1994 Supreme(Bom) 470
IN THE HIGH COURT OF BOMBAY
(AURANGABAD BENCH)
A.D. Mane A.A. Halbe, JJ.
Osman Khan s/o Abdul Majid Khan and another... Appellants.
Versus
The State of Maharashtra ... Respondent.
First Appeal No. 20 of 1988, decided on 8/9-2-1994.
Advocates appeared :
K.G. Khader, for appellants.
K.B. Choudhary, A.G.P., for respondent.
Headnote:See Land Acquisition Act, 1894, Section 23.
See Land Acquisition Act, 1894 Sections 23 and 51-A.
Section 23 - Land-Acquisition of-Determination of market price:
Documents relating to agreements of sale produce having incomplete rate transaction cannot be considered to represent market price in case when intending purchase appearing to have entered into transactions as interested persons having notice of acquisition -Such documents liable to be rejected.
Section 33-Land acquisition-Fixation of market value basing small plot.
Deduction for expenses for large lands useful for residensial, commercial, official and industrial purposes-City development indicating that neighbouring areas are developed ones--Principle of deduction not be applicable.
Section 23-Market value-Fixation of-Subsequent sale transaction in 1984 to notification in 1982 cannot furnish any guidance for.
Sections 23 and 51-A - Land-Acquisition of.
Determination of market value without exhibiting certain sale instance by Court--Certified copy of registered document filed by complainant can be registered document filed by complainant can be read in evidence in view of provisions of Section 51-A.
Sections 23(2) (1-A) and 28-Iaterest and solatium-Higher rate of making payment of-Higher rate of can be given to claimant by the Court.
2. The appellants are the claimants. They have together 2/3rd share in the land forming part of CTS No. 19049/1 admeasuring 8809 sq. mts situated at Padampura, Aurangabad, Railway Station, Aurangabad. The said land came to be acquired for the purpose of development of Railway road in Marathwada area to merge Meter Guage line passing from Manmad to Kachiguda through Aurangabad Centre into Broad Guage line. The notification under section 4(1) of the Land Acquisition Act, 1894 (for short, the Act) which was published in the Maharashtra Government Gazette on 21-1-1982 by applying the urgent clause. The notification under section 6 of the Act was issued on 23-3-1982 which was published in the Maharashtra Government Gazette on 8-4-1982. The Special Land Acquisition Officer passed the Award on 23-2-1984. The Special Land Acquisition Officer valued the land virtually adopting a belting method for determination of the compensation. The total area under the plotting system came to be considered 6539 sq. mts and its value was assessed at Rs. 6,90,990/-.
With the assistance of the learned Counsel the parties we worked out the price at which the compensation was awarded and it comes to Rs. 105/- per sq. ft. i.e. Rs. 9.82 per sq. ft.
3. The appellants-claimants were dissatisfied with the Award passed by the Special Land Acquisition Officer, as, according to them, the compensation awarded in their favour was inadequate and unreasonable.They, therefore, made application for reference to the Court under Section 18 of the Act. It was stated that the market price of the comparable land as prevailing on the relevant date of the acquisition of the land was Rs. 25/- per sq. ft. In support of that say of the appellants, they relied on two sale instances Exhibits 31 and 32 to show that the land in neighbouring area was sold at the rate of Rs. 25.25 ps. per sq. ft. in August, 1981 and in November, 1984, at the rate of Rs. 33/- per sq. ft. respectively. In addition to these sale deeds the appellants also relied on one more sale instance dated 5-8-1981 to show that the price fetched for a plot of 60 x 60 ft was at the rate of Rs. 15/- per sq.ft. Lastly the agreements of sale dated 29-9-1981 at Exhibits 27 and 28 were also relied on but those were cancelled by the parties subsequently.
4. The Court below, concurring with the Award passed by the Special Land Acquisition Officer rejected the reference by his order dated 18-8-1987.
5. Shri Khader, learned Counsel for the Appellants, argued with reference to the sale instances relied on by the claimants that the Court below had made a wrong application of principle and also overlooked or misapplied the important points affecting the valuation of the acquired land. It was submitted by the learned Counsel that for the purpose of assessment of the market value of the land the Court below ought to have taken it as urban land with high potentialities and its value ought to have been determined on the basis of sale instances relied on by the appellants. It was also submitted that the method of valuation as adopted in the present case in ascertaining the market value of the land acquired on principle of deduction of the area or value for the purpose of compensation was not correct since the acquired property is situated in a developed area with little or no requirement of further development. The learned Counsel next argued that the Court below erred in not considering the statutory benefits accrued to the claimants in the matter of higher solatium and interest on the amount of compensation in compulsory acquisition of the land. It was submitted that the claimants have been wrongly denied the additional 15% solatium and higher rate of interest on the amount of compensation when the present case is covered under the amended sections 23(2) and 28 of t