Orissa High Court

Land Acquisition Officer vs Jailal Dash on 13 November, 2025

Author: B.P. Routray

Bench: B.P. Routray

Signature Not Verified
Digitally Signed
Signed by: CHITTA RANJAN BISWAL
Reason: Authentication
Location: Orissa High Court, Cuttack
Date: 13-Nov-2025 16:02:06



                                        IN THE HIGH COURT OF ORISSA AT CUTTACK

                                                     F.A.No.231 of 1982
                         (From the order dated 04.03.1982 passed by the learned Sub-Judge,
                         Bargarh in L.A. Misc.Case No.141 of 1978)

                         Land Acquisition Officer,
                         Sambalpur                                       ....                   Appellant

                                                               -versus-
                         Jailal Dash                                     ....                    Respondent

                         Advocate(s) appeared in this case:-

                                       For Appellant             : Mr.G.Tripathy, AGA

                                       For Respondent            : None

                                         CORAM: JUSTICE B.P. ROUTRAY

                                                          JUDGMENT

---------------------------------------------------------------------------------

Date of Hearing : 23rd October, 2025 Date of Judgment: 13th November, 2025

--------------------------------------------------------------------------------- B.P. Routray, J.

1. Present appeal is directed assailing order dated 4th March 1982

of the learned Sub-Judge, Bargarh passed in a reference under Section

18 of the Land Acquisition Act, 1894 in L.A. Misc.Case No.141 of

1978.

2. The land of the claimant-Respondent measuring Ac.0.49

decimals in M.S. Plot No.8391 of nature 'Berna' in mouza Bargarh

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

was acquired vide declaration No.28338 dated 26th April 1978

published in Odisha Gazette No.675 dated 16th May 1978 for

construction of Cooperative Training Institute, along with some other

lands. The compensation amounting to Rs.4,508/- was assessed by the

Land Acquisition Authorities including additional compensation and

statutory interest for the said land belonged to the claimant, which was

paid to him and received with objections.

3. The claimant then preferred an application under Section 18 of

the Land Acquisition Act, 1894 praying for enhancement of the

compensation amount and his contention is to count the market value

of the acquired land at Rs.2,000/- per decimal at least. It was

contended by the claimant that looking to the potentiality of the land

and its location and other circumstantial factors, the valuation

assessed by the authority at Rs.8,000/- per acre is too less and

therefore, the same should be enhanced.

4. The claimant examined three witnesses on his behalf to support

his claim. P.W.2 is the claimant himself. P.W.1 is the Mukhtar of a

vendor in regard to the lands in the locality, who justified about the

sale transaction made under Exts.1 and 2 at the rate of Rs.11,000/-

per Ac.0.04 decimals and Rs.5,000/- for Ac.0.02 decimals vide Sale

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

Deed Dated 18th October 1976 and 6th April 1976 respectively. P.W.3

is a private Amin, who spoke about potentiality of the acquired land

with reference to the sites in the neighborhood.

5. The Opposite Party-Authority (present Appellant) examined

one witness as O.P.W.1, who was the Amin for acquisition of the said

lands and he justified that reasonable compensation amount has been

paid in respect of the acquired lands on the basis of sale statics for the

relevant period, i.e. 19th September 1997 to 20th December 1997 in

regard to Berna kissam of land of the locality.

6. 'Berna' kissam of land justifies the nature of land fit for

construction of houses sites. The learned Sub-Judge taking into such

kissam of the acquired lands and its potentiality as well as its location,

which is proximate to Bargarh Railway Station and other factors has

calculated the market value of the land at the relevant time at Rs.500/-

per decimal and accordingly, assessed the total compensation amount

to the tune of Rs.29,400/- in total, including additional compensation

at the rate of 15% and 5% towards potential value. He thus finally

directed for payment of differential compensation amount to the tune

of Rs.24,000/- along with statutory interest at the rate of 6% per

annum from 26th April 1978 till realization.

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

7. Challenging the same, it is submitted on behalf of the State

authorities that such assessment for value of the land at Rs.500/- per

decimal by the learned Sub-Judge is without any basis. It is further

submitted that when the sale statics produced by the authorities for the

purpose of assessing the market value of the land is not disputed by

the claimant, the abrupt increase of the same to Rs.50,000/- per acre is

illegal and arbitrary.

