IN THE HIGH COURT OF MADHYA PRADESH (INDORE BENCH)
VIVEK RUSIA, J.
Land Acquisition Officer, Indira Sagar Project (Canal) and Ors. - Appellants
Versus
Saifuddin - Respondent
F.A. No. 25 of 2021
Decided On : 02-03-2021
Land Acquisition - Valuation of Constructed House - Land Acquisition Act, 1894, Section 54 - Summary: The court heard an appeal against the award passed by the District Judge in a Land Acquisition Case. The appeal was initially barred by 46 days, but the delay was condoned. The court admitted the appeal and heard it finally. The case related to the acquisition of 5 houses, and the dispute was regarding the valuation of the constructed houses. The respondent claimed that the houses were undervalued and sought enhanced compensation. The appellants contested the claim, arguing that the compensation was rightly assessed and should not be enhanced. The court found that the valuation was based on outdated guidelines and enhanced the compensation from Rs. 7 lakhs to Rs. 15 lakhs, considering the difference of 9 years and the current market guidelines. The appeal was dismissed.
Fact of the Case:
The case involved an appeal against the award passed in a Land Acquisition Case related to the acquisition of 5 houses for the implementation of the Indira Sagar Canal Project. The dispute arose over the valuation of the constructed houses and the compensation amount.
Finding of the Court:
The court found that the valuation of the houses was based on outdated guidelines and enhanced the compensation from Rs. 7 lakhs to Rs. 15 lakhs, considering the difference of 9 years and the current market guidelines. The appeal was dismissed.
Issues: The main issue was the valuation of the constructed houses and the appropriate compensation amount to be paid to the respondent.
Ratio Decidendi: The court held that the valuation should have been based on the guidelines of the year 2010 when the notification for acquisition was issued, and not on the outdated guidelines. The court considered the difference of 9 years and the current market guidelines in enhancing the compensation.
Final Decision: The appeal was dismissed, and the enhanced compensation of Rs. 15 lakhs for all the houses was upheld.
JUDGMENT :
Vivek Rusia, J.
Heard on IA no. 148/21, an application for condonation of delay.
This is an appeal filed against the award dated 31.10.2019 passed by learned District Judge/Reference Court in Land Acquisition Case No. 381/2019 whereby the award in respect of the valuation of the constructed house has been enhanced up to Rs. 20,64,370/-.
Present appeal is barred by 46 days.
Shri Patwa submits that in respect of the notification and acquisition proceedings, number of appeals have been filed by the appellant before this Court. The entire period of limitation has been consumed for taking approval from various authorities, therefore, delay which has occurred neither intentionally nor deliberately, hence the delay be condoned.
Shri Mangal opposes the prayer and submits that as per law the appellant is required to examine each and every date. The reasons mentioned in the application are vague in nature.
I have perused the record as well as content of the application.
Keeping in view the period of delay i.e. 46 days and identical appeals are pending before this Court, the delay in filing present appeal is hereby condoned. IA No. 148/21 stands disposed of.
Heard on the question of admission.
Admit.
With the consent of parties, the appeal is heard finally.
1. This is a first appeal filed under section 54 of the Land Acquisition Act, 1894 against the award dated 31.10.2019 passed by District Judge, Badwani in Land Acquisition Case No. 381/2015 whereby the amount of compensation has been enhanced.
Facts of the case in short are as under:
2. Respondent was the owner of land bearing survey No. 80/1, 81/2, 81/3 & 82 and a land of area 1.627 hectare and five houses constructed therein. At the request of the appellants, the State Government issued notification dated 23.04.2010 for the acquisition of large area of land for implementation of the Indira Sagar Canal Project. Since the above land and five houses came under acquisition, hence the respondent submitted an objection u/s. 9 and thereafter award dated 25.11.2010 was passed. Being dissatisfied by the award, the respondent sought a reference u/s. 18 of the Land Acquisition Act which was referred by the Collector to the District Court, Barwani, hence the same was registered as case No. 381/2015. For the acquisition of land, a separate award was passed which was referred to the District Judge and decided as LA Case No. 380 of 2015. The present reference is relating to the acquisition of 5 houses belonging to the respondent.
3. After the registration of the Reference Case, the respondent filed a statement of claim contending that all the 5 houses were constructed over the land bearing survey Nos. 80/1, 81/2, 81/3 & 82 had south faced and constructed by RCC and tin shed with a taring approach road. As per the report given by the Executive Engineer, MP Division, houses were constructed with bricks, cement etc. The value of all the 5 houses were more than Rs. 25 lakhs but the Land Acquisition Officer (LAO) has not properly assessed the compensation which is liable to be enhanced at the rate of Rs. 30 lakhs.
4. The present appellants filed the reply by submitting that learned LAO has rightly assessed the compensation of Rs. 7,07,201/- on the basis of the market value of the properties and the guideline fixed by the Collector in the year 2000-2001. No further enhancement is possible in this appeal.
5. In support of the claim, the respondent examined himself as PW/1, Jagdish Nargave, Patwari as PW/2, Kishoresingh, Dy. Registrar as PW/3, Devendra Singh Parmar, Asst. Engineer, Rajan Bhatt, Pvt. Civil Engineer as PW/5 and got exhibited as many as 8 documents as Ex.P/1 to P/8. The appellants examined Shivprasad Mandrah, Land Acquisition Officer.
6. After appreciating the evidence came on record, learned District Judge/Reference Court has held that the respondent is entitled to compensation at the rate of Rs. 15 lakhs in total for 5 houses with solatium of Rs. 4,50,000/- and interest of Rs. 1,07,013/- in total
The main legal point established in the judgment is the assessment of compensation based on the market value of the land at the time of notification under Section 4(1) and the determination of land v....
In land acquisition for public infrastructure, market value should be based on credible guideline values as of the crucial date rather than stray sale deeds, and developmental charges are generally i....
The main legal point established in the judgment is the need to consider expert valuation reports and the quality of construction in determining just and reasonable compensation for acquired properti....
The acquiring authority to award additional interest by way of damages @ 15% per annum from the date when respondents-claimants were dispossessed till the date of notification under Section 4 of Act.
Limitation under Section 18(b) of Land Acquisition Act runs from actual/constructive knowledge of award contents if no Section 12(2) notice; market value from pre-notification sales with escalation.
Sections 12 read as award of Collector when to be final.
The market value of acquired land must be assessed based on its existing use and geographical situation at the time of the notification, with proper evidence required to substantiate claims for compe....
Compensation for acquired land must reflect updated market value based on relevant, bona fide transactions rather than outdated assessments, as established under the Land Acquisition Act.
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