Bombay High Court Allows Appeal in Land Acquisition Compensation Case — Enhances Compensation to Rs.1,00,000 per Hectare. Reference Court's failure to consider potential for development and higher potential value leads to inadequate compensation under Section 18 of Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The case pertains to an appeal filed by the claimants (legal heirs of Bakshi Kanhu Rathod) against the judgment and order dated 18.3.1996 passed by the Civil Judge (Sr.Dn.), Khamgaon in Land Acquisition Case No.29 of 1989. The dispute arose from the acquisition of land bearing Survey No.10/2, area 85 acres, situated at Pimpri Dhangar, Taluka Khamgaon, District Buldhana, for which a notification was issued under the Land Acquisition Act, 1894. The Special Land Acquisition Officer determined compensation at Rs.34,884 per acre by his Award dated 20.4.1988. Dissatisfied, the claimants filed a Reference under Section 18 of the Act, claiming enhanced compensation at Rs.1,00,000 per hectare. The Reference Court enhanced the compensation to Rs.68,320 per acre based on a sale instance dated 10.5.1979 in respect of Survey No.13/3-A of the same village, sold at Rs.16,129 per acre. The claimants appealed, arguing that the Reference Court failed to consider the potential for development and higher potential value of the land. The High Court, after hearing arguments, held that the Reference Court's reliance on a single sale instance without considering the potential for development was inadequate. The court allowed the appeal in part, enhancing the compensation to Rs.1,00,000 per hectare, and directed the respondent to pay the enhanced amount with statutory benefits.

Headnote

A) Land Acquisition - Compensation Determination - Section 18, Land Acquisition Act, 1894 - Reference Court enhanced compensation from Rs.34,884 to Rs.68,320 per acre based on sale instance of 1979 - Appellant claimed Rs.1,00,000 per hectare - Held that the Reference Court's reliance on a single sale instance without considering the potential for development and higher potential value was inadequate (Paras 2-4).

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Issue of Consideration

Whether the Reference Court erred in not granting enhanced compensation at the rate of Rs. 1,00,000 per hectare for the acquired land based on sale instances and potential for development.

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Final Decision

Appeal allowed in part. Compensation enhanced to Rs.1,00,000 per hectare. Respondent to pay enhanced amount with statutory benefits.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 18
  • Section 23
  • Compensation Determination
  • Sale Instances
  • Potential Value
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Case Details

2010 LawText (BOM) (01) 200

First Appeal No.557 of 1996

2010-01-06

R. K. Deshpande, J.

Mr. C. A. Joshi for Appellant, Mr. K. S. Dhote (AGP) for Respondent

Bakshi Kanhu Rathod (dead) through Laxman Bakshi Rathod and others

State of Maharashtra, through Collector, Buldhana

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Nature of Litigation

Appeal against judgment of Reference Court in land acquisition compensation matter.

Remedy Sought

Appellants sought enhanced compensation at Rs.1,00,000 per hectare for acquired land.

Filing Reason

Dissatisfaction with compensation awarded by Special Land Acquisition Officer and Reference Court.

Previous Decisions

Special Land Acquisition Officer awarded Rs.34,884 per acre on 20.4.1988; Reference Court enhanced to Rs.68,320 per acre on 18.3.1996.

Issues

Whether the Reference Court erred in not granting enhanced compensation at Rs.1,00,000 per hectare based on sale instances and potential for development.

Submissions/Arguments

Appellant argued that the Reference Court failed to consider the potential for development and higher potential value of the land, and that the sale instance relied upon was inadequate. Respondent supported the Reference Court's judgment.

Ratio Decidendi

In land acquisition compensation cases, the court must consider the potential for development and higher potential value of the land, and not rely solely on a single sale instance without such consideration.

Judgment Excerpts

This appeal is preferred by the claimant challenging the judgment and order dt. 18.3.1996 passed by the learned Civil Judge (Sr.Dn.), Khamgaon in Land Acquisition Case No.29 of 1989 to the extent it refuses to grant enhanced compensation @ Rs. One Lac per hectare to the appellant/claimant for acquisition of his land.

Procedural History

Notification for acquisition issued; Special Land Acquisition Officer passed Award on 20.4.1988 at Rs.34,884 per acre; Claimant filed Reference under Section 18; Reference Court enhanced compensation to Rs.68,320 per acre on 18.3.1996; Claimant filed First Appeal No.557 of 1996 before High Court.

Acts & Sections

  • Land Acquisition Act, 1894: 18, 23
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