lAND ACQUISmON

CHAPTER 1B (7) Reference to Coun; and

LAND ACQUISITION
For the advancemenl of any country. it is but naural fo(hCl'IOM',es,uff<itt
land at ber diposal whcron public utility services, public projects like atomic
oil refineries, etc, be set up and it is neccssary that land required for the sai',I pu",,"
be had at a very-reasonable price so as to tax the public fmance as low as
Under such circumstances, every Government expects its subject to co<.id... ·1
personal interest in such lands subordinate to the interest of their country as a
Human weakness generaUy over-shadows such feelings and the individual
forward to sell his land to the Government provided he gets a fancy price [or the
• instead of its market value. II is also likely that he may DOt be willing to pan
his'property al any cost due to sentimental value and th'is will obstruct the
citizm. Hence, the Government of India has enacted what is known as "The
Acquisition Act, 1894", which has been amended from time-to-lime,
. circumstanceS and needs of the time. It gives no option to an individual
required for a public purpose and thus sale by him is compulsory.
The basic principles of Land Acquisition Act are:
(I) Land or propeny is required for a public purpose.
(2) Sale by an owner is compulsory and that there is no option
same.
(3) Owner to get market value as against sentimental or monopoly
(4) Property is acquired free all encumbrances.
(5) In addition to market value. an owner will be entitled to
compensation of 30010 on the value of such land for
acquisition which is known as "Solatium".
. "Aquisition meanttbat the entire bundle of rights which ,:"ere
original holder would pass on acquisition to the acquirer by leavmg n~~iI.'
fonner".
The procedure for the acquisition of land can be divided into the
parts:
(1) Investigation;
(2) Objection and confinnation;
(3) Claim and value;
(4) Award;
(5) Possession;
(6) Payme!U;
(8) Apportionment.
Invesd gadon
. When land is ~uired by a local authoriry or a company, an application is
~Ulred to be made by I~ to the revenue authoriry, the application to be acompaned
With a copy of plan shOWing Survey Nos., purpose of acquisition and the reason as to
why ~is particul.ru: site has been selected for the purpose of acquisition. It must also
contam the. provlSIOtl made for the COSt of acquisition proceedings. The application
mu~t contam t~e fact that the local authoriry or the company as the case may be, did
try m the first mstance to purchase the land by negotiations which did not materialize
for one reason or another and hence the need for acquisition proceedings . .
After the Government has been fully satisfied about the purpose, the least arta
~eeded, ~ O~t relevant facts as provided under Land Acquisition Rules, it will
Issue a notificatIOn under Section 4 of the Act in the State Government Gazette Pait-
I, that the particular land is needed for a public purpose. One of the reveue officers
wit! be appointed to function as Collector to hold an enquiry under Section 5-A of
theACl
.s.ec tion 4 of the Act is very important as it fues the material date for
detemllnmg the market value of a property. After notification under Section 4 the
owner is prohibited from selling his property or disposing of in any manner he likes
and ~er prevented from. canying out any works of improvemcnts or renovations
for ~hl~h no compensation will be payable if executed without obtaining prior
penmsslOO from the Collector.
Objection and confirmation
Generally, the notice for acquisition of a particular land will be served on all
persons interested in land, inviting their objections to the said acquisition within 30
days from the date of notification under Section 4 or from further date as may be fixed
by the Colltetor. The objections to the acquisition will be valid on one or more of the
following grounds namely:
(I) That the purpose for which the land is proposed for acquisition is not
a public purpose.
(2) That the land is not suitable for the said purpose.
(3) That land, under acquisition is less suitable than the other piece of
land.
(4) That the area under acquisition is excessive. .
(5) That the acquisition :-",ilI destroy or 'impair the amenity of historical
or artistic monumenrs..and places of public resort or will take away
imponaot pl!.blic rights of way or other conveniences or will desecrate
religious buildings, grave yards and the like.
The Collector after bearing the parties will submit bis I'tpOI1: to the Government
with his observations and if the Go~ent is satisfied about the' same it wiU finally

