High Court of KeralaDivision BenchAppeals allowed accordingly.

L.A.A Nos.662, 663 and 664 of 2012-E

Case / Petition Number:L.A.A Nos.662, 663 and 664 of 2012-E

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • T.R.Ramachandran Nair
  • P.V.Asha
Judgment Date
2014-11-07
Court Decision / Holding
The appeals are allowed accordingly. The court re-fixed the land values by applying a 35% deduction from Ext.A1 (instead of 50%) and a 20% uplift in line with the State of Kerala v. Jose Simon, resulting in enhanced values of Rs.20,25,000 per are for L.A.A 662 and Rs.18,22,500 per are for L.A.A 663 and 664, with all statutory benefits.
Final Disposition
Appeals allowed accordingly.

Parties to the Case

Appellants / Petitioners

  • Joseph, S/o. Ouseph, Moonjely House, Chennakadan, Angamal y Kara, Angamaly Village, Aluva Taluk

Respondents

  • State of Kerala represented by the District Collector, Ernakulam

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. C.P. Wilson
  • • Sri. V.N. Subash

Counsels for Respondents

  • • R. Padmara j

Case Synopsis & Summary

These three land acquisition appeals arise from the widening of the National Highway link road Angamaly under Section 4(1) of the Land Acquisition Act for properties in Angamaly village. The Land Acquisition Officer fixed compensation, and the Reference Court re-fixed higher values. The appellants claim much higher values based on Ext.A1, a 2007 sale deed of 18.2 ares within about 2 kilometres of the acquired land, suggesting market value far above the court's awards. The lower court deducted 25% as a fancy price and a further 25% for having the Ext.A1 property near the Nedumbassery Airport, concluding a total 50% reduction. The appellants argued the acquired lands are located in Angamaly town with proximity to several institutions, which increases potential value, and that Ext.A1 should reflect open market value rather than a private development transaction. The State contends Ext.A1 reflects a private company purchase for development and should not set market value. Relying on the Advocate Commissioner’s report, the High Court finds no justification for a 25%/25% deduction and holds that a 35% deduction from Ext.A1, coupled with a 20% uplift for urban value (per State of Kerala v. Jose Simon) adequately reflects locality. The appeals are allowed and the enhanced values are fixed at Rs.20,25,000 per are for L.A.A 662 and Rs.18,22,500 per are for L.A.A 663 and 664, along with statutory benefits.

Provisions of Law Cited

Land Acquisition Act, 1894, Section 4(1)

Legal Doctrines & Maxims

  • Urban land value appreciation doctrine — 10% annual increase in urban land value (per State of Kerala v. Jose Simon, 2009(1) KLT 760)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that Ext.A1 (sale deed dated 04.12.2007 for 18.2 ares within 2 km of the acquired land) reflects market value; the lower court erred in applying a 50% overall deduction (25% as a fancy price and another 25% for proximity to the Nedumbassery Airport). They argued that the acquired properties lie in Angamaly town with institutional proximity and higher development potential, justifying higher compensation. They sought enhancement based on Ext.A1 and the location advantages, and challenged deductions on the ground that Ext.A1 involved a private company purchase for development, not a reflective market transaction.

