The determination of land compensation under the Land Acquisition Act must reflect fair market value, taking into consideration comparable sales and the effect of land acquisition on residual property value.

S.K. Mishra, J.

1. Though this Appeal has been listed under the heading “Fresh Admission”, learned Counsel for the Appellant-Union of India submits, there is no need of calling for the L.C.R and the matter can be heard and disposed of based on the materials on record. Hence, the Appeal is taken up for hearing and final disposal at the stage of admission on consent of the learned Counsel for the parties.

2. Impugned is the judgment dated 30.09.2015 passed in L.A. Misc. Case No.08 of 2010 by the learned Court below, vide which the referral Court, relying on the documentary evidence on record so also guess-estimate, came to a conclusion that the private Respondent, who is the Petitioner before the Court below, is entitled to compensation @ Rs.2,00,000/- (rupees two lakh) per acre, apart from other statutory dues, as has been detailed in the ordering portion of the impugned judgment.

3. The factual backdrop discloses the dispute relating to enhancement of compensation for acquisition of land appertaining to Khata No.772/8, Plot No.439 measuring Ac.0.95 decimals out of Ac.1.00 decimal, classified as Sarada Ana Jala Sechita-2, situated in Mouza- Narendrapur. Pursuant to Notification No.3008, dated 20.01.2007 issued under Section 4(1) of the LAND ACQUISITION ACT , 1894, shortly, hereinafter ‘the L.A. Act’, the said land was acquired by the Government of Odisha for the public purpose of construction of the Khurda Road– Bolangir Rail–Link Project.

3.1 The judgment dated 30.09.2015 reveals that the lis land was acquired by the Govt. in L.A. Case No. 41 of 2006 for the said project. The Claimant was awarded Rs.72,200/- towards land value and Rs.36,377/-towards other statutory benefits, i.e., a sum of Rs. 1,08,577/- in aggregate. The notice U/s.12(2) of the L.A. Act vide Gazette Notification No.565, dtd.03.03.2008, required the Petitioner-Respondent to appear before the Land Acquisition Collector on 29.09.2009 to receive the awarded amount, which he received under protest. A written objection was filed by him before the Collector on 31.10.2009, as the compensation awarded, being grossly inadequate and not reflective of the prevailing market value of similarly situated lands in the vicinity. The said objection was forwarded to the Court below on 18.01.2010, which was registered as L.A. Misc. Case No.08 of 2010 and the present Appellant and Respondent Nos.1 and 2 contested the said Misc. Case.

3.2 The learned Reference Court categorically addressed the issue of limitation. Since the objection was filed on 31.10.2009, i.e., within six weeks of the statutory limitation period contemplated under proviso to Section 18(2)(a) of the L.A. Act, the application was held not to be barred by limitation.

3.3 In determining the fair market value under Section 23(1) of the L.A. Act, the learned Reference Court took into consideration the nature, classification and location of the acquired land as well as sale instances of comparable lands in the locality relying upon two registered sale deeds, i.e., RSD No.877, dated 13.07.2004 and RSD No.1261 dated 29.11.2004, which were accepted as reliable exemplars for determining the prevailing market rate. Both sale deeds pertain to similarly situated lands in the same village and bore proximity in time to the issuance of Section 4(1) notification.

3.4 The records further reveal that the Govt. acquired Ac.0.95 decimals, thereby causing the residual Ac. 0.05 decimals to lose its potential value. This aspect was found relevant U/s.23(1) of the L.A. Act while determining compensation. On such basis, the learned Court below assessed the fair market value of the land to be Rs.2000/- (rupees two t