... 1 ... IN THE HIGH COURT OF BOMBAY AT GOA. FIRST APPEAL NO.118 OF 2000 1. The State of Goa, Represented the Special Land Acquisition Officer, (SIP) Irrigation Department Complex, Gogol, Margao, Goa. 2. The Executive Engineer, Works Division VI, Public Works Department, Fatorda, Margao, Goa. ... Appellants v e r s u s Mr. George Goes, r/o Duguem, Nuvem, Salcete, Goa. ... Respondent Mr. Guru Shirodkar, Government Advocate for the Appellants. Mr. M. B. D'costa Senior Advocate with Mr. J. A. Lobo, Advocate for the respondent. ... 2 ... CORAM: A. P. LAVANDE, J. DATE : 27TH NOVEMBER, 2008. JUDGMENT: By this appeal, the appellants take exception to Judgment and award dated 16.02.2000 passed by the District Judge, South Goa, Margao in Land Acquisition Case No.306/1992 by which the Reference Court has enhanced the compensation from Rs.20/- to Rs.52/- per square metre. in respect of the acquired land. 2. Vide Notification under section 4 of the Land Acquisition Act, published in Official Gazette dated 12.10.1989 the Government of Goa acquired land of different persons for public purpose namely; improvement and black topping of Duguem Botlem road ... 3 ... in village Nuvem. Land of the respondent admeasuring 325 sq.mtrs. from survey no.190/5 was part of the acquired land. The Land Acquisition Officer made award on 31.01.1992 and fixed compensation at the rate of Rs.20/- per sq.mtr. Being dissatisfied, the applicant sought reference and claimed Rs.300/- per sq.mtr. In Land Acquisition Case No.306/1992, the respondent examined himself as Aw.1, E. Moniz as Aw.2 and Rock Martin as Aw.3. The respondent produced award dated 20.12.1988 made by the Land Acquisition Officer in respect of the earlier acquisition for improvement and black topping of Duguem Botlem road in village Nuvem. By the said award, the Land Acquisition Officer had awarded compensation at the rate of Rs.40/- per sq.mtr. The Reference Court held that the acquired land was similar to the land forming the subject matter of the award dated 20.12.1988 ... 4 ... passed by the Land Acquisition Officer. The said award was in respect of Section 4 Notification published on 30.04.1987. Taking Rs.40/- per sq.mtr. as the base price, the Reference Court enhanced the compensation by giving 10% increase every year on compounding basis and arrived at the rate of Rs.52/- per sq.mtr. Aggrieved by the award the appellants have filed the present appeal. 3. Mr. Shirodkar, learned Government Advocate submitted that the Reference Court ought not to have relied upon the award dated 20.12.1988 in respect of the land acquired by Notification published on 30.04.1987. He further submitted that the Reference Court has erred in granting the enhacned of increase of 10% every year. According to the learned Government counsel 10% yearly increase can be granted on the basis of the awards passed by the ... 5 ... Court and the sale deeds and not on the basis of the Award by the Land Acquisition Officer. In support of his submission, Mr. Shirodkar relied upon the judgment in General Manager, Oil and Natural Gas Corporation Ltd. v. Rameshbhai Jivanbhai Patel and anr. reported in 2008 AIR SCW 5947. 4. Per contra, Mr. D'costa, learned Senior counsel for the respondent submitted that the award dated 20.12.1988 was in respect of similar land in close proximity of the acquired land and was acquired by the earlier Notification for the same purpose and therefore, the Reference Court was justified in placing reliance on the said award. According to Mr. D'costa, the appellants are bound by the compensation fixed by the said award and therefore, the market value of the acquired land can be fixed on the basis of the said award. The value ... 6 ... of the acquired land as on 30.04.1987 could be safely taken as Rs.40/- per sq.mtr. since both the lands are similar in nature. He further submitted that there is absolutely no bar for increasing the value of the land by 10% every year on compounding basis since the land prices increase every year of which judicial note has been taken by the High Courts and Apex Court in several judgments. According to the learned counsel, award dated 20.12.1988 passed by the Land Acquisition Officer can be taken into consideration for fixing the price of the acquired land. According to the learned counsel, the Reference Court has not committed any illegality in fixing the compensation at the rate of Rs.52/- per sq.mtr. However, Mr. D'costa submitted that he restricts his claim to Rs.48/- per sq.mtr. 5. I have considered the submissions made by the learned counsel for the parties and perused and ... 7 ... records. 6. As stated above, the Reference Court has relied upon the award passed by the Land Acquisition Officer dated 20.12.1988 in which Notification under Section 4 of the Act was published on 30.04.1987. There is no dispute that the said award was in respect of similar land situated in the close proximity of the acquired land and was also acquired for improvement and black topping of Duguem Botlem road in Village Panchayat, Nuvem. I am therefore, of the considered opinion that the said award being offer made by the Land Acquisition Officer on behalf of the Government can safely be taken as the basis for fixing the market price of the acquired land. In so far as yearly increase granted by the Reference Court, I do not find any illegality on the part of the Reference Court is concerned. In view ... 8 ... of the award dated 20.12.1988, it can safely be assumed that the Government itself accepted the price of the land forming the subject matter of the award as Rs.48/- per sq.mtr. The increase of 10% every year on compounding basis which has been approved by the Apex Court has been rightly followed by the Reference Court. Merely because, the award was made by the Land Acquisition Officer and it was not an award made by the Court, by itself would not be sufficient to deprive the respondent, the benefit of the yearly increase in the price of the land. The Apex Court consistently has taken a view that judicial notice has to be taken that ordinarily 10% yearly increase has to be granted while fixing the market rate of the acquired on the basis of earlier sale deeds or awards. I therefore, find, that the Reference Court has not committed any illegality in increasing the price by 10% every year on ... 9 ... compounding basis. The judgment in Rameshbhai Jivanbhai Patel's case (Supra) relied upon by the learned Government Counsel does not advance the case of the appellants. In the said judgment, it has not been specifically laid down that no yearly increase can be granted on the basis of the award passed by the Land Acquisition Officer. Therefore, the award passed by the Reference Court cannot be faulted. However, since the respondent has restricted his claim to Rs.48/- per sq.mtr., the respondent is held entitled to Rs.48/- per sq.mtr. in respect of the acquired land. Accordingly, the compensation payable in respect of the acquired land is fixed at Rs.48/- per sq.mtr. 7. For the reasons aforesaid, the appeal is partly allowed The respondent is entitled to compensation at the rate of Rs.48/- per sq.mtr. in ... 10 ... respect of the acquired land. Needless to mention, the respondent is also entitled to all the statutory benefits under the Act. 8. The appeal is disposed of in the above terms with no order as to costs. A. P. LAVANDE, J. lh/.