Saturday, 23 August 2014

When compensation granted to claimant in respect of agricultural land is to be set aside?



The   evidence   of   the   claimant   so   also   his   witness 
Thakurdas Boob about the proposed layout of 43 plots in the 
suit land and the money spent for development of road etc. 
does  not advance  the  case  of the   claimant anywhere  and is 

merely   hypothetical   in   view   of   our   categorical   findings   or 
evidence  discussed  by us  hereinabove.   The  evidence  of the 
claimant as well as his Valuer or Expert, therefore, becomes 
irrelevant since  the  suit field Survey No.1 did  not have  any 
non­agricultural potential, as claimed by the claimant. In other 
words,   the   suit   land   was   required   to   be   treated   as   the 
agricultural land only and accordingly, the market value of the 
said land was required to be determined.  It is not the case of 
the claimant that the Award passed by the Land Acquisition 
Officer treating his land as having only agricultural potential is 
in any way wrong or illegal since his case is that the suit land 
has non­agricultural potential and therefore, the market value 
ought   to   have   been   calculated   accordingly.     Since   we   have 

categorically   held   that   the   suit   land   was   not   having   any 
potentiality   of   non­agricultural   nature,   the     inescapable 
conclusion   will   be   that   the   Award   Passed   by   the   Land 
Acquisition Officer will have to be set aside.
  

IN THE HIGH COURT OF JUDICATURE AT BOMBAY,

NAGPUR BENCH, NAGPUR

FIRST APPEAL NO.1210 OF 2008
WITH
FIRST APPEAL NO.6 OF 2009

Kazi Akiloddin s/o. Sujaoddin,

    // VERSUS //
 The State of Maharashtra,

        Date of pronouncing the Judgment  :  17.6.2013.

CORAM         :   B.P.DHARMADHIKARI &  
     A.B.CHAUDHARI, JJ.


dt.2.8.2008 passed in Land Acquisition Case No.140 of 2000, 
both ­ the State of Maharashtra and two others and the original 
claimant have preferred these two appeals namely, First Appeal 
No.1210 of 2008 filed by the original claimant/appellant Kazi 
Akiloddin s/o. Sujaoddin and First Appeal No.6 of 2009 filed 
by the State of Maharashtra and two others.
2.
FACTS  :
The claimant/appellant ­ owner of field Survey No.1 
at mouza Akola (BK) (i.e. Bujurg), Tq. and District Akola, area 
1 H, 17 R, instituted reference proceedings u/s.18 of the Land 

Acquisition   Act,   1894   in   the   Court   of   Civil   Judge   (Sr.Dn.), 
Akola claiming higher  compensation on the ground that the 
suit land is  in the centre of the City and within the municipal 
limits of Akola town and also that he has converted the said 
land into non­agricultural purpose/residential purpose and has 
also   allotted   43   plots   thereof   for   selling.   However,   a 
notification u/s.4 of the Land Acquisition Act was issued on 

3.6.1999   for   acquisition   of   various   lands   including   the   suit 
land for construction of flood protection wall for Akola City. 
Thereafter, Section 6 notification was published on 2.12.1999. 
Possession   of   the   suit   land   was,   however,   taken   by   the 
agreement   (Exh.110)   on   15.11.1998   and   agreed   rental 
compensation @ 8 % was paid.  Thereafter, Award came to be 
passed by the Land Acquisition Officer on 4.8.2000 granting 
compensation to the claimant in the sum of  ` 5,69,414/­ for 
the entire land of 1.71 Hs., which was received by the claimant 
under   protest.     Dissatisfied   with   the   Award,   the   appellant/ 
claimant preferred a reference under Section 18 of the Act on 
various   grounds   and   claimed   enhanced   compensation   @ 
Rs.500/­ per sq.ft. as market value of the land by reckoning 

them as 43 plots.  The total compensation that was claimed in 
the reference was  ` 4,30,84,000/­.   Same is the claim made 
before us in this First Appeal No.1210 of 2008  by the original 
claimant/appellant.     The   Reference   Court   granted   enhanced 
compensation @ ` 100/­ per sq.ft. and made the Award which 
Before   the   Reference   Court,   the   appellant/claimant 

