Case Note & Summary
The appellant, Gopi Sawai Rathod, was the owner of land bearing Survey No.51/3 admeasuring 2 H 2 R situated at Pimpri Dhangar, Tq. Khamgaon, District Buldana, which was acquired by the State of Maharashtra. The Special Land Acquisition Officer passed an Award on 20.4.1988 determining compensation at Rs.14,000 per hectare, totaling Rs.49,495. Dissatisfied, the appellant filed a Reference under Section 18 of the Land Acquisition Act, 1894, which was registered as Land Acquisition Case No.36 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 Pimpri Dhangar sold at Rs.16,129 per acre, which was mentioned in Appendix A to the Award. The appellant challenged this enhancement, claiming that the Reference Court did not provide him an opportunity to adduce evidence to show that the sale instance was for dry land and not irrigated land, and that the compensation should have been Rs. One lakh per hectare. The High Court heard the appeal. The appellant's counsel argued that the Reference Court erred in relying on the sale instance without giving the appellant an opportunity to adduce evidence regarding the nature of the land. The respondent's counsel supported the Reference Court's judgment. The High Court held that the Reference Court should have given the appellant an opportunity to adduce evidence, but since the appellant had not led any evidence to show that the sale instance was for dry land, the Court proceeded to determine compensation based on the sale instance. The High Court applied a 20% deduction for development, as the sale instance was for a small plot, resulting in a rate of Rs.31,886 per hectare. The High Court noted that the Reference Court's rate of Rs.42,000 per hectare was higher than what the appellant claimed, but the appellant had claimed Rs. One lakh per hectare. The High Court partly allowed the appeal, enhancing the compensation to Rs.31,886 per hectare, with all other terms of the Reference Court's judgment remaining unchanged.
Headnote
A) Land Acquisition - Compensation Determination - Sale Instance - Opportunity to Adduce Evidence - Land Acquisition Act, 1894, Section 18 - The Reference Court relied on a sale instance from Appendix A of the Award without giving the claimant an opportunity to adduce evidence to show that the sale instance was for dry land and not irrigated land. The High Court held that this was improper and that the claimant should have been given such opportunity. (Paras 4-5) B) Land Acquisition - Compensation - Deduction for Development - Land Acquisition Act, 1894, Section 23 - The High Court held that a 20% deduction for development is appropriate when determining compensation based on a sale instance of a small plot. Applying this deduction to the sale instance rate of Rs.16,129 per acre (Rs.39,857 per hectare) results in a rate of Rs.31,886 per hectare. (Paras 5-6) C) Land Acquisition - Compensation - Enhancement - Land Acquisition Act, 1894, Section 23 - The High Court enhanced the compensation from Rs.42,000 per hectare to Rs.31,886 per hectare, noting that the Reference Court's rate was higher than what the claimant sought. The appeal was partly allowed. (Para 6)
Issue of Consideration
Whether the Reference Court erred in determining compensation at Rs.42,000 per hectare based on a sale instance without providing opportunity to the claimant to adduce evidence regarding the nature of the land, and what should be the appropriate compensation.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.42,000 per hectare to Rs.31,886 per hectare. All other terms of the Reference Court's judgment remain unchanged.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 23
- Compensation Determination
- Sale Instance
- Deduction for Development
- Opportunity to Adduce Evidence



