Land Acquisition Act empowers government to acquire land only for public purpose or for companies. Compensation is determined and paid to those private person or bodies whose land is so acquired. Different matters are kept is view while determining the value of the property which is acquired.
2. Relevant Provisions
Section 24 of Land Acquisition Act, 1984.
3. Meaning of Compensation;
(i) Meaning under Black’s Law Dictionary
“That which is necessary to restore an injured party to his former position.”
(ii) Meaning Under Oxford Dictionary of Law
“Monetary payment to compensate for loss or damage”.
4. Matters to be neglected in Determining Compensation
Following matters shall not be taken into consideration in determining the compensation.
(i) Degree of Urgency; Section 23(i)
The degree of urgency which has led to the acquisition.
(ii) Disinclination to part with land
Any disinclination of the person interested to the part with the land acquired.
(iii) Damages caused by Private Person
The court shall take not into consideration any damage sustained by affected person which if caused by the private person, would not render such person liable to a suit.
(iv) Any damage likely to be caused
The court shall not consider any damage which is likely to be caused to land acquired after the date of the publication of the declaration under section 6 or in consequence of the use to which it will be put.
The object of this clause is to exclude from compensation only a possible depreciation of the acquired land itself from the use to which it will be put. This follows from the general principle that it is value of the owner which has to be compensated for and not the value to the purchaser or the acquiring body.
(v) Increase in Value of any other Land; section 23(vii)
Any increase to the value of the other land of the person interested likely to accrue from the use to which the land acquired will be put.
(vi) Any increase to the value of any other land
The court shall not take into consideration any increase to the value of the other land of the person interested likely to accrue from the use to which the land acquired will be put.
(vii) Any improvement made without the sanction of the collector
Any out lay for improvements or any disposal since the date the declaration under section 6 shall not be regarded when assessing the compensation. But if that has been done with the sanction of the collector, then the situation will be different. This has been explained in following case thus.
“Outlay or improvement made with the sanction of the collector after the date of preliminary notification under section 4 will be taken into consideration in awarding compensation.” (Air 1975 SC 1699).
To conclude that while fixation of compensation court always considered such matter which is important for relief for the person whose land is acquired under land acquisition act but there are also some matters which are neglected by the court for determination of the compensation.