JUDGMENT

R.V.RAVEENDRAN

1. Leave granted. Lands belonging to Ambya Kalya Mhatre (`A.K.Mhatre' for short, now represented by his LRs.) situated at Dapoli village, Panvel taluk, Raigad district, bearing Sy. Nos.89/1, 85/1, 27/1, 41/1B, 41/1A, 152/3, 155/7, 18/7, 89/3, 23/2 and 99/1 in all measuring 1.73.6 Hectares (17360 sq.m.) with a large number of fruit bearing trees and a well therein, were acquired for New Bombay project in pursuance of preliminary notification dated 3.2.1970 (read with corrigendum dated 5.9.1970) and final notification dated 29.7.1979.

2. The special Land Acquisition Officer (for short `the Collector') awarded the following compensation by award dated 4.7.1986:

3. Possession of the land was taken on 9.9.1986. Not being satisfied with the compensation awarded, A.K.Mhatre made an application dated 10.11.1986 under section 18 of the Land Acquisition Act, 1894 (`Act' for short) to the Special Land Acquisition Officer (also referred as `Collector' or `LAO') seeking a reference to a District Court for enhancement of compensation by ` 90,273/- in regard to the acquired lands and paid a court fee of ` 1610/- in regard to the increase demanded. In pursuance of the said request, a reference was made to the Civil Court by the LAO on 25.11.1986. During the pendency of the reference before the reference court, A.K. Mhatre died and his legal representatives came on record on 30.9.1988.

4. The appellants made an application on 13.9.1990 before the Reference Court seeking following amendments to the application for reference :

(i) As against the compensation of ` 24,898.32 for the entire land (at the rate ` 6500, ` 7000 and ` 7500 per acre for different kinds of land) awarded by the LAO, and the compensation claimed at the rate of ` 50,000/- per acre in regard to some of the lands, in the application seeking reference, the appellants sought compensation of ` 3,47,200/- for the acquired lands measuring 17360 sq.m. (at the rate of Rs.20 per sq.m.) that is an increase of ` 3,22,302/-.

(ii) As against the compensation of ` 83,629/- awarded for the trees, the appellants sought ` 10,48,400/-, that is an increase of ` 9,64,771/-. (The appellant had not sought any increase in regard to trees in the application for reference).

(iii) As against the compensation of ` 500/- awarded for the well, the appellants sought ` 50,000/-, that is an increase of ` 49,500/- (Note: The appellant had not sought any increase in regard to the well in the application seeking reference). The appellants thus sought in all `43,83,959/- towards additional compensation with solatium and additional amount.

5. The appellants also paid the additional court fee for the increase in the claim. The reason given in the application for amendment seeking increase was that A.K. Mhatre was not then in a position to pay the court fee on a higher claim, and had therefore restricted the claim for a lesser amount in the application for reference.

6. The said application for amendment was allowed by the Reference Court on 19.9.1990 and the claims in the reference application were modified as per the amendment application. After evidence, the Reference Court by award dated 2.5.1991, determined the compensation as ` 1,21,520/- (at ` 7/- per sq.m.) for the land, ` 4,46,600/- for the trees and ` 2,000/- for the well, with statutory benefits. This works out to an increase of `96,631/- for the land, ` 3,62,971/- for the trees and ` 1500/- for the well.

7. Both sides were aggrieved by the judgment and award of the Reference Court. The appellants filed Ap. No.104/1992 seeking further increase and the LAO filed FA No.226/1994 challenging the increase. The appeals came up for hearing on different dates before the High Court of Bombay.

8. The appeal filed by the appellants came up for hearing first. On 4.3.2003, the said appeal was allowed in part and the compensation in regard to the land was increased to `10 per sq. m., by following its earlier decision in State of Maharashtra vs. Tulsiram K