Case Note & Summary
The appellant, Vidarbha Irrigation Development Corporation (VIDC), filed an appeal against the judgment of the reference Court in LAC No. 660 of 2007, dated 28th September 2012, passed by the learned Civil Judge, Senior Division, Wardha. The land of respondent No.1, bearing Survey No. 101 of village mouza Borgaon Hatla, area 12.92 HR, was acquired for the Lower Wardha Project by the appellant. Notification under Section 4 of the Land Acquisition Act, 1894 was issued on 15th January 1999. The Special Land Acquisition Officer (SLAO) passed an award on 25th February 2003, granting compensation at the rate of Rs.37,500 per hectare. Aggrieved by the award, respondent No.1 filed a reference under Section 18 of the Act, which was registered as LAC No. 660 of 2007. The reference court granted compensation at the rate of Rs.3,50,000 per acre and directed the appellant to pay compensation of Rs.1,12,42,000 for the acquired land of 32.12 acres. The appellant challenged this enhancement, arguing that the reference court had erroneously relied on a sale deed dated 3rd January 2008, which was executed after the Section 4 notification. The High Court heard the appeal and considered the submissions. The court noted that the sale deed relied upon by the reference court was dated 03.01.2008, which was after the date of the Section 4 notification (15.01.1999). The court held that such a sale deed could not be considered a comparable instance for determining the market value of the acquired land. The court set aside the impugned judgment and remanded the matter to the reference court for fresh determination of compensation, directing that the reference court should consider only sale deeds prior to the Section 4 notification and other relevant evidence. The court also directed that the reference court should decide the matter afresh within six months from the date of receipt of the order.
Headnote
A) Land Acquisition - Compensation - Market Value - Determination - Sale Deed After Notification - The reference court relied on a sale deed dated 03.01.2008, which was executed after the Section 4 notification dated 15.01.1999, to determine compensation at Rs.3,50,000 per acre. The High Court held that such reliance was erroneous as the sale deed was not a comparable instance and could not be the basis for determining market value. The court set aside the enhanced compensation and remanded the matter for fresh determination. (Paras 4-6) B) Land Acquisition - Compensation - Comparable Instances - Principle - The court reiterated that for determining market value, the sale deeds must be prior to the date of notification under Section 4 of the Land Acquisition Act, 1894. Post-notification sale deeds are not admissible as comparable instances. (Para 5)
Issue of Consideration
Whether the reference court was justified in relying on a sale deed dated 03.01.2008, which was executed after the Section 4 notification dated 15.01.1999, for determining the market value of the acquired land.
Final Decision
The appeal is allowed. The impugned judgment and award dated 28.09.2012 passed by the learned Civil Judge, Senior Division, Wardha in LAC No. 660 of 2007 is set aside. The matter is remanded to the reference court for fresh determination of compensation. The reference court shall decide the matter afresh within six months from the date of receipt of the order.
Law Points
- Compensation for land acquisition must be based on sale deeds prior to Section 4 notification
- post-notification sale deeds are not comparable instances
- deduction for development charges is permissible
- reference court cannot rely on sale deeds executed after the date of notification under Section 4.
