Supreme Court: Large Areas Do Not Get Same Price As Same Plots; Some Deductions Permissible Due To Largeness

The Supreme Court in the case Manilal Shamalbhai Patel (Deceased) Through His Legal Heirs And Ors. Versus Officer On Special Duty (Land Acquisition) Anr observed and has justified the 10% deduction in market rates of the land on account of largeness in area while determining the compensation in a land acquisition proceeding.

- TDG NETWORK

The Supreme Court in the case observed that the large areas do not attract the same prices as that of smaller areas of land.

The court observed that, 'It being a settled principle of law that large areas do not attract the same price as is offered for the small plots of lands.

However, some amount of deduction is also normally permissible on account of largeness in area. Thus, the deduction of 10% needs to be applied in order to determine the rate of compensation.'

The bench comprising of Justice Pankaj Mithal and Justice SVN Bhatti was hearing the present matter.

The bench stated that the Appellants were unsatisfied with the amount of compensation which is being awarded to them for the land acquired by the Gujarat government for the Gujarat Industrial Development Corporation, GIDC.