Case Note & Summary
The appellant, Dashrath Baxi Rathod, owned land bearing Survey No.58/2-3, area 1 H 95 acres, situated at Pimpri Dhangar, Tq. Khamgaon, District Buldana. A notification for acquisition of this land was issued under the Land Acquisition Act, 1894. The Special Land Acquisition Officer determined compensation at Rs.36,972/- by his Award dated 20.4.1988. Dissatisfied, the appellant filed a Reference under Section 18 of the Act, registered as Land Acquisition Case No.22 of 1989. The Reference Court, by judgment and order dated 21.3.1996, enhanced compensation to Rs.36,972/- per hectare, relying on a sale instance dated 10.5.1979 in respect of Survey No.13/3-A of Pimpri Dhangar sold at Rs.16,129/- per acre. The appellant appealed, claiming compensation of Rs.1,05,000/- per hectare. The High Court considered the sale instance of Rs.16,129/- per acre (equivalent to Rs.39,854/- per hectare) and applied a 30% deduction for development costs, reducing the value to Rs.27,898/- per hectare. Then, applying a 10% yearly increase from 1979 to the notification date in 1985 (six years), the Court calculated a 60% increase, resulting in Rs.44,637/- per hectare. The Court rounded this to Rs.50,000/- per hectare. The High Court allowed the appeal in part, setting aside the Reference Court's award and enhancing compensation to Rs.50,000/- per hectare, with all other benefits under the Act. The appellant was also entitled to costs.
Headnote
A) Land Acquisition - Compensation Determination - Section 18, 23 Land Acquisition Act, 1894 - Enhancement of Compensation - The appellant challenged the Reference Court's award of Rs.36,972/- per hectare, claiming Rs.1,05,000/- per hectare based on a sale instance of 1979. The High Court held that the sale instance of Rs.16,129/- per acre (Rs.39,854/- per hectare) in 1979 was relevant, and after applying 30% deduction for development and 10% yearly increase, the compensation was enhanced to Rs.50,000/- per hectare. (Paras 2-6) B) Land Acquisition - Sale Instances - Deduction for Development - Section 23 Land Acquisition Act, 1894 - The Court applied a 30% deduction for development costs from the sale instance value, as the acquired land was agricultural and required development for non-agricultural use. (Para 5) C) Land Acquisition - Yearly Increase - Section 23 Land Acquisition Act, 1894 - The Court allowed a 10% yearly increase from the date of sale instance (1979) to the date of notification (1985), resulting in a 60% increase over six years. (Para 5)
Issue of Consideration
Whether the Reference Court erred in determining compensation for acquired land at Rs.36,972/- per hectare instead of the claimed Rs.1,05,000/- per hectare, and whether the sale instance of 1979 was correctly applied.
Final Decision
Appeal allowed in part. The judgment and order of the Reference Court dated 21.3.1996 in Land Acquisition Case No.22 of 1989 is set aside. The appellant is entitled to compensation at the rate of Rs.50,000/- per hectare for the acquired land. The appellant is also entitled to all other benefits under the Land Acquisition Act, including solatium, additional amount, and interest. The appellant is entitled to costs.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 23
- Compensation Determination
- Sale Instances
- Deduction for Development
- Enhancement of Compensation
