Bombay High Court Allows Acquiring Body's Appeal in Part, Reduces Land Compensation in Land Acquisition Case. Compensation for Open Plot Reduced from Rs.900/- to Rs.750/- per sq.mtr Following Precedent for Same Village and Project Under Section 54 of Land Acquisition Act, 1894.

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

The Vidarbha Irrigation Development Corporation (VIDC) appealed against the enhanced compensation awarded by the Reference Court for land acquired for the Bembla Irrigation Project in village Pahur, Yavatmal. The land, comprising part of Plot No.781 admeasuring 148.69 sq.mtrs and a structure of 72.21 sq.mtrs, was acquired under Section 4(1) notification dated 11-05-2000. The Land Acquisition Officer awarded Rs.80/- per sq.mtr for land and Rs.1693/- per sq.mtr for structure. Dissatisfied, the claimant received compensation under protest on 18-06-2004 and filed a reference under Section 18 of the Land Acquisition Act, 1894. The Reference Court enhanced compensation to Rs.900/- per sq.mtr for open plot and Rs.2116/- per sq.mtr for constructed area. The acquiring body appealed under Section 54 of the Act read with Section 96 CPC. The High Court noted that the subject matter was covered by its earlier decisions in First Appeal No.424/2019 and First Appeal Stamp No.189/2018, both arising from the same village, same project, and same notification. In those decisions, the Court had fixed compensation at Rs.750/- per sq.mtr for open plot and retained the Reference Court's rate for constructed area. Following the precedent, the High Court allowed the appeal in part, reducing the compensation for open plot to Rs.750/- per sq.mtr while maintaining Rs.2116/- per sq.mtr for constructed area. The Court directed that the enhanced compensation be paid with all statutory benefits and that the amount already deposited be adjusted. No order as to costs.

Headnote

A) Land Acquisition - Compensation Enhancement - Precedent - Section 54 of Land Acquisition Act, 1894 read with Section 96 of CPC - The acquiring body appealed against enhanced compensation awarded by Reference Court for land acquired for Bembla Irrigation Project. The Court, relying on its earlier decisions in First Appeal No.424/2019 and First Appeal Stamp No.189/2018 for the same village and project, reduced the compensation for open plot from Rs.900/- to Rs.750/- per sq.mtr. and retained the rate for constructed area at Rs.2116/- per sq.mtr. Held that consistency in compensation for similarly situated claimants is essential (Paras 5-8).

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Issue of Consideration

Whether the enhanced compensation awarded by the Reference Court for open plot and constructed area is excessive and should be reduced in line with earlier decisions of this Court for the same village and project.

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Final Decision

Appeal is partly allowed. The compensation for open plot is reduced from Rs.900/- per sq.mtr to Rs.750/- per sq.mtr. The compensation for constructed area at Rs.2116/- per sq.mtr as awarded by the Reference Court is retained. The enhanced compensation shall be paid with all statutory benefits. The amount already deposited shall be adjusted. No order as to costs.

Law Points

  • Land Acquisition Compensation
  • Enhancement of Compensation
  • Precedent in Land Acquisition Cases
  • Section 54 Land Acquisition Act
  • 1894
  • Section 96 CPC
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Case Details

2022 LawText (BOM) (11) 93

First Appeal No.621/2016

2022-11-17

Abhay Ahuja, J.

Mr. P.B. Patil with Mr. Vinay Rathi for appellant, Mr. R.D. Hajare for respondent no.1, Mr. M.A. Kadu, AGP for respondents no.2 and 3

Vidarbha Irrigation Development Corporation through Executive Engineer, Bembla Project Division No.5, Yavatmal

Jagannath Keshav Ajmire, The State of Maharashtra through the Collector, Yavatmal, Special Land Acquisition Officer, Minor Irrigation Works No.II, Yavatmal

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Nature of Litigation

Appeal against enhanced compensation awarded by Reference Court in land acquisition matter.

Remedy Sought

Appellant (acquiring body) sought reduction of enhanced compensation awarded by Reference Court.

Filing Reason

Dissatisfaction with the enhanced compensation awarded by the Reference Court for open plot and constructed area.

Previous Decisions

Reference Court awarded enhanced compensation at Rs.900/- per sq.mtr for open plot and Rs.2116/- per sq.mtr for constructed area. Earlier decisions of this Court in First Appeal No.424/2019 and First Appeal Stamp No.189/2018 for same village and project fixed compensation at Rs.750/- per sq.mtr for open plot and retained rate for constructed area.

Issues

Whether the enhanced compensation for open plot should be reduced in line with earlier decisions of this Court for the same village and project. Whether the rate for constructed area should be retained as awarded by the Reference Court.

Submissions/Arguments

Appellant's counsel submitted that the subject matter is covered by earlier decisions of this Court in First Appeal No.424/2019 and First Appeal Stamp No.189/2018, which fixed compensation at Rs.750/- per sq.mtr for open plot and retained the Reference Court's rate for constructed area. Respondent's counsel agreed that the matter is covered by the said decisions.

Ratio Decidendi

In land acquisition cases, consistency in compensation for similarly situated claimants from the same village and project is essential. Following earlier decisions of the same Court, the compensation for open plot is reduced to Rs.750/- per sq.mtr, while the rate for constructed area is retained.

Judgment Excerpts

the subject matter of this Appeal is covered by a decision of this Court dated 28-03-2019 in First Appeal No.424/2019 as well as decision dated 19-12-2018 in First Appeal Stamp No.189/2018 this Court has held that the claimants are entitled to receive an amount of Rs.750/- per sq.mtr. for the plot and have retained the rate awarded by the Reference Court for the constructed area.

Procedural History

Land acquisition notification under Section 4(1) dated 11-05-2000. Award passed on 17-10-2003 by Land Acquisition Officer. Claimant received compensation under protest on 18-06-2004 and filed reference under Section 18. Reference Court enhanced compensation on an unspecified date. Acquiring body filed First Appeal No.621/2016 under Section 54 of the Act read with Section 96 CPC. Appeal heard and decided on 17-11-2022.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 18, Section 54
  • Code of Civil Procedure, 1908: Section 96
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