Case Note & Summary
The appellant, Mahesh Bhagwandas Boob, owned land at Block No.7 in village Chikhali, admeasuring 40 R, which was acquired by a Notification dated 28.12.1989 for the purpose of gaothan (village settlement). The Sub-Divisional Officer/Land Acquisition Officer, Murtizapur, passed an Award on 18.3.1992 granting compensation at Rs. 5,200/- per acre. Dissatisfied, the appellant filed a Reference under Section 18 of the Land Acquisition Act, which was registered as Land Acquisition Case No.36/1992. The Reference Court (2nd Additional District Judge, Akola) by judgment and order dated 19.6.1995 enhanced the compensation to Rs. 20,000/- per acre. Still aggrieved, the appellant filed the present First Appeal seeking enhancement to Rs. 50,000/- per acre. The appellant argued that the acquired land was located 1000 to 2000 feet away from Survey Nos. 32/5 and 37, which had been sold at Rs. 2/- to Rs. 3/- per sq. ft. between 1987 and 1990, and that the Reference Court had accepted the potentiality for non-agricultural use but failed to grant the same rate. The High Court, per R. K. Deshpande, J., heard the appeal and allowed it, holding that the Reference Court ought to have granted compensation at the rate of Rs. 2/- per sq. ft. (equivalent to Rs. 87,120/- per acre) based on the comparable sales and the potentiality of the land. The judgment was delivered on 4th January 2010.
Headnote
A) Land Acquisition - Compensation Enhancement - Market Value Determination - Land Acquisition Act, 1894, Sections 18, 23 - The appellant-claimant sought enhancement of compensation from Rs. 20,000/- per acre to Rs. 50,000/- per acre for land acquired for gaothan, relying on sales of nearby lands at Rs. 2/- to Rs. 3/- per sq. ft. - The High Court held that the Reference Court had accepted the potentiality for non-agricultural use but failed to apply the same rate as comparable sales - The appeal was allowed, and compensation was enhanced to Rs. 2/- per sq. ft. (Paras 2-4).
Issue of Consideration
Whether the Reference Court erred in not granting compensation at the rate of Rs. 50,000/- per acre (or Rs. 2/- to Rs. 3/- per sq. ft.) for the acquired land, considering its potential for non-agricultural use and comparable sales of nearby lands.
Final Decision
The appeal is allowed. The appellant/claimant is entitled to compensation at the rate of Rs. 2/- per sq. ft. for the acquired land. The judgment and order of the Reference Court dated 19.6.1995 is modified accordingly. The respondent shall pay the enhanced compensation with all statutory benefits under the Land Acquisition Act.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 23
- Compensation Enhancement
- Market Value Determination
- Potentiality for Non-Agricultural Use
- Comparable Sales Method
