The court affirms compensation based on market value at the time of possession, dismissing appeals for higher rates linked to later guidelines.
In a significant judgment concerning land acquisition and compensation, the Andhra Pradesh High Court has upheld the compensation granted for resumed DKT Patta lands, dismissing appeals filed by Vempalli Khasim Saheb and others seeking higher compensation. The appellants had challenged the trial court's decision, arguing for compensation based on market value guidelines issued after the date of land resumption and possession.
The Division Bench, comprising Justices Sri Ravi Nath Tilhari and Sri Maheswara Rao Kuncheam, ruled that compensation must be determined based on the market value prevailing at the time of possession rather than subsequent guidelines. This decision aligns with earlier judicial directions and reinforces the principles established in previous judgments, including the Full Bench decision in the Mekala Pandu case.
The appellants contended that the market value of their agricultural lands, which had been resumed by the government for public purposes, was undervalued. They sought compensation at Rs.600 per square yard, referencing later market guidelines and sale deeds from different locations. However, the trial court had relied on Award No.22 of 2007-2008, which fixed the market value at Rs.1,50,000 per acre, including additional solatium and interest.
In rejecting the appeals, the High Court emphasized that the determination of market value should be based on the situation at the time of possession in 2008, not on the guidelines effective from 2010. The court noted that the plaintiffs were entitled to compensation equivalent to the market value on par with full owners, in accordance with provisions of the Land Acquisition Act and directions from prior writ petitions.
This judgment underscores the importance of adhering to compensation principles established at the time of land possession and the applicability of judicial precedents in determining fair value. The court found no illegality in the compensation determination process, as it complied with legal and procedural standards set forth by previous court decisions and government orders.
Bottom line:-
Determination of market value for compensation of resumed DKT patta lands cannot rely on market value guidelines issued after the date of resumption and possession. Compensation must align with the prevailing market value at the time of resumption or possession as per earlier judicial directions.
Statutory provision(s): Land Acquisition Act, 1894, G.O.Ms.No.1307 Revenue (Assign-I) Department, Section 23(1) of the Land Acquisition Act.
