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2024 Supreme(Bom) 1106

IN THE HIGH COURT OF BOMBAY, (NAGPUR BENCH)
G.A. SANAP, J.
Executive Engineer - Appellant
Versus
Shankar and Ors. – Respondents
First Appeal No. 601 of 2023
Decided On : 23-04-2024

Advocates Appeared:
For the Appellant : N.M. Gaidhane, Adv.
For the Respondents:S.S. Shingane, Advocate and M.R. Kavimandan, AGP

The market value of acquired land can be determined using comparable sale instances, even if they are for smaller plots, when larger sales are unavailable.

Headnote:(A) Land Acquisition Act, 1894 - Section 4 - Compensation for acquired land - The reference Court enhanced compensation from Rs.1,57,500/- to Rs.10,00,000/- per hectare based on evidence of comparable sale instances - The appellant contended that the reference Court improperly relied on a small land sale deed for valuation - The Court found the sale deed to be a genuine comparable instance, affirming the reference Court's decision. (Paras 3, 8, 10, 14)

(B) Market Value Determination - The market price of acquired land can be determined by considering comparable sale instances, even if they are for smaller plots, when larger comparable sales are unavailable - The Court emphasized that the market value should reflect potential future use. (Paras 11, 14)

Facts of the case:
The land of respondent No.1 was acquired for a project, and the initial compensation was deemed inadequate. The respondent provided evidence of a sale deed for a smaller tract of land to support the claim for higher compensation. (Paras 4, 5)

Findings of Court:
The reference Court's reliance on the sale deed was justified, and the compensation awarded was deemed just and reasonable. (Paras 14)

Issues: Whether the compensation awarded by the reference Court was just, proper, and reasonable based on the evidence presented. (Para 7)

Ratio Decidendi: The Court upheld that small land sale deeds can be used as comparables for larger land valuations when no larger sales are available, provided they are similarly situated. (Paras 11, 14)

Result: Appeal dismissed.

JUDGMENT :

(G.A. Sanap, J.)

1. Heard.

2. ADMIT. Taken up for final disposal forthwith, with the consent of learned Advocates for the parties.

3. In this appeal, the challenge is to the judgment and award dated 11.02.2020, passed by the learned Civil Judge, Senior Division, Amravati (for short 'the reference Court'), whereby the reference filed by respondent No.1 was allowed and the compensation of the acquired land, determined by the land acquisition officer, was enhanced from Rs.1,57,500/- per hectare to Rs.10,00,000/- per hectare.

4. The land of respondent No.1 bearing Survey No. 192, admeasuring 0.21 H.R. situated at Mouza Sawanga, Tal. Warud, Distt. Amravati, was acquired for 'Loni-Dhawalgiri Prakalp' under medium project Amravati. The notification under Section 4 of the Land Acquisition Act, 1894, was published in the official gazette on 15.11.2007. The land acquisition officer passed the award on 13.03.2009 and determined the market value of the acquired land @ of Rs.1,57,500/- per hectare. Respondent No.1, being aggrieved by the inadequate compensation awarded by the land acquisition officer, filed the reference before the Collector. The Collector made over the reference to the Civil Court. It is the case of respondent No.1 that his land was irrigated. The land was good quality black soil and fertile land. There were 14 orange trees planted by him on the said land. The compensation with regard to the trees was also inadequate.

5. The appellant filed the written statement and opposed the reference. In short, it was contended that the market price of the acquired land determined by the land acquisition officer was just, proper and reasonable. Respondent No.1 examined himself as PW-1. He has examined one independent witness to establish the prevailing rate of the yield of the orange trees. No evidence was adduced by the appellant. The learned reference Court, on consideration of the evidence, partly decreed the reference and enhanced the compensation for the land. The reference Court did not enhance the compensation for the orange trees. The acquiring body is in appeal before this Court against the judgment and decree.

6. I have heard learned Advocate Mr. N. M. Gaidhane for the appellant, learned Advocate Mr. S. S. Shingane for respondent No.1 and learned AGP Ms. M. R. Kavimandan for respondent Nos. 2 and 3/State.

7. In the facts and circumstances, following point fall for my determination:

    (i) Whether the market price of the acquired land determined by the reference Court and the compensation awarded on that basis is just, proper and reasonable ?

8. Learned Advocate for the appellant submitted that the reference Court has considered the sale deed of a small tract of land for the purpose of determining the market price of the acquired land, which was 0.21 R. Learned Advocate submitted that the land at Exh. 36 sold by the owner was just 0.01 R land and that too for the purpose of digging well. Learned Advocate submitted that the sale deed at Exh. 36 could not have been made the sole basis for determining the market price of the acquired land. Learned Advocate submitted that the evidence adduced by respondent No.1 is not sufficient to prove that the market price of the acquired land on the date of the Section 4 notification was Rs.10,00,000/- per hectare. Learned Advocate submitted that the reference Court has not properly appreciated the evidence. It is submitted that the proper reasons have also not been recorded to arrive at this conclusion. In order to substantiate the submissions learned Advocate has relied upon the decision in the case of the Special Land Acquisition Officer and others .v/s. Siddappa Omanna Tumari and others (SC) AIR 1995 SC 840.

9. Learned Advocate for respondent No.1 submitted that the land acquisition officer, while determining the market price of the land, has failed to consider all the relevant factors for arriving at just and proper market price of the land. Learned Advocate took me through the award and p

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