AIR 1997 Supreme Court 1779 (From Gauhati) Manipur Tea Co. Pvt. Ltd Vs. Collector of Hailakandi

Land Acquisition Act, 1894: Sections 4(1), 18, 23 and 28.   Land Acquisition-Compensation-Principle for determination of-Tea Estate's land acquired for laying railway tracks-Compensation awarded by Land Acquisition Officer-Enhancement of compensation by Reference Court Reduction of compensation by High Court-Reliance placed by Courts on sale statistics-Sale deeds relating to agricultural land 5 years prior to the date of Notification u/s. 4(1) produced by land-owners-Not accepted by Trial Court and High Court.  

Land acquisition-Determination of-Market value under section 23(1)-Burden is on the claimants to prove by adducing cogent reliable and acceptable evidence-Principle of determination of die compensation under section 23(1) of the Act is entirely different and distinct from the principles applicable in determining, the compensation under Land Reforms Act.   Land Acquisition-Escalation charges for determination of the compensation to the tea garden-There was no illegality committed by the Courts below in granting the escalation at Rs. 270 per bush.   Land Acquisition-Determination of severance charges-By reason of the acquisition of the land of the appellant to lay the Railway tracks, the contiguity of the tea estate was severed and 2/3rd of the estate has remained on one side and 1/3 on the other-High Court found that the appellant was required to set up a fencing and the drainage channel, an amount of Rs. 2,36,000 as estimated, would be sufficient to meet the expenditure   Land acquisition-Compensation-Interest-Proviso to section 28-Word `may' has to be construed as `shall'-Therefore the claimants would be entitled to interest at the rate of 9% on enhanced compensation for one year and thereafter @ 15% till date of deposit in the Court.

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