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Heir Of Rupabhai Kuberbhai vs State Of Gujarat on 18 November, 1999
Nagpur Improvement Trust vs Vasantrao And Others on 26 September, 2002
The Executive Engineer, Ccm vs Hulgeppa Since Deceased By Lrs on 5 February, 2013
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[Complete Act]
Central Government Act
Section 23 in The Land Acquisition Act, 1894
23 Matters to be considered in determining compensation. —
(1) In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall take into consideration— first, the market value of the land at the date of the publication of the 57 [notification under section 4, sub-section (1)]; secondly, the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector's taking possession thereof; thirdly, the damage (if any), sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of severing such land from his other land; fourthly, the damage (if any), sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; fifthly, if, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; and sixthly, the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under section 6 and the time of the Collector's taking possession of the land.
58 [(1A) In addition to the market value of the land, as above provided, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market-value for the period commencing on and from the date of the publication of the notification under section 4, sub-section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Explanation. —In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded.]
(2) In addition to the market-value of the land, as above provided, the Court shall in every case award a sum of 59 [thirty per centum] on such market-value, in consideration of the compulsory nature of the acquisition. State Amendments Andhra Pradesh. —(1) In its application to the acquisition of any land in the project area for a project purpose as defined by the Nagarjunasagar Project (Acquisition of Land) Act, 1956, in section 23, in sub-section (1), for clause first, substitute the following clause, namely.— “first, the market value of the land on the 1st July, 1953, and the value of any improvements to the land effected after that date and before the date of the publication of the notification under sub-section (1) of section 4 or the market value of the land on the date of publication of the said notification, whichever is less; Explanation .—The Government may, on the request of the land-owner, agree to give in exchange any Government land the cost of which is, in their opinion, equal to the cost of the land acquired, or agree to pay the cost of a portion of the land acquired and for the remaining portion give Government land the cost of which is in their opinion equal to the amount due.” [ Vide Andhra Pradesh Act 32 of 1956, sec. 3 (w.e.f. 8-11-1956)].
(2) In its application in any land in the project area for project purpose as defined in Visakhapatnam Steel Project (Acquisition of Lands) Act, 1972, in section 23, in sub-section (1) for clause first, substitute the following clause, namely:— “first, the market value of the land on the 1st April, 1966, and the value of any improvements to the land effected after that date and before the date of the publication of the notification under sub-section (1) of section 4 or the market value of the land on the date of publication of the said notification, whichever is less; Explanation. —The Government may, on the request of the land-owner, agree to give in exchange any Government land the cost of which is, in their opinion, equal to the amount payable for the land acquired, or agree to pay an amount for a portion of the land acquired and for the remaining portion give Government land the cost of which is in their opinion equal to the amount due.” [ Vide A.P. Act 20 of 1972, sec. 3 (2)(ii) (w.e.f. 13-11-1972)].
Bihar —In section 23, in sub-section (1),—
(1) in clause first, for the words, figures and brackets “publication of the notification under section 4, sub-section (1)” and in clause sixthly, for the words and figure “publication of the declaration under section 6”, the following words and figures shall be deemed to be substituted, namely:— “publication of the notification under sub-section (2) of section 3 of the Bihar Restriction of Uses of Land Act, 1948.”
