IMPORTANT POINT
Reliable, proved and cogent evidence cannot be discarded.

JUDGMENT

G. S. Singhvi, J.

1. These appeals are directed against judgment dated 9.11.2006 of the Division Bench of the Bombay High Court whereby the appeals preferred by the respondent under Section 54 of the Land Acquisition Act, 1894 (for short, ‘the Act’) were allowed and the amount of compensation determined by Civil Judge, Senior Division, Jalagaon, (hereinafter described as, ‘the Reference Court’) was substantially reduced.

2. By notification dated 14.3.1996 issued under Section 4 (1) of the Act, the Government of Maharashtra initiated the proceedings for the acquisition of various parcels of land including those belonging to the appellants situated in villages Deoli Bhoras and Bilakhed, Taluka Chalisgaon, District Jalgaon for Minor Irrigation Tank, Deoli Bhoras. The declaration under Section 6 was issued sometime in April 1997. Special Land Acquisition Officer, Jalgaon (respondent) passed award dated 31.3.1999 and fixed market value of the acquired land by dividing the same into three groups. For land falling in Group I, i.e. Jirayat land, the respondent fixed market value at Rs.68,000/- per hectare. For Group II and Group I lands he fixed market value at the rate of Rs.58,000/- and Rs.54,000/- per hectare respectively. For pot kharab land, market value was fixed at Rs.15,00/- per hectare.

3. The appellants accepted the compensation under protest and then filed applications under Section 18 of the Act for determination of the compensation by the Court. On a reference made by the Collector, the Reference Court examined the pleadings of the parties and framed the following issues:

1) What is the market price of the land on the date of notification u/Sec. 4 of L.A. Act?

2) Does the petitioner prove that he accepted the amount of compensation under protest?

3) Does the petitioner prove that the market price of land determined by the L.A.O. is inadequate?

4) Is the petitioner entitled to enhance compensation?

5) What order?

4. The Reference Court then considered the evidence produced by the parties including sale deed Exhibit 28 by which 92 ares Jirayat land comprised in Gat No. 97/1 was sold at the rate of Rs.2,76,041/- per hectare, 7/12 extracts marked as Exhibits 13 to 27 and fixed market value of Jirayat land at the rate of Rs.3 lacs per hectare. The Reference Court also referred to the statement of Arjun Sukdeo Patil who deposed that there were wells in the acquired land and fixed market value of such land at the rate of Rs.6 lacs per hectare by treating the same as Bagayat land. The Reference Court then adverted to the testimony of Shri Ravindra Ghanshyam Chaudhari, Agriculture and Horticulture Consultant and accepted the valuation made by him in respect of the trees standing on different portions of the acquired land. The Reference Court also held that for pot kharab, the land owners are entitled to 50% of the compensation determined for Jirayat land.

5. While dealing with the appeals filed by the respondent, the High Court referred to the award passed by the respondent, the evidence produced by the parties and held that the Reference Court committed a serious error by recording a finding that the acquired land included Bagayat land. The High Court refused to rely upon Exhibit 28 by observing that there must be some special reasons for payment of higher price by the purchaser because various other sale instances of two villages indicated that the cost of land was between Rs.23,438/- and Rs.1 lac per hectare. As regards the trees, the High Court discarded the report of the valuer on the premise that the same had been submitted after the award was passed by the respondent.

6. Shri Pallav Shishodia, learned senior counsel appearing for the appellants assailed the impugned judgment mainly on the ground that the reasons assigned by the High Court for discarding Exhibit 28 are not only irrelevant but are based on pure conjectures. He emphasized that while determining the amount of compensation, the Reference Court was enti