3.
is under challenge in both these appeals. 
examined   himself   and   also   examined   two   other   witnesses 
namely   :   Mohd.   Nadir   s/o.   Mohd.   Jabir   (PW­2)   –   the 
photographer and Thakurdas Narayandas Boob (PW­3) ­ the 
Civil Engineer/Valuer.   While the respondent/State examined 
Khushalrao   Shankarrao   Bhoyar   (DW­1)   Sub­Divisional 
Engineer   and   Laxman   Bhika   Raut   (DW­2)   ­   the   Land 
Acquisition Officer in support of the defence.   The parties to 
the Reference claim also filed various documents which were 
exhibited.
4.
The   State   filed   its   reply   (Exh.19)   to   the   reference 
u/s.18 of the Land Acquisition Act.  The Written Statement is 

in the nature of denial of the claim and para­wise reply.  It was 
stated in the reply that, due to repeated floods to Morna river 
near Akola city, it was decided to erect a protection wall to 
save   the   city   from   flood   of   the   river   and   thus,   the   project 
namely  'Akola Flood  Protection  Scheme'  was   undertaken.     On 
15.11.1998, the claimant gave relinquishment in respect of the 
land bearing Gat No.1 for the area of 1 H, 17 R ­ out of 2 H, 

73R as per the requirement and thus, only 1 H, 17 R land was 
acquired.  On the date of delivery of possession, the land was 
agricultural   land   in  'blue   zone'  adjacent   to   river   Morna   and 
thus,   the   said   land   could   not   be   converted   into   non­
agricultural   use.   It   was   a   barren   land   with   no   trees   or   any 
structure   or   construction   made   on   it.     There   was   no 
potentiality   of   non­agricultural   use   for   the   land   as   the   land 
falls under the 'blue zone' and is a barren land.   As per the 
agreement   dt.15.11.1998   (Exh.110),   rental   compensation 
from 15.11.1998 till 11.10.2000  amounting to ` 59,998/­ was 
duly received by the   claimant from  the  Government besides 
the amount under the Award. Finally, the prayer was made for 

dismissal of the claim.  Upon considering the evidence etc., the 
trial Court made the Award, as aforesaid.
SUBMISSIONS    :­
5.
In support of the First Appeal No.1210 of 2008 filed 
by   the   claimant/appellant   and   in   defence   to   the   appeal 
ig
preferred   by   the   State   namely   First   Appeal   No.6   of   2009, 
Mr.A.S.Chandurkar,   learned   Counsel   for   the   claimant   made 
the following submissions.
a)
The suit land is situated within the Municipal limits of 
Akola town and various photographs placed and proved on the 
record so also the evidence of claimant and his two witnesses 
amply  demonstrate   that   the   entire  area  is   a  developed  area 
with   Government   Offices,   police   quarters   and   residential 
buildings and that being so, there should be no difficulty in 
drawing   an   inference   that   the   suit   land   has   full   non­
agricultural   potential,   more   particularly   the   residential 
potential.     He   referred   to   the   maps   filed   on   the   record   to 

b)
the maps filed by both the parties to this appeal.
buttress his point and we have accordingly gone through all 
The   evidence  of  Thakurdus   Boob   (PW­3)   read  with 
the evidence of the claimant clearly show that the layout was 
prepared with 43 plots in the layout for selling the same by 
way   of   business   and   even   the   road   was   constructed   in   the 

layout by spending around ` 5,00,000/­ therefor and later, the 
suit   land   came   to   be   acquired   for   the   public   purpose   and 
therefore, he submitted that the land value or the market value 
of the suit land will have to be reckoned with the residential 
property   rates   namely  ` 500/­   per   sq.ft.   as   claimed   in   the 
reference.     He   submitted   that   the   trial   Court   committed   an 
error in awarding enhanced compensation only @ ` 100/­ per 
sq.ft. ignoring the oral as well as the documentary evidence 
placed   on   the   record   in   the   form   of   various   sale   deeds, 
photographs and the evidence of witnesses.
c)
Mr.A.S.Chandurkar, learned Counsel, by referring to 
various orders passed by the competent Authority under the 

