Bombay High Court Dismisses Appeal by Acquiring Body in Land Acquisition Compensation Case — Enhanced Compensation Upheld Based on Sale Deed of Similar Land. Reference Court's award of Rs. 3,28,000/- for acquired land under Section 18 of the Land Acquisition Act, 1894, confirmed as market value determined by comparable sale instance.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The case pertains to an appeal filed by the Vidarbha Irrigation Development Corporation, the acquiring body, against the judgment and decree dated 2.4.2005 passed by the Civil Judge Senior Division, Darwha in L.A.C. No. 1268 of 2004. The land in question, Gut No. 155, admeasuring 3H, situated at village Kumbharkinhi, was acquired by the Government for the Kumbharkinhi dam under a notification issued under Section 4 of the Land Acquisition Act, 1894. The Land Acquisition Officer declared an award on 30.6.1999, granting compensation at the rate of Rs. 28,000/- per hectare, with no separate compensation for trees. Dissatisfied with the meager compensation, the respondent-claimant (Jayant Umakant Karideo) approached the Reference Court under Section 18 of the Act, contending that his land was fertile, had high crop yielding potentiality, and was situated on the Darwha to Kurhad road, near the village. He claimed that the LAO ignored sale instances of similar lands in adjacent villages. The Reference Court, after considering the evidence, including a sale deed (Exh. 42) of a small piece of land from the same village sold at Rs. 1,10,000/- per hectare, and noting that the acquiring body did not produce any evidence to rebut the claimant's case, awarded enhanced compensation of Rs. 3,28,000/-. The acquiring body appealed, arguing that the sale deed was of a small piece of land and not comparable. The High Court, in its judgment, dismissed the appeal, holding that the Reference Court had correctly relied on the sale deed as a comparable instance, especially since the acquiring body failed to produce any evidence to show that the market value was lower. The Court noted that the sale deed was of land from the same village and was proximate in time to the acquisition. The Court also observed that the acquiring body did not challenge the sale deed or produce any other sale instances. Accordingly, the appeal was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Compensation - Market Value Determination - Sale Deed Method - Section 18, Land Acquisition Act, 1894 - The acquiring body challenged the enhanced compensation awarded by the Reference Court, arguing that the sale deed relied upon was of a smaller piece of land and not comparable. The High Court held that the sale deed of a small piece of land can be relied upon to determine market value, especially when no other evidence is produced by the acquiring body. The Court found that the Reference Court had correctly applied the principle of determining market value based on the sale instance of similar land in the same village, and the enhancement was justified. (Paras 1-6)

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Issue of Consideration

Whether the Reference Court was justified in enhancing the compensation for the acquired land from Rs. 28,000/- per hectare to Rs. 3,28,000/- based on a sale deed of a smaller piece of land in the same village.

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Final Decision

The appeal is dismissed. The judgment and decree of the Reference Court are confirmed. No order as to costs.

Law Points

  • Land acquisition compensation
  • market value determination
  • sale deed method
  • comparable sales
  • enhancement of compensation
  • Land Acquisition Act
  • 1894
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Case Details

2017 LawText (BOM) (07) 197

First Appeal No. 74 of 2006

2017-07-03

Dr. Smt. Shalini Phansalkar Joshi, J.

Mr. Amit Chutke, AGP for Appellant; Mr. Abhay Sambre, Advocate for Respondent No. 1

Vidarbha Irrigation Development Corporation, through Executive Engineer, Medium project Division, Pusad, Dist. Yavatmal

Jayant Umakant Karideo, The State of Maharashtra through Collector, Yavatmal, The Executive Engineer, Lower Pus Project, Pusad, Dist. Yavatmal

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Nature of Litigation

Appeal against enhanced compensation in land acquisition reference

Remedy Sought

Appellant (acquiring body) sought to set aside the enhanced compensation awarded by the Reference Court

Filing Reason

Appellant aggrieved by the enhancement of compensation from Rs. 28,000/- per hectare to Rs. 3,28,000/-

Previous Decisions

Land Acquisition Officer awarded Rs. 28,000/- per hectare on 30.6.1999; Reference Court enhanced compensation to Rs. 3,28,000/- on 2.4.2005

Issues

Whether the Reference Court was justified in enhancing compensation based on a sale deed of a smaller piece of land? Whether the acquiring body produced any evidence to rebut the claimant's case?

Submissions/Arguments

Appellant argued that the sale deed relied upon by the Reference Court was of a small piece of land and not comparable to the acquired land. Respondent-claimant argued that the sale deed was of land from the same village and was a valid comparable instance, and the acquiring body failed to produce any evidence.

Ratio Decidendi

In land acquisition compensation matters, a sale deed of a small piece of land from the same village can be relied upon to determine market value, especially when the acquiring body fails to produce any evidence to rebut the claimant's case. The Reference Court's enhancement based on such sale deed is justified.

Judgment Excerpts

The judgment and decree dated 2.4.2005 passed by Civil Judge Senior Division, Darwha in L.A.C. No. 1268 of 2004 is the subject matter of this appeal. The Reference Court has awarded enhanced compensation of Rs. 3,28,000/- to the respondent claimant. The acquiring body has not produced any evidence to show that the market value was less than that.

Procedural History

Land Acquisition Officer declared award on 30.6.1999 granting Rs. 28,000/- per hectare. Claimant filed reference under Section 18 of the Land Acquisition Act. Reference Court enhanced compensation to Rs. 3,28,000/- on 2.4.2005. Acquiring body filed First Appeal No. 74 of 2006 before the High Court, which was dismissed on 3.7.2017.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18
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