IN THE HIGH COURT OF MADHYA PRADESH
Subodh Abhyankar, J.
The State of Madhya Pradesh & Ors. – Appellants
Versus
Manikanta Bai & Ors. – Respondents
First Appeal No. 215 of 2021; First Appeal No. 216 of 2021; First Appeal No. 230 of 2021; First Appeal No. 231 of 2021; First Appeal No. 232 of 2021; First Appeal No. 233 of 2021; First Appeal No. 234 of 2021; First Appeal No. 235 of 2021; First Appeal No. 237 of 2021; First Appeal No. 238 of 2021; First Appeal No. 239 of 2021; First Appeal No. 240 of 2021; First Appeal No. 248 of 2021; First Appeal No. 249 of 2021; First Appeal No. 250 of 2021; First Appeal No. 252 of 2021; First Appeal No. 253 of 2021; First Appeal No. 277 of 2021; First Appeal No. 279 of 2021; First Appeal No. 280 of 2021 and First Appeal No. 281 of 2021
Decided On : 03-11-2023
Land Acquisition Act - Valuation of land - Section 54 of the Act of 1894 - Section 4(1) of the Act of 1894 - Section 18 of the LA Act - Supreme Court decision in the case of Bharat Sanchar Nigam Ltd. Vs. M/s Nemichand Damodardas & Anr. - Supreme Court decision in the case of Special Land Acquisition Officer v. Sidappa Omanna Tumari - Supreme Court decision in the case of Central Warehousing Corpn. v. Thakur Dwa Kalan ul-Maruf Baraglan Wala (Dead) and Others
Fact of the Case:
The case involved the valuation of land for land acquisition proceedings relating to village Semalkheri, District Dhar under the Land Acquisition Act, 1894. The State Government wanted to construct a pond at village Bamankheri, known as Bamankheri Pond, for which certain lands were acquired of village Semalkheri. The appellants and respondents filed cross-objections against the award assessing the value of the land.
Finding of the Court:
The Court found that the Reference Court had erred in considering the value of the land to be Rs.3,32,000/- for 1 hectare based on a sale deed produced by the respondent. The Court also found that there was no concrete evidence available on record to determine the fair value of the land. The Court set aside the judgment passed by the Reference Court and directed the Land Acquisition Officer to calculate the compensation at a determined rate and proceed further in accordance with the law.
Issues: The issues involved the determination of the fair value of the acquired land, the reliance on a sale deed for valuation, and the assessment of the value of the land based on the method of annual increase in the value of the property.
Ratio Decidendi: The Court held that when the fair value of the land acquired under the Act of 1894 cannot be ascertained, the Court is required to assess the value by applying the method of annual increase in the value of the property either at the flat or cumulatively rate. The Court also emphasized the need for concrete evidence to determine the fair value of the land.
Final Decision: The appeals were partly allowed, the impugned judgment passed by the Reference Court was set aside, and the Land Acquisition Officer was directed to calculate the compensation at the rate determined above and proceed further in accordance with the law. The cross objections filed by the respondents were rejected.
JUDGMENT
Subodh Abhyankar, J. - Heard finally, with the consent of the parties.
2. This order shall also govern the disposal of all the aforementioned First Appeals, regard being had to the common issue of valuation of land, in the land acquisition proceedings relating to village Semalkheri, District Dhar under the Land Acquisition Act, 1894 (hereinafter referred to as the 'Act of 1894'). In all the appeals, the appellants have also filed their respective cross-objections being aggrieved of the inadequacy of the value assessed by the reference court. For the sake of convenience, the facts as narrated in F.A. No.215/2021 are being taken into consideration.
3. This appeal has been preferred under Section 54 of the Act of 1894 against the award dated 17.03.2020, passed in Land Acquisition Case No.36/2018 by First Additional District Judge, Sardarpur, District Dhar.
4. In brief, the facts of the case are that the respondent Manikantabai owns a land at village Semalkheri, District Dhar. It is undisputed that the State Government wanted to construct a pond at village Bamankheri, known as Bamankheri Pond, for which certain lands were acquired of village Semalkheri, Tehsil Sardarpur of various survey numbers, ad-measuring 40.835 hectares. A notification under Section 4(1) of the Act of 1894 was issued on 31.08.2007. Thereafter, on 05.01.2009, the Land Acquisition Officer passed the award assessing the value of the land to be Rs. 1,09,810/-for unirrigated land, and Rs.1,64,715/- for irrigated land. Being aggrieved, a reference was made by the respondent in the Reference Court i.e. First Additional District Judge, Sardarpur, District Dhar, who, vide its order dated 17.03.2017, has passed the final award, and has assessed the value for unirrigated land to be Rs.3,32,000/-per hectare with interest as provided therein. Being aggrieved of the aforesaid award, the State has filed these appeals whereas, the respondents have filed cross objections.
5. Shri Vaibhav Bhagwat, learned counsel for the appellant State has submitted that the Reference Court has relied upon only one document produced by the respondents, which was the sale deed (Ex.P/1) dated 15.05.2006, in respect of a land ad-measuring 0.041 hectare situated at adjacent village Dasai, which was sold for a sum of Rs.1,77,000/- although its market value is stated to be Rs.3,32,000/-. Counsel has submitted that the aforesaid sale deed could not have been relied upon for the purpose of adjudicating the rate of the land firstly, as the sale deed is in respect of some other village, and secondly, the land area in the sale deed is only around 4413 sq.ft. (0.041 hectare), and the value of a small piece of land could not have been taken into account to assess the compensation to be paid to the respondents who have held large pieces of land.
6. In support of his submission, Shri Bhagwat has also relied upon a decision rendered by the Supreme Court in the case of Bharat Sanchar Nigam Ltd. Vs. M/s Nemichand Damodardas & Anr. Passed in Civil Appeal No.3478/2022 dated 11.07.2022.
7. The prayer is opposed by Shri Anuj Bhargava, the counsel for the respondent who has also filed a cross objection, and it is submitted, that no case for reduction of award is made out as claimed by the State, and on the contrary, the compensation needs to be enhanced for the reasons that the Reference Court has erred in considering the value of the land to be Rs.3,32,000/- for 1 hectare, despite the fact that the sale deed which has been proved as Ex.P/1 by the respondent clearly states that the market value of the land is Rs.3,32,000/- for 0.041 hectare, whereas, the sale deed was executed for a sum of Rs.1,77,000/- for 0.041 hectare and not for 1 hectare. Thus, it is submitted that applying the rate the appropriate calculation in respect of the proper value of the land would be Rs.43,17,073/- as per the sale value for unirrigated land. Thus, it is submitted that the amount of Rs.3,32,000/- is on lower side and needs to be en
The main legal point established in the judgment is the requirement for concrete evidence to determine the fair value of acquired land under the Land Acquisition Act, 1894, and the Court's authority ....
The main legal point established in the judgment is the application of Section 23 of the Jammu & Kashmir Land Acquisition Act, Svt. 1990, and the interpretation of legal precedents to determine the m....
Acquisition of land – Fair and just compensation – Annual increase to determine just compensation varies from case to case and period to be applied is a major factor to be considered.
The court modified the compensation for acquired land, emphasizing the need for careful comparison of prior judgments and appropriate application of annual increase rates.
Compensation for acquired land must reflect its fair market value, including consideration of agricultural yield and proper escalation adjustments based on market conditions at the time of acquisitio....
The market value of acquired land should be assessed based on the comparable sale exemplars of the contemporaneous period with respect to the parcels of land, either forming part of the acquired land....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.