Maharashtra Land Revenue Code, 1966 submitted that all the 
other neighbouring lands were converted into non­agricultural 
use right from the year 1982 and thereafter, various Offices 
and   residential   complexes   have   come   up.     That   being   so, 
according to Mr.Chandurkar, learned Counsel, the trial Court 
committed   an   error   in   ignoring   the   various   orders   of 
conversion of lands and also registered sale deeds placed on 

the record of the relevant date to find out the market value of 
the suit property by treating the same as residential plots even 
as on Section 4 notification.
d)
Mr.Chandurkar, learned Counsel then contended that 
the   burden   of   proof   in   respect   of   the   market   value   of   the 
property, as has been decided by the Apex Court in   various 
decisions, is on the acquired body/State and in this case, the 
claimant   having   discharged   the   said   burden,   it   was   for   the 
State to discharge its burden,  which has not been discharged 
by adducing legal and proper evidence. According   to   the 
learned Counsel, the contention raised by the State in its First 
Appeal No.6 of 2009  and in defence that the suit land is in the 

'blue   zone'   and   therefore,   it   is   useless   for   any   purpose 
whatsoever   ­   has   not   at   all   been   proved   except   for     parole 
evidence of one of its witness. If the suit land really fell in the 
'blue   zone',   nothing   prevented   the   State   from   filing   the 
relevant notifications  and documents indicating that the suit 
land fell in the 'blue zone'.  That having not been done, it will 
have to be held that the land did not fall in the 'blue zone' but 
ig
fell in the 'yellow zone' in view of the further fact that all the 
adjacent   survey   numbers   were   converted   by   the   competent 
Authority for residential and commercial use and there is no 
reason why only suit land could be ignored from considering 
the   potential   alike   the   other   survey   numbers   which   were 
converted.
e)
The Counsel for the appellant then contended that the 
appeal filed by the State is liable to be dismissed in view of the 
fact that the compensation granted @ ` 100/­ per sq.ft. by the 
reference Court itself is on a very lower side and the State did 
not bring the evidence on record to disclose the case of the 
appellant.  Insofar as the award of additional amount @ 12 % 

p.a.   is   concerned,   same   has   been   rightly   awarded   and   the 
contention raised by the State Government in the appeal that 
the   same   could   not  have   been   awarded  merely  because   the 
possession was taken and the Award was passed, is not legal 
and correct.
following rulings   :
Mr.A.S.Chandurkar,   learned   Counsel   relies   on   the 

6.
i.
Chimanlal Hargovinddas .vs. Special Land Acquisition 
Officer, Poona and anr., (1988) 3 SCC 751.
ii.
Vijaysingh   Liladhar   .vs.   Special   Land   Acquisition 
Officer, (1988) 3 SCC 760.
iii.
Gafar and Ors. vs. Moradabad Development Authority 
and anr., (2007) 7 SCC 614.
iv.
Mehrawal   Khewaji   Trust   (Registered),   Faridkot   and 
Ors. vs. State of Punjab and Ors., (2012) 5 SCC 432.
v.
Nelson   Fernandes   and   Ors.   vs.   Special   Land 
Acquisition Officer, South Goa and Ors., (2007) 9 SCC 447.
vi.
Tirumala   Tirupati   Devasthanams   vs.   K.   Jotheeswara 
Pillai (Dead) by L.Rs. and Ors., (2007) 9 SCC 461.
vii.
Mahesh Dattatray Thirthkar .vs. State of Maharashtra, 
(2009) 11 SCC 141.

viii.
Om Prakash vs. State of Haryana and Ors. vs. Udhao 
Dass vs. State of Haryana and Ors., 2010 AIR SCW 565.
7.
ix.
State   of   Maharashtra   and   Ors.   vs.   Maimuma   Banu 
and Ors., (2003) 7 SCC 448.
Mr.A.S.Chandurkar,   the   learned   Counsel   defending 
First Appeal No.6 of 2009 filed by the State argued that the 
land to the extent of around 32 % was also excluded by the 

reference Court before going ahead to grant compensation and 
thus, the deduction permissible under law was already made 
by the reference Court and at any rate, without prejudice to 
the contentions raised in the appeal filed by the claimant in 
this   Court,   the   ultimate   award   of   compensation   by   the 
reference   Court   is   clearly   supportable   and   therefore,   the 
appeal filed by the State deserves to be dismissed with costs.
8.
Per   contra,   the   learned   A.G.P.,   in   support   of   First 
Appeal   No.6   of   2009   filed   by   the   State,   argued   that   the 
additional   amount   contemplated   by   Section   23(1­A)   of   the 
Land   Acquisition   Act   at   12   %   cannot   be   granted   and   the 
reference Court committed an error in granting the same in 

view   of   the   decision   of   the   Supreme   Court   in   the   case   of 
Revenue   Divisional   Officer   Kurnool   District   .vs.   M. 
Ramakrishna  Reddy  (Dead)  by   L.Rs.  reported   in  2011(11) 
SCC 648  and in particular, para nos. 10 and 11 thereof. He, 
therefore, prayed for setting aside the said part of the Award.
The learned A.G.P. then contended that the claimant 
9.

