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2023 Supreme(Bom) 2179

IN THE HIGH COURT OF BOMBAY
Avinash G.Gharote, J.
Abdul Jabbar - Appellant
Versus
State of Maharashtra - Respondent
First Appeal No. 660 of 2008
Decided On : 20-10-2023

Advocates appeared:
A.Z.Jibhkate, Advocate, M.M.Agnihotri, Advocate

IMPORTANT POINT
Compensation for acquired land must be based on adequate evidence and comparable sales, with specific regard to the land's use and potential value, while claims for enhancements must be substantiated.

Headnote:

COMPENSATION - LAND ACQUISITION - Land Acquisition Act, Maharashtra Industrial Development Act, Sec. 18 - The court discussed the provisions of the Land Acquisition Act and the Maharashtra Industrial Development Act, particularly focusing on the compensation for acquired land. It highlighted the need for adequate evidence to support claims for enhanced compensation, particularly regarding the valuation of agricultural land, wells, and pipelines. The court emphasized that compensation must be based on comparable sales and the actual use of the land, leading to a decision to enhance the compensation for agricultural land while dismissing claims for other enhancements due to lack of evidence.

Fact of the Case:

The appeals concern the enhancement of compensation for land acquired under the Maharashtra Industrial Development Act. The appellant's land was acquired, and the Land Acquisition Officer initially set compensation at Rs. 35,000 per hectare. The Reference Court later increased it to Rs. 40,000 per hectare, which the appellant contested as inadequate, claiming the land's potential value was higher due to its proximity to urban areas and the existence of a well and pipeline.

Finding of the Court:

The court found that the Reference Court's enhancement of compensation to Rs. 40,000 per hectare was insufficient and increased it to Rs. 45,000 per hectare based on comparable cases. However, it upheld the lower compensation for the well and pipeline due to insufficient evidence provided by the appellant to justify higher claims.

Issues: Whether the compensation awarded for the acquired land, well, and pipeline was adequate and justified based on the evidence presented, including the land's potential value and proximity to urban areas.

Ratio Decidendi: The court established that compensation for agricultural land should consider its irrigated status and potential value, but claims for enhancements must be substantiated with adequate evidence. The court also reiterated that comparable sales must be relevant and similar in nature to the land in question.

Final Decision: The appeals were partly allowed, enhancing the compensation for agricultural land to Rs. 45,000 per hectare, while dismissing claims for additional compensation for the well and pipeline due to lack of supporting evidence.

JUDGMENT/ORDER

1. All these appeals, except F.A. No.626/2006, raise a common ground regarding failure of the learned Reference Court to enhance the compensation. F.A. No. 626/2006, is by the MIDC and challenges the judgment and decree dtd. 04/04/2005 passed by the 4th Adhoc Additional District Judge, Wardha upholding the award by the Land Acquisition Officer. All these appeals are therefore concerned with the compensation and therefore, can be decided by the common judgment.

2. For the sake of reference, the facts in First Appeal No. 660/2008, are being referred by Mr. Jibhkate, learned counsel for the appellant.

3. Heard Mr. Jibhkate, learned counsel for the appellant and Agnihotri, learned counsel for the respondent.

4. Being dissatisfied by the judgment under Sec. 18 of the Land Acquisition Act, passed by the learned Reference Court dtd. 29/04/2005 and the quantum of enhancement of the compensation granted by it, the present appeal has been filed.

5. The factual position enumerating from the record is as under:

    (i) The acquisition is under the Maharashtra Industrial Development, Act (ii) The Notification under the provisions of the Land Acquisition Act was published on 31/10/1989 under which one of the lands acquired was that of the appellant in the instant matter bearing survey No.532 admeasuring 2.78 HR. The land Acquisition Officer by his Award dtd. 13/7/1994, granted a rate of Rs.35, 000.00 per hectare accepting that the entire land was irrigated. He also granted compensation of Rs.22, 751.00 for a well which was constructed in the said field, the claim for pipeline laid was declined by the Land Acquisition Officer. Dissatisfied with this, the appellant approached to the Reference Court under Sec. 34 of the Maharashtra Industrial Development Act, in which by the judgment dtd. 29/04/2005, the Reference Court enhanced the value of the land to Rs.40, 000.00 per hectare, maintained the compensation for well to the same amount of Rs.22, 751.00, but granted compensation for pipeline to the tune of Rs.7301.00 on the ground that the valuation report indicated its existence and its valuation as Rs7, 301/-.

6. Mr. Jibhkate, learned counsel for the appellant contends, that the compensation granted for the agricultural land which is irrigated, is very meager. He submits, that the land was adjacent to Abadi and, therefore, had (Non-agriculture) NA potentiality, for which he places reliance upon the Patwari map showing the location of the land with the Abadi, which is being objected by Mr. Agnihotri, learned counsel for the respondent No. 2 on the ground that this was not before the Reference Court. It is also contended that considering the well settled position of valuing the agricultural land which is irrigated at twice the value of the dry crop land, since the dry crop land for the same village under the same Notification has been valued at Rs.30, 000.00 per hectare, the minimum valuation ought to have been Rs.60, 000.00 per hectare. He further submits, that the evidence of the appellant has not been controverted regarding the location of the land in question being near to the village and therefore, ought to have been accepted by the Reference Court. It is also contended, that the amount of compensation granted for well, was inadequate as the well was 40 ft. deep and 25 ft. wide, for which a compensation of Rs.1, 50, 000.00 is being claimed. In respect of the pipeline also there is a grievance regarding the amount of compensation granted as it is contended that the pipeline was admeasuring 1500 running feet and was having a diameter of more than 4 inches, considering which, the compensation of Rs.2, 25, 000.00 is being claimed.

7. Reliance is also placed upon Exh.49 a sale deed of the same village dtd. 26/7/1983 to contend, that the market valuation of the property in question ought to have been minimum of Rs.1, 25, 000.00 per hectare. Compensation is also being claimed for Bandies of Rs.25000.00; for Babul trees Rs.10, 000.00 and f

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