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2025 Supreme(Online)(MAD) 6935

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K.K. Ramakrishnan, P. Velmurugan, JJ
The District Collector, Dindigul District – Appellant
Versus
C.Muthukalyani @ Muthukannan – Respondent
A.S.(MD) Nos.143, 146, 147, 154, 164, 194, 269, 317, 319 & 326 of 2023 and A.S.(MD) Nos.6, 73, 128, 232, 233, 234, 236, 237, 239, 243, 244, 245, 248, 249, 266, 267, 268, 273 of 2024



Advocates:
For the Appellants/Petitioners: Mr.R.Baskaran, Mr.M.Sarangan
For the Respondents: Mr.K.Muthu Ganesa Pandian

The determination of compensation for land acquisition must reflect fair market value, considering the complexities inherent in land valuation and the principles of guesstimation and belting system.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 26 to 30 - Appeal against enhancement of compensation for acquired lands in Dindigul District - The Land Acquisition Officer determined compensation based on guideline values and multiplier factors, which were contested by landowners, leading to appeals for reassessment - The Principal District Judge enhanced compensation applying uniform rates without adequate justification, prompting the Government to appeal - The court emphasized the need for fair market value determination, recognizing the complexities and uncertainties in land acquisition compensation. (Paras 1, 2.3, 3.2, 4.1, 10.5, 12.5, 22.1, 23.1, 23.2, 23.3, 23.4, 23.5, 23.6, 23.7, 23.8, 23.9, 23.10, 23.11, 34.1)

Table of Content
1. introduction of case details and context. (Para 1 , 2)
2. arguments presented by the parties. (Para 3 , 4)
3. court's analysis and observations on the merits. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13)
4. conclusions and orders of the court. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51)

JUDGMENT :

K.K.RAMAKRISHNAN, J.

Summary of DiscussionParagraph Nos
Prelude1
Brief facts of the case2-2.6
Submission of Learned Additional Advocate General3-3.5
Submission of Learned Counsel for the Respondent/Land owner4-4.2
Points for Determination5-5.1
Discussion on Facts6-6.5
Discussion on Merits7
Meaning of Market Value8
Consider factor lay down by Hon’ble Supreme Court to Determine Market Value9-9.4
Merits and demerits of the General patten by LAO10-10.9
Merits and De-merit of the award passed by the PDJ11-11.1
Principle relation to the applicant of Doctrine of Guesstimation12-12.5
Theory of Belting System13-13.2
Principle relation to the applicant of belting system14-14.1
Determination of fair market value of segment Nos.1&215
Determination of the compensation of S.Nos.409/1B2, 409/102B, 410/1A, 410/1B1A, 410/1B3, 409/1A2A, 419/2A, 420/2A16-16.4
Determination and compensation of the S.Nos.431/1B2A, 432/2A, 432/2B17-17.1
Determination of the Compensation to remaining S.Nos.430/2A, 430/B2A, 439/1C, 441/2, 441/2B, 447/2, 63818-18.1
Determination of the Compensation of Segment Nos. 219-19.6
Determined value of both segment Nos. 1&220-20.1
Determination of market value Segment No.321-21.3
Determination of Multiplier Fact22-22.3
Final Conclusion23-23.11

Prelude:

the right to compensation for compulsory acquisition is a basic property right. It is unfortunate that ascertaining the rules upon which compensation is to be assessed can involve such a tortuous journey, through obscure statutes and apparently conflicing case law, as has been necessary in this case

The above observation of the Carnwath LJ's views in Judgment of the Court of Appeal reported in 2003 (4) ALL ER 384 echoed by The House of Lords in the case of “Waters and others vs. Welsh Development Agency, reported in (2004) 1 WLR 1304 as follows:

Unhappily the law in this country on this important subject is fraught with complexity and obscurity. To understand the present state of the law it is necessary to go back 150 years to the Lands Clauses Consolidation Act 1845 (8 & 9 Vict c 18). From there a path must be traced, not always easily, through piecemeal development of the law by judicial exposition and statutory provision. Some of the more recent statutory provisions defy ready comprehension. Difficulties and uncertainties abound

All courts face similar situations while dealing with cases relating to land acquistion compensation cases in the process of arriving at market value of the acquired property due to complexity, obscurity, difficulty and uncertainty in the development of law by judicial exposition and statutory provision in the process of the determination of the compensation.

Here also, this Court is entangled with similar problem in determining the market value as this court has to find a balance between the extreme disparity in the award passed by the Land Acquisition Officer and extreme irrationality in the award passed by the learned Principal District Judge.

2. Brief facts of the case

2.2. Before delving into the tortuous process of determination of market value in this case, to cut the long story short, the following brief facts are necessary:

2.3. The Government is appellant and has filed these appeals against enhancement of compensation made in various L.A.O.Ps., by the learned Acquisition Rehabilitation and Resettelment Authority/ Principal District Judge, Dindigul, for the acquired lands situated in various survey Numbers of Kallimandayam Village, for laying four lane road and strengthening the oddanchathram-Dharapuram-Tiruppur Road (SHNo.37)

2.4.Total extent of 101451 sq.m




























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