has   failed   to   discharge   initial   burden   of   proof   for   claiming 
higher compensation more than the one awarded by the Land 
Acquisition   Officer   and   looked   from   that   point   of   view,   it 
cannot be said that the State has failed to discharge its burden. 
He further argued that the suit land falls within the river bed 
of Morna river and that has come in the oral evidence of the 
Government witnesses. Not only that, the suit land falls within 
the 'blue zone' wherein there cannot be any residential activity. 
According to him, in fact, Survey number no.1 i.e. the suit land 
was   never   converted   into   non­agricultural   land   by   the 
competent Authority and that fact itself shows that it was not 
permissible to convert the said land being in the 'blue zone'. 
He,   therefore,   argued   that   the   suit   land   did   not   have   any 

potential   at   all   and   therefore,   award   of   compensation   @  `
been any enhancement of compensation.
10.
100/­   per   sq.ft.   was   uncalled   for   and   there   could   not   have 
Opposing   the  appeal   preferred  by  the   claimant,   the 
learned   A.G.P.   argued   that   the   rate   claimed   by   the 
appellant/claimant at ` 500/­ per sq.ft. is on a very very higher 

side and does not even deserve to be looked into in the wake 
of the fact that the suit land was never put to conversion and 
therefore,   the   appeal   preferred   by   the   claimant/appellant 
deserves to be dismissed with costs.
11.
The   learned   A.G.P.   has   relied   upon   the   following 
rulings   :
i)
2011   (11)   SCC   648,   Revenue   Divisional   Officer 
Kurnool District .vs. M. Ramakrishna Reddy (Dead) by L.Rs.
ii)
2012(3) Mh.L.J. 8, Chandrashekhar (Dead) by L.Rs. 
and Others. vs. Land Acquisition Officer and another.
iii)
1995 (2) Supp (2) SCC 168, Special Land Acquisition 
Officer and another .vs. Sidappa Omanna Tumari and Others.

2012   (6)   Scale   458,   Girimallappa   .vs.   The   Special 
12.
Land Acquisition Officer M and MIP and another.
iv)
15
With the assistance of the learned Counsel for both 
the   parties, we  have  perused the  record and  proceedings  of 
L.A.C. Case No.140 of 2000 and the judgment and Award out 
of which these two appeals have arisen.   We have heard the 

learned Counsel for the rival parties at length.  The following 
points arise for our consideration  in both the appeals  :
First Appeal No.1210 of 2008   :
1) Whether the claimant/appellant is entitled 
    to higher compensation for acquisition of
    the suit land by calculating the same @
    ` 500/­ per sq.ft., as claimed by the
    appellant/claimant   ?         .......              No.
2)What order  ?                       ......               The appeal is 
                                                                      dismissed
                                              with no order 
                                                                      as to costs. 
First Appeal No.6 of 2009   :
1) Whether the reference Court committed an

    error in awarding enhanced compensation
    @ ` 100/­ per sq. ft. for the suit land ? .....   Yes.
2) Whether the respondent/claimant is 
     entitled to higher compensation, if so
     at what rate  ?                                     ......No.

CONSIDERATION   :

3) Whether any deductions are required 
     to be made for arriving at the compensation
     towards the compulsory development ? ....does not survive.

4) What is the total amount of 
    enhanced compensation the 
    respondents are entitled to ?              .......  does not survive.
As to Point Nos. 1 and 2   :
13.
It is not in dispute that the suit land admeasuring 1 H, 
17   R   of   mouza   Akoli   (Bk),   Gat   No.1   was   acquired   and 
possession was taken under urgency clause on 15.11.1998 by 
agreement   Exh.110,   in   which   it   was   agreed   between   the 
parties that 8 % rental compensation was to be paid and which 
accordingly was paid amounting to  ` 59,998/­ for the period 
from 15.11.1998 to 11.10.2000. The notification u/s.4 of the 

