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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT GOA
M.S. Sonak, J.
Navelkar Estate Developers, Ganesh Prasad Building & Ors. – Appellants
Versus
Executive Engineer, Works Division & Ors. – Respondents
First Appeal No. 73 of 2016 With First Appeal No. 89 of 2016
Decided On : 28-04-2022

Advocates Appeared:
Mr. V.R. Tamba, with Mr. P. Sawant, Advocates for the Appellant-Claimant, Ms. Susan Linhares, Addl. Govt. Advocate for the Appellant, for the Appellant; Ms. Sulekha Kamat, Additional Govt. Advocate for the Respondent-State, Mr. V.R. Tamba with Mr. P. Sawant, Advocates for the Respondent-Claimant, for the Respondent

The Reference under the Land Acquisition Act is an original proceeding, and the Court must determine the market value afresh based on the material produced before it.

Headnote:

Land Acquisition - Compensation Rate - Land Acquisition Act, 1894 - Section 4, Section 18 - Chimanlal Hargovinddas vs. Special Land Acquisition Officer, Poona, and ors. AIR 1988 SC 1652

Fact of the Case:

The appeals were against the Judgment and Award that enhanced the compensation for acquired land from ?150/- per sq. meter to ?300/- per sq. meter. The Appellants sought a rate of ?3800/- per sq. meter, while the State was aggrieved by the doubling of the rate determined by the Land Acquisition Officer.

Finding of the Court:

The Reference Court failed to consider the evidence on record and treated the reference proceedings as a challenge to the Land Acquisition Officer's Award. The Court held that the Reference is an original proceeding and the market value must be determined afresh based on the material produced before it.

Issues: The issues included the failure of the Reference Court to consider the evidence, the reliance on sale instances and expert reports, and the determination of the market rate for the acquired land.

Ratio Decidendi: The Court emphasized that the Reference is not an appeal against the Land Acquisition Officer's Award and the material relied upon by the Officer cannot be used unless produced and proved before the Court. The Court also considered the evidence of earlier acquisitions and the amenities and development in the area to determine the market rate.

Final Decision: The Court partly allowed the appeal and enhanced the market rate from ?300/- per sq. meter to ?1000/- per sq. meter, dismissing the cross-appeal. The State was directed to pay the Claimants compensation at the enhanced rate, along with statutory benefits.

JUDGMENT

1. Heard Mr. V.R. Tamba for the Appellant-Claimant and Ms. Susan Linhares and Ms. Sulekha Kamat for the Respondent-State.

2. These appeals are directed against the Judgment and Award dated 29/2/2016 in Land Acquisition Case No. 33/2013, by which the Reference Court enhanced the compensation for the acquired land from ? 150/- per sq. meter to ? 300/- per sq. meter.

3. The Appellants in First Appeal No.73/2016 are aggrieved by the impugned Award because the Reference Court did not grant them the rate of ?3800/- per sq. meter. On the other hand, the impugned Award aggrieves the State because the Reference Court has doubled the rate determined by the Land Acquisition Officer. Hence, it is only appropriate for a common Judgment and order to dispose of both these appeals.

4. By a notification under Section 4 of the Land Acquisition Act, 1894 (said Act) dated 31/7/2006, the Claimants' land measuring 2625 sq. meters of survey No.59/1-A of Village Chimbel, Tiswadi Taluka was proposed to be acquired for Ribandar Bye-pass. The Land Acquisition Officer, by the Award dated 17/8/2009, determined the rate of ?150/- per sq. meter. However, by the impugned Award, the Reference Court has enhanced this rate to ? 300/- per sq. meter.

5. The Reference Court, in this case, has dealt with the matter extremely cursorily. She has failed to even look into, much less consider the evidence on record. Besides, she did not appreciate that she was not sitting in appeal against the Award of the Land Acquisition Officer and has virtually treated the reference proceedings as a challenge to such an Award. Based on these fundamental errors, the impugned Award must be set aside. The evidence is before this Court to determine the market rate here. A remand will unnecessarily delay the matters.

6. In an extremely brief, but equally cursory Award, the Reference Court has disposed of the Reference. She has refused to rely upon the sale instance at Exhibit-C-14 dated 17/7/2006 on the specious plea that the Claimants did not produce this sale instance before the Land Acquisition Officer. In addition, she had refused to rely upon the evidence of the expert/valuer because this expert stated that the Claimants approached him in August 2006 (the date of inspection of the acquired land by the expert/valuer was 20/8/2006) when Section 4 notification was issued on 31/7/2006.

7. In Chimanlal Hargovinddas vs. Special Land Acquisition Officer, Poona, and ors. AIR 1988 SC 1652, the Hon'ble Supreme Court has held that a reference under Section 18 of the Land Acquisition Act is not an appeal against the Award, and the Court cannot take into account the material relied upon by the Land Acquisition Officer in his Award unless the same material is produced and proved before the Court. So also, the Award of the Land Acquisition Officer is not to be treated as a judgment of the trial Court open or exposed to challenge before the Court hearing the Reference. It is merely an offer made by the Land Acquisition Officer. The material he utilized for valuation cannot be used by the Court unless produced and proved before it. It is not the function of the Court to sit in an appeal against the Award, approve or disapprove its reasoning, correct its error or affirm, modify or reverse the conclusion reached by the Land Acquisition Officer as if it were an appellate Court. Hon'ble Supreme Court further held that the Court has to treat the Reference as an original proceeding before it and determine the market value afresh based on the material produced before it. The reasoning of the Reference Court, in this case, is precisely contrary to what has been held by the Hon'ble Supreme Court in Chimanlal Hargovinddas (supra).

8. Therefore, even if the sale instance at Exhibit C-14 were to have been produced before the Land Acquisition Officer, the Claimants would not be entitled to rely upon the same unless the same was produced before the Reference Court and proved in accord with the law. Accordingly,

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