Bombay High Court Allows Land Acquisition Compensation Enhancement Under Section 28-A of Land Acquisition Act, 1894 — Appellant Entitled to Same Rate as Other Land Owners in Similar Acquisition. The Court held that the appellant's application under Section 28-A was maintainable and not barred by limitation, and directed re-determination of compensation at Rs. 250 per sq.ft. after 35% deduction for development.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The appellant, Namdeo Banduji Mahure, owned land in Mouza Arni, District Yavatmal, which was acquired by the State of Maharashtra for the construction of the Arni Bye-pass road. A notification under Section 4 of the Land Acquisition Act, 1894 was issued on 02/07/1998, and the Special Land Acquisition Officer passed an award on 05/08/2000, fixing the market value at Rs. 150 per sq.ft. The appellant accepted the amount under protest but did not file a reference under Section 18 of the Act due to financial constraints. Other land owners filed references, and the Reference Court in LAC No. 2073/2004 enhanced the compensation to Rs. 250 per sq.ft. after deducting 35% towards development costs, along with statutory benefits. The State did not challenge that judgment. Relying on that judgment, the appellant filed an application under Section 28-A of the Act on 06/11/2015 before the Land Acquisition Officer for re-determination of compensation. The Collector called for documents and the appellant complied, but no order was passed. Consequently, the appellant filed a reference under Section 28-A(3) before the Civil Judge, Senior Division, Darwha, which was registered as LAC No. 128/2018. The reference Court dismissed the reference on 25-02-2022, holding that the application under Section 28-A was barred by limitation as it was filed beyond three months from the date of the judgment in LAC No. 2073/2004. The appellant appealed to the High Court. The High Court considered the provisions of Section 28-A, which allows a person who did not file a reference under Section 18 to apply for re-determination within three months of the award or judgment in another reference. The High Court noted that the appellant's application was filed on 06/11/2015, and the judgment in LAC No. 2073/2004 was passed earlier, but the Collector failed to decide the application. The High Court held that the reference Court erred in dismissing the application on limitation, as the appellant had pursued the remedy diligently. The High Court allowed the appeal, set aside the reference Court's order, and directed that the appellant be entitled to compensation at the rate of Rs. 250 per sq.ft. after deducting 35% towards development costs, along with all statutory benefits including solatium, additional compensation, and interest under the Land Acquisition Act, 1894.

Headnote

A) Land Acquisition - Re-determination of Compensation - Section 28-A of the Land Acquisition Act, 1894 - Limitation - The appellant, who did not file a reference under Section 18, sought re-determination under Section 28-A based on a judgment in another reference (LAC No. 2073/2004) which enhanced compensation to Rs. 250 per sq.ft. after 35% deduction for development. The Land Acquisition Officer failed to decide the application, leading to a reference under Section 28-A(3). The reference Court dismissed the application as barred by limitation, holding that the application under Section 28-A was filed beyond three months from the date of the judgment in LAC No. 2073/2004. The High Court held that the limitation period under Section 28-A is three months from the date of the award or judgment in the other reference, but the Collector's failure to decide the application within the prescribed period entitles the applicant to a reference. The High Court allowed the appeal, setting aside the reference Court's order and directing re-determination of compensation at Rs. 250 per sq.ft. after 35% deduction for development, with all statutory benefits. (Paras 1-10)

B) Land Acquisition - Reference under Section 28-A - Duty of Collector - The Collector is obligated to decide an application under Section 28-A within a reasonable time. If the Collector fails to do so, the applicant can approach the reference Court under Section 28-A(3). In this case, the appellant filed the application on 06/11/2015, and the Collector called for documents but did not pass any order. The appellant then filed a reference on 25/08/2016. The High Court held that the reference was maintainable and the limitation period should be computed from the date of the judgment in LAC No. 2073/2004, but the Collector's inaction does not bar the claim. (Paras 4-8)

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Issue of Consideration

Whether the appellant is entitled to re-determination of compensation under Section 28-A of the Land Acquisition Act, 1894, based on the judgment in LAC No. 2073/2004, and whether the reference Court erred in dismissing the application on the ground of limitation.

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Final Decision

The High Court allowed the appeal, set aside the judgment and award dated 25-02-2022 passed by the Civil Judge, Senior Division, Darwha in LAC No. 128/2018, and directed that the appellant is entitled to compensation at the rate of Rs. 250 per sq.ft. after deducting 35% towards development costs, along with all statutory benefits including solatium, additional compensation, and interest under the Land Acquisition Act, 1894.

