Land Acquisition Act, 1894 – Purpose of acquisition of land relevant factor for determining market value and deduction of developmental charges – Deduction of developmental charges, when not proper – Lands acquired for excavation of coal – Land Acquisition Officer fixed the market value for the acquired lands – Not satisfied with the compensation, the original land owners/claimants sought references – Reference Court fixed the market value at Rs.30,000/- and Rs.50,000/- per acre with compensation @ Rs.15,000/- per acre towards sub-soil mineral rights – High Court awarded compensation @ Rs.80,000/- per acre considering the market value of the land at Rs.1,23,000/- per acre and thereafter deducting 1/3rd, in addition High Court also awarded Rs.10,000/per acre as part of the market value for sub-soil rights – On appeal, held: 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 – In the present case, when the acquisition is solely for the purpose of excavation of coal and the entire land is acquired on the basis of the estimates of the coal reserve identified and the entire land is to be mined and used and no further developmental activity is required, the High Court erred in deducting 1/3 rd towards developmental activities – Further, additional amount of Rs.10,000/- per acre awarded on account of coal deposits, not interfered with – Thus, original claimants are entitled to the compensation for the lands acquired at Rs.1,23,000/- per acre with other statutory benefits which may be available under the Act – In addition, also entitled to Rs.10,000/- per acre as awarded by the High Court on account of coal deposits – Impugned judgment modified to the aforesaid extent. Partly allowing the appeals, the Court
HELD: 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. Thus, when the acquisition is solely for the purpose of excavation of coal and the entire land is acquired on the basis of the estimates of the coal reserve identified and the entire land is to be mined and used and no further developmental activity is required, in the facts and circumstances of the case, the High Court has erred in deducting 1/3rd towards the developmental activities. The additional amount awarded by the High Court at Rs.10,000/- per acre on account of coal deposits is not required to be interfered with more particularly when the same has been confirmed by this Court in as much as the appeals preferred by the respondents have been dismissed by this Court. The original claimants shall be entitled to the compensation for the lands acquired at Rs.1,23,000/- per acre with other statutory benefits which may be available under the provisions of the Act, 1894. In addition, the original claimants shall also be entitled to Rs.10,000/- per acre as awarded by the High Court on account of coal deposits. The impugned common judgment and order passed by the High Court is modified to the aforesaid extent. [Paras 6.2, 6.3, 7 and 8][100-D; 101-C-E]
Nelson Fernandes & Ors. v. Special Land Acquisition Officer South Goa & Ors. (2007) 9 SCC 447 : [2007]
3 SCR 563 – relied on.
Basavva v. Spl. Land Acquisition Officer, (1996) 9 SCC
640 : [1996] 3 SCR 500 – referred to.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
This page is for informational and research purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.