450 451
 PROFESSIONAL PRACTICE
declare the land for acquisition under Section 6: on the other band. if the objections of
the owners an: upheld, the Government can cancel the notification.
After the publication of the notification under Section 6, the Land Acquisition
Officer (L.A.O.) will proceed with the claim, etc.
At times, the owner may file objections when the acquiring body desires 10
acquire pan of the propeny inslead of the whole. This will be under the provision of
Section 49 (1) which prevents the Government from putting in force the provisions of
Land Acquisition Ace in respect of only a part of the property wben the owner objects
to the same. In this case if the owner desires and the acquiring body also agrees. the
acquisition is proceeded fwtber by notifying the rest of the property afresh. However,
if there is any dispule as 10 whether a panicular pan notified does or does not fann an
integral pan of the whole property, it is obligaroy on the part of L.A.O. 10 refer sucb
mane for the determination of the Court. If the Court bolds in favour of the claimant,
the acquisition in respect of pan is quashed, and the L.A.O. will have to proceed
further de novo for the acquisition of the whole of the 'property.
Section 49 (2) deals with the rights of claimants for theclaim of severance
and injurious affection to the rest of property on accounl of part acquisition. In case
the claim on account of severance or injurious affection is considered 10 be excessive
and unreasonable and if the Governmenl feels it wonhwhile acquiring the rest of
the property instead of paying compensalion towards severance or injurious affeclion
and if the acquiring body also consents, the rest of the property may be acquired by
the Government, in whicb case, a simple order of Government 10 acquire the same
entitled the acquisition of the whole property and the LAO. proceeds accordi,ngly.
Claim and Award
The L.A.O. will issue notices under Section 9 to all persons interested in
the acquisition, including the otcup8Dts, to' file their claim reports. He will conduct
the necessary inquiries which are ~ judicial ones, and his award is merely an offer
unless the parties accept the same.
The L.A.O. (I) Is not be to a party to the proceedings; (2) Is to possess an
expert knowledge on valuation; (3) Offers a fair price 10 an owner, and (4) 15 to
check thaI the public funds an: nOi wasted.
The claim filed before L.A.O. must contain: .
(1) Names of the claimants and co-sharer if any, with their shares, •
wrinen declaration is required to thai effect.
(2) Document of profits.
(3) Rents or profits for last 3 yean.
(4) Valuation report of an architect or engineer logether with tbr:
documentary evidence in support of the same.
(5) Whether area given in nOlice issued by the Collector is acceptable 01
. .I.
The Government has got the right to abandon the acquisition proceem.
LAND ACQUISITION
at ~y ~e before tm: final declaration under Section 6 by simply canceling the
OOnficallOn under Secnon 4.
In case however, the Government desires to drop any acquisition proposal
after nolifi~tion under Section 6 ~ respect of land, the possession of which is not
~en over, II can do so under Section 48 (I) of the Land Acquisition ACl however
;~b cases. compensation as provided under Section 48 (2) will be required 10 ~
For preparing a claim report for the purpose of acquisilion Sections 23 and 24
an: required 10 be considered. .
~t;on 23 (I): :n determining lhe amount ofcompensation 10 be awardedfor
fand acqUIred under thIS ACI, the Coun shall take into consideration '
Firstly, the market value of the land al the date of publication dfthe nOlification
under Section 4, Sub-section (I).
Market value can be delennined by anyone of the following methods
namely: '
(I) The actual price of the very property under acquisition provided thai
there is no material time lag between the date OftransaclioD and dale
of nOlification under Section 4. Rise and fall in the value of land
during that period will have 10 be accounled for.
(2) By comparing land under acquisition with instances of sale in the
neighbourhood of comparable properties after making due allowance
for all the relevant factors whicb affect the value.
(3) Capiqilising the nel annual income or nel profit al cenain number of
year's purchase. The rents restricted by the ReD! Ace cannot form the
basis ofv.aJuation as il is not possible to forecast what will be the rent
after the repeal of the Rent Ace.
(4) Developmet method ofvalualion depending upon the circumstances
ofa case.
. Secondly, the damage sustained by the person inleresled, by reason of the
:.king of any standing ~ or trees which may be on the land al the time of the
CoIleclor's taking possession thereof.
. This is generally required 10 be considered only when the possession
agncultural land is required 10 be taken over al a very shan ootice as provided
~ S~on 17 (I) of ~d"Acq~isitiion.Acl thai is the urgency clause. In respect
possessIon under Secbon 16 thIS qUesllon should not arise as the owners or the
IICcUpants .as the case may be get sufficient notice of acquisition for standing crops.
,It may have to ~ considered if there are fruit growing trees elc., on land.
If the land is proposed 10 be acquired for N.A. purpose and N.A. value is being
for the same under the award, the owner should not get anything on the basis of
:::~~:.:eo:::: :::~I~~;onJY the fuel value. of the ~. as he is being paid
value on the bais ofN.A.
Thirdly, the damage (if any) sustained by the person interested, at the time of
 PROFESSIONAL PRAcnCE lAND ACQUISITION

