Compensation for acquired land must reflect updated market value based on relevant, bona fide transactions rather than outdated assessments, as established under the Land Acquisition Act.

JUDGMENT

Date : 14-10-2025

Heard learned counsel for the appellants and learned counsel for the respondents.

2. All these three appeals have been preferred against the judgment and decree dated 14.10.1993 (hereinafter referred to as the impugned judgment) passed in Land Acquisition Case Nos. 08 of 1990, 07 of 1990 and 10 of 1990 passed by Sub-Judge 3^rd Patna (hereinafter referred to as the ‘learned trial court’) wherein and whereunder the learned trial court has awarded insufficient compensation with respect to the lands and houses which were acquired in above cases.

3. The Land Acquisition Officer, Patna has made a reference under Section 18 of the Land Acquisition Act regarding adjudication for the adequacy of the compensation for the lands and houses acquired. There having common question of law and facts of 14 cased including these cases were taken together by the learned trial court.

4. The facts leading to these cases are that about 01 Acre 15 Dismil of land along with houses standing over the same belonging to these awardees within the village- Mosimpur Kurtha P.S.- Fatwah, District- Patna acquired by the State of Bihar for the purpose of construction of approach road to Punpun bridge by a Gazette notification under Section 4 of the Land Acquisition Act on 16.08.1980. Date of declaration under Section 6 of the Act for the same was on 01.07.1982 and the award of the lands and houses were made by the Collector on 23.09.1989 and the possession of the lands and the houses were taken on 18.05.1987 by the Collector. The compensation money for the bhith lands and homestead land acquired was paid to the awardees at the rate of Rs.96,000/- per acre i.e. Rs.3,000/- only per kattha. The Collector also paid the price of the houses to the awardees varying from Rs.3,690/- to Rs.2,31,750/-. The Collector also paid 30% solatium and interest on the amount of compensation to the awardees. The awardees received compensation money so awarded under protest to the effect that the compensation money awarded by the State of Bihar either for the lands or for the houses standing over the same was inadequate. Therefore, the Collector referred these cases to the court for adjudication of the adequacy of the quantum of the compensation.

5. According to the State of Bihar, compensation already paid for the lands and houses standing thereon was proper and adequate. On the other hand, the awardees have come before the court with their respective cases that the lands of the awardees lies within the notified area of Fatwah at the corner of the main road of Patna-Ranchi national Highway. It is also the case of the awardees that Land Acquisition Officer has relied upon the sale deed which do not represent true and real market value of the lands under acquisition and has left out the true and genuine sale deed of the locality representing higher price. They have claimed the price of the acquired lands at the rate of Rs.50,000/- per kattha. They have also made out their case that the Executive Engineer of the State has failed to take into account the correct aspect of engineering in respect of making assessment of the value of the buildings of the awardees. He should have taken into account while determining the compensation of the buildings as to what would be real cost in erecting a building similar to existing building of the awardees at the time of notification. According to their cases, inadequate price of their buildings has been fixed by the Land Acquisition Officer on the basis of unscientific