Delve into the detailed legal analysis conducted by the court in a recent land acquisition compensation case. The court scrutinized various factors to determine fair compensation for acquired land, highlighting the importance of statutory provisions and established principles in such matters. This summary sheds light on the legal complexities involved in land acquisition disputes.
Facts
- Union of India filed Civil Appeal Nos. 5006-5010 of 2022 to reduce the compensation amount from Rs. 19 per square feet.
- The appeal also challenges the grant of compensation for the entire land owned by Sagar Maize Products Ltd. in Village Maksi.
- The Land Acquisition Collector awarded compensation of Rs. 30,000 per hectare (Rs. 5 per square feet) as the market value of the acquired land.
- The Reference Court determined compensation at Rs. 40 per square feet based on various factors such as market value statements and expenses incurred by the landowner.
- The Company purchased land for industrial use in 1986-87, with permission to convert agricultural land.
- Various witnesses and documents were relied upon to determine the market value of the land, with differing values ranging from Rs. 25-30 to Rs. 50 per square feet.
- The Company claimed enhancement of compensation to Rs. 40 per square feet for the acquired land and their entire land of 2.038 hectares.
- The notification for land acquisition under the Land Acquisition Act was published in March 1990 for the Dewas-Maksi Railway Line project.
- An advertisement for sale of residential plots at Rs. 45 per square feet was issued in 1984 by the Housing Development Board.
- Due to restrictions on development work within 30 meters of the railway line, the Reference Court held that the entire land could not be utilized for any purpose.
- Reference Court held that industry cannot be established due to railway line passing through certain survey numbers
- Compensation of Rs.19/- per square feet awarded for remaining land of 1,93,077 square feet
- High Court referred to statement of Pawan Damade (PW-11) and affirmed Reference Court’s finding
- Reference Court awarded Rs.10,53,000/- for 26,325 square feet land for laying railway line
- High Court assessed market value at Rs.25/- per square feet but applied 25% deduction due to large agricultural land acquired
- High Court awarded compensation at Rs.19/- per square feet for entire land acquired
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Issue
- The main issue to be determined is the extent of land to be acquired on both sides of the railway line.
- It is crucial to establish the exact boundaries and scope of the land that will be part of the acquisition process.
- Determining the extent of land acquisition is essential for clarity and legal compliance in the railway line development project.
- The determination of land acquisition boundaries will impact the overall execution and success of the railway line project.
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Analysis
- The distance norms are determined by the Railways and not the State.
- Land situated on the western side of the railway track is 139163 square feet, not suitable for acquisition according to the appropriate Government.
- The circular dated 8.9.1988 states that 30 meters on both sides of the railway line is a restricted area, but can be utilized with railway consent.
- Compensation for the entire land owned by the Company is deemed unwarranted and excessive as per the Court.
- Market value determination by the Reference Court is found to be inconsistent with established principles.
- The market value assessed by the High Court at Rs.25/- per square feet is upheld.
- Compensation for land on both sides of the railway track is limited to 30 meters from the center of the track.
- Compensation of Rs.19/- per square feet awarded for the land on the eastern side is deemed excessive.
- Company’s claim of compensation on account of severing land is considered unreasonable by the appropriate Government.
- The acquired land can be utilized for industrial purposes but with restrictions and additional costs.
- Compensation on account of severance is not entitled to the benefit of Section 23(1-A) and Section 23(2) of the Act.
- Market value is determined in terms of Section 23(1) firstly, while compensation on account of severance of land is determined under Section 23(1) thirdly.
- The brochure issued by the Development Authority of fully developed plots cannot form the basis for the award of compensation for acquisition of undeveloped lands.
- Section 23 of the Act outlines factors to determine compensation for acquired land.
- Clause thirdly considers damages at the time of the Collector taking possession, specifically in cases of severing land from other land.
- This specific part of the judgement addresses the compensation determined by the High Court, which is deemed questionable.
- The Reference Court’s method of determining compensation is described as wholly fallacious.
- The decision states that despite the questionable compensation, there is no reason to interfere with the present appeal under Article 136 of the Constitution.
Also Read: Inter-State Jurisdiction: Assessing Legislative Competence
Decision
- Compensation for land on the western side after 30 meters from the railway track and abutting the road stands at the maintained amount.
- Landowners and the Company entitled to statutory benefits under Section 23(1-A) and Section 23(2) of the Act for such land.
- Company entitled to Rs.9.5 per square foot for land on the eastern side after leaving 30 meters of buffer zone, without statutory benefits.
- Upon leaving land beyond 30 meters on the eastern side, compensation for land severance at Rs.9.5 per square foot without statutory benefits.
- Company entitled to 50% of compensation for the railway track, i.e., Rs.9.5 per square foot for land on the eastern side after departing 30 meters from the railway track center.
- Compensation amount for construction of pillars on the unacquired land on the western side is agreed at Rs.14,34,300.
- Civil Appeal No 5031 of 2022 filed by the Company is dismissed, while Civil Appeal Nos. 5006-5010 of 2022 filed by the Union are allowed.
- Landowners, including the Company, entitled to compensation at Rs.19 per square foot for land within 30 meters from the railway track center on both sides.
- Company entitled to Rs.14,34,300 for pillars raised on the land.
- Company’s appeal for an enhancement of compensation at Rs.40 per square foot is deemed untenable.
Case Title: UNION OF INDIA Vs. RAMCHANDRA (2022 INSC 820)
Case Number: C.A. No.-005006-005010 / 2022
