Land acquisition: HC rejects TNHB plea

By Our Special Correspondent

CHENNAI, DEC.7. While fixing the price for land during acquisition, the locational advantages, potentiality and the continuing rise in prices of the land concerned should have to be taken into account, the Madras High Court has held.

As to how a particular piece of land was to be put into use, could not be relevant for fixing of the market value, a Division Bench of the High Court said.

The Bench comprising Mr.Justice P. Shanmugam and Ms. Justice A. Subbulakshmi, made the remarks while passing orders on appeal suits filed by the Tamil Nadu Housing Board (TNHB) and three erstwhile owners of a 53.89 ground land in Mylapore, Chennai.

In 1986, the TNHB acquired the land abutting Luz Church Road and three years later, the compensation amount for the land was fixed at about Rs.87,700 per ground. Contending that this was inadequate, the owners moved the city civil court, which enhanced the rate to Rs.3.3 lakhs a ground. Aggrieved by the order, the Board filed appeals before the High Court.

The landowners also filed separate appeals stating that the land was situated abutting Luz Church Road, a prime locality in Chennai, enjoying locational advantages, and nearness to shopping complexes, banks, commercial establishments, hotels and cinemas. The surrounding areas were fully developed and hence the compensation should be further increased. The Board contended that the whole extent of the land so acquired could not be put to use. The value fixed by the land acquisition officer on the basis of a sale deed pertaining to a piece of land in the same area, which reflected the correct market value.

Rejecting the Board's contention, the Bench said ``as to how the TNHB is going to put the (acquired) land to use, cannot be relevant while fixing the market value''. Also, the sale deed of the land based on which the L.A officer arrived at the rate fixed, was two furlongs away.

The Bench said it had to take into account the locational advantages and continuously rising prices (for fixing the price). It added that it considered Rs.4 lakhs a ground as the appropriate market value of the acquired land. ``We set aside the judgment of the lower court to the extent as indicated and allow the appeal and enhance the compensation,'' it added.

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Section  : Southern States
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