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2025 DIGILAW 1211 (SC)

S. v. Rajashekarappa VS Special Land Acquisition Officer

2025-05-14

N.KOTISWAR SINGH, SURYA KANT

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ORDER : 1. Leave granted. 2. The appellant owns land in Survey No.43/2 of Odeyrahattur Village (erstwhile Shivmogga District). A Notification, dated 11.09.1997, was issued under Section 4 of the Land Acquisition Act, 1894 (for short, 'the Act'), to acquire 8 Acres, 30 Guntas of land out of Survey No.43/2 for the construction of a canal to the Upper Tunga Project. Thereafter, another Notification dated 29.06.2001 was issued again, under Section 4 of the Act, proposing to acquire the appellant's land measuring 5 Acres, 33 Guntas of land out of the same Survey No.43/2 and for the same public purpose. The Award was eventually passed on 24.11.2004 granting compensation of Rs.30,000/- per acre to the appellant. The aggrieved appellant filed a reference under Section 18 of the Act seeking enhancement of compensation, and the Reference Court vide Award dated 15.12.2015, enhanced the compensation to Rs.1,25,000/- per acre. The appellant was still dissatisfied and consequently he approached the High Court seeking further enhancement. 3. Meanwhile, the High Court vide a judgment dated 25.10.2017, passed in MFA No.7623/2014, which arose out of the acquisition commenced vide Notification dated 11.09.1997, granted compensation at the rate of Rs.2,38,950/- per acre. That judgment of the High Court was upheld by this Court on 09.05.2022 in SLP (C) No. 8779/2022 (Sri S.V. Rajashekarappa vs. The Assistant Commissioner and Special Land Acquisition Officer & Ors.). 4. Meanwhile, the appeal filed by the appellant was taken up by the High Court and was partly allowed vide impugned judgment dated 16.04.2021, granting him compensation at the rate of Rs.1,87,500/- per acre. 5. Still dissatisfied, the appellant has approached this Court by way of the instant appeal. 6. Heard learned counsel for the parties and carefully perused the material placed on record. 7. We find from the impugned judgment of the High Court that the appellant specifically relied upon the High Court's earlier judgment dated 25.10.2017, pertaining to the 1997 acquisition of same Survey No.43/2, and for the same public purpose. The High Court, however, has distinguished and declined to follow the cited decision on the ground that there was sufficient evidence led to show that the land acquired in 1997 was cultivable and the crop of sugarcane was grown on that land. The High Court, however, has distinguished and declined to follow the cited decision on the ground that there was sufficient evidence led to show that the land acquired in 1997 was cultivable and the crop of sugarcane was grown on that land. In respect of the appellant's land, the High Court has candidly acknowledged that it is an irrigated land, yet the High Court declined to grant compensation to the appellant at par with the similarly placed land-owners. It is a matter of commonsense that an irrigated land can be used for growing sugarcane and various other crops depending upon the weather conditions of the area. It is also a fact that the appellant's land forms part of Survey No.43/2 and, thus, there was no significant difference in the nature of land acquired in 1997 vis-a-vis that of the appellant acquired in 2001. That being so, we see no justification for the High Court not to grant compensation to the appellant at the rate of Rs.2,38,950/- per acre. 8. Moreover, the earlier land out of Survey No.43/2 was acquired on 11.09.1997 whereas the process to acquire the appellant's land commenced on 29.06.2001. The appellant, thus, is also entitled to the benefit of escalation in price. Assuming that such escalation is at the lowest rate in rural areas yet escalation can be safely inferred to be at least 7% annually. Applying this for a period of four years, the actual compensation to which the appellant will be entitled to comes to Rs.3,05,856 (Rs.2,38,950/- + 7% escalation annually i.e., Rs.16,726.50 for 4 years i.e., Rs. 66,906/-) per acre. Ordered accordingly. 9. For the reasons aforestated, we allow this appeal, modify the impugned judgment of the High Court and hold the appellant entitled to compensation at the rate of Rs.3,05,856/- per acre along with all statutory benefits, including interest. The enhanced compensation shall be paid to the appellant within a period of eight weeks. 10. As a sequel to the above, the pending interlocutory applications also stand disposed of.