. b for severing such land from OUt of land, and "Person intereSted" as including all persons claiming any interest
the Collector's taking possession oftht land y reason
m compensation to be awarded on account of land under acquisition and a person
his other land. , intd by the person interested at the time of is deemed to be interested in land if he is intereste:d in an easement affecting me
Founhly, the damage (,If any) suslta b reason of the acquisition injuriously bOO. Where land proposed for acquisition is subject to an easement, compensation is
, k' ......cCi"'i..<:lon of the and Y or his
the Collector s ta mg...,--- bl ,'mmovable in any other manner required to be paid to the land owner, thaI is the sevienl owner and also to the owner
, '.'" """'"
affecllng hIS oUier pror"J ' mova e or
c( the easement. This value of easement bears no relation to the value of servient
earnings, d injurious affection is sometimes tOO fme. - 1mement. Ifit happens that the easement is of no great value then both the servient
The line between severance: building value is diminished. CompensahCa Jmement as well as the easement can be acquired at a price which is less than me
be discerned as when by sev~ d for acquisition in such a manner -.det value of land free from the easement. The said market value of the freehold
is payable when part ~f p~pe~ IS P;'~nowing illustrations show some of Dt is greater than the combined value of the parts.
the remainder deprecIates m va ue, So far as the damage due to loss of earnings is concerned, !be same must be
severances: . f 'cu1turalland admeasunng , about 4
lawful nature, A yearly tenant of a tank for the purpose of fishing is entitled to
.) When a large PIece 0 agrt , ' . leaving about 20 gunthas ..-.pensation, so is a person who suffers damage by loss of ferry,
or more is proposed for acqUISItIOn, ,
cannot be utilized by an o~edr for a:;~tu:!=::;'ilS river
Damage sustained by canying out the business without the permission from
Amenity of a bungalow tS estroy , ent au!bority if required, will not entitle the claim for Ilny compensation
b) r.
frontage being taken away. 'through the centre
Fifthly, if in consequence of the acquisition of the land by the Collcctor,
c) A railway line or a wate~ canal psssmg oul of which one
penon interested is compelled to change his residence or place of business, the
thus dividing !be sam~ 'bnl ;Wo:rtsp~rpQse to which it is , .
to
ble expenses (if any) incidental to such cbange; and
inaccessiable or unsUltl!. e or
Sixthly, the damage (if any) bonafide resulting from diminution of the profits
present. , the diminution in the value land between the time of the publication of the declaration under Section 6 and
of damage by severance tS b 'ldial
The measure When b the acquisition of a pottion of a UI . _ ",f·o!o< c..u",,,,,',
taking possession of the land.
remaining land of an owner. , , y pottion is rendered useless for ,",.h ..... Compensation will also be payable towards the cost of transportation of
'd .. I P"t"f\lW'·
for resl en \II. ..... r---''I. the f h t' building is required to be gtven,
remammg .
flXtures, machineries, etc" when a person is forced to leave his place of
compensation 10 the extent ~ ,t ~ en ':ttttuon can be c\aimed if a c\aimaDl Depending upon the circumslDnces of a case more rent payable
Compensation for mj~us under acquisition. It deals in premises is also considered for the compensation,
intertSt in the ~ent, rightsu~li: ~te, which me owner or "",,,,,... In addition to the market value, the claimants will be entitled to an additional
interference WIth any ~~ P ake use of in connection w._l.'hllU'd"'llnhg b""fus- ~_otic," of 300;. of such market value under Land Acquisition Act Section 23
propetty are by law entltl , ~o, m Act ;'Land" is defined as in er, it would differ in acquisition under various other Acts such as Mumbai
~ ..... 'on 3 ofthe Land AcqUlSl110 n
.......1 RIVER Corporation Act, Requisition Act, Highway Act, etc.