Act   was   published   on   3.6.1999   and   after   completion   of   the 
proceedings, Award was passed on 4.8.2000 (Exh.6).   In the 
Award, compensation was mainly based on the sale instance 
dt.24.4.1998   in   respect   of   land   bearing   Survey   No.9/1A 
admeasuring 6 Hs., 87 R. @  ` 5,00,000/­ per hectare and in 
addition,   10   %   increase   was   granted.     The   reference   was 
instituted by the claimant on 30.11.2000.   We have perused 

the relevant maps filed by the parties on record Exhs.49, 50, 
54, 55, 56, 57, 58 and 59 & Exh.141.  We have also perused 
various orders of conversions of the adjoining lands.  What we 
find upon perusal of the maps is that the suit land is just on 
the   bank   of   river   Morna   and   the   other   Survey   numbers 
namely Survey Nos. 5, 6 and 7 are well above Survey No.1 
beyond   gaothan   of   Akoli   (Bk)   away   from   the   bank   of   river 
Morna.  Survey Nos. 5, 6 and 7 have been sub­divided. Survey 
No.7/2   was   converted   by   order   dt.8.7.1982.   The   sale   deed 
(Exh.71) dt. 10.5.1999 is in respect of plot no.50 admeasuring 
3000   sq.ft.   from   Survey   no.7/2  and   the   rate   is  ` 175/­   per 
sq.ft.  Survey No.7/1 was converted on the same date by order 
(Exh.62).   But no sale deed from the said Survey number in 

respect of any plot has been placed on record. Survey No.5/1 
was converted by order (Exh.63) on 12.11.1982.  But there is 
no   sale   deed   on   the   plot   from   Survey   No.5/1   on   record. 
Survey No.6/1 was converted by order (Exh.64) on 8.5.1995. 
It is situated well inside from the river side. There is no sale 
deed  of   any  plot  from   said  Survey  No.6/1.    Mortgage   deed 
(Exh.34) from Survey no.27/3 is from mouza Malkapur and 

not from Akoli (Bk) and therefore, the same is not relevant. 
Sale deed (Exh.33), dt.24.8.1998 is of Nazul plot no.7/4, but 
it is not clear as to from what Survey number   the said plot 
was carved out.   The sale deed (Exh.71), dt.10.5.1999 is in 
relation to plot out of survey no.7/2 which stood converted as 
long   back  as   on   8.7.1982   and   therefore,   the   said   sale   deed 
cannot be taken into consideration because it is admitted fact 
that   the   suit   Survey   no.1   was   never   converted   to   non­
agricultural land.   Survey no.7/2 was converted way back in 
the   year   1982   and   the   plots   in   that   survey   number   have 
undergone thorough development. We can not make use of the 
said sale deed (Exh.71) for the purpose of finding out market 
value qua the suit land. Sale deed (Exh.72) dt.17.11.1999 is 

obviously after Section 4 notification dt.3.6.1999 and the rate 
of  ` 601/­ per sq.ft. mentioned in the said sale deed of a small 
piece of plot admeasuring 420 sq.ft. appears to be suspicious 
since the sale deed dt.10.5.1999 (Exh.71) shows the rate of  `
175/­ per sq.ft., while after six months the rate is shown to be 
` 601/­   per   sq.ft.   The   order   of   conversion   (Exh.62), 
dt.8.7.1982 of Survey Nos.7/1 and 7/2 respectively as already 

discussed, so also the Order (Exh.63), dt.12.11.1982 in respect 
of survey no.5/1 are irrelevant since no sale deeds from the 
said survey numbers have been produced or relied upon and 
similar   is   the   case   with   order(Exh.64),   dt.8.5.1995   from 
Survey No.6/1. Sale deed (Exh.33) is said to be in respect of 
Nazul plot no.7/4 admeasuring 4793.03 sq.ft., but then it is 
not shown as to it is     from which Survey number and when 
the said Survey number was converted to residential use. This 
is   all   that   documentary   evidence   which   was   produced   for 
showing   the   market   value.   As   discussed   above,   the   said 
evidence does not advance the case of claimant any better.