Contentions of Respondents

The respondent State, represented by the Government Pleader, urged that the land value fixed by the court below is reasonable and that Ext.A1 cannot be taken as a direct measure of market value since it represents a private company purchase for development purposes. It contended the 50% deduction was justified to reflect the supposed fancy price and airport proximity, and relied on the lower court's evidentiary basis.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State of Kerala v. Jose Simon2009(1) KLT 760PositiveUsed to justify 20% uplift for urban value and the 10% annual increase concept in urban land valuations.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE T.R.RAMACHANDRAN NAIR & THE HONOURABLE SMT. JUSTICE P.V.ASHA FRIDAY, THE 7TH DAY OF NOVEMBER 2014/16TH KARTHIKA, 1936 LA.App..No. 662 of 2012 (A) --------------------------- AGAINST THE JUDGMENT & DECREE IN LAR 47/2011 of PRINCIPAL SUB COURT,PARAVOOR DATED 31-03-2012 APPELLANT:CLAIMANT ---------- JOSEPH, S/O.OUSEPH, MOONJELY HOUSE, CHENNAKADAN, ANGAMALY KARA, ANGAMALY VILLAGE, ALUVA TALUK. BY ADVS.SRI.C.P.WILSON SRI.V.N.SUBASH RESPONDENT:RESPONDENT ----------- STATE OF KERALA REP.BY THE DISTRICT COLLECTOR, ERNAKULAM - 682038. R. BY GOVERNMENT PLEADER SRI R.PADMARAJ THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 07-11-2014, ALONG WITH LAA. 663/2012, LAA. 664/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **T.R.RAMACHANDRAN NAIR & P.V ASHA, JJ. ----------------------------------------------------L.A.A Nos.662, 663 and 664 of 2012-E ---------------------------------------------------Dated this the 7[th] day of November, 2014** ## **JUDGMENT** ## Asha, J. These appeals relate to enhancement of compensation towards of acquisition made for widening of National Highway link road Angamaly under Section 4(1) of the Land Acquisition Act dated 23.12.2009 from the properties owned by the respective appellants. The Land Acquisition Officer passed awards in these cases on 04.01.2011. The properties were taken possession on 14.10.2010. 2. In L.A.A No.662 of 2012, an extent of 0.14 ares of land comprised in Sy.No.354/21 of Angamaly Village was acquired. The Land Acquisition Officer fixed the land value @ Rs.5,38,924/per are. The appellants claimed land value @ Rs.12 lakhs per cent. The Reference Court in L.A.R No.47 of 2011 re-fixed the land value @ Rs.15,57,691/- per are. 3. In L.A.A No.663 of 2012 the land acquired is having an extent of 0.21 ares in Re.Sy.No.351/15-9 of Angamaly village. 2 ## **L.A.A Nos.662, 663 and 664 of 2012-E** The Land Acquisition Officer fixed the land value at Rs.4,89,931/per are. The appellant claimed land value @ Rs.10 lakhs per cent. In L.A.R No.41 of 2011, the court below re-fixed the land value @ Rs.14,01,922/- per are. 4. In L.A.A No.664 of 2012, the land acquired is having an extent of 0.63 ares. The Land Acquisition Officer passed the award fixing the land value @ Rs.4,89,931/- per are. The claimant claimed land value @ Rs.6 lakhs per cent. The court below in L.A.A No.40 of 2011 re-fixed the land value @ Rs.14,01,578/- per are. 5. The appellants have approached this Court complaining inadequacy in the enhancement. The appellants had sought enhancement on the basis of the market value of the land prevailing in the area relying on Ext.A1 sale deed dated 04.12.2007 as per document No.513/2007 of S.R.O, Angamaly wherein 18.2 ares of land was purchased @ Rs.25,96,153/- per are in respect of a property situated within 2 kilometres of the acquired land. The court below, though relied on the document Ext.A1, fixed the land value only after deducting 25% from it alleging that it is a fancy price and another 25% saying that the property covered by the sale deed is situated near the Airport at 3 **L.A.A Nos.662, 663 and 664 of 2012-E** Nedumbassery, whereas the acquired properties are in Angamaly town. The complaint of the appellants is that the acquired properties are having more potentiality in view of the proximity to Angamaly town and in view of the fact that the properties are situated near several prominent institutions. They have also got a grievance on the deduction made from the land value in respect of Ext.A1 on the ground that it was a fancy price. 6. The learned Government Pleader on the other hand opposed the prayers submitting that the land value fixed by the court below is reasonable and the appellants cannot claim the land value as given in Ext.A1 since the same is in respect of a transaction by a private limited company which purchased the property for development of its business. 