Posted December 17, 2013 by advocateguru in Learning Centre
 
 

Compensation

The expression “compensation” is defined in the Act but has been used in different places in different contexts in the text.

The entire section 23 is intended to contain different heads for determining the total amount of compensation and the person interested to whom they said amount is payable, when he is deprived of the possession of the land, must get the said compensation and hence interest thereon shall accrue till payment of it without delinking any sum there from.1

It is well settled that under the Land Acquisition Act it is not only the owner who is entitled to compensation but all interested persons are entitled to the compensation. At best an assignee or a lessee becomes an interested person in terms of the Land Acquisition Act.2

According to section 23 following terms have to be followed for calculating compensation:

  1. In determining the amount of compensation to be awarded for land acquired under this Act, the court shall take into consideration—

  1. The market-value of the land at the date of the publication of the

  2. The damage 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;

  3. The damage (if any) sustained by the person interested, at the time of the Collector’s taking possession taking possession of the land, by the reason of severing such land from his other land;

  4. 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;

  5. If in the 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

  6. 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.

  1. In addition to the market-value of the land as above provided the Court shall in every case award a sum of fifteen per centum on such market-value, in consideration of the compulsory nature of the acquisition.  

1 Sunder v Union of India as decided on 19 September, 2001

 

2 State of Andhra Pradesh v Bondapalli Sanyasi 2002 (2) ALD 1

 


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