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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Shrikant D.Kulkarni, J.
Prabhakar Dhondiba Dhanpalwar – Appellant
Versus
State of Maharashtra – Respondent
First Appeal No. 276 of 2002
Decided On : 01-04-2022

Advocates Appeared:
M.D.Narwadkar, Advocate, M.V.Deshpande, Advocate, B.V.Virdhe, Advocate, S.P.Sonpawale, Advocate, A.R.Tapse, Advocate

The determination of market value for compensation under the Land Acquisition Act should be based on genuine sale instances and the claimant's evidence, and a reference under sec. 18 is an original proceeding requiring the claimant to demonstrate the inadequacy of the award.

Headnote:

Land Acquisition - Compensation - Sec. 4, Sec. 12, Sec. 18, Sec. 51A of the Land Acquisition Act, 1894 - The court discussed the interpretation and application of the provisions of the Land Acquisition Act, including the admissibility of certified copies of sale instances as evidence, the determination of market value, and the guidelines for deciding a reference under sec. 18 of the Act.

Fact of the Case:

The appellants' lands were acquired for a major irrigation dam. The Special Land Acquisition Officer awarded compensation, but the claimants filed references under sec. 18 of the Act for enhancement. The Reference Court dismissed the claims, leading to the appeals.

Finding of the Court:

The court found that the Reference Court erred in discarding certain sale instances and determined the market value based on genuine sale instances. It held that the claimants were entitled to enhanced compensation based on the market value at the time of notification under sec. 4 of the Act.

Issues: The issues included the admissibility of sale instances as evidence, the determination of market value, and the proper approach for deciding references under sec. 18 of the Act.

Ratio Decidendi: The court emphasized that a reference under sec. 18 is an original proceeding, and the claimant must show that the price offered in the award is inadequate based on the materials produced in court. It also highlighted the relevance of genuine sale instances for determining market value.

Final Decision: The impugned common Judgment and award were quashed and set aside. The appellants were entitled to enhanced compensation, solatium, and interest. The intervention application was rejected.

JUDGMENT

1. This batch of appeals can be disposed of by common Judgment.

2. The dispute in narrow compass is as under :-

    (a) The appellants/original claimants are resident of village Ravangaon, Tal. Mukhed, Dist. Nanded. Their lands came to be acquired for major irrigation dam known as 'Lendi Project'. The area of acquired land of respective claimants arising out of the appeals are given below in the chart.

      (b) The notification under sec. 4 of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act' for the sake of convenience) was published on 26/3/1992. The Special Land Acquisition Officer was pleased to pass award under sec. 12 of the Act on 16/6/1994 in respect of above referred acquired lands. The Special Land Acquisition Officer awarded the compensation to the claimants by making three categories of the acquired land as under :

        (i) Rs.32,000.00 P.H. for category B - treated as dry land

          (ii) Rs.32,500.00 for category C - treated as dry and,

            (iii) Rs.33,000.00 for category D - treated as Bagayat land

              (c) The claimants produced their oral evidence in support of their claim. In addition to oral evidence, they have produced copies of sale instances vide Exh. 20 to 22 in LAR Nos. 54/1992 from village Gonegaon and sale instances vide Exh. 23 and 24 from village Ravangaon.

                (d) The Reference Court was pleased to discard sale instances vide Exh. 23 and 24 on the ground that they are post notification under sec. 4 of the Act. The sale instance vide Exh. 21 dtd. 23/4/1992 was not relied upon by the Reference Court on the ground that it is in respect of 4 R land. The sale instances vide Exh. 20 and 22 are also not accepted by the Reference Court since though sale instances are before notification under sec. 4 of the Act, no satisfactory evidence is produced by the respective claimants in order to show the distance between the acquired lands and their lands under sale deeds vide Exh. 20 and 22.

                  (e) The Reference Court was pleased to dismiss all the claims filed by the respective claimants under sec. 18 of the Act under common Judgment and award dtd. 23/11/1995.

                    (f) Feeling aggrieved by the impugned common Judgment and award passed by the Reference Court, the claimants have preferred these appeals before this Court by taking aid of sec. 54 of the Act on various grounds.

                    3. Heard Mr M.D. Narwadkar, learned counsel for the appellants/claimants, Mr B.V. Virdhe, learned AGP for the State/Respondent Nos. 1 and 2, Mr S.P. Sonpawale, learned counsel for respondent No.3/acquiring body and Mr A.R. Tapse, learned counsel for the intervenors in C.A. No. 9554/2017 & 13018/2019 in F.A. No. 286/2002.

                      SUBMISSIONS OF MR M.D. NARWADKAR, LEARNED COUNSEL FOR THE APPELLANTS/CLAIMANTS

                      4. Mr Narwadkar, learned counsel for the appellants vehemently submitted that while passing the award, the Land Acquisition Officer has taken into consideration the sale instances from adjacent villages and accordingly, determined the market value of the acquired lands. The appellants have relied upon the sale instances of the same village while their claim for enhancement but the Reference Court has not accepted the same and thereby committed a grave error. The Reference Court has also committed an error in discarding the sale instances from village Ravangaon on the basis that sale instances are of the same period when notification was issued. Mr Narwadkar submitted that the impugned common Judgment and award passed by the Reference Court is bad in law and liable to be quashed and set aside. The Reference Court has overlooked oral and documentary evidence produced by the claimants in support of their claim. The sale instances of relevant period are placed on record. However, the Reference Court has discarded the same by giving improper, incorrect and illogical reasons.

                      5. Mr Narwadkar, learned counsel submitted that the market value of the acquired land at the relevant point of time was @ Rs.75,000.00 per hectare for irrigated land and Rs.50,000.00 per hectare for

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