Raising the amount of compensation to Rs.493/- per square yard on the date of notification under Section 4 of the Land Acquisition Act, 1894[In short, ‘1894 Act’]. The basis for the same being cumulative annual increase at the rate of 15% for a period of 11 years. The base figure was taken from an order of Reference Court dated 30.08.2000 relating to acquisition of land of the same village Naraingarh of the year 1989, and the period of 11 years being counted from 1989 to 2000, the year of the notification dated 10.11.2000 issued under Section 4 of the 1894 Act. (Para 3)
Taking an overall view in the matter and the consistent view of this Court, the fair and reasonable compensation in the present case would be best determined if we apply 8% annual increase with cumulative effect. This is for the reason that the gap is huge i.e. 11 years. For shorter period of 3-5 years, it could have been 10% or 12%. But in no case 15% would be justified for a period of 11 years as awarded by the High Court in the impugned order. In the present case, given the 11 years gap, 8% would be considered just and proper. (Para 24)
On rough assessment, the compensation would be equivalent to compensation awarded by the Reference Court. The High Court fell in error in enhancing the compensation by applying the cumulative annual increase of 15%. (Para 25)
In view of the above, the appeals are allowed. The impugned judgment and order of the High Court dated 01.06.2016 is set aside. The Land Acquisition Collector to calculate the compensation at the rate as determined above. (Para 26)
SUPREME COURT OF INDIA
2023 STPL(Web) 368 SC
[2023 INSC 940]
Central Warehousing Corporation Vs. Thakur Dwara Kalan Ul-Maruf Baraglan Wala (Dead) & Ors.
Civil Appeal Nos. 6918-6919 of 2023 (Arising out of SLP (C) NOS. 30817-30818 of 2016)-Decided on 19-10-2023
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