Bombay High Court Dismisses Appeal in Land Acquisition Case — Compensation Already Adequate. Market Value of Acquired Land at Rs.120 per sq.m. Was Higher Than Comparable Sale Instances.

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

The appellant, Jagdish Shriram Poddar, owned agricultural lands bearing survey nos. 22/1 and 22/4, area 1.51 HR, at Mouja Chichala, Wardha. For construction of an overhead railway bridge, 0.20 HR of land was acquired vide notification dated 19.9.1994. The Special Land Acquisition Officer passed an award on 12.3.1987 fixing market value at Rs.120 per square meter. Aggrieved, the appellant sought a reference, which was rejected by the Civil Judge, Senior Division, Wardha in L.A.C. No. 4/1988 on 31.1.1992. The appellant then filed the present appeal. The appellant contended that the Reference Court ignored the fact that due to acquisition of 0.80 HR out of 1.61 HR, a fragment of 50,000 sq.ft. remained, rendered useless, and compensation ought to have been awarded for that fragment. The appellant relied on three sale instances: two plots of 3,000 sq.ft. sold by Shriram Poddar to Madhav Indurkar and Harprasadsingh Thakur on 16.6.1982 and 7.6.1982, fetching Rs.5.50 per sq.ft. (approx. Rs.55 per sq.m.), and a third sale instance dated 17.8.1982 where Hemlal sold 1400 sq.ft. to Indubai for Rs.12,000, fetching Rs.8.50 per sq.ft. (approx. Rs.85 per sq.m.). The court noted that with 15% escalation per year, the value from the first two instances would be Rs.70-75 per sq.m., and from the third instance, Rs.100 per sq.m. Since the appellant already received Rs.120 per sq.m., the Reference Court was justified in not enhancing compensation. The court dismissed the appeal, finding no merit in the claim for enhanced compensation or for the fragment.

Headnote

A) Land Acquisition - Compensation - Market Value - Determination - The court considered whether the compensation awarded by the Special Land Acquisition Officer at Rs.120 per square meter was just and fair, based on sale instances of similar plots in the same area. The court found that the sale instances indicated a lower market value, and with escalation, the value would be around Rs.100 per square meter, thus the awarded amount was adequate. (Paras 7-8)

B) Land Acquisition - Fragment - Compensation for Unutilized Land - The appellant claimed compensation for a fragment of 50,000 sq.ft. rendered useless due to acquisition. The court did not address this claim in the judgment, as the appeal was dismissed on the ground that the compensation for the acquired land was already adequate. (Para 4)

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Issue of Consideration

What is the just and fair amount of compensation for the lands of the appellant acquired?

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Final Decision

Appeal dismissed. The judgment and award of the Reference Court dated 31.1.1992 in L.A.C. No. 4/1988 is confirmed. No order as to costs.

Law Points

  • Land Acquisition
  • Compensation
  • Market Value
  • Sale Instances
  • Fragment
  • Just and Fair Compensation
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Case Details

2012 LawText (BOM) (08) 145

First Appeal No.337/1992

2012-08-09

M.N. Ginali, J.

Mr. N.S. Bhattad for appellant, Mr. D.B. Yengal, A G P for respondent

Jagdish Shriram Poddar

State of Maharashtra through Collector, Wardha

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Nature of Litigation

Appeal against rejection of reference for enhanced compensation in land acquisition.

Remedy Sought

Appellant sought enhancement of compensation for acquired land and compensation for fragment rendered useless.

Filing Reason

Appellant was aggrieved by the award of Special Land Acquisition Officer fixing market value at Rs.120 per sq.m. and rejection of reference by Civil Judge.

Previous Decisions

Special Land Acquisition Officer awarded Rs.120 per sq.m. on 12.3.1987; Reference Court rejected reference on 31.1.1992 in L.A.C. No. 4/1988.

Issues

Whether the compensation awarded at Rs.120 per sq.m. is just and fair? Whether the appellant is entitled to compensation for the fragment of 50,000 sq.ft. rendered useless?

Submissions/Arguments

Appellant argued that the Reference Court ignored material evidence and failed to award compensation for the fragment of 50,000 sq.ft. rendered useless. Respondent supported the judgment and award.

Ratio Decidendi

The compensation awarded by the Special Land Acquisition Officer at Rs.120 per sq.m. was higher than the market value indicated by comparable sale instances, and thus no enhancement was warranted. The claim for compensation for fragment was not addressed as the appeal was dismissed on merits.

Judgment Excerpts

The learned Reference Court was justified in not enhancing the amount of compensation over and above Rs.120/- per square meter granted by the Special Land Acquisition Officer. Only point that arises for consideration is: What is the just and fair amount of compensation for the lands of the appellant acquired?

Procedural History

Notification for acquisition dated 19.9.1994. Special Land Acquisition Officer passed award on 12.3.1987 fixing compensation at Rs.120 per sq.m. Appellant sought reference, which was rejected by Civil Judge, Senior Division, Wardha on 31.1.1992 in L.A.C. No. 4/1988. Appellant filed First Appeal No.337/1992 in Bombay High Court, Nagpur Bench, which was dismissed on 9.8.2012.

Acts & Sections

  • Land Acquisition Act, 1894:
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High Court Bombay High Court Dismisses Appeal in Land Acquisition Case — Compensation Already Adequate. Market Value of Acquired Land at Rs.120 per sq.m. Was Higher Than Comparable Sale Instances.
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