Facts of the Case
- The government acquired land belonging to ‘X’ under the Land Acquisition Act, 1894, for a public purpose.
- The compensation amount was fixed based on the market value at the time of the Section 4(1) notification.
- ‘X’ contends before the court that the value of his land has increased substantially since then.
- He seeks enhanced compensation based on the current or increased market value.
Issues in the Case
- Whether the landowner is entitled to enhanced compensation if land prices increase after the initial notification under Section 4.
- Whether post-notification increase in land value can be considered in compensation assessment.
- What is the relevant date for determining the market value of acquired land under the Act.
- Whether the compensation can be revised to reflect escalation in land value after notification or acquisition.
Principles Associated with It
- Under Section 23(1) of the Land Acquisition Act, 1894, compensation must be based on the market value of the land at the date of the Section 4(1) notification.
- The Supreme Court in “Periyar and Pareekanni Rubbers Ltd. v. State of Kerala” (1991) held that subsequent increase in land value cannot be the basis for compensation.
- However, if the landowner proves that the land was undervalued at the time of notification, he can claim enhanced compensation through a reference under Section 18.
- Courts may consider comparable sales, potential use of land, and development prospects existing at the time of notification, but not speculative future rise.
- Enhanced compensation is permitted only if based on evidence of actual market value at the time of acquisition, not subsequent appreciation.
Judgment
- ‘X’ cannot claim higher compensation solely because the value of the land increased after the Section 4 notification.
- However, he may be entitled to enhanced compensation if he can prove that the market value determined earlier was inaccurate or undervalued as on the date of notification.
- He can file a reference under Section 18 of the Act to have the compensation reassessed by the court.
- Therefore, the claim for enhanced compensation depends on evidence and must relate to the valuation date, not post-notification appreciation.
