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2024 Supreme(Mad) 2591

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.SUBRAMANIAN AND R.SAKTHIVEL, JJ.
The Special Tahsildar, Adi Dravida Welfare, Sathyamangalam - Appellant 
Versus
Velusamy - Respondent
S.A.No. 661 of 2010 
Decided on : 23-07-2024


Advocates:
Advocate Appeared:
For the Appellant :Mr.R.Siddharth Government Advocate
For the Respondent: Mr.A.R.Balaji for Mr.S.Ramesh Kumar

Compensation for acquired land should be based on comparable sale instances, with necessary deductions for larger plots to ensure fair valuation.

Headnote:(A) Tamil Nadu Acquisition of Land for Harijan Welfare Scheme Act, 1978 - Section 9 - Appeal against land compensation - The appellant opposed the compensation awarded for acquired land, contending it was below market value. The respondent argued that the trial court accurately considered sale deeds when calculating compensation. (Paras 1, 3, 4)

(B) Compensation Determination - Compensation should utilize comparable sale transactions and include necessary deductions for larger parcels. The court emphasized the priority of valid market value calculations over incorrect methodologies. (Paras 11-12)

(C) Evidence Consideration - The court found self-contradictory conclusions in the lower court's judgment, justifying a recalculation without remitting. (Paras 10, 16)

Facts of the case:
The Special Tahsildar contested a Sub-Judge's award that fixed compensation for 5.08 acres of acquired land intended for housing. The original award set compensation at Rs.52,965/- per acre, prompting the landowner's appeal.

Findings of Court:
The appellate court recognized the lower court's method as flawed and recalibrated the land's value to Rs.7,20,000/- per acre, enforcing deductions for size.

Issues: The appeal centered on whether the lower court's compensation fix was appropriate given the use of comparable sales.

Ratio Decidendi: The court emphasized that appropriate market comparisons are critical, particularly when culminating in a questionable determination of compensation amounts due to flawed methodology. The requisite deductions for large land parcels were mandated.

Result: Appeal allowed; compensation set to Rs.7,20,000/- per acre.

Table of Content
1. factual background of land acquisition case (Para 1 , 2 , 3)
2. arguments on the appropriate methods of compensation calculation. (Para 4)
3. arguments regarding compensation determination (Para 5 , 6 , 7)
4. court's assessment of compensation fixing methodology (Para 8 , 9 , 10)
5. legal principles on compensation for land acquisition (Para 11 , 12 , 13 , 14 , 15)
6. final decision on compensation award (Para 16 , 17)

JUDGMENT :

R. SUBRAMANIAN, J.

1. The Special Tahsildar / Acquiring Authority is on appeal, aggrieved by the award of the learned Sub-Judge, Gopichettipalayam made in L.A.C.M.A.No. 7 of 2005, an appeal under Section 9 of the Tamil Nadu Acquisition of Land for Harijan Welfare Scheme Act, 1978 (herein after referred to as the Act).

2. The factual backdrop leading to the appeal is as follows:-

An extent of 5.08 acres of land belonging to the respondent was sought to be acquired for the purpose of providing free house sites to Adi Dravida people belonging to Rajan Nagar Village of Sathyamangalam Taluk of Erode District. A notification under Section 4(1) of the Act was published in the Erode District Gazette on 20.09.2003. The local publication as required under the Act were also made subsequently. An enquiry under Section 5 was conducted and ultimately an award came to be passed on 28.12.2004. The Special Tahsildar, Adi Dravidar Welfare who passed the award granted a sum of Rs.52,965/- per acre. Claiming that the award is very meagre, the respondent herein filed an appeal under Section 9 of the Act before the jurisdictional Sub-court namely, Sub-Court, Gobichettipalayam.

3. At trial before the learned Sub-ordinate Judge, the claimant/appellant filed two sale deeds dated 19.12.2003 and 14.11.2002 as Exs.C1 & C2 respectively. The claimant was examined as C.W.1 and two other witnesses connected with the sale deeds were examined as C.W.2 & C.W.3. The Award Officer was examined as R.W.1 & Exs.R1 to R18 were marked. The learned Sub-ordinate Judge, upon consideration of the evidence on record, took the value at Rs.7,50,000/- per acre and determined the value of the acquired land at Rs.38,10,000/-. He also awarded the statutory benefits viz., solatium at 15% and interest at 6%. It is this award, which is subject matter of challenge in this Second Appeal.

4. The following question of law was framed for determination in the appeal on 18.04.2024:-

"Whether the learned Subordinate Judge was right in fixing the compensation on a complete guess work without following the well laid down criteria as found in various judgments of this Court and the Hon'ble Supreme Court, particularly when compensation is fixed on the basis of comparable sale deeds."

5. The counsel were put on notice on question of law and heard on 15.07.2024. Mr.R.Siddharth, learned Government Advocate appearing for the appellant would vehemently contend that the learned Sub-ordinate Judge has not followed any of the principles that have been laid down in respect of determination of compensation using the exemplar sale method. He would also further point out that while Ex.C1, sale deed relates to an extent of about 5 cents, Ex.C2 relates to 20 cents. He would also fault the learned Sub-ordinate Judge for not having deducted any amount towards development charges while fixing the compensation on the basis of a sale deed on a smaller extent of land. The learned counsel would also rely upon the judgment of the Hon'ble Supreme Court in Union of India Vs. Premlata and Others , (2022) 7 SCC 745 wherein, the Hon'ble Supreme Court has pointed out that while a sale instance of a small plot is taken as the basis for determination of compensation for larger extent of land, suitable deductions should be made.

6. Contending contra, Mr.A.R.Balaji, learned counsel for the respondent / land owner would submit that the Trial Court had taken into account the combined effect of Exs.C1 & C2 while determining the compensation. Though it has not dealt with the documents separate

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