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Perera V  Kaluthara A.G.A. (1970) 74 NLR 130
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Perera V Kaluthara A.G.A. (1970) 74 NLR 130

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Land Acquisition Act {Cap. 460)-Sections 45 (1), 45 (3), 46-Acquisition of a long and narrow strip of land-Basis of assessment of compensation-" Market value "- " Separate entity". …

Land Acquisition Act {Cap. 460)-Sections 45 (1), 45 (3), 46-Acquisition of a long and narrow strip of land-Basis of assessment of compensation-" Market value "- " Separate entity".

Published in: Real Estate

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  • 1. I.N. Samarawickrama Reg.No. 5501FM2012013 Faculty of Graduate Studies University of Sri Jayawardhanapura Sri Lanka 1
  • 2. Land Acquisition Act {Cap. 460)- Sections 45 (1), 45 (3), 46-Acquisition of a long and narrow strip of land-Basis of assessment of compensation-" Market value "- " Separate entity". 2
  • 3. 410 ft 8 ft 6 ft 6th Cross Street to 5th Cross Street 3
  • 4.  A long and narrow strip of land  acquired by the Crown for the purpose of constructing a masonry drain  awarding Rs. 1,665 as the amount of compensation payable to the appellant  Board of Review held that the strip could not be used for any commercial purpose or for the building of stores 4
  • 5.  ALLES, J.-The award was in conformity with section 45 (1) of the Land Acquisition Act.  WEERAMANTRY, J.-Section 45 (1) of the Land Acquisition Act is inapplicable to a case such as the present 5
  • 6. APPEAL under Section 28 of the Land Acquisition Act. (Appeal on question of law to the Supreme Court) 6
  • 7. Under Section 21 of the Land Acquisition Ordinance (now repealed) in determining the amount of compensation to be awarded the matters which had to be taken into consideration by the Court may be briefly stated as- (a) The market value at the time of awarding compensation; (b) The damage caused as a severance of the acquired land from the owner's other property; (c) Injurious affection ; and (d) Reasonable expenses, if any, incidental to a change of residence. 7
  • 8. “While I appreciate the criticisms he has made in regard to the basis of compensation under the Act, I take the view that the law has adequately provided for compensation in those cases predicted by him. Although there may . not be a willing purchaser for small allotments of land from a citizen's” 8
  • 9.  Letchiman Chettiar v. The Municipal Council, Colombo (1942) 44 N. L. R. 170  Municipal Council of Colombo v. Letchiman Chettiar (1947) 48 N. L. R. 97  (Govt. Agent, Kandy v. Marikar Saibo (1911) 6 S. C. D. 36  Govt. Agent, W. P. v. The Archbishop of Colombo (1913) 16 N.L.R. 395 9
  • 10.  The Board of Review held that the strip in question could not be used for any commercial purpose or for the building of stores  On that basis the compensation awarded in this case was in conformity with Section 45 (1) of the Act. 10
  • 11. “The simple question involved in this appeal is the basis of assessment of compensation in respect of a long and narrow strip of land acquired by the Crown. This strip is 4 to 5 feet broad, about 100 yards long, runs along an irregular track and lies at the extremity of the applicant's property” 11
  • 12. Privy council further held that the Supreme Court was wrong in valuing the acquired strip as a part of the rest of the land of the respondent. Section 45 (1) would appear to embody a revision of the law based upon the decision of the Privy Council in The Municipal Council, Colombo v. Letchiman Chettiar1 [(1947) 48 N. L. R. 97.] 12
  • 13.  In the present case the strip of land is so irregular in shape and so narrow in width that it quite clearly cannot be used for the purpose of constructing a building.  If however the strip is considered as a portion of the land comprising it, it makes so much the more land available to the owner for building purposes.  It might, enable the owner to use this land for the rear space of his building, when Municipal Regulations prescribe such a rear space, and thus increase to that extent the buildable land available to him. 13
  • 14.  Therefore, he would hold that this is the principle of valuation upon which the assessment of compensation must be made, and that section 45 (1) is inapplicable to a case such as this where there would be no buyers in the open market.  However, award of Rs. 1,665 for the extent of 9.60 perches acquired is not unreasonable having regard to the figures of comparative sales in the neighborhood.  compensation is reasonable and that there is no ground for interference with the significant which could not have been awarded upon a literal reading of section 45 (1). 14
  • 15. 15 Appeal dismissed
  • 16.  Acquiring authority to launch upon a series of separate acquisitions and acquire in little bits and portions, irregular and unusable extents of land, each of which is unsalable as an entity but all of which taken together would be of great value.  Acquire valuable asset without any compensation.  Necessity to re-draft section 45 (1).  Restrict of limit the ownership and enjoyment of lands 16
  • 17. 17