Bombay High Court Dismisses Appeal Seeking Enhanced Compensation in Land Acquisition Case — Market Value Fixed at Rs.25,000 per Hectare Based on Comparable Sale Instance. Claimant Failed to Prove Higher Market Value Despite Claim of Rs.50,000 per Hectare Under Section 18 of Land Acquisition Act, 1894.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The appellant, Anand Tukaram Banmare, was the owner of agricultural land bearing Survey No.362 admeasuring 2.12 H.R. at Mouza Jamb, Tahsil Samudrapur, District Wardha. The land was acquired by the respondents pursuant to a notification under Section 4 of the Land Acquisition Act, 1894 dated 07.12.1989, and an award was passed by the Land Acquisition Officer (LAO) on 08.12.1994. The LAO granted compensation at Rs.19,000 per hectare. Dissatisfied, the appellant sought a reference under Section 18 of the Act, claiming the market value was Rs.50,000 per hectare. Before the Reference Court, the appellant examined himself and one witness, Keshao Pandurang Wadwha, to prove a sale instance of land at village Kankati. The respondents examined the LAO, Shri Nishikant Suke, to justify the valuation. The Reference Court, after considering the evidence, held that the acquired land could have fetched a market value of Rs.25,000 per hectare and enhanced the compensation accordingly, also awarding Rs.35,500 towards various claims. The appellant, still dissatisfied, filed the present appeal. The High Court, per Dr. (Smt.) Shalini Phansalkar-Joshi, J., examined the evidence and found that the Reference Court had correctly relied on the sale instance from village Kankati, which was comparable to the acquired land. The appellant failed to produce any sale instance of the same village or nearby areas to support his claim of Rs.50,000 per hectare. The High Court held that the Reference Court's determination of market value at Rs.25,000 per hectare was just and proper, and no further enhancement was warranted. The appeal was dismissed with no order as to costs.

Headnote

A) Land Acquisition - Market Value Determination - Sale Instance Method - Section 18 of Land Acquisition Act, 1894 - The appellant claimant sought enhancement of compensation for agricultural land acquired under Section 4 notification dated 07.12.1989. The Land Acquisition Officer awarded Rs.19,000 per hectare. The Reference Court enhanced it to Rs.25,000 per hectare based on sale instance of village Kankati. The High Court upheld the Reference Court's valuation, finding no error in relying on the sale instance and rejecting the appellant's claim for Rs.50,000 per hectare due to lack of evidence. (Paras 1-6)

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Issue of Consideration

Whether the Reference Court correctly assessed the market value of the acquired land at Rs.25,000 per hectare, and whether the appellant is entitled to further enhancement.

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Final Decision

The appeal is dismissed. The judgment and award dated 27.07.2005 passed by the 4th Adhoc Additional District Judge, Wardha in Land Acquisition Case No.70/1995 is confirmed. No order as to costs.

Law Points

  • Market value determination
  • sale instance method
  • burden of proof on claimant
  • enhancement of compensation
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Case Details

2017 LawText (BOM) (07) 267

First Appeal No.132 of 2006

2017-07-13

Dr. (Smt.) Shalini Phansalkar-Joshi, J.

Shri N.D. Khamborkar for Appellant; Ms. Shamsi Haider, AGP for Respondent Nos.1 and 2; Shri M.M. Agnihotri for Respondent No.3

Anand s/o Tukaram Banmare

The Special Land Acquisition Officer, Tah. Hinganghat, Dist. Wardha; State of Maharashtra; Maharashtra Industrial Development Corporation

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Nature of Litigation

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

Remedy Sought

Enhancement of compensation for acquired agricultural land from Rs.25,000 per hectare to Rs.50,000 per hectare.

Filing Reason

Dissatisfaction with the meagre amount of compensation awarded by the Reference Court.

Previous Decisions

Land Acquisition Officer awarded Rs.19,000 per hectare; Reference Court enhanced to Rs.25,000 per hectare.

Issues

Whether the market value of the acquired land was correctly determined by the Reference Court at Rs.25,000 per hectare. Whether the appellant is entitled to further enhancement of compensation.

Submissions/Arguments

Appellant argued that the market value of the acquired land was Rs.50,000 per hectare based on sale instances. Respondents argued that the valuation by the LAO and Reference Court was correct and based on evidence.

Ratio Decidendi

The market value of acquired land must be determined based on comparable sale instances. The claimant bears the burden to prove the market value claimed. In the absence of reliable evidence, the court may rely on sale instances of similar lands in nearby villages. The Reference Court's determination of Rs.25,000 per hectare was just and proper.

Judgment Excerpts

The Reference Court, after considering the evidence on record, was pleased to hold that the acquired land could have fetched the market value of Rs.25,000/ per hectare, enhanced the compensation from Rs.19,000/ per hectare to Rs.25,000/ per hectare. In the considered opinion of this Court, the Reference Court has rightly relied on the sale instance of village Kankati and has rightly determined the market value of the acquired land at Rs.25,000/ per hectare.

Procedural History

The Land Acquisition Officer passed an award on 08.12.1994 granting compensation at Rs.19,000 per hectare. The appellant sought a reference under Section 18 of the Land Acquisition Act, which was decided by the 4th Adhoc Additional District Judge, Wardha on 27.07.2005 in Land Acquisition Case No.70/1995, enhancing compensation to Rs.25,000 per hectare. The appellant filed the present First Appeal No.132 of 2006 before the Bombay High Court, Nagpur Bench, which was dismissed on 13.07.2017.

Acts & Sections

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