Case Note & Summary
The appellant, Kasturabai Karpe, owned agricultural lands Gut Nos. 162 and 166 at village Leha, Taluka Phulambri, District Aurangabad, which were acquired for the Wakod medium project under the Land Acquisition Act, 1894. The notification under Section 4(1) was published on 13-02-1997. The Special Land Acquisition Officer (SLAO) made an award under Section 11, but the appellant accepted the compensation under protest and filed a Reference under Section 18 seeking higher compensation. The Reference Court determined the market value at Rs. 1,00,000 per hectare for Gut No. 162 and Rs. 1,20,000 per hectare for Gut No. 166, and awarded Rs. 1,000 per fruit bearing tree. The appellant appealed to the High Court contending that the compensation was inadequate. The High Court examined the evidence, including sale deeds of comparable lands and the report of the Horticulture Department. It found that the Reference Court had not properly considered the potentiality of the land and the value of fruit bearing trees. The court held that the market value should be determined based on comparable sales, and that the value of fruit bearing trees must be assessed separately. The court enhanced the compensation for land to Rs. 1,50,000 per hectare for both gut numbers, and for fruit bearing trees to Rs. 2,000 per tree. The court also directed payment of solatium at 30% and additional amount at 12% per annum on the enhanced compensation. The appeal was partly allowed.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Comparable Sale Method - Sections 18, 23, 24 of Land Acquisition Act, 1894 - The court considered sale instances of similar lands in the vicinity to determine market value, rejecting the SLAO's valuation as inadequate. Held that the Reference Court erred in not considering the potentiality of the land and the value of fruit bearing trees separately. (Paras 1-10) B) Land Acquisition - Fruit Bearing Trees - Valuation - Section 23 of Land Acquisition Act, 1894 - The court held that the value of fruit bearing trees must be assessed separately based on their yield and age, and not merely as part of the land value. The appellant was entitled to compensation for trees at rates determined by the Horticulture Department. (Paras 11-15) C) Land Acquisition - Solatium and Additional Benefits - Sections 23(2), 23(1A) of Land Acquisition Act, 1894 - The court directed that the appellant-claimant is entitled to solatium at 30% and additional amount at 12% per annum on the enhanced compensation, as per the Act. (Paras 16-18)
Issue of Consideration
Whether the compensation awarded by the Reference Court for acquisition of agricultural land and fruit bearing trees was just and reasonable, and whether the appellant-claimant is entitled to enhanced compensation.
Final Decision
The appeal is partly allowed. The compensation for land is enhanced to Rs. 1,50,000 per hectare for both Gut Nos. 162 and 166. The compensation for fruit bearing trees is enhanced to Rs. 2,000 per tree. The appellant is entitled to solatium at 30% and additional amount at 12% per annum on the enhanced compensation from the date of notification till the date of award or possession, whichever is earlier. The respondents are directed to pay the enhanced compensation with interest within three months.
Law Points
- Market value determination
- Comparable sale method
- Potentiality of land
- Fruit bearing trees valuation
- Solatium and additional benefits under Land Acquisition Act
- 1894


