Non-agricultural potential and pauper litigation rules shape compensation valuation and court-fee liability in part-success appeals.

Acquired land with demonstrable building-site potential may be valued on the basis of reliable comparable-sale evidence rather than its agricultural use, with appropriate deductions for development and amenities; on that approach, market value was enhanced and compensation increased. An indigent appellant who was permitted to proceed in forma pauperis and later succeeded only partly remains liable, under the amended pauper provisions, to pay the court fee that would have been payable but for pauper status; that liability is not confined to the extent of partial success, and the distinction between costs and court fee was maintained.

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Issues: (i) whether the acquired land, though used as agricultural land, had potential for non-agricultural use and what market value was payable for compensation; (ii) whether a party permitted to prosecute an appeal in forma pauperis, and later succeeding partly, remained liable to pay court fee on the amount claimed or only to the extent of success.

Issue (i): whether the acquired land, though used as agricultural land, had potential for non-agricultural use and what market value was payable for compensation.

Analysis: The land was within municipal limits and near existing public and judicial establishments, so its location showed building-site potential. A nearby site sale was treated as a better indicator of value than the relied-upon agricultural sale, which was considered a distress sale. Because the available comparable sale was from a later year, the Court made a suitable deduction to arrive at the value as on the notification date. The Court also applied the hypothetical layout approach and deducted development and amenity costs.

Conclusion: The market value was fixed at Rs. 15,000 per acre, in place of Rs. 4,500 per acre, and the appellant succeeded on compensation.

Issue (ii): whether a party permitted to prosecute an appeal in forma pauperis, and later succeeding partly, remained liable to pay court fee on the amount claimed or only to the extent of success.

Analysis: Under the amended Order 33 of the Code of Civil Procedure, the liability of an indigent litigant who becomes dispaupered is governed by the mandatory rule requiring payment of the court fee that would have been payable if permission to sue as a pauper had not been granted. The Court distinguished costs from court fee and held that discretion in costs does not override the statutory obligation to pay court fee. The amendment to the court-fees statute was treated as prospective.

Conclusion: The appellant was held liable to pay court fee on the difference between the amount claimed and the amount awarded, not merely on the amount of partial success.

Final Conclusion: The appeal was allowed in part by enhancing compensation, granting consequential statutory benefits and proportionate costs, while also enforcing liability to pay the requisite court fee from the enhanced amount.

Ratio Decidendi: When acquired land has demonstrable non-agricultural potential, compensation must reflect that potential on reliable comparable-sale evidence with appropriate development deductions, and an indigent litigant who succeeds partly becomes liable under the amended pauper provisions to pay the court fee that would have been payable but for the pauper status.

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