VidhiSangh

Supreme Court of India · 10/04/2023

RAJALAKSHMI versus THE SPECIAL TAHSILDAR (LA) KOYILANDY & ANOTHER

[2023] 2 S.C.R. 870 · 2023 INSC 333

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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

  1. 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.
  2. Whether a sale exemplar of land sold for a commercial mall and post-acquisition sale exemplars can be relied upon.
  3. Whether a 35 per cent rise over the negotiated price yielded just compensation.

Provisions considered

Held

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.

Judgment PDF: Supreme Court of India, [2023] 2 S.C.R. 870.