SUPREME COURT OF INDIA
(From the High Court of Judicature at Bombay, Nagpur Bench)
HEMANT GUPTA, V. RAMASUBRAMANIAN, JJ.
Madhukar S/o Govindrao Kamble and Others – Appellants
Versus
Vidarbha Irrigation Development Corporation and Others – Respondents
Civil Appeal Nos. 368-369 of 2022, SLP (Civil) Nos. 3526-3527 of 2019
Decided On : 31-01-2022
Land Acquisition - Compensation Assessment - Land Acquisition Act, 1894 - Section 4, Section 18
Fact of the Case:
The landowners appealed against the judgment of the High Court, which set aside the Reference Court's order enhancing the compensation for the acquired land. The land was intended to be acquired for resettlement of affected persons from a submergence project. The Special Land Acquisition Officer initially granted compensation at a lower rate, which was challenged by the landowners.
Finding of the Court:
The Court found that the High Court erred in setting aside the determination of the market value of the land by the Reference Court. It held that the proximity to developed areas and roads, rather than the nature of the land alone, should be considered in determining the market value. The Court concluded that the reasoning of the High Court was fallacious and not sustainable, and therefore allowed the appeals, setting aside the High Court's order and restoring the Reference Court's order.
Issues: The main issue was the determination of the market value of the acquired land and whether the High Court erred in setting aside the Reference Court's order.
Ratio Decidendi: The market value of the land must be determined considering various factors, including proximity to developed areas and roads, rather than solely based on the nature of the land. The Court held that the High Court's reasoning regarding the comparability of the sale exemplars to the acquired land was fallacious and not sustainable.
Final Decision: The appeals were allowed, the High Court's order was set aside, and the Reference Court's order was restored.
JUDGMENT :
HEMANT GUPTA, J.
1. The landowners are in appeal aggrieved against the judgment passed by the High Court of Judicature at Bombay, Nagpur Bench on 17.07.2017 whereby the compensation for the land acquired was assessed as Rs. 56,500/- per hectare. The order of the Reference Court enhancing the amount of compensation to Rs. 1,95,853/- per hectare was set aside in the order impugned in the present appeal.
2. The land admeasuring 2.42 hectares of land was intended to be acquired in pursuance of the notification under Section 4 of the Land Acquisition Act, 18941 [The Act] published on 25.02.1999 for the purpose of resettlement of affected person from Lower Wardha submergence project.
3. The Special Land Acquisition Officer granted compensation at the rate of Rs. 56,500/- on 31.07.2000. The landowners aggrieved against the inadequate determination of the market value sought references under Section 18 of the Act. Before the learned Reference Court, five sale exemplars were relied upon, out of which Exh.34 and Exh.35 were excluded on the ground that such sale exemplars were after the date of publication of notification under Section 4 of the Act. However, the three sale exemplars were considered i.e. Exh.31, Exh.32 and Exh.33. The date of sale, land survey number; amount of the sale consideration and the price at the rate per hectare was sole is mentioned in the following table:
| Exhibit | Date of sale | Survey No. | Area sold | Price paid in Rupees | Rate per Hectare in Rupees |
| Exh.31 | 11.2.1998 | 67/1 | 2.70 hectares | 4,50,000/- | 1,66,666.66 |
| Exh.32 | 5.12.1998 | 337 | 2.20 hectares | 2,20,000/- | 1,00,000/- |
| Exh.33 | 30.10.1998 | 216/1, 314/3 | 151 sq. mtrs (0.0151) | 19,710/- | 13,073,00/- |
4. The learned Reference Court found that Exh.31 and Exh.32 is of agricultural land but there is no concrete evidence to conclude that the land in these two exemplars were having non-agricultural potentiality at the time of acquisition. The sale exemplar Exh.33 was taken into consideration though it was in respect of a small portion. The sale deed Exh.33 was executed by Nagar Parishad, Deoli after conducting public auction. The learned Reference Court proceeded to take Rs. 130.73 per sq. mtr. as the base value. It was also noticed that the land was adjacent to road whereas as per the map of Exh.30, the land acquired falling part of Survey No. 592 has no access to road. The Reference Court found that the land in sale deed Exh.33 is in the near vicinity of the land acquired but deducted 30% of the value on account of non-similarity, 30% on account of the sale being of a small area and another 30% on account of development charges. Thus, the Reference Court found that per hectare market value would be Rs. 1,95,853.55/-. It is the said compensation which was allowed by the Reference Court along with the statutory benefits.
5. The landowners in their reference have averred that the acquired land was near to the populated area of Deoli town having all the facilities like Educational Institutions, Banks, Tahsil Office, Hospitals, Courts and is located within the municipal area of the Deoli. The State in its reply have simply denied the claim for enhancement without disputing the location of the land acquired.
6. In fact, one of the landowners, Prakash as a witness examined on behalf of the landowners deposed that the land, subject matter of the sale deed Exh.33 is near to the acquired land. The landowners have reserved the land for non-agricultural use i.e. residential plots considering heavy demands in the locality. In the cross-examination, only the suggestion was put to the witness that there were no houses or offices near the acquired land or that acquired land is at a distance of 4 to 5 kms from the highway.
7. One Mr. Rahul Shakarrao Sangle, an architect, was examined by the landowner. He is the one who
Market value for compensation must reflect actual conditions and potential of the land, based on comparable sales, excluding speculative advantages from acquisition schemes.
(1) Acquisition of land – Quantum of compensation – Process of assessing or affixing compensation is not tethered to precision but is rather aimed at a nuanced estimation of pertinent factors.(2) Acq....
Acquisition of land – In given case even a sale deed of comparable sales of small areas also can be considered by giving suitable deductions while fixing market value.
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