Determination of Compensation for Land Acquisition

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.

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By the impugned common judgment and order the High Court has determined and awarded the compensation @ Rs.80,000/- per acre considering the market value of the land Rs.1,23,000/- per acre and thereafter deducting 1/3.

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Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the High Court determining and awarding the compensation at Rs.80,000/- per acre and Rs.10,000/- per acre for sub-soil rights on account of the coal deposits, the original claimants – land owners have preferred the present appeals.

It is submitted that though the Hon’ble High Court has observed that it is not proper for the Land Acquisition Officer or the Civil Court to separately award the compensation towards sub-soil mineral rights, thereafter it is observed that it is permissible to take the fact or into account, while determining the market value. It is submitted that since the entire land is to be mined, there is no wastage of land on account of any developmental activities, such as roads, sewage lines, parks etc. It is submitted that therefore, the deduction from the compensation determined may not be permissible in absence of any justification for such deduction as the entire land is having coal reserves.

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Mariarputham, learned Senior Advocate appearing on behalf of the respondents while opposing the present appeals has submitted that the amount determined by the Hon’ble High Court which includes Rs.10,000/- per acre towards the coal deposits, the same is not required to be interfered with by this Hon’ble Court.

By the impugned common judgment and order the High Court has determined and awarded Rs.80,000/- per acre. Land Acquisition Officer, (1996) 9 SCC 640, in which this Court has held that the purpose for which acquisition is made is also a relevant factor for determining the market value and the purpose for which the land is acquired must also be taken into consideration, thereafter in paragraph 29 it is observed and held as under: “29.

Reference Court fixed the market value of the land at Rs 200 per sq m and after deduction of development charges, determined the compensation @ Rs 134 per sq m.

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On further appeal, this Court held that since the lands were acquired for being submerged in water of dam and had no potential value and the sale instance relied was a small plot measuring 46.30 sq m whereas the acquisition in the present case was in respect of large area, interest of justice would be subserved by awarding compensation of Rs 160 per sq m in respect of larger plots and Rs 175 per sq m for smaller plots.

Case Title: S SHANKARAIAH THR. GPA HOLDER Vs. LAND ACQUISITION OFFICER AND REVENUE DIVISIONAL OFFICER PEDDAPALI KARIMNAGAR DIST. (2022 INSC 1185)

Case Number: C.A. No.-006821-006821 / 2022

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