Case Note & Summary
The appellant, Shantaram Ganesh Shenoy, was the claimant in a land acquisition matter. His land was acquired by the State, and the Special Land Acquisition Officer, Ratnagiri, made an award. Dissatisfied with the compensation, the appellant filed an application under Section 18 of the Land Acquisition Act, 1894, seeking a reference to the District Court for enhancement of compensation. The Reference Court, by its judgment and award dated 13th October 2005, dismissed the reference, upholding the compensation determined by the Acquisition Officer. The appellant then filed a first appeal before the Bombay High Court. The High Court admitted the appeal and, since the facts were not in dispute, took it up for final hearing. The court considered the arguments of the appellant's counsel, Mr. Vijay Patil, and the respondent's counsel, Mr. K.K. Tated, the Assistant Government Pleader. The High Court found that the Reference Court had erred in not considering the potential value of the land and the general rise in land prices. The court held that the claimant was entitled to enhanced compensation. The High Court allowed the appeal, set aside the impugned judgment and award, and remanded the matter to the Reference Court for fresh consideration, directing it to determine the compensation afresh, taking into account the potential value and the rise in prices. The court also directed that the reference be decided expeditiously, preferably within six months.
Headnote
A) Land Acquisition - Compensation - Enhancement - Section 18, Land Acquisition Act, 1894 - The claimant sought reference for enhancement of compensation for land acquired by the State - The Reference Court dismissed the reference - On appeal, the High Court held that the Reference Court failed to consider the potential value of the land and the general rise in land prices - Held that the claimant is entitled to enhanced compensation (Paras 1-5).
Issue of Consideration
Whether the Reference Court was justified in not enhancing the compensation for the acquired land, and whether the claimant is entitled to a higher compensation considering the potential value and rise in prices.
Final Decision
The appeal is allowed. The impugned judgment and award dated 13th October 2005 passed by the Reference Court is set aside. The matter is remanded to the Reference Court for fresh consideration. The Reference Court is directed to determine the compensation afresh, taking into account the potential value of the land and the rise in prices. The reference shall be decided expeditiously, preferably within six months.
Law Points
- Compensation for land acquisition
- Reference under Section 18
- Enhancement of compensation
- Potential value of land
- Rise in land prices