Insofar as orders of conversion of neighbouring lands 
14.

are concerned, the said conversion orders can be put to use 
only for showing that the adjoining lands were converted into 
non­agricultural use by the competent Authority. Insofar as the 
suit Survey number is concerned, from the perusal of various 
maps   and   from   the   evidence   of   Laxman   Bhika   Raut,   Land 
Acquisition   Officer   examined   by   the  Government,  it  appears 

that the suit survey number is on the bank of the river Morna. 
We quote the relevant portion from his evidence  :
“ I have personally inspected the spot.   After going  
through the record and personal inspection, I find  
that the land  field Survey No.1 to the extent of 1H,  
17 R of the claimant is situated in the river bed and  
also   adjacent   to   river   Morna.   However,   I   also  
noticed  that the said  land  is an agricultural  land  
and it comes under the blue zone and the same was  
not converted into non­agricultural purpose. I also  
revealed that the said land was barren. There were  
no trees and structures standing on the said land. So  
also the land is  not developed. “

This evidence has not been seriously challenged and 
15.
21
the   maps   on   record   corroborate   this   evidence.   As   already 
stated by us, Survey No.1 ­ suit land is on the bank of the river 
and the other Survey Nos. 5, 6 and 7 are away from the bank 
of the  river. In view of the  fact that Survey Nos.5, 6 and 7 
were converted in the year 1982 and the fact that from the 
year   1982   onwards   till   the   acquisition   in   question   the   suit 

Survey number was never converted nor it is shown that the 
claimant or his predecessor­in­title had made any attempt to 
file   application   for   converting   the   said   Survey   number   no.1 
into non­agricultural use, it could be readily inferred that the 
suit Survey number could not be converted being on the bank 
of  the  river Morna  and rather  at the  end of the  gaothan  of 
Akoli (Bk).   The trial Court has recorded a finding which we 
would like to quote thus  :
“      There is no dispute  that  the suit property  was  
owned and in possession of the plaintiff and that it  
was situated at the bank of Morna river and that it 
was acquired by defendant for construction of flood  

protection wall by said award and that compensation  
was awarded at the rate of Rs.5,61,000/­ per hector.“
Then there is a further finding in para 13, which is mentioned 
as below  :
“ in order to corroborate the oral evidence, zoning  
maps  are  produced   at   Exh.57   to   59   and  Exh.141. 

These maps shows that only small strip of blue colour  
is shown as passing through the suit property. It is 
not   clear   from   those   maps   that   whole   of   the   suit  
property is covered under blue zone.  Further there is 
no reference in the Award Exh.46 about  falling  the  
suit property in the blue zone area  so as to consider  
that said factor was considered by acquiring body at 

There   are   no   grounds   raised   by   the   appellant/claimant   to 
challenge these findings. For convenience, we reproduce the 
extract of the Map (Exh.141) as under   :
the time of determining the  correct market value.”

Upon perusal of Map (Exh.141), we further find that 
16.

the   above  finding  about   a   small   strip  of  blue   colour   is  also 
wrong. It is  clear from Exh.141 that  major area of suit land 
Survey No.1 is affected by blue zone. It appears that the suit 
property being affected by the 'blue zone', the same could not 
have been converted into non­agricultural use like the other 
adjoining Survey numbers and that is why none attempted to 

apply for  conversion  though adjoining  survey numbers were 
converted way back on 8.7.1982. In this connection, there is a 
document   (Exh.67)   on   record,   dt.25.2.2000   which   is   a 
communication addressed to the Land Acquisition  Officer by 
the Assistant Director, Town Planning, Akola. This letter has 
been duly proved and marked Exh.67.  It is mentioned in para 
2 of the said letter that survey nos.1 (suit land), 5/2, 5/1, 7, 8, 
2, 25 and 9/1­A of mouza Akoli (Bk.) fall in no development 
zone and therefore, were not liable to be converted into non­
agricultural   purpose,   though   the   said   lands   fall   within   the 
Municipal limits of Akola town.   We have already seen that 
Survey   No.5/2,   6,   7   and   8   were   already   ordered   to   be 
converted into non­agricultural use by orders at Exhs. 61, 62 

and 63 despite   opposition by the then ADTP, Akola by letter 
dt.24.4.1982. The S.D.O. found that the said Survey numbers 
were adjacent to the newly constructed National highway (by­ 
pass no.6), the   situation stood changed in the area and the 
adjoining Survey numbers of the highway are being used for 
the non­agricultural purpose and other survey nos.5/1, 6 and 
8   have   already   been   converted.     We,   thus,   find   that   the 

location of Survey no.1 is after goathan and on the end of the 
bank of river Morna.   But then, passing of blue strip through 
the   major   area   of   suit   Survey   number   and   the   fact   that   no 
attempt was made to apply for conversion of suit land to non­
agricultural use at any point of time after 1982 and further 
fact that, in fact, there is no conversion of the suit land, to our 
mind,  show  that  the  suit  land  was  not  entirely  having   non­
agricultural potential for residential use alike the other Survey 
numbers   5/2,   6,   7   and   8.     The   documentary   evidence   thus 
produced before us and discussed by us above does not show 
that the market value @ ` 100/­ per sq.ft. has been proved or 
established insofar as the suit Survey no.1 is concerned. In the 
light of the above discussed overwhelming evidence, we do not 

