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2025 Supreme(Bom) 426

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH
ROHIT W. JOSHI, J.
Executive Engineer, Arunavati Irrigation - Appellant
Versus
Nagorao S/o Ramaji Rathod - Respondent 
First Appeal No. 357 of 2018, Cross Objection (XOB) No. 102 of 2019
Decided On : 10-02-2025

Advocates:
Advocate Appeared:
Shri J. B. Kasat, Advocate for appellant.
Shri K. S. Narwade, Advocate for respondent No.1.
Ms. H. S. Dhande, AGP for respondent Nos.2 and 3.

The court determined that the appropriate market value for acquired land should be Rs.10,00,000/- per hectare, emphasizing the duty of the court to ensure just compensation irrespective of the landowner's claim.

Headnote:

(A) Land Acquisition Act, 1894 - Sections 4 and 18 - Compensation for acquired land - The land was acquired for drainage purposes, with initial compensation set at Rs.15,250/- per hectare, later increased to Rs.3,75,000/- by the Reference Court - The cross-objector sought further enhancement based on previous awards in the same village, arguing for a market value of Rs.13,00,000/- per hectare - The court found that the appropriate market value should be Rs.10,00,000/- per hectare, considering the gap in time and the nature of the acquisition - The court emphasized that the duty to grant appropriate compensation lies with the court, irrespective of the landowner's claim. (Paras 2, 4, 15, 16)

(B) Market Value Determination - The court ruled that past sale transactions can guide market value, but proximity to the date of acquisition is crucial - The court noted that appreciation rates for rural areas are generally lower than urban areas, suggesting a 5% to 6% increase over a decade. (Paras 11, 12)

Table of Content
1. land acquisition details (Para 2 , 3)
2. cross-objector's claim for enhancement (Para 4 , 5 , 6)
3. consideration of previous judgments (Para 7)
4. determination of market value (Para 8 , 9 , 10 , 11 , 12)
5. rejection of appellant's contention (Para 13 , 14)
6. entitlement to compensation (Para 15)
7. order of the court (Para 16)

JUDGMENT :

[ROHIT W. JOSHI, J.]

1. Heard finally with the consent of learned counsel appearing for the parties.

2. The land of the cross-objector bearing Survey No.37/1B admeasuring 0.50 HR situated in Village Mokh, Tah. Digras, Dist. Yavatmal came to be acquired for the purpose of drainage for the extended Gauthan for Rehabilitation. Notification under Section 4 of the Land Acquisition Act, 1894 was issued on 16/05/1996. The Land Acquisition Officer has passed the award on 05/11/1997 awarding compensation @ Rs.15,250/- per hectare.

3. Aggrieved by the amount of compensation awarded by the Land Acquisition Officer, the cross-objector made application seeking reference under Section 18 of the Land Acquisition Act pursuant to which the LAC No.1265/2004 came to be registered in which the learned Reference Court was pleased to award compensation at the rate of Rs.3,75,000/- per hectare. This Judgment and award passed by the learned Reference Court is challenged by the Acquiring Body / VIDC in the First Appeal. The land owner has preferred cross-objection seeking further enhancement in the compensation awarded by the learned Reference Court.

4. Shri Narwade, learned counsel appearing for the cross- objector has submitted that the land from the same village was acquired for the same project in the year 1986 in which compensation is awarded @ Rs.6,50,000/- per hectare. He has placed on record the Judgment of the Hon’ble Supreme Court in Civil Appeal No.5146-5147/2011 dated 11/04/2018, Judgments of this Court in First Appeal No.348/2003 dated 17/10/2018 and First Appeal No.379/1998 dated 05/01/2024. All these judgments are pertaining to the acquisition in the same village. In the Judgment delivered by the Hon’ble Supreme Court, Section 4 Notification was issued on 25/09/1986. In the matter of First Appeal No.348/2003, Section 4 Notification is dated 13/02/1986. Likewise, in First Appeal No.379/1998, Notification under Section 4 was issued on 13/02/1986. Shri Narwade, learned counsel placing reliance on these Judgments states that Section 4 Notification in the present case is after a period of 10 years from earlier three cases. He states that principle of parity should be applied and rate of Rs.6,50,000/- should be treated as appropriate rate for the acquired land in the year 1986 and therefrom, addition of 10% per annum should be made as is normally done by appreciating the sale exemplars in all land acquisition cases. He, therefore, submits that the compensation to be awarded in the present matter should be at least Rs.13,00,000/- per hectare.

5. Per contra, Shri Kasat, learned counsel for the appellant submits that the purpose for acquisition in both cases is different and further states that there is no evidence on record to justify enhancement of 10% per year over and above the compensation awarded in three Judgments referred above. He further points out that in the award passed by the Land Acquisition Officer, there is reference of several sale transactions according to which, the market value of the property would be much less, than what has been awarded by the learned Reference Court. Mr. Kasat also contends that it will not be proper to determine market value of the acquired land on the basis of the aforesaid three Judgments since there is a gap of ten years between Section 4 Notification in the said cases and the Section 4 Notification in the present case. Learned counsel however, does not dispute these three Judgments relied upon by Shri Narwade pertain to acquisition in the same village in which Section 4 Notification was issued a decade ago.

6. In the light of the above contentions, followin

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