these Civil Revision Petitions.
4. Mr.T.Chandrasekaran, learned Special Government Pleader appearing for the petitioners submitted that the learned Presiding Officer has relied on Ex.C1 sale deed as a sample sale deed for fixing the land value at Rs.5500/- per Sq.ft; the subject matter of the said sale deed is a smaller extent of land comprising 440 Sq.ft only; since the acquisition was made for a larger extent of lands, the value fixed by the Land Acquisition Tribunal is very excessive; while the Land Acquisition Officer has relied on the sale deed related to the land abutting to the acquired lands, the Court has relied on the land which is far away from the acquired lands for fixing the market value; the extent of land involved in the sample sale deed relied by the Court is just 440 Sq.ft; the extent of land involved in the data sale deed relied by the Referring Officer is 2000 Sq.ft; while fixing the market value, the Court omitted to deduct development charges; whenever smaller extent of lands are acquired for larger purpose, the Court should deduct development charges. In support of his above submissions, reliance was placed on the judgment of the Supreme Court rendered in the case of Kolkata Metropolitan Development Authority Vs. Gobinda Chandra Makal and Another, reported in (2011) 9 SCC 207.
5. Mr.A.Babu, learned counsel for the respondent claimants submitted that the lands acquired from the land owners are already developed approved house sites and hence there is no need to deduct any development charges; the sample sale deed relied by the Court is situated in the very same stretch of lands acquired for the similar purpose; the location advantages and other other features surrounding the lands were taken into consideration while enhancing the compensation; since the lands have already got amenities, the deduction of development charges will not arise.
6. The subject matter of the data sale deed relied by the Referring Officer and the sale deed relied by the Court are situated in a distance of 1.6 Kms. The entire s
The main legal point established in the judgment is that deductions for development charges in determining the market value of acquired lands are only applicable when the subject lands are unusable w....
The court reaffirmed that compensation for acquired land must reflect fair market value, taking into account adequate comparable sales while establishing that evidence must support any deductions for....
Court should look into sale instances of smaller pieces of land while applying reasonable element of deduction.
Market value in land acquisition must reflect fair compensation by considering local comparable sales despite development charges; enhancements by tribunal upheld as reasonable.
Acquisition of land – Generally, sale instances with respect to small plots/parcels of land are not comparable to a large extent of land for the purpose of determining compensation.
The main legal point established in the judgment is the relevance of sale instances/exemplars from the acquired land for determining the market value and the appropriateness of deductions towards dev....
[The determination of compensation for land acquisition must be based on the market value at the time of notification, considering comparable sales and the land's potential, with reasonable deduction....
The highest sale instance must be considered for compensation valuation, and deductions for development charges must reflect the land's actual condition.
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