-1- IN THE HIGH COURT OF BOMBAY AT GOA FIRST APPEAL NO. 245 OF 2006 The Director of Sports & Youth Affairs, Panaji. ... Appellant V e r s u s Communidade of Dramapur having its office at Panchayat Ghar, Shamodi Dramapur, Salcete, Goa through its Attorney Mr. Agostinho Fernandes. ... Respondents Shri Amey Kakodkar, Additional Government Advocate for the Appellant. CORAM : F. M. REIS, J. DATE : 28 th July, 2011. JUDGMENT The above Appeal challenges the Judgment and Awarded dated 01.09.2005, passed by the learned Addl. District Judge, South Goa, Margao, in Land Acquisition Case no. 3 of 2005. 2. Pursuant to a Notification under Section 4 of the Land Acquisition Act, 1894, (hereinafter referred to as the 'said Act'), dated 28.05.2001, the land belonging to the Respondent was acquired admeasuring an area of 2725 square metres from the property surveyed under no. 80/1 situated at Dramapur Village. By an Award passed by the Land Acquisition Officer under Section 11 of the said Act, -2- a sum of Rs.24/- per square metres was offered for the land acquired. Being dissatisfied with the said amount, the Respondents preferred a reference under Section 18 of the said Act for enhancement of compensation and claimed a sum of Rs.400/- per square metre for the land acquired. The Reference Court by Judgment and Award dated 01.09.2005, partly allowed the said reference and fixed the compensation at the rate of Rs.175/- per square metre. 3. Being aggrieved by the said Judgment, the Appellant preferred the present Appeal. 4. Shri Amey Kakodkar, learned Additional Government Advocate for the Appellant, has assailed the impugned Judgment sand pointed out that though the Reference Court has relied on the sale instances as the basis to fix the compensation for the land action, nevertheless, no deduction has been made considering that the land acquired was not a free land as it was subject to the restrictions as contemplated under the Code of Communidade. The learned Government Advocate further submitted that the acquired land was a Communidade land and a deduction has to be affected considering the statutory restrictions imposed for allotment and/or grants of Communidade lands. The learned Government Advocate has further taken me through the impugned Judgment and pointed out that the Reference Court has deducted 15 percent on account of dissimilar factors and no deductions have been affected on account of the fact that the land acquired was a Communidade land. In support of his submissions, the learned Government Advocate has relied upon a Judgment of the -3- Division Bench of this Court reported in 2010 (2) GLR 387 in the case of Anajani Shrikant Naik & Ors. vs. Deputy Collector (REV) & Land Acquisition Officer & anr. The learned Counsel further submitted that the Reference Court ought to have made a further deduction of 25 percent on account of the said decision whilst fixing the market value of the land acquired. The learned Government Advocate as such submitted that the impugned Judgment deserves to be quashed and set aside and the Appeal preferred by the Appellants be allowed. 5. The Respondent though served, failed to remain present at the time of hearing of the Appeal. 6. After hearing the learned Counsel and on perusal of the record, the following point for determination arises in the present Appeal : POINT FOR DETERMINATION 1. Whether the Reference Court was justified to fix the market value of the land acquired at the rate of Rs.175/- per square metre ? 7. In support of the claim for enhancement of compensation, the Respondent has examined Shri Augustine Fernandes as Aw.1. He has stated in his affidavit that an area of 2725 square metres was acquired from the property belonging to the Respondent bearing survey no. 80/1 of Dramapur Village for the development of the Government School playground at Dramapur Village. He has further stated that the land acquired was a levelled ground configuration and -4- normal soil formation and was abutting the Village road. He has further stated that the acquired land was predominantly residential area and located in the settlement zone as per the regional plan. He has further disclosed the distances where the amenities were available to the land acquired and that the land acquired had potentiality and was ideal for residential and commercial development. He has relied upon a Sale Deed dated 16.06.1997, which was executed between two private parties whereby an area of 807.63 square metres was sold for the price of Rs.2,01,907.50 square metres which works out to Rs.250/- per square metre in respect of the property which is surveyed under no. 111/8 of Dramapur Village. He has further stated that the land of the Sale Deed plot and the land acquired are similar in nature. He has also relied upon the Sale Deed dated 31.12.2001, which was also executed between two private parties wherein the land was