7. We have considered the rival contentions on either side and the pleadings and materials on record. The appellant in L.A.A No.663 of 2012 was examined himself before the court below and deposed as to the importance of the property acquired from him. Moreover a commission was also taken out for reporting the nature and lie of the properties covered by the acquisition as well as Ext.A1 sale deed. The property acquired 4 ## **L.A.A Nos.662, 663 and 664 of 2012-E** from the appellant is abutting National Highway on one side and PWD road on the other side. According to the report submitted by the Advocate Commissioner, the acquired properties situate in the bank junction and is just 100 metres away from Angamaly junction. Several institutions like South Indian Bank, Syndicate Bank, H.D.F.C Bank and schools are situated very near to the property. Police Station, K.S.R.T.C bus stand, L.F Hospital, Angamaly market etc. are just 250 metres towards the north of the property acquired. The Telephone Exchange, St.Mary's School, K.S.E.B, etc. are just 200 metres towards south of the property. At the same time the property covered by Ext.A1 sale deed is about 2 kilometres away from Angamaly junction and the property is having an extent of 18.2 ares in Nedumbassery village. According to the Advocate Commissioner, the properties acquired from the appellants are having more importance compared to the property covered by Ext.A1 document. The properties covered by L.A.A Nos.663 and 664 of 2012, situate just 30 metres away from that in LAA 662/14, abutting PWD road alone. 8. The court below fixed the land value in the locality only after deducting 25% on the ground that the transaction involved in 5 **L.A.A Nos.662, 663 and 664 of 2012-E** Ext.A1 was a purchase made by a Private Company -M/s.Shell India Marketing Private Ltd. Co. for developmental purpose and therefore it will not reflect the exact market value. In Ext.A1 the market value shown was @ Rs.25,96,153/- per are. In order to arrive at the purchase price by an ordinary purchaser, the court below felt that a 25% deduction was necessary from the value shown in Ext.A1. In addition to that, another 25% was deducted saying that Ext.A1 property which is situated within the proximity of International Airport abutting N.H 47, is more superior to a small extent of property situated on the edge of National Highway as well as on the edge of P.W.D road. It was found that a deduction of 25% has to be made further to arrive at the actual price of the land. Therefore after deduction @ 50%, the actual price in the locality was arrived at @ Rs.12,98,076/-. per are. As the notification under Section 4(1) for acquisition of the property was on 23.12.2009 and the sale deed Ext.A1 was on 04.12.2007, the court below, relying on the principles laid down in **State of Kerala v. Jose Simon** [2009(1) KLT 760], reckoning 10% increase for each year towards the increasing tendency of land value in urban areas, fixed the land value as on the date of notification at Rs.15,57,691/- (ie. adding 20% of Rs.12,98,076/-) 6 **L.A.A Nos.662, 663 and 664 of 2012-E** per are for the property involved in L.A.R No.47 of 2011. In respect of the properties involved in L.A.R Nos.40 of 2011 and 41 of 2011, the land value was fixed at Rs.14,01,922/- per are, after a further deduction of 10%, as those properties were included in category 2. 9. On the basis of the materials on record, we find that there was no reason for reducing the land value by further 25% on the basis of the proximity to the Airport. It is an undisputed fact that the properties acquired are proximate to Angamaly town, whereas the property covered by Ext.A1 is near to the Airport at Nedumbassery. The evidence of RW1 also will show that the acquired property is nearer to Angamali town and the Bank juction. Hence there is considerable importance and potential for these properties. Therefore we are of the considered view that the properties near the Angamaly town can in no way be said to be inferior to the property near the Airport, Nedumbassery, which is far away from the town. However as the property covered by Ext A1 having an extent of 18.26 ares is having National Highway frontage, we find it appropriate to refix the land value giving only 35% deduction to the land value shown in Ext.A1 document, instead of 50% deduction effected by 7 **L.A.A Nos.662, 663 and 664 of 2012-E** the court below and at the same time granting the 20% hike in accordance with the judgment reported in **State of Kerala v. Jose Simon** [2009(1) KLT 760]. 10. Accordingly, after effecting 35% deduction to Rs.25,96,153/-, the value of the land in the locality will come to Rs.16,87,499.45 per are and on granting 20% hike in accordance with the judgment in **State of Kerala v. Jose Simon** (supra), the land value in respect of LAA No.662 will be Rs.2024999.34 per are, which is rounded of as Rs.2025000/- and the land value in the case of L.A.A Nos.663 and 664 of 2012, on a further deduction by 10% will be Rs.1822499.40 per are, rounded off as Rs.1822500/-. The appellants in these cases will be entitled to get the compensation based on the enhanced land value at the rate as re-fixed above along with all statutory benefits. The appeals are allowed accordingly. Sd/- _**T.R.RAMACHANDRAN NAIR Judge**_ **Sd/-** ## _**P.V.ASHA**_ _**Judge**_ rtr/ /true copy/ P.S to Judge