Case Note & Summary
The case involves two first appeals filed by the Executive Engineer, Minor Irrigation Division, Osmanabad (through Godavari Marathwada Irrigation Development Corporation) against the judgment of the Reference Court (Civil Judge, Senior Division, Osmanabad) in Land Acquisition References. The agricultural lands Survey No. 41/1 (0.82 R) and Survey No. 43/3 (0.23 R) of village Ramkund were acquired for construction of a storage tank at village Wakwad. Notification under Section 4 of the Land Acquisition Act, 1894 was published on 18-05-1995. The Land Acquisition Officer declared an award under Section 11 on 11-08-1998, awarding Rs. 16,000 per hectare as market price. The claimants, Dyanoba Baba Hake and Tukaram Baba Hake, being dissatisfied, sought references under Section 18. The Reference Court, after considering evidence including sale deed (Exh. 42) of similar land from the same village, determined the market value at Rs. 1,00,000 per hectare and awarded additional compensation with statutory benefits. The acquiring body appealed, contending that the Reference Court erred in relying on a sale deed of a small piece of land and that the compensation was excessive. The High Court, after hearing arguments, found that the sale deed (Exh. 42) was a genuine transaction of land from the same village with similar potential, and the Reference Court had rightly applied the multiplier method. The court held that the compensation of Rs. 1,00,000 per hectare was just and proper, and no further enhancement was required. The appeals were dismissed, and the Reference Court's award was confirmed. The civil applications were also disposed of.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Sections 4, 11, 23, Land Acquisition Act, 1894 - The acquiring body challenged the Reference Court's award enhancing compensation from Rs. 16,000 to Rs. 1,00,000 per hectare for agricultural lands acquired for irrigation tank construction. The High Court upheld the enhancement, finding the sale deed of similar land (Exh. 42) at Rs. 1,00,000 per hectare as a reliable comparable instance, and applied multiplier method for potential income. Held that the Reference Court's valuation was just and proper, and no further enhancement was warranted (Paras 1-10).
Issue of Consideration
Whether the Reference Court was justified in determining the market value of the acquired lands at Rs. 1,00,000 per hectare and whether the compensation awarded requires further enhancement.
Final Decision
Both appeals are dismissed. The judgment and award of the Reference Court are confirmed. Civil applications are disposed of accordingly.
Law Points
- Market value determination
- Land acquisition compensation
- Multiplier method
- Sale deed as comparable instance
- Enhancement of compensation
Case Details
2017 LawText (BOM) (12) 52
First Appeal No. 4142 of 2016 with Civil Application No. 12211 of 2016 and First Appeal No. 4143 of 2016 with Civil Application No. 12209 of 2016
Mr. S.G. Bhalerao for appellant, Mr. A.N. Nagargoje for respondent No. 1 (original claimants), Mr. S.J. Salgare, AGP for respondent No. 2 (State)
The Executive Engineer, Minor Irrigation Division, Osmanabad through Godavari Marathwada Irrigation Development Corporation, Aurangabad
1. Dyanoba Baba Hake (in FA-4142-2016) / Tukaram Baba Hake (in FA-4143-2016), 2. The State of Maharashtra through Collector, Osmanabad
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Nature of Litigation
Appeals against the judgment of the Reference Court enhancing compensation for land acquisition.
Remedy Sought
The appellant (acquiring body) sought reduction of compensation awarded by the Reference Court.
Filing Reason
The appellant was aggrieved by the Reference Court's award of Rs. 1,00,000 per hectare as market value, which was higher than the LAO's award of Rs. 16,000 per hectare.
Previous Decisions
The Land Acquisition Officer awarded Rs. 16,000 per hectare on 11-08-1998. The Reference Court enhanced it to Rs. 1,00,000 per hectare.
Issues
Whether the Reference Court's determination of market value at Rs. 1,00,000 per hectare was justified based on the evidence on record.
Whether the compensation awarded by the Reference Court requires further enhancement.
Submissions/Arguments
Appellant argued that the Reference Court erred in relying on sale deed (Exh. 42) of a small piece of land and that the compensation was excessive.
Claimants argued that the compensation was inadequate and sought enhancement, but the High Court found no merit in further enhancement.
Ratio Decidendi
The market value of acquired land should be determined based on comparable sale deeds of similar land from the same village, and the multiplier method can be applied to assess potential income. The Reference Court's reliance on a genuine sale deed (Exh. 42) of land from the same village with similar potential was proper, and the compensation of Rs. 1,00,000 per hectare was just and reasonable.
Judgment Excerpts
The points of controversy in these appeals are identical and lies within a narrow compass relating to valuation of the lands under acquisition determined by the Reference Court.
The Reference Court after marshaling the evidence on record determined the market value of the acquired lands at Rs. 1,00,000/- per hectare.
In the circumstances, I do not find any substance in the submissions advanced on behalf of the appellant. The appeals are devoid of merits.
Procedural History
Notification under Section 4 of the Land Acquisition Act, 1894 published on 18-05-1995. Award under Section 11 declared on 11-08-1998 by LAO at Rs. 16,000 per hectare. Claimants sought reference under Section 18. Reference Court (Civil Judge, Senior Division, Osmanabad) enhanced compensation to Rs. 1,00,000 per hectare. Acquiring body filed First Appeals No. 4142/2016 and 4143/2016 before the Bombay High Court, Aurangabad Bench. The High Court heard and dismissed the appeals on 12-12-2017.
Acts & Sections
- Land Acquisition Act, 1894: 4, 11, 18, 23