sold at the rate of Rs.400/- per square metre and the plot was admeasuring 342.32 square metres. In the cross examination, he has stated that towards the north side of the property surveyed under no. 80/1 at the time of acquisition, there was a road proceeding from Margao to Sarzora and it was a internal road. He has further stated that the said land was used for playing football. He has further stated that the Communidade had made plots and sold the same to private parties but they had never made plans to sell the land under survey no. 80/1. He further stated that the Margao-Cuncolim Highway is at a distance of one kilometre from the acquired land. He has further stated that he had seen the Sale Deed plot at exhibit 11 which is dated 16.06.1997, which is located towards the southern side whereas the Sale Deed plot at exhibit 12, which is dated 31.12.2001, is located towards the northern -5- side at a distance of one kilometres. He has further stated that there was a house existing in the said Sale Deed plot. 8. Respondents have also produced a valuation report of Shri Ernesto Moniz, who has also produced a sketch. The acquired land was valued at the rate of Rs.193/- per square metre by the valuer. He has produced the valuation report and in his cross examination he stated that he visited the land only on 30.07.2004 and that he has also inspected the said two sale instances plots to prepare the report. He has further stated that the acquired land is at a distance of one kilometre from the National Highway-17. He has further stated that development charges were fixed for sub-dividing the land into plots and making internal roads and drainage. 9. The learned Judge whilst passing the impugned Judgment and after appreciating the evidence on record and noting the dissimilar factors with regard to the land acquired and the Sale Deed plots has come to the conclusion that deductions to be affected for the purpose of fixing the market value of the acquired land is to the extent of 50% i.e. on account of provisions of roads 15 percent; for the provisions of drains, sewers 20 percent and on account of other development charges 15 percent. The learned Judge as such has fixed the compensation for the land acquired on the basis of the Sale Deed plot dated 16.06.1997 which is at the rate of Rs.250/- per square metre and after giving appreciation of 10 percent as on the date of Section 4 Notification, has worked the amount to Rs.350/- per square metre. After deducting 50 percent, the learned Judge has come to the -6- conclusion that the market value of the land as on the relevant date is Rs.175/- per square metre. 10. Considering that the Sale Deed plots are developed plots and the land acquired is an undeveloped land, the deductions affected by the learned Judge cannot be said to be excessive. The Respondents have also not challenged the said deductions before the Court. The Apex Court in the Judgment reported in 2010 (1) S.C.C. 444 in the case of Subh Ram & Ors. vs. State of Haryana and anr. , whilst considering the deductions to be affected in respect of development charges, has come to the conclusion that such development charges can range from 20 percent to 75 percent considering the facts and circumstances of the case. The learned Judge minutely considering the evidence on record and has come to the conclusion that the land acquired was undeveloped land and the sale instance plots were developed plots. The land acquired was also used to play football. The only aspect to be considered is whether the fact that the land acquired was a communidade land has been considered by the Reference Court whilst fixing the market value of the acquired land. The Division Bench of this Court in the case of Anajani Shrikant Naik & Ors. vs. Deputy Collector (REV) & Land Acquisition Officer & anr. (supra) has held at paras 14 and 15 thus : “14. While assessing the market value for the purpose of section 23 of the said Act of 1894 by comparison method, the test adopted is what a prudent and genuine buyer will offer as a price of the acquired land. In case of a land, which is not freehold in the sense that a transfer thereof cannot be effected -7- without sanction of the authorities, a willing bona fide buyer may not offer the same price, which he may offer in respect of a comparable freehold land as the buyer will be conscious of the fact that there are restrictions on transferability or that the authority empowered to sanction sale may impose some conditions. Therefore, he may offer to some extent a lesser price to the land having such restrictions. However, it cannot be said that the sale instance of a freehold land which is otherwise comparable to the acquired land cannot afford a basis to determine the market value of a land, which is having restrictions on transfer. The Apex Court in the case of (Viluben Zhalejar Contractor Vs. State of Gujarat)4; 2005(5) Bom.C.R. 331(S.C.) : 2005 DGLS (soft) 203 : 2005)4 S.C.C. 789 has discussed various factors relating to fixing market value on the basis of comparison method. Paras 19 and 20 of the said decision read thus: “19. Market value is ordinarily the price the property may fetch in the open market if sold by a willing seller unaffected by the special needs of a particular purchase. Where definite material is not forthcoming either in the shape of sales of similar lands in the neighbourhood at or about the date of notification under section 4(1) or otherwise, other sale instances as well as other evidences have to be considered. 