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1996 Supreme(Bom) 569

IN THE HIGH COURT OF BOMBAY
(NAGPUR BENCH)
B.U. Wahane, J.
Western Coalfields Limited ..... Appellant.
Versus
Vasanji s/o Lalji Suchak others ...... Respondents.
First Appeal No. 189 of 1989, decided on 9-10-1996.
Advocates appeared :
J.P. Pendsay, for the appellant.
Smt. K.V. Sirpurkar, for the respondents.

Headnote:Coal Bearing Areas (Acquisition and Development)Act, 1957

       Sections 4 and 14-Acquisition or land-Compensation-Development expenses deducted-Fixation of rate as Rs. 0.60 sq. fit by court-Contention-As the area is already developed deduction should be reduced Reference 1991 (4) SCC 218 by Supreme Court-Deduction allowed-New rate fixed as Rs. 050 sq fit.-According to, the learned Counsel for the appellant, it is the settled principle that at least I/3rd of the amount should be deducted towards laying the roads, setting apart the drainage and other amenities. A reliance is placed on case of 1991 (4) sec 218. In the Judgment, various earlier precedents have been considered. In most of the cases referred in the judgment at least 1/3rd of the market value is deducted. Their lordships of the Apex Court made a reference that if the land acquired is in the midst of already developed land with amenities of roads, drainage, electricity etc. then Ute deduction of 1/3 would not be justified. In the case in hand no evidence has been led to indicate that the surrounding areas have been already developed having all the amenities. Under the circumstances, the respondent No. 1 is not entitled to get the benefits. Court hold that the rate of 6, paise per sq. ft. would be just, fair and reasonable price of the land at the time of issuance of the notification under Section 4(1) of the Act. 1/3rd deduction comes to 20 paise per sq. fit. Thus, the compensation for the land acquired by the Western Coalfields Ltd. be granted @ 40 paise per sq. fit.

       Sections 14 and 20-Award on compensation-Challenged-Land acquired-compensation calculated at the rate of Rs. 150/- sq. fit evidence not discussed-Earlier sale compensated at the rate of Rs. 0.30 sq. fit-Held-Without considering earlier evidence-The award is liable to be set aside-Calculation on existing rates duly compared with previous are rate of 0.60o p. sq. fit fixed.-It is thus, clear that the Notification under Section 4 of the Act, was issued on 10th April, 1975. According to V, he purchased 1 acre diverted 1 and from Kh. No. 107/41 from N. It is, thus, clear that there was a layout in the year 1974 itself when the respondent No. 1 V sold the plots in the year 1974. The notification under Section 4 of the Act, indicates that it was issued after about 10 months after the purchase of the land out of Survey No. 107/41. The respondent No. 1 V purchased two acres of land in the : month of May, 1974 and sold some plots out of this land in the month of June and July, 1974 and received the price in between Rs. 11,000/- to Rs. 14,000/-per acres. Considering the sale of plots, it comes to 30 paise per sq. ft. However, considering the potentiality of the land and that I acre of the land was already diverted for the residential purpose. Court feels that the compensation @ 60 paise per sq. ft. would be just, fair and reasonable.

JUDGMENT - B.U. WAHANE, J.:---The appellant-Western Coalfields Limited, Wardha Valley Area, Chandrapur, in the instant First Appeal under section 20 of the Coal Bearing Areas (Acquisition and Development) Act, 1957, questioned the final order passed by the learned Special Tribunal, dated 11th day of January 1988, assessing the compensation @ Rs. 1.50/- per sq. ft.

2.The facts, in short, are as under :

In pursuance of the Notification under section 4(1) of the Act, published on 10-4-1975, the lands of the respondents including Shri Vasanji Suchak, came to be acquired for the development of Coal Quarries. The respondent No. 1 Shri Vasanji Suchak owned the land Kh. No. 107/41 admeasuring 2.05 acres, situated in mouza Dewai-Govindpur, Tah. and Dist. Chandrapur. The land, as alleged by the respondent No. 1 is near Shastri Nagar, Chandrapur and contiguous to Shri Din Dayal Upadhyaya Housing Society. The respondents 2 to 5, had purchased different plots from the respondent No. 1 Shri Vasanji Suchak under registered sale-deeds. Prior to the acquisition by the appellant/original non-applicant, the land was diverted to non-agricultural purposes vide order dtd. 10-1-1974 passed by the Sub Divisional Officers, Chandrapur, in Revenue Case No. 4/2/73-74. The possession of the land in question was taken some times in the year 1981. The respondent No. 1 Vasanji Suchak claimed the compensation @ Rs. 3/- per sq. ft. which was the market rate since 1979-80.

3.The appellant/original non-applicant filed the Reply and denied the claim of the respondent No. 1 Vasanji Suchak. It is specifically denied by the appellant/original non-applicant that the market value of the land at the time of Notification under section 4(1) of the Act, was Rs. 3/- per sq.ft. It is specifically pleaded by the Western Coalfields Limited, that the transactions of sales of the land from Survey Khasara No. 107/41 purchased and subsequently sold by the respondent No. 1 - Vasanji Suchak and the lands in the neighbour area during the period of 1973-74, reflected an average price of Rs. 827.99/- per acre. The Western Coal Fields in it's reply itself quoted some sale transactions.

In the year 1975, the Zilla Parishad, Chandrapur had acquired lands for percolation tank in Durgapur and the compensation was paid @ 1427/- per acre. Considering the materials collected as regards the sale transactions and the land revenue, the Western Coal Fields Limited proposed that the land in question being an agriculture land, the market price would be at Rs. 2875/- per acre, be just and fair market price. Thus, the Western Coalfields Ltd. tendered a total compensation of Rs. 5893.75/- for 2.05 acres of land as reasonable and just.

4.The respondent No. 1 - Vasanji Suchak not being satisfied with the compensation proposed, approached the Special Tribunal constituted under section 14(2) of the Coal Bearing Areas (Acquisition Development) Act, 1957. The case was registered as Compensation Case No. 6/82. The respondent No. 1 Vasanji Suchak claimed the compensation @ Rs. 3/- per sq. ft. treating his land as non-agriculture land.

5.The other claimants whose lands also acquired by the Western Coalfields Ltd., filed compensation cases before the Special Tribunal, Nagpur. With the consent of the parties, all the Compensation Cases No. 5/82, 6/82, 7/82, 10/82 and 12/82 were consolidated and oral evidence was recorded in Compensation Case No. 4/82 and is read over in all the above cases. Similarly, the documents which were placed on record in Compensation Cases 6/82 and 10/82 were also read and considered while passing the impugned award dtd. 11-1-1988.

6.The parties led oral as well as documentary evidence. After scrutinising the evidence led by the parties, the learned Special Tribunal, in para 21 of it's Award assessed the compensation @ Rs. 1.50/- per sq. ft.

7.Shri Pendsay, the learned Counsel for the appellant submitted that the learned Special Tribunal considered the sale-transactions which were proved b




































































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