8. On perusal of the record, it is seen that proximity of the

acquired land belonging to the claimant near Bargarh Railway Station

as brought in evidences of the witnesses and as per the sketch map

under Ext.3 is left undisputed. The sale deed under Exts.1 and 2

showing valuation of the land at such enhanced rate as a factor

towards consideration in favour of the claimant was not accepted by

the referral court, but the court drew a balanced approach to justify his

assessment at Rs.500/- per decimal as the market value of the acquired

land taking the potentiality of the land and its neighboring situation

into consideration. Section 23 of the Land Acquisition Act, 1894

prescribes the factors to be considered for determining the

compensation to be awarded for acquired land. It is observed in

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

Patiala Urban Planning & Development Authority v. Tarlochan

Singh, (2020) 17 SCC 224, as follows;

"9. In absence of comparative sale exemplars, the awards can be looked into and it has to be seen what was the basis of awarding compensation. The basis of determination in award has to be seen and that should be on judicially acceptable principle. Its value is not more than any sale exemplar and is not to be accepted readily. The similarity of land, distance has to be considered, besides it should be in close proximity of time before it is accepted as evidence. It has to be tendered in evidence and relevant facts for its acceptability have to be proved.

10. In Ram Kanwar v. State of Haryana [Ram Kanwar v. State of Haryana, (2020) 17 SCC 232] , sale exemplars are the best evidence and in absence of sale deeds awards can be looked into. Following observations were made: (SCC pp. 235-36, paras 11-13) "11. It is settled law that prices fetched for similar lands with similar advantages and potentialities under bona fide transactions of sale at or about the time of the preliminary notification are the usual and, indeed the best, evidence of market value of lands.

12. In Bangaru Narasingha Rao Naidu v. Revenue Divisional Officer [Bangaru Narasingha Rao Naidu v. Revenue Divisional Officer, (1980) 1 SCC 575] , this Court observed: (SCC p. 576, para 2) '2. There cannot be any doubt that the best evidence of the market value of the acquired land is afforded by transactions of sale in respect of the very acquired land,

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

provided of course there is nothing to doubt the authenticity of the transactions.'

13. This Court in Charan Dass v. H.P. Housing & Urban Development Authority [Charan Dass v. H.P. Housing & Urban Development Authority, (2010) 13 SCC 398 : (2010) 4 SCC (Civ) 933] has reiterated its aforesaid view and further observed: (SCC pp. 404-405, paras 21-

22) '21. One of the preferred and well-accepted methods adopted for ascertaining the market value of the land in acquisition cases is the sale transactions on or about the date of issue of notification under Section 4 of the Act. But here again finding a transaction of sale on or a few days before the said notification is not an easy exercise. In the absence of such evidence contemporaneous transactions in respect of the lands which have similar advantages and disadvantages are considered as a good piece of evidence for determining the market value of the acquired land.

22. It needs little emphasis that the contemporaneous transactions or the comparable sales have to be in respect of lands which are contiguous to the acquired land and are similar in nature and potentiality. Again, in the absence of sale deeds, the judgments and awards passed in respect of acquisition of lands, made in the same village and/or neighbouring villages can be accepted as valid piece of evidence and provide a sound basis to work out the market value of the land after suitable adjustments with regard to positive and negative factors enumerated in Sections 23 and 24 of the Act. Undoubtedly, an element of some guesswork is involved in the entire exercise, yet the authority charged with the duty to award compensation is

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

bound to make an estimate judged by an objective standard.' "

9. In the case at hand, the evidences so adduced by the claimant as

P.W.2 regarding the potentiality of his lost land could not be

sufficiently rebutted in the cross-examination and it is confirmed by

him upon suggestion made by the Appellant (Land Acquisition

Authority) during cross-examination that Rs.500/- per decimal would

be just for the purpose. It is further asserted by P.W.2 that the land

was situating by the side of village road adjoining to it and thus

having a greater potential for construction of house site. It further

reveals from the statements of the witnesses that the acquired land of

the claimant is near to the Mission Hospital, Church, Railway Station,

Spinning Mill and Sugar Factory in the locality and it was having a

number of residential houses nearby, including commercial

establishments in the vicinity. Therefore, the learned Sub-Judge has

rightly assessed the potential value of the land in question to be

assessed at Rs.500/- per decimal for the purpose of compensation to

be paid against Rs.80/- per decimal assessed by the Land Acquisition

Authority to determine the compensation amount. Thus, no infirmity

is seen in the approach of the learned referral court to grant the

Signed by: CHITTA RANJAN BISWAL

Location: Orissa High Court, Cuttack Date: 13-Nov-2025 16:02:06

enhanced compensation minus the amount already received by the

claimant, with statutory interest at the rate of 6% per annum.