1. Introduction
Land Acquisition Act 1984 empowers government to acquire
land only for public purpose 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.
2. Relevant Provisions
Section 23 of Land Acquisition Act 1894.
3. Meaning of Compensation
According to Osborn’s Concise Law Dictionary, A payment to
make amends for loss or injury to person or property or as recompense for some
deprivation.
4. Right to Compensation
Right to compensation is incidental to the unavoidable right
to property. The person interested in entitled to claim compensation.
5. Matters to be considered by the Court in Determining the Compensation
Following are matters which are taken into consideration
while determining the compensation.
(i) Market Value of Land; Section 23 (1)(i)
The market value of the land at the date of the publication
of the notification under section 4 of the land acquisition act act 1894.
The term market has not been defined in the land acquisition
Act 1984. Hence we have to describe it generally. The term market value is an
amount of price which an owner was willing to accept and vendee is also willing
to accept. Market value means the value to 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 property in question could
be sold at a given time.
(ii) Compensation for standing crops and trees; Section
23(1)(ii)
The damage sustained by the person interested by reason of
the taking of any standing crops or by trees by taking possession.
(iii) Damage by Severance; section 23(1)(iii)
The damage sustained by the person interested at the time of
collector’s taking possession of land by reason 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 party 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.
(iv) Damage for Injuries effect other Property; Section
23(1)(iv)
The damage sustained by the person interested at the time of
the collector’s taking possession of land by reason of the acquisition
injuriously effecting 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 it the earnings of the owner of
the land out of the cattle farm would also fall due to its closure.
(v) Loss of Earning; Section 23(1)(v)
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 for the purpose of the widening of
the road the 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.
(vi) Diminution of Profit; Section 23(1)(vi)
The damage sustained at the time of taking possession of
land resulting from diminution of profit of the land between the time of
publication of declaration under section 6 and the time of the collector’s
taking possession of the land.
In such situation the people shall stop planting corps and
the crops and fruit etc, get damaged due to boring drilling. This fact shall be
taken into consideration by the court in determining the amount of
compensation.
(vii) Award of fifteen per centum; Section 23(2)
In addition to the market value of the land as above
provided, the court shall in every case award a sum market value, in
consideration compulsory nature of acquisition.
Conclusion
To conclude that under land acquisition act 1894 different
matters are taken into consideration for fixation of compensation. Which is
paid to 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.
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