Summary
Lands at Kozhikode were acquired in 2009 for an IT Park. The Reference Court enhanced compensation to between Rs. 1,75,000 and Rs. 3,00,000 per cent, but the Kerala High Court fixed Rs. 1,35,000 per cent by giving a 35 per cent rise over the negotiated price of Rs. 1,00,000 per cent at which the requiring authority had bought 28.89 acres from 145 other landowners. The Supreme Court held that the negotiated price, though not binding on claimants who sought references, was a relevant consideration; that a sale exemplar for a mall was rightly discarded as artificial and post-acquisition exemplars rightly ignored; but that given the garden lands' road access and proximity to Thondayad junction a 35 per cent rise was low and a 60 per cent rise was just compensation. Compensation enhanced to Rs. 1,60,000 per cent with statutory benefits.
Issues
- Whether the negotiated price at which other landowners sold land for the same project can be taken into account in determining market value for claimants who sought references under Section 18 of the Land Acquisition Act, 1894.
- Whether a sale exemplar of land sold for a commercial mall and post-acquisition sale exemplars can be relied upon.
- Whether a 35 per cent rise over the negotiated price yielded just compensation.
Provisions considered
- Section 4, Land Acquisition Act, 1894Notifications for acquisition of the lands for the IT Park were issued on 21.08.2009. (¶ 3)
- Section 18, Land Acquisition Act, 1894Landowners dissatisfied with the award sought references; such claimants are not bound by the negotiated price accepted by other landowners, though it is a relevant consideration in fixing compensation. (¶ 6)
- Statutory benefits and interest on enhanced compensation, Land Acquisition Act, 1894Claimants held entitled to all statutory benefits including interest on the enhanced compensation, to be deposited with the Reference Court within six weeks. (¶ 9)
Held
- The requiring authority purchased 28.89 acres from 145 landowners by negotiation at Rs. 1,00,000 per cent for the very project; landowners who sought references are not bound by that price, but the High Court rightly treated it as a relevant consideration in determining compensation. (¶ 6)
- The sale exemplar relied on by the claimants concerned land sold for a commercial purpose, namely a mall, and was rightly discarded as artificial and exorbitant; other exemplars were post-acquisition and were also rightly discarded. (¶ 7)
- Considering the location of the garden lands with road access and Thondayad junction about two kilometres away, a 35 per cent rise over the negotiated price was on the lower side; claimants are entitled to just compensation and a 60 per cent rise, giving Rs. 1,60,000 per cent, is fair compensation. (¶¶ 8, 9)
Result
Appeals allowed in part; High Court judgments modified to award compensation at Rs. 1,60,000 per cent instead of Rs. 1,35,000 per cent, with all statutory benefits including interest under the 1894 Act on the enhanced amount; acquiring body to deposit the enhanced compensation with the Reference Court within six weeks, whereupon claimants may withdraw it; no costs.