High Court raises compensation to Rs. 4.67 lakh per kanal, emphasizing fair market value assessment based on comparable sales.
In a significant decision by the Jammu and Kashmir High Court, landowners in Thanamandi, Rajouri have received an enhanced compensation for land acquired for the construction of a Government Degree College. The High Court has revised the compensation from Rs. 3.00 lakh per kanal, as previously awarded by the Reference Court, to Rs. 4.67 lakh per kanal. The judgment was delivered by Justice M.A. Chowdhary, who underscored the importance of basing compensation on the market value determined through comparable sales.
The appellants, led by Mumtaz Ahmed, had contested the Reference Court's award, arguing that the compensation was inadequate compared to the prevailing market rates in the vicinity. The land in question, acquired in 2005, is situated within the municipal limits of Tehsil Thanamandi and holds significant commercial potential due to its proximity to key infrastructures like the Thannamandi-Shahdra Sharief road, an Army unit, and educational buildings.
The appellants presented evidence, including sale deeds and witness testimonies, indicating higher market values, with some sales showing rates as high as Rs. 6.00 lakh per kanal. Despite the Reference Court's initial oversight, the High Court acknowledged this evidence, adopting a comparable sales method to assess the land's market value accurately.
Justice Chowdhary referred to principles established in previous Supreme Court judgments, emphasizing that market value should reflect what an informed buyer would willingly pay in an open market. The Court noted that the Reference Court erred by not fully considering the available oral and documentary evidence which suggested a higher valuation.
The High Court's decision reflects a commitment to ensuring fair compensation for landowners, taking into account the land's commercial potential and locational advantages. The revised compensation will be paid along with a statutory 15% compulsive acquisition charge (Jabrana) and 6% simple interest from the date the land was possessed.
This judgment sets a precedent in emphasizing the adoption of the comparable sales method for determining fair compensation, aligning with the principles of justice and fairness for landowners in similar acquisition cases.
Bottom Line:
Land Acquisition - Determination of market value - Compensation awarded by Reference Court enhanced based on comparable sales method, considering sale deeds of land in vicinity and the commercial potential of the acquired land.
Statutory provision(s):
Land Acquisition Act, 1894 Sections 4, 18, 23
