High Court of Bombay Dismisses BSNL's Appeal in Land Acquisition Case — Compensation of Rs. 790 per sq. mtr. and Rent Upheld. Non-agricultural land within municipal limits valued justly under Section 126 of MRTP Act, with rent for prior possession from 1992 to 2002.

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

The appeal was filed by the Acquiring Body, Bharat Sanchar Nigam Ltd. (BSNL), against the judgment and award of the Civil Judge Senior Division, Bhoom, in Land Acquisition Reference No. 148/2014. The Reference Court had granted compensation for the acquired land, Survey No. 322, area 40 R situated at Bhoom, at the rate of Rs. 790 per sq. mtr., and also awarded rent for the acquired land from the date of possession (31.10.1992) up to the date of publication of notification under section 126(2) of the Maharashtra Regional Town Planning Act (MRTP Act) on 04.10.2002. The claimants, respondent Nos. 1 to 4, were the owners of the acquired land, which was converted into non-agricultural land prior to the notification and was situated within the municipal limits of Bhoom Municipal Council. The possession of the land was taken by BSNL on 31.10.1992, well before the notification under section 126(2) was published on 03.10.2002. The Land Acquisition Officer had declared an award, but the claimants sought higher compensation. The Reference Court, after considering the evidence, fixed the market value at Rs. 790 per sq. mtr. and also granted rent for the period of prior possession. BSNL challenged this award, arguing that the compensation was excessive. The High Court, after hearing the parties, found no merit in the appeal. It noted that the acquired land was non-agricultural, within municipal limits, and the sale instances relied upon by the Reference Court supported the valuation. The court also held that the award of rent was justified as the claimants were deprived of the use of their land from the date of possession until the notification. Consequently, the appeal was dismissed, and the judgment and award of the Reference Court were upheld.

Headnote

A) Land Acquisition - Compensation - Market Value - Determination - Non-agricultural land within municipal limits - Reference Court awarded Rs. 790 per sq. mtr. based on sale instances and location - Held that the compensation is just and proper, not excessive, and does not warrant interference (Paras 1-3).

B) Land Acquisition - Rent - Prior Possession - Section 126 MRTP Act - Acquiring body took possession on 31.10.1992 before notification under section 126(2) on 04.10.2002 - Reference Court awarded rent for this period - Held that rent is justified as the claimants were deprived of use of land (Paras 1-3).

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Issue of Consideration

Whether the Reference Court's award of compensation at Rs. 790 per sq. mtr. and rent from the date of possession is excessive and requires interference in appeal.

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Final Decision

Appeal dismissed. Judgment and award of Reference Court upheld.

Law Points

  • Compensation for land acquisition
  • Market value determination
  • Rent for prior possession
  • Section 126 MRTP Act
  • Non-agricultural land valuation
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Case Details

2019 LawText (BOM) (04) 2

First Appeal No. 3202 of 2016

2019-04-24

Sunil K. Kotwal

Mrs. M.A. Deshpande for appellant, Mr. Dhananjay Mane for respondent Nos.1 to 4, Mr. A.M. Phule, A.G.P. for respondent Nos.5 and 6

The Bharat Sanchar Nigam Ltd. Through SubDivisional Engineer, (Group) Bhoom, Tal. Bhoom, District Osmanabad.

Purushottam Martandarao Deshmukh (Died) Through legal heirs: 1. Chandrashekhar Purushottam Deshmukh, 2. Santosh Purushottam Deshmukh, 3. Shradhdha w/o Shamrao Joshi, 4. Arun Purushottam Deshmukh, 5. The State of Maharashtra Through Collector, Osmanabad, 6. SubDivisional Officer and Land Acquisition Officer, Bhoom.

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Nature of Litigation

Appeal against judgment and award in land acquisition reference

Remedy Sought

Appellant (BSNL) sought reduction of compensation awarded by Reference Court

Filing Reason

Appellant challenged the compensation rate of Rs. 790 per sq. mtr. and award of rent as excessive

Previous Decisions

Reference Court in L.A.R. No. 148/2014 awarded compensation at Rs. 790 per sq. mtr. and rent from 31.10.1992 to 04.10.2002

Issues

Whether the compensation of Rs. 790 per sq. mtr. is excessive? Whether the award of rent from date of possession to notification is justified?

Submissions/Arguments

Appellant argued that the compensation awarded is excessive and not based on proper evidence. Respondents supported the Reference Court's award as just and proper.

Ratio Decidendi

The compensation awarded by the Reference Court for non-agricultural land within municipal limits, based on sale instances, is just and proper. Rent from the date of possession to the date of notification under section 126(2) of MRTP Act is justified as the claimants were deprived of the use of their land.

Judgment Excerpts

This appeal is directed by the Acquiring Body Bharat Sanchar Nigam Ltd. ('BSNL' for short), Osmanabad against the judgment and award passed by Civil Judge Senior Division, Bhoom in Land Acquisition Reference (L.A.R.) No. 148/2014, whereby the Reference Court granted compensation for the acquired land i.e. Survey No. 322, area 40 R situated at Bhoom, at the rate of Rs. 790/ per sq. mtr. Undisputedly the claimants are owners of acquired land i.e. Survey No. 322, area 40 R situated at Mauje Bhoom, which is converted into nonagricultural land prior to the date of publication of notification under section 126 (2) of MRTP Act.

Procedural History

The Land Acquisition Officer declared an award for the acquired land. The claimants sought higher compensation, leading to a reference under Section 18 of the Land Acquisition Act. The Reference Court (Civil Judge Senior Division, Bhoom) in L.A.R. No. 148/2014 awarded compensation at Rs. 790 per sq. mtr. and rent from 31.10.1992 to 04.10.2002. BSNL filed the present appeal before the High Court.

Acts & Sections

  • Maharashtra Regional Town Planning Act: 126(2)
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