(2) after sub-section (2), following sub-section shall the deemed to be added, namely;— “(3) For the purposes of clause first of sub-section (1) of this section,­—
(a) the market value of the land shall be the market value according to the use to which the land was put at the date with reference to which the market value is to be determined under that clause;
(b) if it be shown that before such date the owner of the land that in good faith taken active steps and incurred expenditure to secure a more profitable use of the same, further compensation based on his actual loss may be paid to him;
(c) if any person, without the permission of the Collector required by section 5 of the Bihar Restriction of Uses of Land Act, 1948, has erected, re-erected, added to or altered any building, then any increase in the market value resulting from such erection, re-erection, addition or alteration shall be disregarded;
(d) if the market value has been increased by means of any improvement made by the owner or his predecessor in interest within two years before the aforesaid date, such increase shall be disregarded. unless it be proved that the improvement so made was made in good faith and not in contemplation of proceedings for the acquisition of the land being taken under this Act;
(e) if the market value is specially high in consequence of the land being put to a use which is unlawful or contrary to public policy, that use shall be disregarded and the market value shall be deemed to be the market value of the land if put to ordinary uses; and
(f) when the owner of the land or building has after the passing of the Bihar Restriction of uses of Land Act, 1948, and within two years preceding the date with reference to which the market value is to be determined, made a return under section 102 of the Bihar and Orissa Municipal Act, 1922, of the rent of the land or building, the rent of the land or building shall not in any case be deemed to be greater than the rent shown in the latest return so made, save as the Court may otherwise direct, and the market value may be determined on the basis of such rent:
Provided that where any addition to, or improvement of the land or building has been made after the date of such est return and previous to the date with reference to which the market value is to be determined, the Court may take consideration any increase in the letting value of the land due to such addition or improvement.” [ Vide Bihar Act 23 of 1948, Sch., para 3 (w.e.f. 1-4-1948)]. Patna (City) .—In section 23, in sub-section (1),—
(i) for clauses first, the following clause shall be deemed to be substituted, namely:— “first, the market value of the land according to the use to which the land has been put during the preceding five years— (a) at the date of the issue of the notice under clause (b) of sub-section (3) of section 39 of the Bihar Town Planning and Improvement Trust Act, 1951, in case the land is proposed to be acquired in pursuance of that clause; and (b) at the date of the first publication of the notice under section 6 of that Act in any other case.” “sixthly, the damage if any, bona fide resulting from diminution of the profits of land between the date referred to in paragraph (a) or paragraph (b) as the case may be, of clause first, and the date on which the Collector takes possession of the land.”
(ii) for clause sixthly, the following clause shall be deemed to be substituted namely:—
(2) in sub-section (2) the following proviso shall be deemed to be added, namely:— “Provided that this sub-section shall not apply where the land acquired is situated in an area which is declared by the State Government to be a congested or slum area and the land is not in the actual possession of the owner.”
(3) after sub-section (2), the following sub-section shall be deemed to be added, namely:— “(3) For the purposes of clause first of sub-section (1) of this section,­—
(a) if the market value of the land has been increased or decreased owing to the land falling within or near to the alignment of a projected public street, so much of the increase or decrease as may be due to such cause shall be disregarded;
(b) if any person, otherwise than in accordance with the provisions of this Act, erects, re-erects, adds to, or alters any wall or building so as to make the same project into the street alignment or beyond the building line prescribed by any scheme made under this Act, then, any increase in the market value resulting from such erection, re-erection, addition or alteration shall be disregarded;
(c) if the market value is specially high in consequence of the land being put to a use which is unlawful or to public policy, that use shall be disregarded, and the market value shall be deemed to be the market value of the land if put to ordinary use;
(d) if the market value of any building is specially high in consequence of the building being so overcrowded as to be dangerous to the health of the inmates, such overcrowding shall be disregarded, and the market value shall be deemed to be the market value of the building if occupied by such number of persons only as could be accommodated in it without risk of danger from overcrowding:
Provided that clauses (c) and (d) shall not apply in the case of a building which is in the actual occupation of the owner.” [ Vide Bihar Act 35 of 1951, sec. 71 and Sch., para 6 (w.e.f. 6-12-1951)].
(4) In section 23, in sub-section (1) in clause first, at the end add the following words, etc., namely:— “or the market value of the land at the date of the publication of the declaration under section 6, if there has been no notification under section 4, sub-section (1).” [ Vide Bihar Act 11 of 1961, sec. 10 (w.e.f. 1-6-1961)].
(5) In section 23 after sub-section (2), add the following sub-sections, namely—
(3) Notwithstanding anything contained in sub-sections (1) and (2)where the land is the subject-matter of a proceeding under the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act XII of 1962), the amount in lieu of compensation shall be determined in accordance with the provisions of the said Act.
(4) where the land is subsequently released from the proceedings under the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act 12 of 1962) the compensation payable will be determined in accordance with sub-sections (1) and (2): Provided that from the amount so determined such sum shall be deducted as may have been paid under section 24 of the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act 12 of 1962). [ Vide Bihar Act 2 of 1980, sec. 2 (w.e.f. 13-3-1980)].
