Supreme Court Overrules High Court's Restriction on Compensation in Landmark Land Acquisition Case
In a landmark judgment, the Supreme Court of India has reinforced the principles guiding compensation determination in land acquisition cases, ensuring justice for landholders. The court ruled in favor of the appellants, K. Srinivas Rao (since deceased) represented by his legal representatives, who challenged the Karnataka High Court's decision to restrict compensation based on the claimants' prayer, despite a higher market value assessment.
The appeal was filed against the High Court of Karnataka’s decision, which had partially allowed an appeal from the reference court. Initially, the land acquisition officer had pegged the market value of the land at Rs. 1,37,700 per acre, which was subsequently enhanced to Rs. 5,00,900 by the reference court. The High Court further increased this amount to Rs. 16,94,977 per acre but limited the actual compensation to Rs. 15,00,900 per acre on the grounds that the claimants had requested compensation only to this extent.
The Supreme Court, led by Justices Prashant Kumar Mishra and Vipul M. Pancholi, clarified that the High Court had committed a serious error by restricting the compensation to a lower amount solely based on the claimant’s prayer, when statutory provisions justified a higher amount. The court emphasized the duty of courts to assess compensation based on statutory provisions rather than limiting it to the claims made by landholders.
Referencing the case of "Gundabhat & Anr. v. The Asst. Commissioner/Land Acquisition Officer & Anr.", the Supreme Court reiterated that once the market value is determined at a higher rate by the court, it should not be curtailed simply because the claimants did not ask for it. The court asserted that the compensation determined by the Collector, in accordance with Section 23 of the Land Acquisition Act, 1894, should be adhered to, and the High Court should not restrict the compensation below this assessment.
The Supreme Court set aside the High Court’s order and directed that the petitioners are entitled to compensation at Rs. 16,94,977 per acre, along with all consequential benefits. The court has mandated the respondent to pay the enhanced compensation amount within three months, with the petitioner required to cover the difference in court fees.
The judgment is seen as a significant move in ensuring fairness and adherence to statutory provisions in land acquisition compensation cases, serving as a guiding precedent for future cases.
Bottom Line:
Land Acquisition - Determination of compensation - High Court cannot restrict the compensation to a lower amount merely based on the claimant's prayer when the market value is assessed at a higher rate.
Statutory provision(s): Sections 11, 23 of the Land Acquisition Act, 1894
