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2016 Supreme(Bom) 425

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
T.V. NALAWADE, J.
Shankarrao Bhagwantrao Patil - Appellant
Versus
The State of Maharashtra - Respondents
F.A. No. 1373, 1374 of 2003, 63 and 64 of 2004
Decided on : 22-03-2016

Advocates:
Advocate Appeared:
Mr. V.S.Bedre, Advocate for Appellants.
Ms. R.P.Gour, A.G.P. for Respondents.

The compensation rate should be based on proven sale instances, and interest should not be awarded for the period prior to the date of Notification u/s 4 of the Act.

Headnote:

Land Acquisition Act - Compensation - 18

Fact of the Case:

The State Govt. and original claimants filed appeals challenging the Judgments and Awards of L.A.R. No. 1243/2002 and 1244/2002, related to the acquisition of lands for residential quarters for State Govt. servants. The possession of the lands was taken in 1984, and the Notification u/s 4 of the Act was published in 1999. The lands were situated at Bhoom within the local limits of municipal council, Bhoom.

Finding of the Court:

The Reference Court modified the compensation rate to Rs.317 per Sq. Mtrs. for the entire acquired area, awarded solatium of 30%, and granted interest at 9% per annum from the date of Notification u/s 4 of the Land Acquisition Act. The rental compensation was to be calculated based on the revised compensation rate.

Issues: The State challenged the enhanced compensation and the interest awarded from the date of possession, while the claimants contended that the Reference Court should have given a higher rate based on proven sale instances and objected to the reduction of the acquired area for compensation.

Ratio Decidendi: The Court held that the compensation rate should be based on proven sale instances and adjusted the rate to Rs.317 per Sq. Mtrs. The Court also ruled that interest should not be awarded for the period prior to the date of Notification u/s 4 of the Act.

Final Decision: The Appeals were partly allowed, modifying the Judgments and Awards of the Reference Court and setting aside the interest awarded for the period prior to the date of Notification u/s 4 of the Act. The compensation rate was fixed at Rs.317 per Sq. Mtrs. for the entire acquired area, and the claimants were entitled to solatium of 30% and interest at 9% per annum from the date of Notification u/s 4 of the Land Acquisition Act.

JUDGMENT :

1. Two Appeals are filed by the original claimants and remaining two Appeals are filed by the State Govt. to challenge the Judgments and Awards of L.A.R. No. 1243/2002 and 1244/2002, which were pending in the Court of the Civil Judge [Sr. Division], Osmanabad. As the compensation is enhanced u/s 18 of the Land Acquisition Act [for short, 'Act'], State Govt. has challenged the decision and as the compensation is not given as per some sale instances proved by the claimants, they have filed the Appeals. Both sides are heard.

2. The lands of both the claimants are acquired for the construction of residential quarters for the servants of State Govt. 40 R. land of claimant from Reference No. 1243/2002 is acquired from S.No. 220/4/b. 20 R. portion from the same land of the claimant from Reference No. 1244/2002 is acquired for the same purpose and for the purpose of construction of road and for aforesaid purpose one more land of 30 R. portion from S.No. 212/2/6 of the claimant from Reference No. 1244/2002 is acquired. The lands are situated at Bhoom and within the local limits of municipal council, Bhoom.

3. The possession of the lands was taken by private negotiations by the Govt. on 14/09/1984. In the case of land of claimant from Reference No. 1243/2002, the Notification u/s 4 of the Act was published in official gazette on 04/02/1999. On the same day, the Notification was published in other matter also. However, the Award was prepared in the matter of claimant from Reference No. 1243/2002 on 26/03/2002 and in the other matter, the Award was prepared by the Special Land Acquisition Officer [for short, 'S.L.A.O.'] on 06/04/2002.

4. The S.L.A.O. collected information about the sale instances of Bhoom of 3 years period preceding the date of publication of Notification u/s 4 of the Act. Land S.No. 220/4/b was already converted to non agriculture purpose use. Surrounding both lands viz. S.Nos. 220/4/b and 212, there are offices of Govt. department, there is office of Municipal Council, there is Rural hospital, there are schools and colleges and there is also the area of M.I.D.C. As per the census of the year 1991, the population of Bhoom was 17,510.

5. In both the Awards, the S.L.A.O. considered 8 sale instances of Bhoom, which were executed between 10/06/1996 and 16/02/1998. There were 3 sale instances in respect of some portions of S.No. 212 of the year 1996 and 1998. The minimum price given was Rs.17.7 per Sq. Ft. and the maximum price given was Rs.43/- per Sq. Ft. [in the year 1998]. There were 2 sale instances in respect of land S.No. 220 and in both the cases, 92 R. portion was sold for the consideration of Rs.35,000/- and so the price was Rs.38/- per Sq. Ft.

6. The S.L.A.O. took into consideration the two sale instances in respect of S.No. 220 of the year 1997 and held that in 1997 the price was around Rs. 377/per Sq. Mtr. He gave enhancement of 23 % as the sale deed was more than 2 years old and held that the land converted to non agriculture purpose of such small piece, would have been sold in the year 1999 @ Rs. 463.7/per Sq. Mtr.

7. Before fixing the market price for giving compensation, the S.L.A.O. considered the plan approved by the Town Planner when S.No. 220/2/4 was converted to non agriculture land. On the basis of the plan, S.L.A.O. held that 2336 Sq. Mtrs. area was available for use from the area of 40 R. of the claimant of L.A.R. No. 1243/2002. Then the S.L.A.O. divided area of 2336 Sq. Mtrs. into two portions. The S.L.A.O. held that area of 701 Sq. Mtrs. was having frontage of main road, public road and so the rate of Rs.600/per Sq. Mtr. can be given to that portion. He held that for the area of 1635 Sq. Mtrs., the rate of Rs.464/per Sq. Mtr., as fixed above, can be given. From the amount of compensation, he held that the development charges @ 5 % per Sq. Mtr. need to be deducted as per the rules of developm






































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