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2024 Supreme(Ori) 134

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Tilottama Nayak  - Appellant
Versus
Special Land Acquisition Officer – Respondent
L.A.A. No.115 Of 2013  
Decided On : 02-09-2024

Advocates Appeared:
For the Appellant : Mr. N. Panda, Adv.
For the Respondent: Mr. B. Panigrahi, Addl. Standing Counsel

Compulsory land acquisition compensation must prioritize actual market value determined through comparable transactions, rejecting average calculations unless strongly justified.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4(1), 12(2) - Appeal against compensation determination for acquired land - Court modified compensation to Rs.2,00,000/- per acre reflecting enhanced value, considering market trends and statutory entitlements, while denying additional claims for embankment damages. (Paras 19, 21)

(B) Law of evidence - The highest comparable market value of similar lands must be prioritized in determining just compensation; average values are not favored unless justified with strong rationale. (Paras 16, 18)

(C) Rights of landowners - Acquisition impacts the value and usability of remaining lands; compensation must reflect the true market potential and not just prior classifications. (Paras 11, 19)

Facts of the case:
The appellant's land was partially acquired for the Angul-Duburi-Sukinda Rail Link Project, leading to disputes over compensation adequacy, particularly considering the land's prior use as a pond and its potential market value. The lower court had awarded Rs.72,022/- based on the land's classification, with an additional Rs.10,000/- for damages to the pond's embankment.

Findings of Court:
The higher compensation reflects the true market potential of the land as adjacent to a major highway, considering both past sales and the land's converted use.

Issues: Whether the court should have considered higher sales value for compensation calculation and whether damages from embankment acquisition warranted additional compensation.

Ratio Decidendi: The evidence and prior transactions dictate a shift from prescribed minimums to market value assessments, ensuring fair compensation for landholders based on actual use and potential value.

Result: The appeal is allowed, revising compensation to Rs.2,00,000/- per acre.

Table of Content
1. appeal against lower court's confirmation of compensation. (Para 1 , 2)
2. issue framed regarding entitlement to higher compensation. (Para 3 , 4)
3. dissatisfaction with compensation assessment for acquired land. (Para 5 , 6)
4. citing precedents for establishing entitlement to highest compensation. (Para 7 , 8)
5. court's reasoning on evidence and compensation determination. (Para 10 , 11 , 12 , 13)
6. discussions on market value assessments and evidence. (Para 14 , 15)
7. supreme court's principle on compensation for compulsory acquisition. (Para 16 , 17)
8. assessment of compensation amount and statutory dues. (Para 18 , 19 , 20)
9. final determination and order of the court. (Para 21 , 22)

JUDGMENT :

S.K. MISHRA, J.

1. This Appeal has been preferred against the Judgment dated 31.07.2013 passed in LAMC No.41/12 by the Civil Judge (Sr. Div.) Kamakhyanagar, vide which the Court below confirmed the compensation amount as determined by the Land Acquisition Officer (LAO) so also directed the LAO to pay additional Rs.10,000/-for damage caused to the embankment of pond belonging to the Appellant and also ordered for payment of all the statutory benefits on such additional amount of Rs.10,000/-.

2. The brief facts, which led to filing of the Appeal are that, an area of Ac.0.60 decimals appertaining to Plot No.99 of Taila-II Kissam under Khata No.07 of Mouza- Gopigadia was acquired by the Govt. for the purpose of Angul-Duburi-Sukinda Rail Link Project, vide Notification No.18764 dated 10.05.2010, published under Section 4(1) of L.A. Act. The LAO assessed the compensation in total at Rs.40,000/- per acre and a notice under section 12(2) of the L.A. Act was issued to the Appellant to receive compensation amount of Rs.72,022/- including the market price of the acquired land along with other statutory benefits provided under the L.A. Act. Being dissatisfied with the compensation amount, the Appellant filed his written objection before the L.A. Collector and received the compensation under protest.

3. Based on the pleadings of the parties, the Court below framed the following issue:-

i) Whether the Appellant/Petitioner is entitled to have an amount of higher compensation than the amount settled by the O.P?

4. The said issue was dealt with and answered by coming to a conclusion that the market price of the acquired land as determined by the Special LAO is correct and the Appellant is entitled to get the compensation of Rs.10,000/- more for damage caused to the embankment of pond so also other benefits as per the statute on such additional compensation of Rs.10,000/-.

5. The Appellant has preferred this appeal on the following grounds that, the land of the Appellant measuring Ac.0.60 decimals was compulsorily acquired by the Govt. and though the ROR reflects that the Kissam of the acquired land is Taila-II, she had excavated a pond over the land by spending huge money and undertaking Pisciculture over the same, from which she was earning Rs.40,000/- per year as net income. Though at the time of acquisition, the acquired land was a pond, since it is adjacent to N.H-200 and G.P. road, it has a great potentiality to be converted into homestead land, but the same has not been taken into consideration by the court below. Thus, the impugned judgment is liable to be interfered. Further, since the Govt. acquired Ac.0.60 dec. out of total plot measuring Ac.2.00 from the middle for rail line, remaining Ac.1.40 dec. of land has become scattered and useless, for which she sustained considerable damage.

6. Learned Counsel for the Appellant submitted that, the registered sale deed as under Ext.3 i.e. certified copy of the RSD No.43 of 1999 & Ext.4 i.e. certified copy of RSD No.1380 of 2009 should have been taken into consideration by the Court below for reasonable guess work of determination of the market value which would have increased the market value of the acquired land. Similarly, the State Opposite Party exhibited the working sheet, which refl

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