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 land was acquired by the respondents for the construction of Pimpalwadi to Nimgaon shiv road, as part of the Development Plan of Shirdi Municipal Council. A notification under Section 126(4) of the Maharashtra Regional and Town Planning Act, 1966 was published on 14.01.2008, and an award under Section 11 of the Land Acquisition Act, 1894 was passed on 04.11.2010. In the award, the Special Land Acquisition Officer (SLAO) fixed the market value of the land at Rs.6,417/- per sq. meter but offered only nominal compensation of Rs.1/- to the claimant. Dissatisfied, the claimant filed a reference under Section 18 of the Act before the Civil Judge, Senior Division, Kopargaon (Reference Court), seeking enhancement. The Reference Court, by judgment and award dated 10.03.2016 in LAR No.26 of 2012, upheld the nominal compensation. The appellant then filed the present first appeal before the High Court. The High Court framed the issue of whether the Reference Court was justified in awarding nominal compensation despite fixing the market value. The appellant argued that once market value is determined, the claimant is entitled to that amount with statutory benefits. The respondents contended that the acquisition was for a road in the development plan and the land had been reserved, but the High Court found no legal basis for awarding only Rs.1/-. The High Court held that the award of nominal compensation was arbitrary and illegal, and the claimant was entitled to the market value of Rs.6,417/- per sq. meter. The court allowed the appeal, set aside the Reference Court's award, and directed the respondents to pay compensation at the rate of Rs.6,417/- per sq. meter for the acquired land, along with all statutory benefits under the Land Acquisition Act, 1894, including solatium, additional market value, and interest. The judgment was delivered on 05.02.2019 by Justice P.R. Bora.
Headnote
A) Land Acquisition - Compensation - Market Value - Nominal Compensation - 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/sq.m. but awarded only Rs.1/- as compensation. The Reference Court upheld the nominal compensation. The High Court held that once market value is determined, the claimant is entitled to that value plus statutory benefits under the Land Acquisition Act, 1894. The award of nominal compensation was arbitrary and illegal. (Paras 1-10) B) Land Acquisition - Reference under Section 18 - Enhancement of Compensation - The claimant sought enhancement of compensation under Section 18 of the Land Acquisition Act, 1894. The Reference Court erred in not granting the market value as determined by the SLAO. The High Court allowed the appeal and directed payment of compensation at Rs.6,417/sq.m. with all statutory benefits including solatium, interest, and additional market value. (Paras 2-10)
Issue of Consideration
Whether the Reference Court was justified in awarding nominal compensation of Rs.1/- to the claimant despite fixing the market value of the acquired land at Rs.6,417/- per sq. meter?
Final Decision
Appeal allowed. The judgment and award of the Reference Court dated 10.03.2016 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 admeasuring 258.18 sq. meters, along with all statutory benefits under the Land Acquisition Act, 1894, including solatium, additional market value, and interest.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Nominal Compensation
- Section 11 Land Acquisition Act 1894
- Section 18 Land Acquisition Act 1894
- Section 126(4) Maharashtra Regional and Town Planning Act 1966
