The determination of land valuation for compensation must reflect true market potential and not arbitrary restrictions, with the Supreme Court affirming a compensation rate of Rs. 100 per sq. ft. for land acquired for public use.

JUDGMENT :

K.V. Viswanathan, J.

I. Civil Appeal Nos. 6776-6777/2013 (Kazi Akiloddin Vs. State of Maharashtra & Ors.)

A. Facts

1. These Civil Appeals call in question the correctness of the judgment dated 17.06.2013 of the High Court of Judicature at Bombay, Nagpur Bench, Nagpur in First Appeal No. 1210 of 2008 (filed by the appellant herein) and First Appeal No. 6 of 2009, which was a cross appeal filed by the State of Maharashtra & Ors. By the said judgment, the High Court had dismissed the appeal of the appellant. Dealing with the appeal of the State, the High Court, while allowing the same, directed that the appellant shall refund the excess amount withdrawn with interest @ 9% p.a. from the respective dates of withdrawal.

2. The facts lie in a narrow compass. The appellant is the owner of the land bearing Survey No.1 admeasuring 1 hectare and 1700 sq. meters (1,25,937 sq. ft.) at Mouza Akola (Bujurg), Taluk and District Akola.

3. A Section 4 notification under the LAND ACQUISITION ACT , 1894 (for short ‘the Act’) was issued for acquisition of the subject land on 03.06.1999. Prior to this, on 15.11.1998, in view of the proposal to acquire the subject land for construction of a flood protection wall, the appellant was approached for handing over the subject land on the assurance of rental compensation. On 15.11.1998, the possession was also taken. A Section 6 notification under the Act was issued on 02.12.1999. In the award proceedings, the appellant claimed compensation @ of Rs. 500 per sq. ft. On 04.08.2000, the Land Acquisition Officer passed an award to the tune of Rs. 5,61,000/- per hectare for the subject land, which works out to Rs. 5/- per sq. ft. (approx.). Importantly, in the award, there is no reference to the land falling under ‘Blue Zone’ which has become the main issue in controversy between the parties before the Reference Court, the High Court and this Court.

4. Before the Reference Court, the appellant claimed additional compensation of Rs. 4,30,84,000/- @ of Rs. 500/- per sq. ft. for the acquired land of 84,481 sq. ft. on the premise that in the said area 43 plots have been carved out by him. In the break up given for 1 Hectare, 17 R totalling 1,25,937 sq. ft. following was provided:

Total under plots area - 84481 sq. ft. (68.3% approx.)

Total under roads area – 30106 sq. ft.

Total under open space area – 11298 sq. ft.

He also claimed compensation of Rs. 25 lakhs for the expenditure made on the road and also prayed for damages of Rs. 50 lakhs. Except for claiming expenditure for laying road to the tune of Rs. 25 lakhs, no enhanced compensation was claimed for an area of 41,404 sq. ft. (The area of the road and the open space area as stated above).

5. Before the Reference Court, the appellant examined himself as PW-1, Mohd. Nadir, photographer, was examined as PW-2 and T.N. Bhoob, Civil Engineer, was examined as PW-3. The State examined K.S. Bhoyar, Sub-Divisional Engineer, as DW-1 and La