Case Note & Summary
The appellant, Waman s/o Rajaram Gabhane, owned Survey No. 105 admeasuring 4.99 hectares at Mouza Jamb. The State acquired 40 R of this land for extension of Gaothan under the Land Acquisition Act, 1894. Notification under Section 4(1) was published on 3 September 1987, and Section 6 notification on 29 December 1988. The Land Acquisition Officer passed an award on 27 December 1990 assessing compensation at Rs. 3,600 plus solatium of Rs. 1,080 and interest of Rs. 1,283. The appellant accepted under protest and filed a reference under Section 18 claiming Rs. 25,000 per acre. The Reference Court partly allowed the reference, fixing market value at Rs. 13,500 per hectare, resulting in enhanced compensation of Rs. 3,207. Aggrieved, the appellant filed the present appeal. The High Court examined the evidence, including sale deeds of adjacent lands. The appellant produced sale deed of Survey No. 104/2 dated 21 April 1986 showing sale at Rs. 25,000 per acre. The respondents relied on sale deed of Survey No. 104/1 at Rs. 10,000 per acre. The court found that the sale deed of Survey No. 104/2 was more comparable as it was adjacent and had similar potential for non-agricultural use. The court held that the Reference Court erred in not considering this sale deed and in reducing the rate arbitrarily. The court allowed the appeal, setting aside the Reference Court's judgment and decree, and fixed market value at Rs. 25,000 per acre. The appellant was held entitled to enhanced compensation, solatium at 30%, additional interest at 12% per annum from the date of Section 4(1) notification until award or possession, and interest on the enhanced amount under Section 28 of the Act.
Headnote
A) Land Acquisition - Market Value Determination - Comparable Sale Method - The court considered sale deeds of similar lands in the vicinity to determine market value, emphasizing that the potential value of land for non-agricultural use should be considered - Held that the Reference Court erred in not considering the sale deed of Survey No. 104/2 which was adjacent and sold at Rs. 25,000 per acre, and thus the appellant is entitled to compensation at that rate (Paras 7-12). B) Land Acquisition - Solatium and Additional Interest - Sections 23(2) and 23(1A) of the Land Acquisition Act, 1894 - The court held that the appellant is entitled to solatium at 30% of the market value and additional interest at 12% per annum from the date of notification under Section 4(1) until the date of award or possession, whichever is earlier - Held that the Reference Court failed to award these statutory benefits (Paras 13-14).
Issue of Consideration
Whether the Reference Court erred in determining the market value of the acquired land at Rs. 13,500 per hectare instead of the claimed Rs. 25,000 per acre, and whether the appellant is entitled to enhanced compensation, solatium, and additional interest.
Final Decision
The appeal is allowed. The judgment and decree dated 15th February 2003 of the Civil Judge Senior Division, Wardha in Land Acquisition Case No.220 of 1991 is set aside. The market value of the acquired land is fixed at Rs. 25,000 per acre. The appellant is entitled to enhanced compensation, solatium at 30% of the market value, additional interest at 12% per annum from the date of Section 4(1) notification (3rd September 1987) until the date of award or possession, whichever is earlier, and interest on the enhanced amount under Section 28 of the Act. The respondents are directed to pay the enhanced compensation with statutory benefits within three months.
Law Points
- Market value determination
- comparable sale method
- potential value of land
- Section 23 Land Acquisition Act
- 1894
- solatium
- additional interest
