INTRODUCTION
Land Acquisition Act 1894 empowers the government to acquire land only for public purposes or for companies Compensation is determined and paid to those private persons or bodies whose land is so acquired. Different matters are kept in view while determining the value of the property which is acquired.
RELEVANT PROVISIONS
Section 23 of Land Acquisition Act 1894.
LITERAL MEANING
A payment to make amends for loss or injury to a person or property or as recompense for some deprivation.
RIGHT TO COMPENSATION
The right to compensation is incidental to the unavoidable right to property. The person interested is entitled to claim compensation.
MATTERS TO BE CONSIDERED BY THE COURT
According to Section 23 of the Land Acquisition Act 1894, the following are matters which are taken into consideration while determining the compensation.
1. MARKET VALUE OF LAND
The market value of the land at the date of the publication of the notification under Section 4 of the Land Acquisition Act 1894.
The term market value is an amount of price which an owner is willing to accept and the vendee is also willing to accept. Market value means the value to the owner. Market value would mean the price which the relevant property would bring for him in the market which however might be different from the price for which the property in question, could be sold at a given time.
2. STANDING CROPS AND TREES
The damage sustained by the person interested because of the taking of any standing crops or trees by taking possession.
3. DAMAGE BY SEVERANCE
The damage sustained by the person interested at the time of the collector’s taking possession of the land because of severing such land from his other land.
Illustration: A land consists of two parts. One consists of crops while the other consists of partly desert and partly crops. The Government acquires the land with crops. The other land has not been acquired. The value of the land, which has not been acquired, shall diminish because of the acquisition of the fertile land by the Government.
4. DAMAGE FOR INJURIES AFFECTS OTHER PROPERTY
The damage sustained by the person interested at the time of the collectors taking possession of the land because of the acquisition injuriously affects his other property, moveable or immoveable, in any other manner, or his earning
Illustration: The land consists of two parts one consists of pasture and the other part consists of the cattle farm The Government acquires the land consisting of pasture and does not take the cattle farm. In such situations, the cattle will suffer because of the loss of the pasture which is their food and their market value would also fall. Because of this, the earnings of the owner of the land out of the cattle farm would also fall due to its closure.
5. LOSS OF EARNING
The damage sustained by the person interested while taking possession of the collector and the person interested is compelled to change his residence, place of business, the reasonable expenses incidental to such change.
Illustration: If the store and the shop are adjacent to the house and they open on the road. If the shop is acquired to widen the road in such circumstances the owner of the shop shall have to shift his business In such situations this fact shall be taken into consideration by the court in determining the amount of compensation.
Illustration: A factory is situated on the land. The Government acquires one half of the factory and does not acquire the remaining other The other half of the factory area not acquired may not be sufficient for the proper running of the factory hence the factory shall have to be shifted elsewhere. This fact shall be taken into consideration by the court in determining the amount of compensation.
6. DIMINUTION(DECLINE) OF PROFIT
The damage sustained at the time of taking possession of land resulting from the diminution of profit of the land between the time of publication of the declaration under Section 6 and the time of the collector’s taking possession of the land.
In such a situation, the people shall stop planting crops and the crops and fruit, etc. damaged due to boring drilling This fact shall be taken into consideration by the court in determining the amount of compensation.
7. AWARD OF FIFTEEN PER CENT
In addition to the market value of the land as above provided, the court shall in every case award a sum of fifteen per cent on such market value, in consideration compulsory nature of the acquisition
Example: The market value of the land is one lakh rupees with an addition of 15% The total amount would be one lakh and fifteen thousand rupees.
CONCLUSION
It is concluded that under the Land Acquisition Act 1894, different matters are taken into consideration for the fixation of compensation that is paid to the injured person. The court has discretionary powers while determining the compensation. The court shall also award 15% on the market value in consideration of the compulsory nature of the acquisition of the property.
FAQs
What are the matters which are considered by the Court determining compensation?
(2018-A, 2014-S)
What are the matters which are considered in determining compensation? How is market value determined?
(2012-S, 2011-S)
What matters does a court take into consideration when determining compensation to be awarded for the land acquired under this Act?
(2009-A, 2006-S)
