Land Acquisition Compensation Cannot Be Determined On The Basis Of Consent Award Passed In Another Acquisition : Supreme Court

The Supreme Court observed that a consent award cannot be the basis to determine the compensation in other acquisition more particularly, when there are other evidences on record.

In this case, the High Court, while allowing an appeal filed by a landowner enhanced the amount of compensation in respect of the acquired land to Rs. 40 lakhs per acre. To enhance the compensation, the High Court relied upon a consent award by which for the lands acquired in the year 2011 the amount of compensation was awarded @ Rs.60 lakhs per acre.

In appeal before the Apex Court, the State pointed out that the consent award was in respect of the property acquired in the year 2011 and which was acquired for a different purpose, namely, for formation of double line railway broad gauge between Bengaluru and Mysore City.

Taking note of this, the bench comprising Justices MR Shah and BV Nagarathna said that the High Court ought not to have relied upon the said consent award while determining the market price of the land acquired in 2008 considering the market price determined for the lands acquired in the year 2011 and on the basis of some "guesswork".

 "Therefore, the consent award ought not to have been relied upon and/or considered for the purpose of determining the compensation in case of another acquisition. In case of a consent award, one is required to consider the circumstances under which the consent award was passed and the parties agreed to accept the compensation at a particular rate. In a given case, due to urgent requirement, the acquiring body and/or the beneficiary of the acquisition may agree to give a particular compensation. Therefore, a consent award cannot be the basis to award and/or determine the compensation in other acquisition, more particularly, when there are other evidences on record.", the bench observed.

The court further noted that the High Court has not at all considered whether the lands acquired in the present case is similarly situated to the lands acquired in the case of  'consent award'. While allowing the appeal, the bench observed:

"As per the settled position of law, there may be different market prices/compensation with respect to different 4 lands, may be in the same village and/or nearby location. The land, which is on a prime location and which is on the highway and/or at a proximity to a highway may have a different market price than the land which is situated in a different location/interior of the village and which might not have a good potential for development. Therefore, also, the High Court has committed a grave error in solely relying upon Ex.P.17 to determine the market value of the lands in the instant case."

Case details

Special Land Acquisition Officer vs N. Savitha | 2022 LiveLaw (SC) 316 | CA 2052-2053/2022 | 23 March 2022

Coram: Justices MR Shah and BV Nagarathna

Headnotes

Land Acquisition Act, 1894 - A consent award cannot be the basis to award and/or determine the compensation in other acquisition, more particularly, when there are other evidences on record - In case of a consent award, one is required to consider the circumstances under which the consent award was passed and the parties agreed to accept the compensation at a particular rate. In a given case, due to urgent requirement, the acquiring body and/or the beneficiary of the acquisition may agree to give a particular compensation. (Para 5)

Land Acquisition Act, 1894 - There may be different market prices/compensation with respect to different lands, may be in the same village and/or nearby location. The land, which is on a prime location and which is on the highway and/or at a proximity to a highway may have a different market price than the land which is situated in a different location/interior of the village and which might not have a good potential for development. (Para 6)

Summary: Appeal against Karnataka HC judgment that enhanced the amount of compensation in respect of the acquired land on the basis of a Consent award - Allowed - The consent award ought not to have been relied upon and/or considered for the purpose of determining the compensation in case of another acquisition - The High Court has not at all considered whether the lands acquired in the present case is similarly situated to the lands acquired in the case of the said Consent award.

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