~
H! to be taken Into consideration for Ihe purpose of compensation:
firstly, the degree of urgency which has led to the acquisition;
Secondly, any disinclination of the person interested to part with the land
______-.---R~'vlERB~~~K~-------
nirdly. any damage sustained by him which if caused by a private person,
rmder such person liable to a suit.
---- ~y, any damage which is likely to be caused to the land acquired, after

BUNGAlOW " "'Ibe publication of the declaration under Section 6 by or in consequence of

b it will be put;
"'Y
"''''Y', increase in the value of the land acquired likely to accrue from the
----L--;:
12~M. ROAD
....._ . . ...·u be put when acquired;
Fig. Sketch showing severance , any increase to the value of the other land of the person interested

'5'
 PROFESSIONAL PRACftCE
CHAPTER 19 L
likely to accure from the use to which the land acquired will be put; and
Seventhly, any outlay or improvements on or disposal of the land EASEMENTS
commenced. made or effected without the sanction of the
publication of the Notification under Section 4, Sub-section (1).
After the necessary enquiries have been completed, having heard
claimants and the acquiring body, the Land Acquisition Officer declares his
buildlllgOftheneighh9urwberebytheairan~ of o~ ho:
• . A huge screen wall erected at the . .
ldlllg
which shows: , Just facing the
True area of land. affected considerably. The occupants find th I tO the saId neIghbour's building are
(I)
(2)
Total amount of compensation payable. Itt and lighl. A peculiar siruation, is il not? ~~~ uncomf~le due to inadequate

(3)
Apportionment of compensation if there are twO or mort """",. ~h a property, a number of questions Wee ~ .Itec~ or e.ngllleer when he inspects
claimants. provided ~ is a consent to.that effect -aghbour behave in this peculiar w blttb to hIS trunci as to why should the
If the claimants are dissatisfied with the award, then they can IlCCCP' "'live and let othen live". ay and why should he not follow the theory of
amount under protest and request the LA.O. to refer the matter 10 the Cowt
necessary adjudication under Section 18 of the Act. propertyWell! That
and the is the
owner right connected
by erection of with the enjoyment
. of the immovable
e n t connected to the enjoyment ~f hO, .
The applicalion 10 the Collector requesting him to refer the matter 10 IkC40 me th .gh screen wall has done noth·
. tog wroog except to
when the claimants are nOI satisfied with the award, should be made within six righl prnrwortv I Immovable p.........rIV w·1h
'VY-" J may Dot be conveniently and full h ld . 'VI'¥"J, 1 OUI such
from the receipt of the notice from the Collector as regards declaralion called easements and these first found roc .. y e and enjoyed. Such rights are
from the date of award if the award is declared in presence . terVitudes. OgolllOD under Roman Law and ...."eTe called
is earlier and in other cases within six months from
At times the matter can be referred to the Court by the Collector What is an Easement?
.b<>u"fue,pr~"ionm." .ri~
under Section 30 either on account of defective titles or on account of a
as such, for the beneficial enjoym~nt ofe:=~r occupier of certaio land possesses,
An easement is a right wh·ch th
apportionment In case any dispute •• ROT Ih" d.,i...
of Ihe award, il is obligatOI)' on the part the Land Acquisition Officer to
such disputes to the Court for detennination inslead of deciding on his own
g) To do and continue to do something· or
To prevent and to continue to rev~t . .
(vide Section 30 and Section 31 of Land Acquisition Act). The ;PI""[ion",.""~1 or upon, or in respect of certa! othe'l~ethtnh~ from bemg done; in
compensation is a very difficult propostion and hence, the Collector ins""d 01 .Slration • illlU not IS own.
a risk in tbe matter refen the same to the Court as is stipulated in the Act. (a) •A' as the owner of a certain house has .
In apportionment of compensation each claimant is entitled to the neighbour 8's land for the pu 'co a nght .of way over his
his int~t which he has lost by compulsory acquisition. Thus, what is ,eq,ui,:d. enjoymeot oftbe house Th;~' rpose nnected WIth the beneficial
valued is variety of interests. rights and claims in land 10 tenus of money. .' . .., IS an easement.
A as the owner of certain bouse has .
. 8 's land, and to take water for the the nghl t~ go on his neighbour
(b)
The Land Acquisition Act, 1894 has been amended in 1984andthe
from the valuation poiot of view an: as under: spring therein. This is an tasement.putpOSt of hiS bousehold, out of a
(1) Original solatium allowance of 15% has been raised to 30%1
(2) Int~ at 12% P.A. on such market value for "7a::"!~:;::
on and from the date of publication oflhe notification Note:
(I) in respect of said land to the date oftbe award oflheC.ol\oOl
whereas under the Engl'ish La . eased ment ~cludes Profit-a-Prendre
Under the Indian Law the term .
from the date of taking possession of the land, whi.ch'''' iSld . w, It oes not mclude Profi
means nghl to remove and a ro . . ' t-a-Prendre
of the . h . . pp pnate for hiS own use any part of ·1
servIent entage, m short privilege of lakin ' SO l
from the land of another, e•g• R.;ght t0 __ I. g away something
l<U.e out fish from a tank.