Case Note & Summary
The case involves a First Appeal filed by the Vidarbha Irrigation Development Corporation under Section 54 of the Land Acquisition Act, 1894, challenging the judgment and order of the Reference Court (Civil Judge, Senior Division, Darwha) in Land Acquisition Case No.419/2004 dated 21.11.2005. The land bearing No.34/1 admeasuring 1 H 36 R of village Dattarampur, Taluka and District Yavatmal was acquired for the Left Bank Canal of Arunawati Project pursuant to a Section 4 notification dated 05.01.1991. The Special Land Acquisition Officer awarded compensation at Rs.12,000 per hectare by award dated 31.03.1993. Dissatisfied, the respondents (claimants) sought reference under Section 18 of the Act. Before the Reference Court, they examined their power of attorney Kishor Jaiswal and adduced sale instances (Exh.59 to 72). The Reference Court enhanced compensation to Rs.24,000 per hectare. The acquiring body appealed, contending that the enhancement was excessive and based on sale instances of smaller plots without proper deduction for development. The High Court examined the sale instances and found that the Reference Court had not applied any deduction for development, which is necessary when relying on small plot sales for large acquisitions. The Court held that a deduction of 1/3rd for development is appropriate, reducing the compensation to Rs.18,000 per hectare. The appeal was partly allowed, modifying the Reference Court's order accordingly. No order as to costs.
Headnote
A) Land Acquisition - Compensation Enhancement - Market Value Determination - Section 23, Land Acquisition Act, 1894 - The Reference Court enhanced compensation from Rs.12,000 to Rs.24,000 per hectare based on sale instances of smaller plots without deducting for development - Held that when relying on sale instances of smaller plots, appropriate deduction for development is necessary to arrive at fair market value of large acquired land (Paras 5-6).
B) Land Acquisition - Sale Instances - Deduction for Development - Section 23, Land Acquisition Act, 1894 - The acquiring body challenged enhancement contending that sale instances of small plots cannot be directly applied to large acquisition - Held that deduction of 1/3rd for development is appropriate, reducing compensation to Rs.18,000 per hectare (Paras 6-7).
Issue of Consideration
Whether the enhancement of compensation from Rs.12,000 to Rs.24,000 per hectare by the Reference Court is just, legal and correct?
Final Decision
Appeal partly allowed. The compensation awarded by the Reference Court is reduced from Rs.24,000 to Rs.18,000 per hectare. The impugned judgment and order modified accordingly. No order as to costs.
Law Points
- Market value determination
- Deduction for development
- Reliance on sale instances of smaller plots
- Enhancement of compensation
- Land Acquisition Act
- 1894
Case Details
2017 LawText (BOM) (08) 120
First Appeal No.584 of 2006
Dr. (Smt.) Shalini Phansalkar-Joshi, J.
Shri A.B. Patil for Appellant; Ms. Shamsi Haider, AGP for Respondent Nos.6 & 7
Vidarbha Irrigation Development Corporation, through Executive Engineer, Arunawati Project, Digras, Dist. Yavatmal
Subhashlal Bhikulal Jaiswal and others
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
First Appeal under Section 54 of Land Acquisition Act, 1894 against enhancement of compensation by Reference Court.
Remedy Sought
Appellant (acquiring body) sought reduction of enhanced compensation from Rs.24,000 to Rs.12,000 per hectare.
Filing Reason
Appellant aggrieved by Reference Court's enhancement of compensation from Rs.12,000 to Rs.24,000 per hectare.
Previous Decisions
Special Land Acquisition Officer awarded Rs.12,000 per hectare on 31.03.1993; Reference Court enhanced to Rs.24,000 per hectare on 21.11.2005.
Issues
Whether the Reference Court's enhancement of compensation from Rs.12,000 to Rs.24,000 per hectare is just, legal and correct?
Whether the Reference Court erred in relying on sale instances of smaller plots without deducting for development?
Submissions/Arguments
Appellant argued that the Reference Court erroneously relied on sale instances of smaller plots without making any deduction for development, leading to excessive enhancement.
Respondents supported the Reference Court's judgment, contending that the enhancement was justified based on the sale instances.
Ratio Decidendi
When determining market value of large acquired land based on sale instances of smaller plots, an appropriate deduction for development (typically 1/3rd) must be applied to arrive at fair compensation under Section 23 of the Land Acquisition Act, 1894.
Judgment Excerpts
The perusal of the judgment of the Reference Court reveals that the Reference Court has considered the sale instances, which were produced by the respondents at Exh.59 to 72 and found that the prevailing market price of the surrounding lands at that time was Rs.24,000/- per hectare.
However, it is pertinent to note that the sale instances relied upon by the Reference Court are of small plots. When such sale instances are relied upon, it is necessary to make deduction for development.
In my opinion, the deduction of 1/3rd for development is just and proper. Accordingly, the compensation is required to be reduced to Rs.18,000/- per hectare.
Procedural History
Notification under Section 4 of Land Acquisition Act, 1894 issued on 05.01.1991. Special Land Acquisition Officer passed award on 31.03.1993 granting Rs.12,000 per hectare. Respondents sought reference under Section 18. Reference Court (Civil Judge, Senior Division, Darwha) enhanced compensation to Rs.24,000 per hectare on 21.11.2005 in Land Acquisition Case No.419/2004. Appellant filed First Appeal No.584 of 2006 before Bombay High Court, Nagpur Bench, which was decided on 01.08.2017.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 23, Section 54