17.
about blue zone would affect the case of the Government.
think   that   non­production   of   documents/notification,   if   any, 
The   evidence   of   the   claimant   so   also   his   witness 
Thakurdas Boob about the proposed layout of 43 plots in the 
suit land and the money spent for development of road etc. 
does  not advance  the  case  of the   claimant anywhere  and is 

merely   hypothetical   in   view   of   our   categorical   findings   or 
evidence  discussed  by us  hereinabove.   The  evidence  of the 
claimant as well as his Valuer or Expert, therefore, becomes 
irrelevant since  the  suit field Survey No.1 did  not have  any 
non­agricultural potential, as claimed by the claimant. In other 
words,   the   suit   land   was   required   to   be   treated   as   the 
agricultural land only and accordingly, the market value of the 
said land was required to be determined.  It is not the case of 
the claimant that the Award passed by the Land Acquisition 
Officer treating his land as having only agricultural potential is 
in any way wrong or illegal since his case is that the suit land 
has non­agricultural potential and therefore, the market value 
ought   to   have   been   calculated   accordingly.     Since   we   have 

categorically   held   that   the   suit   land   was   not   having   any 
potentiality   of   non­agricultural   nature,   the     inescapable 
conclusion   will   be   that   the   Award   Passed   by   the   Land 
Acquisition Officer will have to be set aside.
  
18.
Having   come   to   the   above   conclusions   and   though 
there is no need to dwell upon the issue about deduction of 

70% value from the award of compensation towards various 
types  of  developments  as  decided  by the  Apex Court  in  the 
case of Chandrashekar (Dead) By L.Rs. and Others vs. Land 
Acquisition   Officer  and   another   reported   in  (2012)  1   SCC 
390, we find that the reference Court completely ignored the 
said   aspect.   It   is   true   that   the   area   required   for   such 
developments   was   deducted,   but   that   is   not   enough.     The 
value required for carrying out developments on the said lands 
not to be utilised for constructing houses ought to have been 
deducted by the reference Court. That having not been done, 
we are of the view that, in terms of the said judgment of the 
Apex Court (cited supra), deduction to the extent of 70 % area 

was required to be made.  Thus, on this count also, we do not 
find that the Award can  be maintained.
19.
In the light of the discussion made by us, we will have 
to answer the point no.1 in First Appeal No.1210 of 2008 in 
the negative and dismissing First Appeal No.1210 of 2008 in 
answer   to   Point   No.2.   Similarly,   Point   no.1   in   First   Appeal 

No.6   of   2009   will   have   to   be   answered   in   the   affirmative, 
while   point   no.2   will   have   to   be   answered   in   the   negative; 
whereas the remaining point nos. 3 and 4 do not survive.    In 
the result, we make the following order.
i)
// ORDER // 
First Appeal No.1210 of 2008 filed by the 
appellant/claimant   namely   Kazi   Akiloddin   s/o. 
Sujaoddin is dismissed with no orders as to costs.
ii)
First Appeal No.6 of 2009 filed by the State 
of Maharashtra and Others is allowed with no orders 
as to costs and the impugned judgment and Award in 
Land Acquisition  Case  No.140  of  2000  is  set aside. 

iii)
2000 is dismissed with no orders as to costs.
Consequently,   the   reference   L.A.C.   Case   No.140   of 
The claimant namely the appellant in First 
Appeal No.1210 of 2008 and the respondent in First 
Appeal   No.6   of   2009   shall   refund   the   amount   of 
compensation   withdrawn   by   him   to   the   State   of 
Maharashtra     with   interest   @   9   %   p.a.   from   the 
respective date of withdrawal till the date of refund 

within three months from today and upon failure to 
refund the said amount to the State, the State shall 
be   entitled   to   execute   the   instant   decree   in 
accordance   with   law   against   him   and   the   persons 
who   have   accepted   to   stand   as   sureties   or   have 
furnished security.
iv)
The said securities and sureties to continue 
till the amount is recovered back by the State.
iv)
No order as to costs.

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