Case Note & Summary
The Maharashtra Industrial Development Corporation (MIDC) appealed against the judgment and order dated 06.02.2006 passed by the Reference Court at Akola in Land Acquisition Case No.313/1997, which enhanced the compensation for the acquired land from Rs.55,000/- to Rs.77,000/- per hectare. The land admeasuring 2 H 2 R, bearing Gat No.127, situated at village Shivani, belonging to respondent-claimant Bhikabai Onkar Hivrale, was acquired for establishment of an industrial colony under Section 32(2) of the Maharashtra Industrial Development Act, vide notification published on 13.08.1992. The Land Acquisition Officer fixed compensation at Rs.65,000/- per hectare by award dated 20.03.1997. Dissatisfied, the claimant sought reference contending that the land valued at Rs.1.5 to 2 lakh per acre due to its agricultural and non-agricultural potentiality, being adjacent to Akola City municipal limits and surrounded by industries, godowns, and residential colonies. The Reference Court enhanced compensation to Rs.77,000/- per hectare. The High Court examined whether the enhancement was justified. The claimant did not produce any sale instances of comparable lands or evidence of potentiality. The court held that the burden of proof lies on the claimant to establish the market value, and mere proximity to municipal limits or existence of industries nearby does not automatically confer potentiality. The Reference Court's enhancement was based on conjecture. Accordingly, the appeal was allowed, setting aside the enhanced compensation and restoring the Land Acquisition Officer's award of Rs.65,000/- per hectare.
Headnote
A) Land Acquisition - Compensation - Market Value - Determination - Land Acquisition Act, 1894, Section 23 - The claimant must prove the market value of acquired land by producing evidence of comparable sales or potentiality; mere assertion of higher value is insufficient. Held that the Reference Court erred in enhancing compensation without proper evidence (Paras 4-6). B) Land Acquisition - Compensation - Potentiality - Land Acquisition Act, 1894, Section 23 - Potentiality of land for non-agricultural use must be established by evidence of surrounding developments or conversions; proximity to municipal limits alone does not justify enhancement. Held that the claimant failed to prove potentiality (Paras 5-6).
Issue of Consideration
Whether the Reference Court was justified in enhancing the compensation from Rs.55,000/- to Rs.77,000/- per hectare for the acquired land, considering the claimant's failure to produce evidence of comparable sales or potentiality.
Final Decision
Appeal allowed. The judgment and order dated 06.02.2006 passed by the Reference Court in Land Acquisition Case No.313/1997 is set aside. The compensation awarded by the Land Acquisition Officer at Rs.65,000/- per hectare is restored.
Law Points
- Land Acquisition Compensation
- Market Value Determination
- Burden of Proof
- Potentiality of Land
- Comparable Sales Method
