Bombay High Court Allows Appeal by Acquiring Body in Land Acquisition Compensation Case — Reference Court's Award Set Aside for Lack of Reasoning. The Court held that the Reference Court must provide reasons based on evidence for enhancing compensation under the Land Acquisition Act, 1894.

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

The appeal was preferred by the acquiring body, Vidarbha Irrigation Development Corporation, challenging the judgment and award dated 22.4.2002 passed by the Civil Judge, Senior Division, Amravati in Land Acquisition Case No. 30A/1996. The land admeasuring 56 R out of survey Nos. 7/2 and 7/5 situated at Shidwadi, Tah. Diwasa was acquired for the Upper Wardha Project for construction of the canal, pursuant to a notification under Section 4 of the Land Acquisition Act, 1894 published on 14.10.1991. The Special Land Acquisition Officer (SLAO) fixed the market rate at Rs.19,000/- per hectare and granted compensation of Rs.10,640/- to respondent No.1. Dissatisfied, respondent No.1 sought a reference under Section 18 of the Act. In support, respondent No.1 examined himself and two adjoining owners, Sahebrao Sote and Vijay Bhure, while the appellant examined the Land Acquisition Officer, Shri Khan Mujib. The Reference Court, without giving any reasons or properly appreciating the evidence, awarded additional compensation of Rs.2,00,000/- to respondent No.1. The appellant challenged this award, contending that the Reference Court disposed of the matter in one paragraph without any reasoning or basis in evidence. The High Court found that the impugned judgment and award were passed without any reasons and without appreciation of evidence, and therefore set aside the award and remanded the matter back to the Reference Court for fresh disposal in accordance with law, directing the parties to appear before the Reference Court on 11.9.2017.

Headnote

A) Land Acquisition - Compensation - Enhancement - Section 18, Land Acquisition Act, 1894 - Reference Court must give reasons for enhancing compensation based on evidence - The Reference Court awarded additional compensation of Rs.2,00,000/- without any reasoning or appreciation of evidence - Held that the award is unsustainable and liable to be set aside (Paras 6-7).

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Issue of Consideration

Whether the Reference Court's award of additional compensation without giving reasons and without proper appreciation of evidence is sustainable in law.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 22.4.2002 passed by the Civil Judge, Senior Division, Amravati in Land Acquisition Case No. 30A/1996 is set aside. The matter is remanded back to the Reference Court for fresh disposal in accordance with law. The parties are directed to appear before the Reference Court on 11.9.2017.

Law Points

  • Land Acquisition
  • Compensation
  • Reference Court
  • Reasons
  • Evidence
  • Market Value
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Case Details

2017 LawText (BOM) (07) 226

First Appeal No.460 of 2006

2017-07-28

Smt. Dr. Shalini Phansalkar-Joshi, J.

Shri B. T. Patil for Appellant, Shri M. A. Kadu, AGP for Respondent Nos. 2 and 3

Vidarbha Irrigation Development Corporation, Through its Executive Engineer, Upper Wardha Canal Division No.2, Now Upper Wardha Canal Division No.1, Amravati, Dist. Amravati.

Sahebrao Narayanrao Sote, The State of Maharashtra Through the Collector, Amravati, Special Land Acquisition Officer, No.4, Upper Wardha Project, Amravati

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Nature of Litigation

Appeal against judgment and award of Reference Court in land acquisition compensation matter.

Remedy Sought

Appellant sought setting aside of the Reference Court's award granting additional compensation of Rs.2,00,000/-.

Filing Reason

The Reference Court awarded additional compensation without giving reasons and without proper appreciation of evidence.

Previous Decisions

SLAO awarded compensation of Rs.10,640/- at market rate of Rs.19,000/- per hectare. Reference Court enhanced compensation to Rs.2,00,000/- additional.

Issues

Whether the Reference Court's award of additional compensation without giving reasons and without proper appreciation of evidence is sustainable in law.

Submissions/Arguments

Learned counsel for appellant submitted that the Reference Court without giving any reason or without appreciating the evidence led on record, in one paragraph itself disposed of the matter and awarded additional compensation of Rs.2,00,000/-. Hence, the amount of compensation awarded is without any basis in evidence and without justification.

Ratio Decidendi

The Reference Court must give reasons for its decision and properly appreciate the evidence on record before awarding compensation. An award passed without reasons and without appreciation of evidence is unsustainable and liable to be set aside.

Judgment Excerpts

the Reference Court has without giving any reason or without appreciating even the evidence led on record by the parties, in one paragraph itself disposed of the matter and awarded of additional compensation of Rs.2,00,000/.

Procedural History

Notification under Section 4 of Land Acquisition Act published on 14.10.1991. SLAO award dated 8.7.1994 fixing compensation at Rs.19,000/- per hectare. Respondent No.1 filed reference under Section 18. Reference Court passed award on 22.4.2002 granting additional compensation of Rs.2,00,000/-. Appellant filed First Appeal No.460 of 2006 before the High Court.

Acts & Sections

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