Bombay High Court Partially Allows State's Appeal in Land Acquisition Compensation Case — Enhancement for Bagayat Land Upheld but Tree Compensation Reduced. Reference Court's 1.5 times multiplier for irrigated land over dry land sale instance affirmed, but compensation for fruit-bearing trees reduced from Rs.800 to Rs.600 per tree due to lack of evidence.

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

The State of Maharashtra, through the Collector and Special Land Acquisition Officer, appealed against the judgment and order dated 8.12.1995 passed by the Joint Civil Judge (Sr. Dn.), Amravati in Land Acquisition Case No.116 of 1992. The dispute arose from the acquisition of land Survey No.167 admeasuring 2 H 83 R situated at village Waghal, Tq. Warud, Distt. Amravati, for a public purpose under a notification issued under Section 4 of the Land Acquisition Act, 1894 on 15.10.1991. The respondent/claimant, Ramesh Natthuji Bharupi, claimed compensation for the land at Rs.40,000 per acre and for 600 Orange trees at Rs.800 per tree, small trees at Rs.50 per tree, and two Chandan trees at Rs.2,500. The Land Acquisition Officer awarded total compensation of Rs.3,66,145 by his award dated 28.4.1992, including Rs.82,834 for the land. Dissatisfied, the claimant sought a reference under Section 18 of the Act, which was registered as Land Acquisition Case No.116 of 1992. The Reference Court enhanced the compensation for land from Rs.30,000 to Rs.40,000 per hectare and for fruit-bearing trees from Rs.600 to Rs.800 per tree. The Reference Court relied on a sale instance (Exh.34) showing a price of Rs.37,500 per hectare for dry land sold on 4.2.1987. Considering that the acquired land was Bagayat land with fruit-bearing Orange trees, the Reference Court applied a 1.5 times multiplier and determined the market value at Rs.60,000 per hectare. The State appealed, challenging the enhancement. The High Court held that the Reference Court's approach in applying a 1.5 times multiplier for Bagayat land over dry land was justified and did not warrant interference. However, regarding the compensation for fruit-bearing trees, the High Court found that the Reference Court had enhanced the rate from Rs.600 to Rs.800 per tree without any supporting evidence or basis. Therefore, the High Court set aside the enhancement for trees and restored the compensation to Rs.600 per tree as awarded by the Land Acquisition Officer. The appeal was partly allowed, with the modification that compensation for fruit-bearing trees would be at Rs.600 per tree instead of Rs.800 per tree, while the enhancement for land was upheld.

Headnote

A) Land Acquisition - Market Value Determination - Sale Instance Method - The Reference Court relied on a sale instance (Exh.34) for dry land at Rs.37,500 per hectare (dated 4.2.1987) and applied a 1.5 times multiplier for Bagayat land with fruit-bearing trees, arriving at Rs.60,000 per hectare for the acquired land - Held that the multiplier was justified considering the potential and nature of the land (Paras 3-4).

B) Land Acquisition - Compensation for Fruit-Bearing Trees - The Reference Court enhanced tree compensation from Rs.600 to Rs.800 per tree without any supporting evidence or basis - Held that in the absence of evidence, the compensation for trees should be restored to Rs.600 per tree as awarded by the Land Acquisition Officer (Paras 5-6).

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Issue of Consideration

Whether the Reference Court was justified in enhancing compensation for land from Rs.30,000 to Rs.40,000 per hectare and for fruit-bearing trees from Rs.600 to Rs.800 per tree.

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Final Decision

Appeal partly allowed. The judgment of the Reference Court is modified: compensation for fruit-bearing trees is reduced from Rs.800 to Rs.600 per tree. The enhancement for land is upheld. No order as to costs.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 18
  • Section 23
  • market value determination
  • sale instance method
  • multiplier for Bagayat land
  • compensation for fruit-bearing trees
  • solatium
  • interest
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Case Details

2010 LawText (BOM) (01) 188

First Appeal No.263 of 1996

2010-01-04

R. K. Deshpande, J.

Mr. D. M. Kale, Assistant Government Pleader for Appellants; Mr. J. M. Shamkuwar, Advocate for Respondent

The State of Maharashtra, by the Collector, Amravati; The Special Land Acquisition Officer, Upper Wardha Project No.IV, Amravati; The Sub-Divisional Officer, Morshi

Shri Ramesh Natthuji Bharupi

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Nature of Litigation

First appeal against judgment of Reference Court enhancing compensation for land acquisition.

Remedy Sought

State sought reduction of compensation enhanced by Reference Court.

Filing Reason

State challenged enhancement of compensation for land and fruit-bearing trees by Reference Court.

Previous Decisions

Land Acquisition Officer awarded Rs.3,66,145 total compensation including Rs.82,834 for land; Reference Court enhanced land compensation to Rs.60,000 per hectare and tree compensation to Rs.800 per tree.

Issues

Whether the Reference Court was justified in enhancing compensation for land from Rs.30,000 to Rs.40,000 per hectare? Whether the Reference Court was justified in enhancing compensation for fruit-bearing trees from Rs.600 to Rs.800 per tree?

Submissions/Arguments

Appellants (State) argued that the Reference Court erred in applying 1.5 times multiplier for Bagayat land and in enhancing tree compensation without evidence. Respondent (Claimant) supported the Reference Court's judgment, arguing that the enhancement was justified based on the nature of the land and sale instance.

Ratio Decidendi

In land acquisition cases, the market value of Bagayat land can be determined by applying a reasonable multiplier (here 1.5 times) over the price of dry land from a comparable sale instance. However, enhancement of compensation for fruit-bearing trees must be supported by evidence; in its absence, the award of the Land Acquisition Officer should be restored.

Judgment Excerpts

The Reference Court considered the sale instance (Exh.34) which was for dry land. The land in question being a Bagayat land having fruit bearing Orange trees, the learned Judge of the Reference Court, taking into consideration all other factors, granted enhancement at 1 ½ times more than the price which was fetched in respect of the sale instance at Exh.34 and determined the price of land in question @ Rs.60,000/- per hectare. So far as the fruit bearing trees are concerned, the Reference Court has enhanced the compensation from Rs.600/- to Rs.800/- per tree. There is no evidence on record to support such enhancement. In the absence of any evidence, the compensation for fruit bearing trees should be at the rate of Rs.600/- per tree as awarded by the Land Acquisition Officer.

Procedural History

Notification under Section 4 of Land Acquisition Act issued on 15.10.1991. Land Acquisition Officer passed award on 28.4.1992 granting Rs.3,66,145 total compensation. Claimant filed reference under Section 18, registered as Land Acquisition Case No.116 of 1992. Reference Court passed judgment on 8.12.1995 enhancing compensation. State filed First Appeal No.263 of 1996 before Bombay High Court, Nagpur Bench. High Court delivered judgment on 4.1.2010.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18, Section 23
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