Bombay High Court Allows State's Appeal in Land Acquisition Case — Reference Barred by Limitation and Compensation Excessive. Reference Court's enhancement of compensation from Rs.40,500 to Rs.1,00,000 per hectare set aside as unsupported by evidence and reference held time-barred under Section 18 of Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
  • 104
Judgement Image
Font size:
Print

Case Note & Summary

The State of Maharashtra appealed against the judgment of the reference Court dated 23/6/1994, which enhanced compensation for land acquired for rehabilitation of Chinchgavan village. The land of the respondents, situated at Rajura Bazar, Taluka Warud, District Amravati, was acquired under Section 4 notification issued on 7/11/1991. The Land Acquisition Officer passed an award on 27/2/1992 granting compensation at Rs.40,500 per hectare. Dissatisfied, the respondents filed a reference application on 24/4/1992 seeking enhanced compensation. The reference Court enhanced the compensation to Rs.1,00,000 per hectare and Rs.40,000 for the well. The State challenged both the limitation and the quantum. The High Court found that the reference application was barred by limitation as the notice under Section 12(2) was served before 11/3/1992, and the reference was filed beyond the prescribed period. Additionally, the enhancement of compensation was not supported by any evidence and was on the higher side. The Court allowed the appeal, set aside the reference Court's judgment, and restored the compensation to Rs.40,500 per hectare as awarded by the Land Acquisition Officer.

Headnote

A) Land Acquisition - Limitation for Reference - Section 18, Land Acquisition Act, 1894 - The period of limitation for filing a reference application runs from the date of receipt of notice under Section 12(2) of the Act, not from the date of the award. The reference Court erred in reckoning limitation from the date of award (27/2/1992) instead of the date of notice (before 11/3/1992), making the reference filed on 24/4/1992 beyond the prescribed period. (Paras 3-4)

B) Land Acquisition - Compensation - Market Value - Section 23, Land Acquisition Act, 1894 - The reference Court's enhancement of compensation from Rs.40,500 to Rs.1,00,000 per hectare was not supported by any evidence on record. The Court held that the enhancement was on the higher side and reduced the compensation to Rs.40,500 per hectare as awarded by the Land Acquisition Officer. (Paras 3-5)

C) Land Acquisition - Reference - Limitation - Section 18, Land Acquisition Act, 1894 - The reference application was filed beyond the period of limitation as the notice under Section 12(2) was served before 11/3/1992, and the reference was filed on 24/4/1992. The reference Court's finding that the reference was within time was erroneous. (Paras 3-4)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the reference application was within limitation and whether the enhanced compensation of Rs.1,00,000 per hectare was justified.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal is allowed. The judgment and order dated 23/6/1994 passed by the reference Court is set aside. The compensation awarded by the Land Acquisition Officer at Rs.40,500 per hectare is restored. No order as to costs.

Law Points

  • Limitation for reference under Section 18 of Land Acquisition Act
  • 1894 runs from date of notice under Section 12(2)
  • not from date of award
  • Compensation must be based on market value evidence
  • Reference Court cannot enhance compensation without proper evidence.
Subscribe to unlock Law Points Subscribe Now

Case Details

2012 LawText (BOM) (03) 135

First Appeal No. 629/1994

2012-03-07

M.N. Gilinai, J.

Shri Bhagwan Lonare, A G P for appellants; None present for the respondents

The State of Maharashtra and The Special Land Acquisition Officer, (M.I.W.) Amravati

Bhaurao S/o Krishnarao Gomkale, Smt. Bhagrathibai wd/o Krishnarao Gomkale, Sau. Suhila w/o Janraoji Ikhe

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against enhancement of compensation in land acquisition reference

Remedy Sought

State sought setting aside of reference Court's judgment enhancing compensation

Filing Reason

State challenged the reference Court's judgment dated 23/6/1994 enhancing compensation from Rs.40,500 to Rs.1,00,000 per hectare

Previous Decisions

Land Acquisition Officer awarded Rs.40,500 per hectare on 27/2/1992; reference Court enhanced to Rs.1,00,000 per hectare on 23/6/1994

Issues

Whether the reference application was within the period of limitation under Section 18 of the Land Acquisition Act, 1894? Whether the enhanced compensation of Rs.1,00,000 per hectare was justified?

Submissions/Arguments

Appellant (State): The reference application was barred by limitation as notice under Section 12(2) was served before 11/3/1992, and the reference was filed on 24/4/1992 beyond the prescribed period. The enhanced compensation was on the higher side and not supported by evidence. Respondents: None present.

Ratio Decidendi

The period of limitation for filing a reference under Section 18 of the Land Acquisition Act, 1894 runs from the date of receipt of notice under Section 12(2), not from the date of the award. The reference Court's enhancement of compensation without supporting evidence is unsustainable.

Judgment Excerpts

The reference Court had erred in holding that the reference application was filed within the prescribed period of limitation by considering that the award was passed on 27/2/1992 and the reference was presented on 24/4/1992. The grant of compensation to the respondents at the rate of Rs.1,00,000 per hector for the acquired land is on extremely higher side.

Procedural History

Section 4 notification issued on 7/11/1991. Land Acquisition Officer passed award on 27/2/1992 granting compensation at Rs.40,500 per hectare. Respondents filed reference application on 24/4/1992. Reference Court enhanced compensation to Rs.1,00,000 per hectare on 23/6/1994. State filed First Appeal No. 629/1994 in the High Court.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 12(2), Section 18, Section 23
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows State's Appeal in Land Acquisition Case — Reference Barred by Limitation and Compensation Excessive. Reference Court's enhancement of compensation from Rs.40,500 to Rs.1,00,000 per hectare set aside as unsupported by eviden...
Related Judgement
High Court Bombay High Court Quashes Appointment of Vice Chancellor in Agricultural University for Violation of Statutory Selection Procedure. Writ of Quo Warranto Issued as Appointment Made Without Constituting Search Committee Under Maharashtra Agricultural U...