MANIMEGALAI versus THE SPECIAL TAHSILDAR (LAND ACQUISITION OFFICER) ADI DRAVIDAR WELFARE

Citation: [2018] 3 S.C.R. 1086 · Decided: 16-04-2018 · Supreme Court of India · Bench: R.K. AGRAWAL · Disposal: Disposed off

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2018] 3 S.C.R.
MANIMEGALAI
v.
THE SPECIAL TAHSILDAR (LAND ACQUISITION OFFICER)
ADI DRAVIDAR WELFARE
(Civil Appeal Nos. 2294-2295 of 2011)
APRIL 16, 2018
[R. K. AGRAWAL AND ABHAY MANOHAR SAPRE JJ.]
Land Acquisition Act, 1894 – s.4(1), 5A, 18 – Part of
appellant’s land acquired – Land Acquisition Officer awarded
compensation of Rs. 400/- per cent of land to the appellant –
Subordinate Judge on reference u/s.18, granted compensation @
Rs. 2,500/- per cent – High Court reduced the compensation from
Rs. 2,500/- to Rs. 1,670/- – On appeal, held:  In the instant case,
the land in question is situated adjacent to the National highway
and is also near a busy area with various facilities – Respondent
determined the value of the land in question based on the sale deed
which had happened five months prior to the date of acquisition of
the land in question, wherein the land was sold @ Rs. 400/- per
cent – Subordinate Judge correctly appreciated the fact that there
is a railway track between such land which was taken as the data
land and the acquired land and thus, both the lands cannot be
considered as similar – Acquired land is in the midst of a railway
track and national highway having capacity for higher potential –
Further, lands adjacent to the land in question  which were sold @
Rs. 4,919/- and Rs. 4,893/- in proximity within a very short time,
amply prove its value in relation to the adjoining lands – Order
passed by High Court set aside and that of Reference Court restored.
Land Acquisition Act, 1894 – Compensation – Fair and
reasonable compensation – Meaning of – Held: Fair and reasonable
compensation means the price of a willing buyer which is to be
paid to the willing seller.
Land Acquisition Act, 1894 – Purpose of acquisition – ‘Public
Purpose’ – What is – Held: Public purpose is not capable of precise
definition – It would broadly include the purpose in which the
general interest of the society as opposed to the particular interest
[2018] 3 S.C.R. 1086
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of the individual is directly and vitally concerned.
Land Acquisition Act, 1894 – Compensation – Factors for
determination – Discussed.
Disposing of the appeals, the Court
HELD: 1.1 Fair and reasonable compensation means the
price of a willing buyer which is to be paid to the willing seller.
Though the Act does not provide for “just terms” or “just
compensation”, but the market value is to be assessed taking
into consideration the use to which it is being put on acquisition
and whether the land has unusual or unique features or
potentialities. [Para 10][1092-B-C]
1.2  Similarly, public purpose is not capable of precise
definition. Each case has to be considered in the light of the
purpose for which acquisition is sought for. It is to serve the
general interest of the community as opposed to the particular
interest of the individual. Public purpose would broadly include
the purpose in which the general interest of the society as opposed
to the particular interest of the individual is directly and vitally
concerned. Generally the executive would be the best judge to
determine whether or not the impugned purpose is a public
purpose. Yet it is not beyond the purview of judicial scrutiny. The
interest of a section of the society may be public purpose when it
is benefited by the acquisition. The acquisition in question must
indicate that it was towards the welfare of the people and not to
benefit a private individual or group of individuals joined
collectively. Therefore, acquisition for anything which is not for a
public purpose cannot be done compulsorily.  In the case at hand,
it is a matter of record that the said land is fit for using the same
for house sites and situated adjacent to the National highway and
is also near to the busy area with various facilities. [Paras 11,
12][1092-D-F]
1.3 An assessment of the compensation payable for land
acquired must take into account several factors, including the
nature of the land, its present use and its capacity for a higher
potential, its precise location in relation to adjoining land, the
use to which neighbouring land has been put to use, the impact
of such use on the land acquired, and so on. In the case at hand,
MANIMEGALAI v. SPL. TAHSILDAR (LAND ACQUISITION
OFFICER) ADI DRAVIDAR WELFARE
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
the respondent determined the value of the suit land based on
the sale deed dated 15.04.1993 under which 26 c

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