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2025 Supreme(Ori) 671

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.P. ROUTRAY, J.
Sri Suresh Kumar Behera - Appellant
Versus
The Land Acquisition Officer, Sundargarh - Respondent
F.A. No.31 of 1996
Decided On : 28-10-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. B. Sahoo, Advocate
For the Respondent: Mr. G. Tripathy, A.G.A.

The timing of a land sale deed relative to acquisition notification is crucial; sales post-notification cannot serve as a basis for enhanced compensation under the Land Acquisition Act.

Headnote:(A) Land Acquisition Act, 1894 - Section 4(1) and Section 23 - Compensation for acquired land - The Appellant's claim for enhanced compensation based on a nearby sale deed was rejected as the sale occurred after the notification of acquisition, losing relevance for determining market value. The valuation for Goda-II land was upheld at Rs.25,000/- per acre. (Paras 3, 4, 8, 10, 11)

(B) Legal Principles - A registered sale deed is a significant factor in determining market value, but evidence must be evaluated in context to the timing of the sale and notification. (Paras 8, 10)

Facts of the case:
The Appellant’s land was acquired in 1991 for highway expansion, receiving compensation of Rs.19,500/- and later claimed increased compensation based on a sale deed for nearby land. (Paras 4, 5)

Findings of Court:
The court determined that the sale deed referenced was not relevant as it was executed after the acquisition notification. Thus, the compensation amount's original valuation was confirmed. (Paras 10, 11)

Issues: The court addressed whether the sale deed could be the basis for enhanced compensation and the relevance of its timing in relation to the acquisition notification. (Paras 6, 10)

Ratio Decidendi: The court ruled that sales occurring post-notification cannot reliably inform market value for compensation calculations; hence, the earlier government-determined rates were deemed appropriate. (Paras 10, 11)

Result: Appeal dismissed.

Table of Content
1. factual background of land acquisition. (Para 2 , 3 , 4)
2. arguments related to land valuation standards. (Para 5 , 11)
3. witness testimonies and their relevance to appraisal. (Para 6 , 7 , 10)
4. principles governing market value estimation. (Para 8 , 9)
5. conclusion and dismissal of the appeal. (Para 12)

JUDGMENT :

B.P. Routray, J.

1. Heard Mr. B. Sahoo, learned counsel on behalf of Mr. L.M. Nanda, learned counsel for the Appellant and Mr. G. Tripathy, learned Additional Government Advocate for the State-Respondent.

2. Present appeal is directed against the order dated 14th September 1995 of the learned Civil Judge (Sr. Divn.), Sundargarh passed in L.A. Misc. Case No.100 of 1994.

3. Present Appellant was the claimant before the learned Senior Civil Judge, Sundargarh whose land measuring area Ac.0.52 decimals in Plot No.3100 under Khata No.310 of mouza-Kutra in the district of Sundargarh was acquired by the State in the year 1991 for expansion of State Highway No.10 from Rourkela to Sambalpur. The Notification under Section 4(1) of the LAND ACQUISITION ACT 1894 was published on 24.08.1991 for acquisition of land situated along side of the Highway. The land of the Appellant is an agricultural land in the nature of Goda- II. The total compensation of Rs.19,500/- was paid to the Appellant in lieu of acquisition of his land measuring area Ac.0.52 decimals.

4. Being aggrieved with the same, the Appellant preferred an application under Section 18 of the LAND ACQUISITION ACT , 1894 claiming enhanced compensation. According to the Appellant, his land acquired by the State should fetch more compensation on the ground that a nearby land of same mouza was sold as per the sale deed dated 20.11.1991 under Ext.1 for Rs.30,000/- per Ac.0.09 decimals. The claimant accordingly prays for assessment of compensation in respect of his acquired land on the basis of such amount recorded in the sale transaction made vide Ext.1.

5. The land in question of the Appellant is undoubtedly of nature Goda-II, which means it is an inferior quality agricultural land, and situating 14 kms away from the nearby town on the road side as per the sale statistics furnished by Sub-Registrar in accordance with the Notification/Declaration No.47166 dated 21.8.1992. The valuation of Goda-II land of mouza-Kutra was made at Rs.25,000/- per acre in terms of the calculation furnished under Ext.B.

6. The claimant examined himself as P.W.1 to substantiate his claim on the basis of the sale deed under Ext.1 of mouza-Kutra for enhancing the compensation amount by making valuation at Rs.5000/- per decimal, meaning thereby Rs.50,000/- per acre. It is stated by P.W.1 in his evidence that the market value of his land was more than Rs.3000/- per decimal and vide Ext.1, the certified copy of the registered Sale Deed No.406 dated 20.11.1991, Ac.0.09 decimals of Goda-II variety of land in mouza-Kutra were sold at Rs.30,000/-. It is admitted by the claimant in his cross-examination that he had no knowledge about losing of any land by the vendor of Ext.1 nor he had any knowledge that whether such land of the vendor in Ext.1 had received more compensation by virtue of any land acquisition process.

7. P.W.2 is the vendor of Ext.1 and he has admitted in his cross- examination that in several land acquisition cases he has witnessed and he has no idea about other transaction in that area except the land sold by him under Ext.1. It is also admitted by him that his land sold under Ext.1 is 1½ km away from the present case land.

8. Section 23 of the LAND ACQUISITION ACT 1894 enumerates various factors to be considered in determining the compensation amount for land acquisition purpose. In addition to the market value of the land prescribed as per Section 23 of the Act, other facts including damages if any caused to the land owner by partial acquisition of his land would also be a considerable factor. It is well settled that the registered sale deed in respect of the land under sam

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