LexSPECIAL LAND ACQUISITION OFFICER versus KARIGOWDA & ORS.
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[2010] 5 S.C.R. 164 A SPECIAL LAND ACQUISITION OFFICER· ·, v. KARIGOV'llDA & ORS. (Civil Appeal No. 3838 of 2010 etc.) B APRIL 26, 2010 . ,. . [R.V. RAVEENDRAN AND SWATANTER KUMAR, JJ.] . Land Acquisition Act, 1894: ',\\ c ss. 23 and 24 - Pair market value - Of acquired land - In compulsive acquisition - Determination of - Grant of compensation - Held: For determining the market value, the relevant consideration would be the value of land with its peculiar advantages and disadvantages with reference to 0 commercial value - Other consequential right, legal or commercial, which remotely flows from.an agricultural activity will not be treated as a relevant consideration - The computation of compensation has to be in terms of ss. 23 and 24 - Only statutory benefits in terms of ss. 23 (1-A) and 23 E (2) would be available to the claimant - Manufacture of silk which is the result of the silk worm fed by mulberry leaves is not an agricultural activity, but sericulture - This activity would fall in the domain of manufacturing 'and commercial activity and is not directly covered under s. 23. F ss. 23 and 24 - Interpretation of - Held: The court should apply the principle of literal or plain construction to these provisions - In view of the scheme of the Act, it will not be appropriate either to apply the rule of strict construction or too liberal construction to the provisions of the Act -Interpretation G of statutes. ss. 4 and 48 - Land acquisition - Land taken in possession prior to issuance of notification u/s. 4 - Grant of interest for the period prior to the notification - Held: Grant of H 164 SPECIAL LAND ACQUISITION OFFICER v. 165 KARIGOWDA & ORS. interest for the period prior to notification not permissible - A However, for such period, court can direct the Collector to examine the extent of rent or damage - s. 48 would come to the aid of claimants. Land Acquisition: B Compensation for land acquisition - Methodology for computation of - In compulsive acquisition - High Court adopting Capitalization of Net Income Method, negating the Sales Statistics Method by taking instances of adjacent villages adopted by the Land Acquisition Officer - Held: C · Adoption of method of Capitalization anq multiplying the same by 10, is without the support of.evidence, hence inconsequential - Sale instances of adjacent villages can be made basis for determining the fair market value - On facts, the instances considered by Land Acquisition Officer are D relevant instances - Claimants are entitled to increase at the rate of 15% P.A. compounded, in view of increasing trend in sale price and since the land was used for production of mulberry crops which had restrictive use in the manufacturing, commercial or industrial activities - The Court is entitled to E apply some reasonable guess work to balance the equities and fix just and fair market value in terms of parameters uls. 23 of Land Acquisition Act - In the peculiar facts of the case, claimants are given higher compensation - What could be capitalized was the value of mulberry leaves used for F sericulture and not the value of silk cocoons - Land Acquisition Act, 1894 - ss. 23 and 24. Compulsive acquisition - Power of compulsive acquisition has an inbuilt duty and responsibility on the State to pay just and fair compensation without delay. G Interpretation of Statutes: Legislative intent - Held: Legislative intent needs to be noticed for beneficial and proper interpretation of the H ' . 166 SUPREME COURT REPORTS [2010) 5 S.C.R. . A provisions in the light of the scheme underlying the provisions of the Statute. Literal/Plain construction - The plain words require no construction - However, whether the words are plain or 8 ambiguous can be determined by studying them in their context. Interpretation - Guiding principles - Held: Interpretation can be literal or functional - Literal interpretation not to go beyond litera legis - Functional interpretation can make some C deviation to the letter of law - The interpretation is best which makes the textual interpretation match the context - A statute is best interpretated when the purpose of enactment are known - Where statutory provision confers rights and also states mandatory or implied conditions, such conditions are D relevant for interpretation - Exercise of statutory power in breach of the express of implied conditions will be illegal, i
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