High Court of Bombay at Aurangabad Dismisses Appeals by Acquiring Body in Land Acquisition Compensation Cases — Market Value Determined Based on Previous Award and Potential Value of Land. The court upheld the Reference Court's enhancement of compensation from Rs. 30,000/- to Rs. 1,00,000/- per R for land acquired under the Land Acquisition Act, 1894, considering the land's potential for non-agricultural use and a previous award for similar land.

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

The case involves two first appeals filed by the Executive Engineer, Minor Irrigation Division, Jalna, against the judgment and award dated 30/06/2018 passed by the Civil Judge, Senior Division, Jalna, in Land Acquisition References. The land of the respondents was acquired for the purpose of 'Khelni Bandhara Project' under Section 4 of the Land Acquisition Act, 1894, vide notification dated 18/10/2006. The Special Land Acquisition Officer awarded compensation at the rate of Rs. 30,000/- per R for the acquired land. Dissatisfied, the respondents sought reference under Section 18 of the Act. The Reference Court enhanced the compensation to Rs. 1,00,000/- per R, relying on a previous award for land acquired from the same village under the same notification, which had fixed the market value at Rs. 1,00,000/- per R. The appellant argued that the Reference Court erred in relying on the previous award without considering the potential value of the land. The High Court dismissed the appeals, holding that the Reference Court had correctly considered the potential value of the land, as the acquired land was situated near a village and had potential for non-agricultural use. The court found no reason to interfere with the well-reasoned award and upheld the compensation at Rs. 1,00,000/- per R.

Headnote

A) Land Acquisition - Compensation - Market Value - Potential Value - The court upheld the Reference Court's determination of market value at Rs. 1,00,000/- per R, considering the potential of the land for non-agricultural use due to its location near a village and the existence of a previous award for similar land at the same rate. Held that the potential value of the land must be considered when determining compensation under Section 23 of the Land Acquisition Act, 1894 (Paras 10-12).

B) Land Acquisition - Compensation - Previous Award - The court relied on a previous award for land acquired from the same village under the same notification, which fixed the market value at Rs. 1,00,000/- per R, and found no reason to deviate from that rate. Held that a previous award for similar land under the same acquisition is a relevant factor for determining market value (Paras 10-12).

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Issue of Consideration

Whether the Reference Court correctly enhanced the compensation for acquired land by considering the potential value of the land and relying on a previous award for similar land.

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Final Decision

Both first appeals are dismissed. The judgment and award dated 30/06/2018 passed by the Reference Court are confirmed. No order as to costs.

Law Points

  • Land Acquisition
  • Compensation
  • Market Value
  • Potential Value
  • Previous Award
  • Section 23 of Land Acquisition Act
  • 1894
  • Section 4 Notification
  • Section 6 Declaration
  • Reference Court
  • First Appeal
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Case Details

2023 LawText (BOM) (10) 248

First Appeal No. 71 of 2019 with First Appeal No. 72 of 2019

2023-11-10

2023:BHC-AUG:24763

Mr. Sham B. Patil for the appellant; Mr. A.H. Koralkar for the respondents/claimants; Mr. S.S. Dande, AGP for the State

The Executive Engineer, Minor Irrigation Division, Jalna

Saraswati w/o. Pandit Thombare and Others (in FA 71/2019); Sakharam s/o. Ananda Gadekar and Others (in FA 72/2019)

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Nature of Litigation

First appeals against the judgment and award of the Reference Court in land acquisition compensation matters.

Remedy Sought

The appellant (Executive Engineer) sought to set aside the enhanced compensation awarded by the Reference Court.

Filing Reason

The appellant was aggrieved by the enhancement of compensation from Rs. 30,000/- to Rs. 1,00,000/- per R by the Reference Court.

Previous Decisions

The Special Land Acquisition Officer awarded compensation at Rs. 30,000/- per R. The Reference Court enhanced it to Rs. 1,00,000/- per R.

Issues

Whether the Reference Court erred in relying on a previous award to determine market value? Whether the potential value of the land was correctly considered?

Submissions/Arguments

The appellant argued that the Reference Court wrongly relied on a previous award without considering the potential value of the land. The respondents/claimants supported the Reference Court's award, contending that the land had potential for non-agricultural use and the previous award was for similar land under the same notification.

Ratio Decidendi

The market value of acquired land must be determined considering its potential for non-agricultural use, and a previous award for similar land under the same acquisition notification is a relevant factor for determining compensation under Section 23 of the Land Acquisition Act, 1894.

Judgment Excerpts

The Reference Court has rightly considered the potential value of the land and relied on the previous award for similar land. We find no reason to interfere with the well-reasoned award passed by the Reference Court.

Procedural History

The Special Land Acquisition Officer awarded compensation at Rs. 30,000/- per R. The respondents sought reference under Section 18 of the Land Acquisition Act, 1894. The Reference Court enhanced compensation to Rs. 1,00,000/- per R. The appellant filed first appeals before the High Court.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 6, Section 18, Section 23
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