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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
R.G. AVACHAT, NEERAJ P. DHOTE, JJ.
The State of Maharashtra – Appellant
Versus
Digambar Manik Kalyankar – Respondent
First Appeal No.1668 of 2014, First Appeal No.1669 of 2014, First Appeal No.1670 of 2014, FIRST APPEAL NO.1671 OF 2014, FIRST APPEAL NO.742 OF 2019, FIRST APPEAL NO.743 OF 2019, FIRST APPEAL NO.744 OF 2019, FIRST APPEAL NO.745 OF 2019
Decided on : 01-07-2024

Advocates:
Advocate Appeared:
For the Appellant :Mr. Amit S. Deshpande, Advocate
For the Respondent: Mr. B. B. Bhise

The highest sale instance must be considered for compensation valuation, and deductions for development charges must reflect the land's actual condition.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4(1), 6, 18, 23(2), 12 - Compensation for acquired land for a Police Training School - Reference Court allowed claimants' request for compensation enhancement to Rs.220/- per sq. ft. with statutory benefits - Claimants contended against high deduction of development charges. (Paras 3, 5, 14, 17)

(B) Compensation Assessment - Highest sale instance must be considered for fixing market value - Deductions towards development charges must reflect the true nature of acquired land. (Paras 10, 13, 17)

Facts of the case:
The appeals arose from challenges to a Reference Court's decision awarding compensation for land acquired under the Act, where the Claimants sought Rs.300/- per sq. ft. but received Rs.220/- with benefits. (Paras 3, 5, 12)

Findings of Court:
The highest comparable sale instance led to a compensation modification to Rs.371/- per sq. ft., with development charge deductions adjusted to one-third. (Paras 14, 17)

Issues: The main issues involved whether the Reference Court properly assessed comparable sale instances and applied appropriate deductions for development.

Ratio Decidendi: Courts must prioritize the highest sale instance for valuation unless justifiable reasons exist to consider otherwise, and development charges must accurately reflect the condition of the acquired land. (Paras 12, 17)

Result: Appeals partly allowed, with modified compensation of Rs.371/- per sq. ft. and one-third deduction for development charges.

Table of Content
1. background on land acquisition proceedings. (Para 1 , 2 , 3)
2. court observations on evidence and comparison of sale instances. (Para 4)
3. claimants' arguments for enhanced compensation. (Para 5 , 6)
4. state's arguments against enhancement of compensation. (Para 7)
5. court's consideration of evidence and sale instances. (Para 9 , 10)
6. verification of evidence for determining market value. (Para 11 , 12 , 13)
7. determination of compensation rate. (Para 14 , 15)
8. inclusion of development charges in compensation. (Para 16 , 17)
9. final order of the court. (Para 18)

JUDGMENT :

NEERAJ P. DHOTE, J.

1. These are the Appeals under Section 54 of the LAND ACQUISITION ACT , 1894 [hereinafter referred to as ‘the said Act’] against the Judgment and Decree/Award dated 08/04/2013, passed by the learned Civil Judge, Senior Division, Latur [hereinafter referred to as ‘the Reference Court’] in group of references arising out of the Land Acquisition Proceedings under the said Act initiated by the Land Acquisition Officer [hereinafter referred to as ‘the LAO’] for the purpose of Police Training School at Babhalgaon, Taluka and District Latur vide No.2006/LNQ/CR-1.

2. The Claimants preferred the Appeal Nos.742/2019, 743/2019, 744/2019 and 745/2019 and the State also preferred the Appeal Nos.1668/2014, 1669/2014, 1670/2014 and 1671/2014 against the impugned Judgment and Award passed by the learned Reference Court. Since all the Appeals arise out of the one and the same Judgment and Decree/Award of the Reference Court, they are being disposed of by this common Judgment.

3. The factual aspects of the subject matter, as seen from the papers on record, are as follows :

    (a) For the aforementioned purpose, the LAO issued the preliminary notification under Section 4(1) of the said Act on 17/05/2006. Thereafter, he issued the notification under Section 6 of the said Act on 12/09/2006. The following lands of the Claimants, who were the owners and possessors of the lands, were the subject matter of acquisition for the aforesaid purpose and following rates were offered by the LAO :-

Sr. No.

LAR No.

Block No.

Acquired area.

Rate per sq. meter given by LAO

1

664/2009

34

11,100 sq. mtrs.

88/- sq. mtr.

2

663/2009

28

8,300 sq. mtrs.

88/- sq. mtr.

3

665/2009

29

6,700 sq. mtrs.

88/- sq. mtr.

4

666/2009

29

7,400 sq. mtrs.

88/- sq. mtr.

    (b) The LAO passed the Award on 06/08/2007 in the said acquisition proceedings by virtue of Section 12 of the said Act. Being not satisfed with the compensation awarded by the LAO, the Claimants preferred References under Section 18 of the said Act and claimed the rate of Rs.300/- per sq. ft. without any deduction. The Claimants led their evidence before the Reference Court. The learned Reference Court, vide common Judgment and Decree/Award dated 08/04/2013, partly allowed the references and enhanced the compensation to Rs.220/- per sq. ft. with statutory benefit of 30% solatium under Section 23 (2) of the said Act, 12% third component from the date of notification under Section 4 of the said Act till the date of Award, along with interest @ 9% p.a. for the first year and the interest @ 15% p.a. for the subsequent years till realization of the entire amount.

4. Heard the learned Advocate Mr. Deshpande for the Claimants and the learned AGP for the State.

5. It is submitted by the learned Advocate for the Claimants that the Claimants relied on four (4) sale instances in support of their claim for enhanced compensation. However, the learned Reference Court ignored the highest sale instance without assigning any reason. He submits that it is settled position under the law that the highest sale instance is required to be considered. He submitted that the sale deeds, which were relied upon by the Claimants, were of three (3) years and seven (7) months prior to the Notification under Section 4 of the said Ac

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