Bombay High Court Allows Appeal in Land Acquisition Case — Market Value Enhanced for Agricultural Land with Potential. Land situated near village and road held to have non-agricultural potential, warranting higher compensation under Section 23 of Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The appellant, Pramod Sadashiv Khodke, owned agricultural land bearing Gat No.82, area 4.31 hectares, situated at village Kohli, Taluka Babhulgaon, District Yavatmal. The land was acquired by the respondents for the Bembla Project under the Land Acquisition Act, 1894. Notification under Section 4 was published on 5.06.2003, followed by Section 6 notification on 22.09.2005. The Special Land Acquisition Officer passed an award on 22.09.2005, granting total compensation of Rs.20,29,256/- for the land and fruit bearing trees. The appellant accepted the compensation under protest and filed a reference under Section 18, claiming that the compensation was meager and inadequate. The Reference Court (Joint Civil Judge, Senior Division, Yavatmal) partly allowed the reference and awarded enhanced compensation of Rs.33,68,720/-. Dissatisfied, the appellant filed the present appeal seeking further enhancement. The High Court considered the issues of market value determination and compensation for fruit bearing trees. The Court noted that the Reference Court had determined the market value at Rs.3,00,000/- per hectare based on sale instances, but the appellant argued that the land had potential for non-agricultural use due to its location near a village and road. The High Court found that the land was situated near a village and had access to a road, and thus had potential for development. Relying on sale instances of similar lands, the Court enhanced the market value to Rs.4,00,000/- per hectare. Regarding fruit bearing trees, the appellant claimed 100 mango trees and 50 guava trees, but the Court found that the evidence was insufficient to prove the number and age of the trees. The Special Land Acquisition Officer had already awarded Rs.1,00,000/- for trees, and the Reference Court did not enhance it. The High Court upheld this finding. The Court also directed that the appellant is entitled to 12% additional market value under Section 23(1A) and 30% solatium under Section 23(2) on the enhanced compensation. The appeal was partly allowed, and the compensation was enhanced accordingly.

Headnote

A) Land Acquisition - Market Value Determination - Potentiality of Land - Sections 23, 4, 6, Land Acquisition Act, 1894 - The appellant sought enhancement of compensation for agricultural land acquired for Bembla Project. The Court held that the Reference Court erred in not considering the potentiality of the land for non-agricultural use due to its location near a village and road. The market value was enhanced from Rs.3,00,000/- to Rs.4,00,000/- per hectare based on sale instances and potential. (Paras 1-20)

B) Land Acquisition - Compensation for Fruit Bearing Trees - Section 23, Land Acquisition Act, 1894 - The appellant claimed compensation for 100 mango trees and 50 guava trees. The Court found that the Special Land Acquisition Officer had awarded Rs.1,00,000/- for trees, but the Reference Court did not enhance it. The High Court held that the appellant failed to prove the number and age of trees, and thus no enhancement was warranted. (Paras 21-25)

C) Land Acquisition - Additional Benefits - Section 23(1A), 23(2), Land Acquisition Act, 1894 - The Court directed that the appellant is entitled to 12% additional market value under Section 23(1A) and 30% solatium under Section 23(2) on the enhanced compensation. (Para 26)

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Issue of Consideration

Whether the Reference Court correctly determined the market value of the acquired agricultural land and compensation for fruit bearing trees?

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Final Decision

The appeal is partly allowed. The market value of the acquired land is enhanced from Rs.3,00,000/- to Rs.4,00,000/- per hectare. The appellant is entitled to 12% additional market value under Section 23(1A) and 30% solatium under Section 23(2) of the Land Acquisition Act, 1894 on the enhanced compensation. The compensation for fruit bearing trees remains as awarded by the Reference Court. The respondents are directed to pay the enhanced compensation with interest within three months.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 6
  • Section 23
  • Section 18
  • market value determination
  • potentiality of land
  • fruit bearing trees compensation
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Case Details

2021 LawText (BOM) (12) 125

First Appeal No. 442 of 2011

2021-12-04

A.S. Chandurkar, G.A. Sanap

Shri R.S. Nagpure for appellant, Smt. Sangita Jachak for respondent Nos.1 & 3/State, Shri M.A. Kadu for respondent No.4

Pramod S/o Sadashiv Khodke

The State of Maharashtra, The Collector, Yavatmal, The Special Land Acquisition Officer, Bembla Project Division, Yavatmal, The Vidharbha Irrigation Development Corporation

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Nature of Litigation

Appeal against judgment and award of Reference Court in land acquisition reference for enhancement of compensation.

Remedy Sought

Appellant sought further enhancement of compensation for acquired land and fruit bearing trees.

Filing Reason

Appellant was aggrieved by the judgment and award dated 24.11.2008 passed in LAC No.738/2006 by the Joint Civil Judge, Senior Division, Yavatmal, which partly allowed the reference but awarded compensation that the appellant considered inadequate.

Previous Decisions

The Special Land Acquisition Officer passed an award on 22.09.2005 granting total compensation of Rs.20,29,256/-. The Reference Court partly allowed the reference and awarded enhanced compensation of Rs.33,68,720/-.

Issues

Whether the market value of the acquired land was correctly determined by the Reference Court? Whether the compensation awarded for fruit bearing trees was adequate?

Submissions/Arguments

Appellant argued that the Reference Court erred in not considering the potentiality of the land for non-agricultural use due to its location near a village and road, and that the market value should be higher. Appellant claimed that there were 100 mango trees and 50 guava trees on the land, and the compensation for trees was inadequate. Respondents supported the Reference Court's judgment, arguing that the market value and tree compensation were correctly determined.

Ratio Decidendi

The market value of agricultural land with potential for non-agricultural use due to its location near a village and road should be determined considering such potential. The burden of proof for number and age of fruit bearing trees lies on the claimant, and in absence of sufficient evidence, no enhancement is warranted.

Judgment Excerpts

The appellant being aggrieved by the judgment and award dated 24.11.2008 passed in LAC No.738/2006 has come before this Court in appeal. The learned Joint Civil Judge, Senior Division, Yavatmal (Reference Court) had partly allowed the reference filed by the appellant and awarded the enhanced compensation of Rs.33,68,720/-. The market value of the acquired land is enhanced from Rs.3,00,000/- to Rs.4,00,000/- per hectare.

Procedural History

The Special Land Acquisition Officer passed an award on 22.09.2005. The appellant filed a reference under Section 18 of the Land Acquisition Act, 1894, which was partly allowed by the Reference Court on 24.11.2008. The appellant then filed the present first appeal before the High Court.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 6, Section 18, Section 23, Section 23(1A), Section 23(2)
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