Bombay High Court Dismisses Municipal Corporation's Challenge to Compensation Award in Land Acquisition for Recreational Ground. Court upholds Sub-Divisional Officer's award of Rs.31,93,26,175 based on Ready Reckoner rates under Section 6 read with Section 126 of the Maharashtra Regional and Town Planning Act, 1966.

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

The Municipal Corporation of Greater Mumbai filed a writ petition challenging the award dated 3rd November 2017 passed by the Sub-Divisional Officer, which determined compensation of Rs.31,93,26,175 for a land admeasuring 4711 sq.meters situated at Malad, Bombay. The land was reserved for Recreational Ground under the Development Plan prepared by the Municipal Corporation. A proposal for acquisition was sent to the Collector on 3rd August 2013, and a notification under Section 6 read with Section 126 of the Maharashtra Regional and Town Planning Act, 1966 was issued on 7th September 2013. The joint measurement of the property was conducted and it was found that the plot admeasures 4711.40 sq.meters. The Sub-Divisional Officer, after considering the Ready Reckoner rates and other materials, awarded the compensation. The Municipal Corporation contended that the compensation was excessive and not based on proper application of the Ready Reckoner rates. The respondent, M/s. B.J. Development Corporation Pvt. Ltd., supported the award. The court, after hearing the parties, held that the award was based on the Ready Reckoner rates and the petitioner failed to show any error of law or perversity. The court further held that writ jurisdiction is not an appellate forum and the court cannot re-appreciate evidence unless the award is perverse or based on no evidence. The petition was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Compensation Determination - Ready Reckoner Rates - The court considered whether the Sub-Divisional Officer's award of Rs.31,93,26,175 for 4711 sq.meters land was excessive. The court held that the award was based on the Ready Reckoner rates and the petitioner failed to show any error of law or perversity. (Paras 1-14)

B) Writ Jurisdiction - Scope of Judicial Review - Compensation Award - The court examined the scope of interference under Article 226 of the Constitution. It held that writ jurisdiction is not an appellate forum and the court cannot re-appreciate evidence unless the award is perverse or based on no evidence. (Paras 2-14)

C) Maharashtra Regional and Town Planning Act, 1966 - Sections 6 and 126 - Land Acquisition for Public Purpose - The court noted that the land was reserved for Recreational Ground and the acquisition was initiated under the Act. The compensation was determined by the Sub-Divisional Officer as per the statutory scheme. (Paras 1-14)

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Issue of Consideration

Whether the compensation awarded by the Sub-Divisional Officer under Section 6 read with Section 126 of the Maharashtra Regional and Town Planning Act, 1966 for land reserved for Recreational Ground is excessive and warrants interference in writ jurisdiction.

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Final Decision

The court dismissed the writ petition with no order as to costs, upholding the award of compensation.

Law Points

  • Land Acquisition
  • Compensation Determination
  • Ready Reckoner Rates
  • Maharashtra Regional and Town Planning Act
  • 1966
  • Section 6
  • Section 126
  • Writ Jurisdiction
  • Scope of Judicial Review
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Case Details

2019 LawText (BOM) (03) 104

Writ Petition No. 1928 of 2018

2019-02-15

R. M. Borde, Pushpa V. Ganediwala

Mr. N.V. Walawalkar, Sr. Advocate a/w. Mr. Yashodeep Deshmukh a/w. Ms Pooja Yadav for Petitioner; Mr. Pravin Samdani, Sr. Advocate a/w. Mr. Nitin Srivastava a/w. Ms Hiral Vora a/w. Ms Hema Chhabra I/b Maniar Srivastava Associates for Respondent No.1; Mr.H.S. Venegaonkar, Addl. G.P. for Respondent Nos.2 to 5 – State

Municipal Corporation of Greater Mumbai

M/s. B.J. Development Corporation Pvt. Ltd. and ors.

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Nature of Litigation

Writ petition challenging compensation award in land acquisition

Remedy Sought

Petitioner Municipal Corporation sought to quash the award determining compensation of Rs.31,93,26,175 for land reserved for Recreational Ground

Filing Reason

Petitioner contended that the compensation awarded was excessive and not based on proper application of Ready Reckoner rates

Previous Decisions

Sub-Divisional Officer passed award on 3rd November 2017 determining compensation

Issues

Whether the compensation awarded by the Sub-Divisional Officer is excessive and warrants interference in writ jurisdiction Whether the award is based on proper application of Ready Reckoner rates

Submissions/Arguments

Petitioner argued that the compensation is excessive and not based on proper application of Ready Reckoner rates Respondent supported the award and argued that it is based on proper material

Ratio Decidendi

The court held that the award of compensation by the Sub-Divisional Officer is based on the Ready Reckoner rates and the petitioner failed to show any error of law or perversity. Writ jurisdiction is not an appellate forum and the court cannot re-appreciate evidence unless the award is perverse or based on no evidence.

Judgment Excerpts

Heard Mr. N.V. Walawalkar, learned Senior Advocate for the petitioner – Municipal Corporation and Mr. Pravin Samdani, learned Senior Advocate for Respondent No.1 – B.J. Development Corporation Pvt. Ltd. The petitioner Municipal Corporation of Greater Mumbai is raising challenge to the award declared by the SubDivisional Officer on 3rd November 2017 determining the amount of compensation to the tune of Rs.31,93,26,175 in respect of the land admeasuring 4711 sq.meters situated at Malad, Bombay.

Procedural History

The Sub-Divisional Officer passed an award on 3rd November 2017 determining compensation. The Municipal Corporation filed Writ Petition No. 1928 of 2018 challenging the award. The petition was heard and dismissed on 15th February 2019.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: Section 6, Section 126
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