The ownership of the acquired lands vested in the respondents by virtue of the auction sale held in 1952 and the subsequent grant issued by the Collector, Thane, and the respondents were entitled to compensation calculated at the rate of Rs. 70.00 per sq. metre.

Headnote:
LAND ACQUISITION - OWNERSHIP - AUCTION SALE - INTERPRETATION OF GRANT - COMPENSATION - VALUATION - INTEREST - CROSS OBJECTIONS - COSTS - [SECTION 126, 6, 18, 128, 4, 11, 181, 2, 3, 62, 42, 8, 23(1-A) OF LAND ACQUISITION ACT, 1894] [SECTION 37(1) OF BOMBAY LAND REVENUE CODE, 1879] [GOVERNMENT GRANTS ACT, 1895] - In two companion appeals, the Union of India and the Special Land Acquisition Officer challenged the judgment and decree passed by the trial court in land acquisition proceedings. The trial court had held that the respondents were the owners of the acquired lands and were entitled to compensation on account of loss of business. The appellants contended that the respondents were only lessees entitled to receive compensation for loss of business. The court held that the respondents were the owners of the lands acquired and were entitled to compensation calculated at the rate of Rs. 70.00 per sq. metre. The court also held that the respondents were entitled to interest at the rate of 12% per annum from the date of publication of the notification till the date of taking possession. The cross objections filed by the respondents were dismissed with no order as to costs. There was no order as to costs in the appeals, but the order of the trial court regarding payment of proportionate costs was confirmed.
Fact of the Case:

The Union of India, through Deputy Salt Commissioner and another, preferred appeals against the judgment and decree passed by the trial court in Land Acquisition Reference Nos. 90 and 91 of 1986. The trial court had held that the respondents were the owners of the acquired lands and were entitled to compensation on account of loss of business. The appellants contended that the respondents were only lessees entitled to receive compensation for loss of business.
Finding of the Court:

The court held that the respondents were the owners of the lands acquired and were entitled to compensation calculated at the rate of Rs. 70.00 per sq. metre. The court also held that the respondents were entitled to interest at the rate of 12% per annum from the date of publication of the notification till the date of taking possession. The cross objections filed by the respondents were dismissed with no order as to costs. There was no order as to costs in the appeals, but the order of the trial court regarding payment of proportionate costs was confirmed.
Issues: 1. Whether the respondents were the owners of the acquired lands or only lessees entitled to compensation for loss of business? 2. What was the appropriate rate of compensation for the acquired lands? 3. Whether the respondents were entitled to interest on the compensation amount and, if so, at what rate and from what date?
Ratio Decidendi: 1. The court held that the respondents were the owners of the lands acquired based on the following factors: - The proclamation issued by the Mamlatdar, Thane, clearly showed the intention of appellant No. 2 to sell the ownership of the lands with the right to construct salt pans and to manufacture salt in the suit lands. - The order dated 5-5-1955 passed by the Collector, Thane, confirmed the auction in favour of respondents subject to certain conditions. These conditions did not support the appellant's contention that the auction was for the purpose of carrying out a lease or a licence. - The Sanad issued to the respondents confirmed their occupancy as both transferable and heritable, and it was to be continued by the State Government without any objection or question as to title. - There was no forfeiture clause contained in the order dated 5-5-1995 to the effect that the Grant will be cancelled if particular condition/conditions are not complied with. 2. The court held that the appropriate rate of compensation for the acquired lands was Rs. 70.00 per sq. metre. This rate was arrived at by considering the sale deeds of adjoining lands, the distance of the suit lands from Thane Railway Station, and the ongoing civil construction activities in the vicinity. 3. The court held that the respondents were entitled to interest on the compensation amount at the rate of 12% per annum from the date of publication of the notification till the date of taking possession.
Final Decision: The appeals were partly allowed. The judgment and decree passed by the trial court in Land Acquisition Reference No. 90 of 1986 and challenged in this Court in First Appeal No. 257 of 1986 were set aside and instead, the appellants were directed to pay to respondents an amount of Rs. 8,03,390.00 together with interest at the rate of 12% per annum from the date of publication of the Notification i.e. from 1-1-1981 to the date of taking actual possession i.e. 19-12-1981. In addition to the amount of Rs. 8,03,390.00, the appellants shall also pay to respondents 30% amount of Rs. 8,03,390.00 to the respondents-claimants together with interest at the rate of 9% per annum from the date of taking over the possession of the suit lands to the date of payment of the amount in Court for the first year and if not paid, then at the rate of 15% per annum from the date of expiry of the period of one year till the date of payment in the Court. The appellants were also directed to pay to respondents an amount of Rs. 25,23,570.00 together with interest at the rate of 12% per annum from the date of publication of the Notification i.e. from 11-12-1980 to the date of taking actual possession i.e. 9-12-1981. In addition to the amount of Rs. 25,23,570.00, the appellants shall also pay to respondents 30% amount of Rs. 25,23,570.00 to the respondents-claimants together with interest at the rate of 9% per annum from the date of taking over the possession of the suit lands to the date of payment of the amount in Court from the first year and if not paid, then at the rate of 15% per annum from the date of payment in the Court. The cross objections filed by the respondents were dismissed with no order as to costs. There was no order as to costs in the appeals, but the order of the trial court regarding payment of proportionate costs was confirmed.