Gujarat —In section 23,—
(i) in clause fourthly, add the following at the end, namely:— “and where the person interested is a tenant of the land, only the damage sustained by him by reason of the acquisition injuriously affecting his right as a tenant”;
(ii) at the end of clause fifthly, omit the word “and” and after clause sixthly, add the word “and” at the end and add the following, namely:— “seventhly, in the case of any land which according to the terms of the tenure on which it is held is not transferable or partible by metes and bounds without the sanction of the State Government or any competent officer, the market value of similar land held without such restriction.”
[ Vide Gujarat Act 20 of 1965, sec. 14 (w.e.f. 15-8-1965)].
Karnataka —(1) The Mysore Highways Act, 1964 (Mysore Act 44 of 1964) by sections 28(2) and 30, enjoins that while determining amount of compensation of default of agreement, the Highway Authority shall take into consideration the provisions of sections 23 and 24 of the Land Acquisition Act, 1894 (1 of 1894), as amended by the Schedule to the Act. Said section as amended is the same as in Maharashtra (1), except for the words “under section 15 of the Mysore Highways Act, 1964”, instead of “section 15 of the Bombay Highways Act, 1955”.
(2) Mysore Town and Country Planning Act, 1961 (Mysore Act 11 of 1961), substitutes section 23 when land is acquired for some planning scheme under the Act. That sections is the same as in Maharashtra (1). [ Vide Mysore Act 11 of 1963, sec. 72(a)].
(3) For the word “Collector”, substitute the words Deputy Commissioner”. [ Vide Mysore Act 17 of 1961, sec. 4 (w.e.f. 24-8-1961)]. Madhya Pradesh: Bhopal Area .—In section 23,—
(i) in sub-section (1), to clause beginning with the word “first”, add the following, proviso, namely:—
“Provided that when the market value of any land situate in Bhopal area, in respect of which the date of publication of the notification aforesaid is after the commencement of the Land Acquisition (Madhya Pradesh Amendment) Act, 1957 (XXI of 1958)* is in excess of its market value as on the 1st day of October, 1955, the market value thereof shall be deemed to be its market value as on the 1st day of October, 1955.”;
(ii) after sub-section (2), insert the following sub-section, namely:—
“(3) Where in respect of any land situate in Bhopal area the market value thereof is determined in accordance with the Proviso to clause first, then in addition to such market value and the additional sum provided under sub-section (2), the Court shall award a further sum not exceeding twenty-five per centum of such market value as may be deemed it in consideration of the appreciation in the price of land concerned by reason of the location of the Capital at Bhopal, regard being had to the situation of such land.” [ Vide Madhya Pradesh Act 5 of 1959, sec. 3 (w.e.f. 1-4-1959)]. * This Act came into force on 3-8-1958. Maharashtra: (1) Maharashtra (Highways) .—The Bombay Highways Act, 1955 (Bombay Act 45 of 1955), by reason of the provisions contained in sections 28(2) and 30, substituted for section 23 of the Land Acquisition Act, 1894, a new section 23 as given in the Schedule to the said Bombay Act. The text of this section 23 is as follows:— “23. Matters to be considered in determining compensation. —In determining the amount of compensation to be awarded for the land or any interest therein acquired under this Act, the following matters shall be taken into consideration:—
(1) the market value at the date of the publication of the declaration under section 15 of the Bombay Highways Act, 1955;
(2) the use to which the land was put at the date of such declaration;
(3) the damage sustained by the person interested by reason of the taking of any standing crops or trees which may be on the land at the time when the possession was taken from him;
(4) the damage (if any) sustained by the person interested at the time of the possession being taken from him by reason of severing such land from his other land;
(5) damage (if any) sustained by the person interested at the time of the possession being taken from him of the land by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner of his earnings;
(6) if in consequence of the acquisition of the land the person interested is compelled to change his residence, or place of his business, the reasonable expenses, if any, incidental to such change.” Note. —This Bombay Act has been extended to the Union territory of Manipur by G.S.R. 59, dated 11th January, 1960, published in the Gazette of India, Pt. II, Sec. 3(i), p. 107, dated 16th January, 1960.
