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