M.L. Dudhat and A.S. Venkatachala Moorthy, JJ.

The Union of India, through Deputy Salt Commissioner another.... Appellants.

Versus

M/s. Mundra Salt and Chemicals Industries and others .... Respondents.

First Appeal No. 257 with F.A. No. 258 of 1994, decided on 24/25/26-6-1996.

Advocates appeared :

K.K. Tated, A.G.P., for the appellants.

V.R. Manohar, S.A., with A.S. Oka, for the respondents.

JUDGMENT - M.L. DUDHAT, J.:---These two companion appeals are arising out of land acquisition proceedings which are being disposed of by this common judgment. The trial Court has also disposed them of by a common judgment.

2. Both these appeals are preferred by the Union of India (appellant No. 1) and the Special Land Acquisition Officer (appellant No. 2) against the Judgment and decree dated 23rd April, 1993, passed by the learned Joint District Judge, Thane, in Land Acquisition Reference No. 90 of 1986 and Land Acquisition Reference No. 91 of 1986. First Appeal No. 257 of 1994 is preferred against the Judgment and decree passed by the trial Court in L.A.R. No. 90 of 1986 and the First Appeal No. 258 of 1994 is preferred against the Judgment and decree passed by the trial Court in L.A.R. No. 91 of 1986. At this stage, we may also mention that the respondents in the aforesaid appeals have also filed Cross Objections being Cross Objections (Stamp) No. 30532 of 1994 in First Appeal No. 257 of 1994 and Cross Objections (Stamp) No. 30578 of 1994 in First Appeal No. 258 of 1994. The aforesaid Cross Objections are filed by the original claimants for enhancing the compensation granted by the trial Court. Few facts which are necessary for the disposal of these two appeals are as under :

3. On 22-5-1952, Tahsildar, Thane, published a public notice informing members of public that the suit lands were to be sold in a public auction which was going to be held on 12-6-1952. Description of these lands was as under :

Village Survey No. Area

Acres - Gunthas

Kopri 43(P) 70 - 21

Mulund 39(P) 45 - 16

Mulund 386(P) 128 - 03

Claimant No. 2, who is respondent No. 2 (since deceased) in the present two appeals, offered the highest bid at the upset price of Rs. 26.00 per Acre on behalf of respondents. Respondent No. 2 thereafter deposited a sum of Rs. 1600.00 with the Tahsildar on 12-6-1952 towards the price of the land which was auctioned. Thereafter, on 26-6-1952, respondent 2 deposited the balance amount of Rs. 4744.00 with the Tahsildar, Thane. On 5-5-1955, Collector, Thane, passed an order confirming the auction sale in favour of respondent No. 2 and incorporated in the said order of confirmation, the terms and conditions of the auction sale. One of the terms and conditions of that grant was that the Grantee will have to execute an agreement in Form "F" evidencing the grant of old tenure. It is also an admitted position that the aforesaid sale of the land was communicated to the present appellant i.e. the Union of India, who received a copy of the order dated 5-5-1955 from appellant No. 2.

4. Thereafter, Kabulayat (i.e. agreement) was executed by respondent No. 2 in respect of the land bearing Survey No. 43(P) admeasuring 70 Acres - 21 Gunthas, which was also signed by the Tahsildar, Thane. Additional terms and conditions were also annexed to the said Kabulayat (agreement). We may point out here that in respect of the other lands forming subject-matter of Grant and subsequent acquisition, respective claimants also had given the Kabulayat (agreement) as per the order of the Collector dated 5-5-1995. Thereafter, the Circle Officer, Thane, handed over the possession of all these lands to all the respective claimants. On 17-4-1965, Mutation Entry No. 205 was certified in the name of respondent No. 2 and entered in the record of rights. Thereafter, since respondent No. 2 executed a deed of partnership on 28-12-1956, names of all the partners of respondent No. 1 were also entered in the record of rights in respect of the land bearing Gat No. 86. Part of t

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1996 Supreme(Bom) 325

The ownership of the acquired lands vested in the respondents by virtue of the auction sale held in 1952 and the subsequent grant issued by the Collector, Thane, and the respondents were entitled to compensation calculated at the rate of Rs. 70.00 per sq. metre.

Cases Referred (2)