Case Note & Summary
The appellant, Sadashiv Madhav Shelke, owned land Survey No.3/27 bearing City Survey No.908 admeasuring 258.18 sq. meters at Shirdi, Maharashtra. The respondents acquired the land for the Pimpalwadi to Nimgaon shiv road, part of the Development Plan of Shirdi Municipal Council. Notification under Section 126(4) of the Maharashtra Regional and Town Planning Act, 1966 was published on 14.01.2008, and the Award under Section 11 of the Land Acquisition Act, 1894 was passed on 04.11.2010. The Special Land Acquisition Officer (SLAO) fixed the market value at Rs.6,417/- per sq. meter but offered only nominal compensation of Rs.1/-. Dissatisfied, the claimant filed a Reference under Section 18 of the Act before the Civil Judge, Senior Division, Kopargaon (Reference Court), which dismissed the reference on 10.03.2016. The appellant then filed the present appeal. The High Court considered whether the Reference Court was justified in awarding nominal compensation despite determining market value. The court noted that the SLAO had determined market value but awarded only Rs.1/-, which was arbitrary. The High Court held that once market value is determined, the claimant is entitled to that value plus solatium and interest under Sections 23 and 24 of the Act. The court allowed the appeal, set aside the impugned judgment, and directed the respondents to pay compensation at Rs.6,417/- per sq. meter with all statutory benefits, including solatium and interest, from the date of possession.
Headnote
A) Land Acquisition - Compensation - Market Value - Nominal Compensation - Land Acquisition Act, 1894, Sections 11, 18, 23, 24 - The appellant's land was acquired for road development under the Maharashtra Regional and Town Planning Act, 1966. The SLAO fixed market value at Rs.6,417/- per sq. meter but offered only Rs.1/- as compensation. The Reference Court upheld this nominal award. The High Court held that once market value is determined, compensation cannot be reduced to a nominal amount; the claimant is entitled to the market value plus statutory benefits. (Paras 1-10) B) Land Acquisition - Reference under Section 18 - Enhancement - Land Acquisition Act, 1894, Section 18 - The claimant sought enhancement of compensation dissatisfied with the SLAO's award. The Reference Court dismissed the reference, but the High Court allowed the appeal, setting aside the nominal compensation and directing payment of market value with solatium and interest. (Paras 2-10)
Issue of Consideration
Whether the Reference Court was justified in awarding nominal compensation of Rs.1/- to the claimant despite determining the market value of the acquired land at Rs.6,417/- per sq. meter?
Final Decision
Appeal allowed. Impugned judgment and award dated 10.03.2016 passed by the Civil Judge, Senior Division, Kopargaon in LAR No.26 of 2012 is set aside. The respondents are directed to pay compensation to the appellant at the rate of Rs.6,417/- per sq. meter for the acquired land, along with all statutory benefits including solatium and interest as per Sections 23 and 24 of the Land Acquisition Act, 1894, from the date of possession.
Law Points
- Land Acquisition Act
- 1894
- Section 18
- Section 11
- Section 23
- Section 24
- Maharashtra Regional and Town Planning Act
- 1966
- Section 126(4)
- Compensation
- Market Value
- Nominal Compensation
- Enhancement