Law Points

  • Section 28-A of the Land Acquisition Act
  • 1894
  • Right to re-determination of compensation
  • Limitation period for filing application under Section 28-A
  • Applicability of judgment in other references
  • Deduction towards development costs
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Case Details

2023 LawText (BOM) (03) 161

First Appeal No. 431 of 2022

2023-03-13

Urmila Joshi-Phalke, J.

Mr M.M. Agnihotri with Mr Parth Sagdeo for the appellant; Mr Mangesh Kadu, AGP for the respondents

Namdeo Banduji Mahure

The State of Maharashtra through its Collector, Yavatmal; The Land Acquisition Officer-cum-Sub Divisional Officer, Yavatmal; The Chief Engineer, Public Works Department, Yavatmal

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Nature of Litigation

First appeal against dismissal of reference under Section 28-A of the Land Acquisition Act, 1894 by the Civil Judge, Senior Division, Darwha.

Remedy Sought

The appellant sought re-determination of compensation under Section 28-A of the Land Acquisition Act, 1894, at the rate of Rs. 250 per sq.ft. with statutory benefits.

Filing Reason

The appellant's land was acquired, and he accepted the award under protest but did not file a reference under Section 18. Other land owners obtained enhanced compensation in LAC No. 2073/2004. The appellant applied under Section 28-A for re-determination, but the Collector did not decide the application, leading to a reference under Section 28-A(3), which was dismissed as barred by limitation.

Previous Decisions

The Special Land Acquisition Officer passed an award on 05/08/2000 at Rs. 150 per sq.ft. The Reference Court in LAC No. 2073/2004 enhanced compensation to Rs. 250 per sq.ft. after 35% deduction for development. The reference Court in LAC No. 128/2018 dismissed the appellant's reference as barred by limitation.

Issues

Whether the appellant's application under Section 28-A of the Land Acquisition Act, 1894 was barred by limitation. Whether the appellant is entitled to re-determination of compensation at the rate of Rs. 250 per sq.ft. after deduction of 35% towards development costs.

Submissions/Arguments

The appellant argued that he filed the application under Section 28-A on 06/11/2015, relying on the judgment in LAC No. 2073/2004, and the Collector failed to decide it, so the reference under Section 28-A(3) was maintainable and not barred by limitation. The respondents argued that the application under Section 28-A was filed beyond three months from the date of the judgment in LAC No. 2073/2004 and thus barred by limitation.

Ratio Decidendi

The High Court held that the appellant's application under Section 28-A was not barred by limitation as the Collector failed to decide the application within a reasonable time, and the appellant diligently pursued the remedy. The appellant is entitled to the same rate of compensation as awarded in LAC No. 2073/2004, i.e., Rs. 250 per sq.ft. after 35% deduction for development, with all statutory benefits.

Judgment Excerpts

By this appeal, the appellant has challenged the judgment and award dated 25-02-2022 passed by the Civil Judge Senior Division, Darwha in LAC No.128/2018. The appellant is the owner of land survey No. 28/1, out of which land admeasuring 0.51 R of Mouza Arni, District Yavatmal, has been acquired by the respondent No.1-State for the purpose of Arni Bye-pass road. As the appellant had not filed the reference under Section 18 of the said Act after passing of the award in LAC No. 2073/2004, and on relying upon the said judgment, the appellant has filed reference on 06/11/2015 under Section 28-A of the Act of 1894, claiming compensation @ Rs. 250 per sq.ft. along with statutory benefits before the Land Acquisition Officer.

Procedural History

The Special Land Acquisition Officer passed an award on 05/08/2000. The appellant accepted under protest but did not file a reference under Section 18. Other land owners filed references, and the Reference Court in LAC No. 2073/2004 enhanced compensation to Rs. 250 per sq.ft. on an unspecified date. The appellant filed an application under Section 28-A on 06/11/2015 before the Land Acquisition Officer. The Collector called for documents on 27/06/2016, and the appellant complied on 25/08/2016. No order was passed, so the appellant filed a reference under Section 28-A(3) on 25/08/2016, which was registered as LAC No. 128/2018. The reference Court dismissed the reference on 25-02-2022 as barred by limitation. The appellant filed First Appeal No. 431 of 2022 before the Bombay High Court, which allowed the appeal on 13/03/2023.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18, Section 28-A
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