IN THE HIGH COURT OF BOMBAY
Vibha Kankanwadi, Abhay S. Waghwase, JJ.
Executive Engineer - Appellant
Versus
State of Maharashtra - Respondent
First Appeal No. 253 of 2015
Decided On : 04-05-2023
LAND ACQUISITION - COMPENSATION ENHANCEMENT - Land Acquisition Act, Sec. 4, Sec. 11, Sec. 18, Sec. 23, Sec. 28, Sec. 34 - The court discussed the provisions of the Land Acquisition Act, particularly focusing on the determination of market value under Sec. 23, which requires consideration of the land's existing use and geographical situation. The court emphasized that compensation should not be based on speculative future potential but rather on the value as of the date of the notification under Sec. 4. The court also highlighted the importance of proper evidence in establishing market value and the necessity of deducting development charges and considering the size of the land parcels. The court ultimately reduced the compensation awarded by the reference court, finding it excessive and not supported by adequate evidence.
Fact of the Case:
The claimants owned agricultural land acquired for the construction of a godown by the Maharashtra State Electricity Board. They contested the compensation awarded by the Special Land Acquisition Officer, claiming it was inadequate and did not reflect the market value of the land at the time of acquisition.
Finding of the Court:
The court found that the reference court had erred in its assessment of compensation, relying on insufficient evidence and failing to consider relevant legal precedents. The court determined that the compensation should be adjusted to reflect a more accurate market value based on the land's potential and geographical context.
Issues: 1) Whether the reference court was justified in its reliance on the evidence presented by the claimants for compensation enhancement? 2) Did the reference court fail to consider relevant legal precedents in its decision? 3) Is there a basis for interference in the reference court's award?
Ratio Decidendi: The court held that the determination of market value must be based on existing use and geographical situation as of the date of the notification under Sec. 4 of the Land Acquisition Act. It emphasized the need for proper evidence to support claims for compensation and the necessity of deducting development charges when assessing value.
Final Decision: The appeals were partly allowed, the reference court's award was set aside, and the claimants were entitled to enhanced compensation at the rate of Rs. 40.00 per square foot, along with applicable solatium and interest as per the provisions of the Land Acquisition Act.
JUDGMENT/ORDER
VIBHA KANKANWADI, J. - Both the appeals are arising out of the judgment and award passed in Land Acquisition Reference Nos.497 of 2012 and 498 of 2012 by learned Civil Judge Senior Division, Osmanabad on 5/4/2014, thereby allowing the reference under Sec. 18 of the Land Acquisition Act filed by the present respondents.
2. We would like to say that the claimants have come with the case that they are the owners of land Survey No.154 admeasuring 1 H 47 R and Survey No.152 admeasuring 3 H 45 R respectively situated at village Shekapur, Taluka and District Osmanabad. The lands were acquired for construction of godown of then Maharashtra State Electricity Board. (for short "M.S.E.B.") The date of Notification under Sec. 4 of the Act was 15/9/1993, but prior to that the possession was taken by negotiation on 25/3/1992. The Special Land Acquisition Officer had passed the award on 25/6/1996, which was at the rate of Rs.240.00 per R and Rs.270.00 per R, however, the claimants felt dissatisfied with the said award passed by the Special Land Acquisition Officer and, therefore, they filed reference under Sec. 18 of the Land Acquisition Act.
3. In the petition, the petitioners contended that they were not given opportunity to lead evidence and the award has been declared ex-parte/arbitrarily. Though the possession was taken much earlier, no amount was paid as rent or damages. The market price of the acquired lands in the year 1992-1993 was much more than the price calculated by Special Land Acquisition Officer. The Special Land Acquisition Officer had not considered the location of the acquired land and its potentiality to convert it into non agriculture. In fact, the lands are situated 2-3 kilometers from Osmanabad - Tuljapur State Highway. The adjoining lands are used for residential purposes. Some lands were meant for education and commercial activities. Under such circumstance, the Special Land Acquisition Officer ought to have granted adequate amount of compensation. The amount of compensation that has been granted is very meager and the claimants, therefore, sought enhancement at the rate of Rs.100.00 per square feet.
4. The respondent Nos.1 to 3 before the reference Court submitted their written statements at Exhibit-7 and 15 respectively. It was contended that proper opportunity was given to the claimants to support their claim. However, no such concrete evidence was led. Whatever evidence was led before the Special Land Acquisition Office, he has considered it. Then prevailing market value, topography, fertility and quality of the lands have been taken into consideration. The acquired lands are the part of rural area and, therefore, whatever amount has been given is adequate. The respondents, therefore, prayed for the rejection of the reference.
5. Taking into consideration the rival contentions, issues came to be framed. Claimants have led oral as well as documentary evidence. There was no evidence on behalf of the respondents. After hearing both sides and perusing the documents on record, the learned reference Court allowed the references. It was held that the claimants are entitled to receive the enhanced compensation at the rate of Rs.100.00 per square with 30% solatium and 12% additional component on enhanced amount. So also 9% interest from the date of acquisition till one year i.e. 15/9/1994 and, thereafter at the rate of 15% from 16/9/1994 to 25/6/1996, has been awarded under Sec. 34 of the Land Acquisition Act. This judgment and award is under challenge in these appeals.
6. Heard learned Advocate Mr. P. B. Paithankar for the appellant in both the appeals, learned AGP Mrs. P. V. Diggikar for respondent Nos.1 and 2 - State in both the appeals and learned Advocate Mr. K. S. Patil holding for learned Advocate Mr. S. S. Choudhari for respondent No.3.
7. It has been vehemently submitted on behalf of the appellants that Sec. 6 Notification was published on 3/11/1994 and that of Sec. 11 on 25/6/1996. The possession of the
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