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2025 Supreme(Online)(Ker) 20251

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Easwaran S., J
State – Appellant
Versus
Claimants – Respondent
Land Acquisition Appeal | L.A.A. No.51 of 2022 | L.A.A. No.226 of 2020 | L.A.A. No.47 of 2021



Advocates:
For the Appellants/Petitioners: Smt. N. Sudhadevi, Sri. Alias M Cherian, Sri. Ram Mohan L, Smt. Santhamma Issac
For the Respondents:

The court emphasized that previous market values for land in the same village must be considered in determining compensation under the Act, ensuring just compensation as mandated by law.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 26 and Section 64(1) - Appeals concerning land acquisition compensation - The reference court enhanced compensation based on market value calculations, which the State challenged as incorrect. Claimants sought higher compensation, arguing the reference court undervalued the land. The court found the market value was incorrectly determined under the new Act, emphasizing the need for just compensation. (Paras 1, 4, 5, 55)

(B) Compensation Determination - The court ruled that previous land values in the same village must be considered, and the restrictive covenants in the Act do not preclude this. The court emphasized the right to just compensation under Article 300-A of the Constitution. (Paras 41, 46)

(C) Rehabilitation and Resettlement - The court upheld the claimants' entitlement to additional compensation under the Second Schedule of the Act, including annuity payments for displaced families. (Paras 51, 55)

Findings of Court:
The market value of the land was fixed at Rs. 45,01,363/- per Are; claimants entitled to additional compensation as per the Second Schedule.

Issues: The court addressed the validity of the reference court's valuation method and the applicability of prior compensation awards.

Ratio Decidendi: The court asserted that the new Act must not render the compensation process unworkable and that previous market values should guide the current determinations.

Result: Appeals for enhancement of compensation allowed; State's appeal dismissed.

Table of Content
1. interpretation of section 26 of act 30 of 2013. (Para 1 , 2 , 3)
2. arguments presented by both parties regarding compensation. (Para 5 , 6 , 9 , 11)
3. changes in compensation determination under act 30 of 2013. (Para 12)
4. evaluation of evidence for determining market value. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
5. consideration of previous awards and their relevance. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36)
6. relevance of earlier market values in determining compensation. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
7. final assessment of compensation and entitlements. (Para 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54)
8. summary of findings and orders. (Para 55)

JUDGMENT

Easwaran S., J.

A pivotal question regarding the interpretation of Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short, ‘Act 30 of 2013’) has arisen for consideration in these appeals. The challenge raised in these appeals pertains to various orders of the II Additional District Court, Ernakulam, answering the references filed under Section 64 (1) of the Act 30 of 2013. Since the points raised in these appeals are common, they are being considered together and disposed of by a common judgment.

2. For the sake of brevity, the facts leading to L.A.A. No.51 of 2022 preferred by the State and L.A.A. No.226 of 2020 preferred by the claimant for enhancement of compensation (both LAAs arise out of the award in L.A.R. No.25 of 2017) will be considered first.

3. Succinctly the facts in brief are as follows:

An extent of 0.27 Ares of land equaling to 0.666 square links was acquired for the purpose of widening the Main Central Road (MC Road, for short) at Muvattupuzha Town. The notification under Section 4(1) under the Land Acquisition Act, 1894 was issued on 29.3.2014. The Land Acquisition Officer fixed the market value at Rs.14,17,803/- per Are and the building value at Rs.95,766/-. Dissatisfied with the quantum of compensation awarded by the Land Acquisition Officer, the claimants sought reference under Section 64 (1) of the Act 30 of 2013. It is pertinent to mention that along with the claimant, his wife and son also sought reference against their respective awards passed by the Land Acquisition Officer on the very same date in respect of the properties in their possession which were numbered as L.A.R. Nos.26 and 27 of 2017. In the claim statement preferred before the II Additional District Court, Ernakulam, the claimants contended that the value fixed by the Land Acquisition Officer is insufficient and does not reflect the true value of the land. In support of the contentions, the claimants relied on Ext.A1 to A19 documents. The State, on the other hand, produced Exts.B1 to B43 documents. On behalf of the claimants, AW1 to AW3 were examined. On behalf of the State, RW1 to RW5 were examined. The claimants also took out an Advocate Commissioner for local inspection of the land acquired and for the purpose of valuing the building. Ext.C1 to C3(a) were marked as Court Exhibits.

4. Findings of the reference court.

4.1. On consideration of the material evidence before it, the reference court refused to accept Exts.B5, B6, and B7 documents which were not in proximity to the land acquired but accepted Ext.B4 and thereafter proceeded to consider the average market value of the property by taking into consideration the value fixed by the District Collector in respect of a property situated in the proximity of the land acquired as under Ext.A15. The reference court undertook the exercise in view of the mandate contained under Section 26 of Act 30 of 2013 and thus arrived at a land value of Rs.25,26,059.375/- and proceeded to grant enhanced compensation in tune with the extent of property acquired.

4.2. In so far as the claim for compensation on the value of the building is concerned, the reference court found that the claimant di

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