(2) Nagpur (City). —(1) In clause first and clause sixthly, for the words and figures “publication of the notification under section 4, sub-section (1)” and “publication of the declaration under section 6”, the following clauses shall be deemed to be respectively substituted:— “(a) if the land is being acquired under sub-section (3) of section 32 of the Nagpur Improvement Trust Act, 1936, the words “issue of the notice under sub-section (3) of section 32 of the Nagpur Improvement Trust Act, 1936”, and
(b) in any other case, the words “first publication of the notification under section 39 of the Nagpur Improvement Trust Act, 1936.”
(2) In section 23, in sub-section (2), the full stop at the end shall be deemed to be changed to a colon, and the following proviso shall be deemed to be added, namely:— “Provided that this sub-section shall not apply to any land acquired under the Nagpur Improvement Trust Act, 1936, except—
(a) buildings in the actual occupation of the owner or occupied free of rent by a relative of the owner, and land apparent thereto; and
(b) gardens not let to tenants but used by the owners as a place of resort.”
(3) At the end of section 23, the following sub-section shall be deemed to be added, namely:— “(3) For the purposes of clause first of sub-section (1) of this section,—
(a) the market value of the land shall be the market value according to the use to which the land was put at the date with reference to which the market value is to be determined under that clause;
(b) if it be shown that before such date the owner of the land had in good faith taken active steps and incurred expenditure to secure a more profitable use of the same, further compensation based on his actual expenditure may be paid to him;
(c) if any person, without the permission of the Trust required by clause (b) of sub-section (1) of section 32 or by sub-section (3) of section 33 or by sub-section (4) of section 35 of the Nagpur Improvement Trust Act, 1936, has erected, re-erected, added to or altered any building or wall so as to make the same project beyond the street alignment prescribed under the said section 32 of the street alignment or building line shown in any plan finally adopted by the Trust under the said section 33, or within the area specified in sub-section (4) of the said section 35, as the case may be, then any increase in the market value resulting from such erection, re-erection, addition or alteration shall be disregarded;
(d) if market value has been increased by means of any improvement made by the owner or his predecessor-in-­interest within two years before the aforesaid date, such increase shall be disregarded, unless it be proved that the improvement so made was made in good faith and not in contemplation of proceedings for the acquisition of the land being taken under this Act;
(e) if the market value is specially high in consequence of the land being put to a use which is unlawful or contrary to public policy, that use shall be disregarded and the market value shall be deemed to be the market value of the land if put to ordinary uses; (f) if the market value of any building is specially high in consequence of the building being so overcrowded as to be dangerous to the health of the inmates, such overcrowding shall be disregarded and the market value shall be deemed to be the market value of the building if occupied by such number of persons only as could be accommodated in it without risk of danger from overcrowding; and
(g) when the owner of the land or building has after passing of the Nagpur Improvement Trust Act, 1936, and within two years preceding, the date with reference to which the market value is to be determined, made a return under section 146 of the City of Nagpur Corporation Act, 1948, of the rent of the land or building, the rent of the land or building shall not in any case be deemed to be greater than the rent shown in the latest return so made, and the market value shall be determined on the basis of such rent:
Provided that where any addition to, or improvement of, the land or building has been made after the date of such return and previous to the date with reference to which the market value is to be determined, the Court may take in to consideration any increase in the letting value of the land due to such addition or improvement.” [ Vide C.P. Act 36 of 1936, sec. 61 and Sch, clause 10 (w.e.f. 1-1-1937); Maharashtra (V.R.) A.L.O., 1956]. Manipur — See Note under Maharashtra (1).
Nagaland —Insert section 32B in the principal Act of 1966 substituting section 23 of Act 1 of 1894. “32B. Amendment of section 23 of the Land Acquisition Act, 1894, for purposes of Land Acquisition under this Act. When any land is compulsorily acquired for the purposes of the Master Plan or a scheme under this Act section 23 of the Land Acquisition Act, 1994 shall be substituted as hereinafter given, namely:—