20. The amount of compensation cannot be ascertained with mathematical accuracy. A -8- comparable instance has to be identified having regard to the proximity from time angle as well as proximity from situation angle. For determining the market value of the land under acquisition, suitable adjustment has to be made having regard to various positive and negative factors vis-a-vis the land under acquisition by placing the two in juxtaposition. The positive and negative factors are as under: Positive factors Negative factors (i) smallness of size (i)largeness of area (ii)proximity to a road (ii)situation in the interior at a distance from the road (iii)frontage on a road (iii) narrow strip of land with very small frontage compared to depth (iv)nearness to (iv)lower level requiring developed area the depressed portion to be filled up (v)regular shape (v)remoteness from developed locality (vi) level vis-a-vis (vi) some special land under disadvantageous acquisition factors which would deter a purchaser (vii) special value for an owner of an adjoining property to whom it may have some very special advantage.” -9- 15. The aforesaid decision does not contain exhaustive list of negative factors. In case of a land held by a Communidade, the restriction on transfer will be one of the negative factors, which will have to be considered while fixing the market value. Taking into consideration the said negative factor, some deduction will have to be made depending upon the facts of a particular case while fixing the market value on the basis of a comparable sale instance of a freehold land. In the case of (Krishna Yachendra Bahadurvaru Vs. The Special Land Acquisition Officer)5; 1979 DGLS (soft) 38 : A.I.R. 1979 S.C. 869, the Apex Court held that the process of determination of the market value invariably involves the evaluation of many imponderables and hence it must necessarily be to some extent a matter of conjecture or guess. Therefore, we find that the submission that the market value of the land vesting in Communidade cannot be determined on the basis of sale instance of a comparable freehold land, will have to be rejected by holding that the market value of a land vesting in Communidade can be determined on the basis of comparable sale instance of a freehold land by making appropriate deductions considering the peculiar facts of the case on account of restrictions on transferability of the acquired land vesting in Communidade.” 11. Considering the said Judgment of the Division Bench of this Court, there is no doubt that the Reference Court ought to have effected a deduction on -10- account of the fact that the acquired land was a communidade land. The code of Communidade imposes restrictions in respect of transfer of such land and as such special procedure has to be followed resulting in an expenditure which would have to be taken into account whilst considering the market value of that acquired land. Considering the deductions which have been already awarded by the Reference Court, I find that in the interest of justice, a deduction of 20 percent would be just and appropriate on account of such dissimilarity. After such deduction, from the amount fixed by the Reference Court at the rate of Rs.350/- per square metres, the amount works out to Rs.280/- per square metre and on deducting the development charges of 50% as effected by the Reference Court, the amount works out to Rs.140/- per square metre. Whilst passing the impugned Judgment, this fact had escaped the attention of the Reference Court whilst determining the market value of the acquired land. The Respondents as such are entitled to compensation at the rate of Rs.140/- per square metre for the land acquired. To that extent, the impugned Judgment is to be modified. The point for determination is answered accordingly. 12. In view of the above, I pass the following : ORDER (i) The Appeal is partly allowed. (ii) The impugned Judgment and Award dated 01.09.2005 is modified and the compensation is fixed at the rate of Rs.140/- per square metre for an area of 2725 square metres together with -11- statutory benefits in accordance with law. (iii) The Appeal stands disposed of accordingly with no order as to costs. F .M. REIS, J. arp/*