-1- IN THE HIGH COURT OF BOMBAY AT GOA FIRST APPEAL NO. 274 OF 2006 1. Spl. Land Acquisition Officer, Salaulim Irrigation Project, Water Resoruces Department, Gogal, Margao, Goa. 2. The Superintendent of Police (HQ), Office of the Director General of Police, Panaji, Goa. …... Appellants V e r s u s 1. Communidade of Verna, Salcete, Goa. …... Respondent Mr. S. S. Kantak, Advocate General with Mr. A. Kamat, Addl. Government Advocate for the Appellants. Mr. C. A. Coutinho, Advocate for the Respondent. CORAM :- A. S. OKA F. M. REIS, JJ. Date : 22 nd June, 2010. ORAL JUDGMENT (Per A. S. Oka, J.) We have heard learned Advocate General in support of the Appeal. We have heard the learned Counsel appearing for the Respondent. 2. The Appellants have challenged the Judgment and Award dated 27th January, 2006, passed by the learned IIIrd Addl. District Judge, South Goa, Margao, in a reference under Section 18 of the Land Acquisition Act, 1894, (herein after referred to as 'the said Act'), made at the instance of the Respondent. -2- 3. The subject matter of acquisition is land surveyed under survey no. 56/1 of Verna Village, admeasuring 38900 square metres. The notification under Section 4 of the said Act was published on 11th January, 2001. Award under Section 11 of the said Act was made on 27th February, 2004. The Land Acquisition Officer offered compensation at the rate of Rs.20/- per square metre. The Respondent did not accept the Award and applied under Section 18 for enhancement. By the impugned Judgment and Award, in addition to market value of Rs.20/- per square meter offered by the Land Acquisition Officer, the Reference Court granted market value at the rate of Rs.190/- per square metre along with other statutory benefits. 4. The learned Advocate General invited our attention to the finding recorded by the Reference Court on the issue of quantum. He pointed out that the Reference Court has accepted that the land subject matter of Award dated 12th June 2000, (exhibit 14) under Section 18 of the said Act, was comparable to the acquired land. The notification under Section 4 of the land subject matter of the said Award was published on 11th September, 1986. He pointed out that by granting 10 percent escalation per year, the market value as on 11th January, 2001 has been determined. He pointed out that before giving escalation of 10 percent on compounded basis, valuer had suggested that 15 percent of Rs.55/- per square metre should be added as on 11th September 1986, on the ground that the land subject matter of the said Award was not accessible. Learned Advocate General submitted that without noticing that there was a direct access to the land subject matter of the said Award, the Reference Court accepted the opinion of the Valuer and added 15 percent of Rs.55/- per square metre as of 11th September 1986. He -3- submitted that the Award itself records that the acquired land subject matter of the said Award was touching the highway. He submitted that thus addition of 15 percent made by the Reference Court is illegal. 5. The learned Counsel appearing for the Respondent supported the impugned Judgment and Award and submitted that addition of 15 percent was justified. He invited our attention to documents at exhibit 17 and 18, which related to auction of different portions of the land bearing survey no. 56/1 of the same Village. He pointed out that the auction was for long lease of twenty years. He submitted that in view of the relevant provisions of the Code of Communidade, the title of the lessee was perfected after a period of 20 years and, therefore, the documents at exhibit 17 and 18 are also relevant. 6. We have considered the submissions. It is not disputed before us that the land which is subject matter of the Award dated 12th June, 2000, was comparable to the acquired land. Thus, evidence of the market value of a comparable land is available in the present case. As evidence of comparable market value is available, it will not be open to adopt method of capitalisation by capitalising the annual rent. Therefore, the only relevant piece of document for the determination of the market value is the said Award dated 12th June 2000. 7. A perusal of the sketch forming part of Valuer's report at exhibit 22 shows that the said land subject matter of the Award was touching the highway/main road. Therefore, the opinion of the expert valuer accepted by the Reference Court that the land was not accessible will have to be discarded -4- inasmuch as the land subject matter of the said Award dated 12th June, 2000 had a direct access to the highway. Therefore, we will have to discard 15 percent addition made by the Reference Court to the market value of Rs.55/- per square metre as on 11th September, 1986. If the said amount equivalent to 15 percent is deducted and escalation of 10 percent compounded per year is granted from 11th September, 1986 to 11th January, 2001, the market value will be Rs.210/- per square metre. The area of the acquired land in the present case is 38,900 square metres. The area of the land subject matter of the Award at exhibit 14 is 13,255 square metres. Therefore, some deduction will have to be made on account of cost of development. A deduction of 15 percent will have to be made on account of development cost. If such further deduction is made, the total market value will be Rs.178.50 per square metre. Therefore, to that extent, Appeal will have to be allowed in part. Hence, we pass the following Order : - ORDER (i) The impugned Judgment and Award is modified and we direct that total market value of Rs.178.50 shall be payable in respect of the acquired land. It is clarified that this market value is inclusive of the market value awarded under the Award under Section 11 of the said Act. (ii) Rest of the Award stands confirmed. The Registrar of this Court to complete the exercise of computing the amount payable to the Respondent as per the modified award. The said exercise shall be done after hearing the learned Counsel for the concerned -5- parties. After the amount payable to the Respondent is determined, the said amount, together with interest if any, accrued thereon, shall be paid over to the Respondent. Balance amount together with interest thereon shall be paid over to the Appellants. (iii) The Appeal is partly allowed in the above terms, with no orders as to costs. A. S. OKA, J. F. M. REIS, J. arp/*