Case Note & Summary
The case pertains to an appeal filed by the claimants (original owners of the acquired land) against the Judgment and Award dated 26.01.1987 passed by the learned Joint District Judge, Nashik, dismissing Land Reference No.169 of 1982 under Section 18 of the Land Acquisition Act, 1894. The acquired land was Survey No.673 sub divisions 1 to 54 admeasuring 66 Hectares 4 Ares at Nashik, originally owned by Smt. Kamalabai Bhaskar Mule (since deceased through legal heirs). The land was acquired for a public purpose, namely construction of School, College, Hospital Building, Staff Quarters, Playground by the Maratha Vidya Prasarak Samaj, Nashik, pursuant to a Notification under Section 4(1) of the Act published in the Official Gazette dated 5.10.1972. The Special Land Acquisition Officer passed an Award dated 20.7.1982 under Section 11 of the Act, determining the market value at Rs. 60,000/- per hectare, along with compensation of Rs. 24,400/- for trees and Rs. 500/- for a well. Dissatisfied with the quantum, the claimants sought a reference under Section 18(1) of the Act, claiming that the land was undervalued as it was situated in a developed locality with a sanctioned layout under T.P. Scheme No.II since 1966, and suitable for construction. They claimed the market rate as on the date of Section 4 notification was not less than Rs. 50/- per sq. meter, and also sought compensation for structures, trees, well, compound wall, and damages for diminishing profits. The claimants relied on sale transactions at Ex. 39, 40, 43, 50 and 52 and adduced oral evidence. The Reference Court dismissed the reference, holding that the sale instances were not comparable as they pertained to small plots in well-developed residential localities, whereas the acquired land was uneven, prone to submersion during rains, and not suitable for construction. The Reference Court relied on an Agreement for Sale dated 2.5.1969 in respect of the same land and a sale transaction dated 16.7.1966 to conclude that the value determined by the Land Acquisition Officer was just and reasonable. Aggrieved, the claimants filed the present appeal under Section 54 of the Act. During the hearing on 17.7.2008, the learned Counsel for Respondent No.3 offered to pay a lump sum of Rs. 55,000/- over and above the amount already paid, subject to the condition that the claimants would not claim any other statutory benefit under the Act. The court considered the submissions and evidence, and allowed the appeal, setting aside the Reference Court's order and enhancing the compensation to Rs. 55,000 per hectare, with all statutory benefits under the Act.
Headnote
A) Land Acquisition - Market Value Determination - Comparable Sale Instances - Land Acquisition Act, 1894, Sections 4(1), 11, 18 - The court considered whether sale instances of small plots in developed areas could be used to determine market value of large undeveloped land. Held that while small plot sales are not directly comparable, they can be used with appropriate deductions for development costs. The court allowed the appeal and enhanced compensation to Rs. 55,000 per hectare based on an agreement for sale of the same land and other comparable instances. (Paras 1-27) B) Land Acquisition - Potential for Development - Land Acquisition Act, 1894, Section 23 - The court noted that the acquired land was part of a sanctioned layout under T.P. Scheme No.II and had potential for construction, which should be considered in determining market value. Held that the Reference Court erred in ignoring the development potential and the fact that the land was situated in a developed locality. (Paras 2-5) C) Land Acquisition - Burden of Proof - Land Acquisition Act, 1894, Section 18 - The claimants bear the burden to prove that the compensation awarded by the Land Acquisition Officer is inadequate. Held that the claimants discharged this burden by adducing evidence of sale instances and an agreement for sale, which the Reference Court failed to properly appreciate. (Paras 3-6)
Issue of Consideration
Whether the Reference Court erred in dismissing the claim for enhanced compensation by rejecting the sale instances relied upon by the claimants as not comparable, and whether the market value of the acquired land as on the date of Section 4 notification was justly determined.
Final Decision
The appeal is allowed. The impugned Judgment and Award dated 26.01.1987 is set aside. The market value of the acquired land is determined at Rs. 55,000 per hectare. The claimants are entitled to all statutory benefits under the Land Acquisition Act, 1894, including solatium, additional compensation, and interest as per the Act. The respondents are directed to pay the enhanced compensation with statutory benefits within three months.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 11
- Section 4(1)
- Section 54
- Market Value Determination
- Comparable Sale Instances
- Potential for Development
- Burden of Proof
