Bombay High Court Partially Allows Appeal in Land Acquisition Compensation Case — Enhances Rate Based on Sale Instance of Irrigated Land. Court Holds That Deduction for Development Cannot Be Applied Mechanically and That Sale Instance of Irrigated Land Cannot Be Compared with Dry Land Without Proper Evidence.

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

The appellant, Mohan Baksi Rathod, owned land bearing Survey No.55/1-G admeasuring 2 hectares and 13 ares situated at Pimpri Dhangar, Taluka Khamgaon, District Buldhana. The State of Maharashtra issued a notification for acquisition of this land. The Special Land Acquisition Officer passed an award on 20.4.1988 determining compensation at Rs.14,000/- per hectare, totaling Rs.56,251.16. Dissatisfied, the appellant filed a reference under Section 18 of the Land Acquisition Act, 1894, which was registered as Land Acquisition Case No.26 of 1989. The Reference Court, by judgment and order dated 18.3.1996, enhanced the compensation to Rs.42,000/- per hectare, relying 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 appellant claimed compensation at Rs.1,00,000/- per hectare. The appellant argued that the Reference Court used the sale instance from Appendix A of the Award without giving him an opportunity to prove that the instance was for dry land, not irrigated land. The appellant contended that if the instance was for dry land, then based on the judgment of the Apex Court and the Division Bench of this Court in Special Land Acquisition Officer (III), Jalgaon and anr. vs. Bhagwat, 2009 (4) Mh.L.J. 308, the compensation should be higher. The High Court found that the Reference Court had not provided the appellant an opportunity to lead evidence on the nature of the land in the sale instance. The High Court set aside the impugned judgment and remanded the matter to the Reference Court for fresh decision, directing that both parties be given an opportunity to lead evidence. The appeal was partly allowed.

Headnote

A) Land Acquisition - Compensation Determination - Sale Instance - The Reference Court relied on a sale instance dated 10.5.1979 from Appendix A of the Award without providing the appellant an opportunity to lead evidence to show that the instance was for dry land, not irrigated land. The High Court held that this was improper and remanded the matter for fresh consideration. (Paras 4-5)

B) Land Acquisition - Compensation - Deduction for Development - The High Court noted that the deduction for development cannot be applied mechanically and must be based on evidence. The Court directed the Reference Court to decide the matter afresh after giving both parties an opportunity to lead evidence. (Para 5)

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Issue of Consideration

Whether the Reference Court erred in relying on a sale instance of irrigated land without giving the appellant an opportunity to prove that the instance pertained to dry land, and whether the compensation awarded was inadequate.

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Final Decision

The appeal is partly allowed. The impugned judgment and order dated 18.3.1996 passed by the Civil Judge (Sr.Dn.), Khamgaon in Land Acquisition Case No.26 of 1989 is set aside. The matter is remanded back to the Reference Court for fresh decision after giving both parties an opportunity to lead evidence. No order as to costs.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 18
  • Section 23
  • Section 4
  • compensation determination
  • sale instance
  • irrigated vs dry land
  • deduction for development
  • opportunity to lead evidence
  • reference court
  • enhancement of compensation
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Case Details

2010 LawText (BOM) (01) 204

First Appeal No.605 of 1996

2010-01-06

R. K. Deshpande, J.

Mr. C. A. Joshi for Appellant, Mr. D.M. Kale, APP for Respondent

Mohan Baksi Rathod

State of Maharashtra, through Collector, Buldhana

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Nature of Litigation

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

Remedy Sought

Appellant sought enhancement of compensation from Rs.42,000/- per hectare to Rs.1,00,000/- per hectare.

Filing Reason

Appellant was dissatisfied with the compensation awarded by the Reference Court.

Previous Decisions

Special Land Acquisition Officer awarded Rs.14,000/- per hectare on 20.4.1988; Reference Court enhanced to Rs.42,000/- per hectare on 18.3.1996.

Issues

Whether the Reference Court erred in relying on a sale instance without giving the appellant an opportunity to prove that the instance pertained to dry land? Whether the compensation awarded by the Reference Court was inadequate?

Submissions/Arguments

Appellant argued that the sale instance dated 10.5.1979 was taken from Appendix A without opportunity to show it was for dry land, and if so, compensation should be higher based on precedent. Respondent/State argued in support of the Reference Court's judgment.

Ratio Decidendi

The Reference Court must provide the claimant an opportunity to lead evidence regarding the nature of land in a sale instance before relying on it for determining compensation. Deduction for development cannot be applied mechanically without evidence.

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.26 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. Mr. C. A. Joshi, learned Counsel appearing for the appellant/claimant urged that the Sale instance dt. 10.5.1979 was taken from the Appendix A attached to the Award without providing any opportunity to the appellant to bring on record the evidence to establish that the said Sale instance was in respect of dry land and not irrigated land.

Procedural History

Notification for acquisition issued; Special Land Acquisition Officer passed Award on 20.4.1988 at Rs.14,000/- per hectare; Appellant filed Reference under Section 18; Reference Court enhanced compensation to Rs.42,000/- per hectare on 18.3.1996; Appellant filed First Appeal No.605 of 1996 before the High Court.

Acts & Sections

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