Case Note & Summary
The appellant, Shahadeo s/o Shriram Hingane, owned land bearing Gat No.25 in village Warkhed, Taluka Shegaon, District Buldhana. By a notification dated 25.6.1988 issued under Section 4 of the Land Acquisition Act, 1894, 50 R (approximately 0.5 hectare) of his land was acquired for the construction of the Nagziri-Warkhed road. The Special Land Acquisition Officer passed an award on 18.12.1990 granting compensation at Rs. 10,000 per hectare. Notice of the award under Section 12(2) was given on 10.1.1991. Dissatisfied, the appellant filed a reference petition on 20.2.1991, registered as Land Acquisition Claim No. 94 of 1992, before the Civil Judge (Senior Division), Khamgaon. The Reference Court enhanced the compensation to Rs. 30,000 per hectare. Still aggrieved, the appellant filed the present first appeal seeking further enhancement to Rs. 4,00,000 per hectare. Before the Reference Court, the appellant relied on four sale instances: (a) a 1967 purchase of Survey No.50/2 and 50/2-A at Rs. 2,970 per hectare; (b) a 1975 purchase of the remaining portion of the same survey numbers at Rs. 9,090 per hectare; (c) a 1977 purchase of Gat No.5 in village Warkhed at Rs. 24,000 per hectare; and (d) a sale instance (Exh. 44) dated 20.4.1988 of Gat No.24 in the same village at Rs. 1,50,000 per hectare. The High Court found that the first three instances were too old and not comparable, but the fourth instance, being just two months before the Section 4 notification, was the best comparable. The court held that the market value should be determined at Rs. 1,00,000 per hectare after deducting 1/3rd for development costs from the sale instance rate of Rs. 1,50,000 per hectare. The court allowed the appeal in part, setting aside the Reference Court's award and enhancing compensation to Rs. 1,00,000 per hectare, with all statutory benefits under Section 23(1A), 23(2), and interest under Section 28 of the Land Acquisition Act, 1894.
Headnote
A) Land Acquisition - Market Value Determination - Comparable Sale Instances - Land Acquisition Act, 1894, Sections 23 and 4 - The court considered four sale instances relied upon by the appellant, but found only the fourth instance (Exh. 44) dated 20.4.1988, just two months before the Section 4 notification, to be comparable and reliable. The court held that the market value should be determined at Rs. 1,00,000 per hectare, rejecting the lower rates of earlier instances and the Reference Court's rate of Rs. 30,000 per hectare. (Paras 4-6) B) Land Acquisition - Enhancement of Compensation - Deduction for Development - Land Acquisition Act, 1894, Section 23 - The court applied a 1/3rd deduction for development costs from the sale instance rate of Rs. 1,50,000 per hectare, arriving at Rs. 1,00,000 per hectare as the market value. The court also granted statutory benefits under Section 23(1A), 23(2), and interest under Section 28 of the Act. (Paras 6-7)
Issue of Consideration
Whether the appellant/claimant is entitled to enhanced compensation for the acquisition of his land, and what is the correct market value of the acquired land as on the date of notification under Section 4 of the Land Acquisition Act, 1894.
Final Decision
The appeal is partly allowed. The judgment and award of the Reference Court are set aside. The appellant/claimant is entitled to compensation at the rate of Rs. 1,00,000 per hectare for the acquired land, along with all statutory benefits under Section 23(1A), 23(2), and interest under Section 28 of the Land Acquisition Act, 1894. No order as to costs.
Law Points
- Land Acquisition Act
- 1894
- Section 23
- Section 4
- Section 12(2)
- market value determination
- comparable sale instances
- enhancement of compensation
