Monday, 13 June 2016

Whether different compensation can be granted in land acquisition case on basis of different land revenue paid by claimant?

There is also absolutely no reason for the reference Court to
grant different compensation ranging from Rs.1,15,000/­ per hectare to
Rs.1,64,000/­ per hectare in cases of different claimants, specially when
the judgment in all the reference cases is identical and it may not be
wrong to say that it is almost cyclostyled and having the same contents.
Merely because the land acquisition officer had granted different rate of
compensation to the claimants on the basis of the land revenue paid by
them, the reference Court could not have granted different compensation
to the respondents­claimants.  In fact, the Division Bench of this Court has
observed   in   the   judgment   reported   in  2008(1)   BCR   204  (State   of
Maharashtra & others   Versus   Yashwant Kahnu Shirsath) and  1995(1)

BCR 277 that the placing of the land in different classes on the basis of
the land revenue of the lands and then determining the market value on
the basis of the land revenue is not a correct method of valuation.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY,
NAGPUR BENCH, NAGPUR.
First Appeal No.589/2010 With Cross­Objection No.19/2010
Vidarbha Irrigation Development Corporation,

.....VERSUS.....
Shri Kamlaji Balaji Jadhav,

    CORAM    :SMT.VASANTI A.NAIK, J.
    DATE    :   7th OCTOBER , 2010.
Citation: 2011 (3) BOM C R331

Since common issues arise for consideration in these first
appeals  and   they  arise   out   of  almost  identical  awards  passed   by  the
reference Court in the land acquisition cases filed by the respondents,
they are heard together and are decided by this common judgment.
2. The   lands   of   the   respondents   were   situated   at   village
MehunaRaja, Taluka DeulgaonRaja, District Buldana.  They were acquired
by   the   State   of   Maharashtra   by   the   section   4   notification   issued   on
24.10.2001 for the Khadakpurna Project.   The land acquisition officer
passed the award on 15.06.2005 and granted separate compensation to
the claimants by placing their lands in different groups on the basis of the
land revenue paid by the claimants.  The land acquisition officer granted
compensation ranging from Rs.69,555/­ to Rs.82,360/­ in respect of the
lands of the respondents.   The respondents were dissatisfied with the
grant of compensation by the land acquisition officer at those rates and,
therefore, they filed reference applications before the Collector, Buldana.
Separate land acquisition cases were registered and were decided by the
reference Court by separate judgments though, the evidence tendered in

these   cases   was   almost   identical   and   the   judgments   passed   by   the
reference Court were also identical.  The reference Court granted separate
compensation to the respondents, ranging from Rs.1,15,000/­ per hectare
to   Rs.1,64,000/­   per   hectare.     The   appellant­Vidarbha   Irrigation
Development   Corporation   is   aggrieved   by   the   awards   passed   by   the
reference Court in these cases and has filed these appeals.  In some of the
cases,   the   respondents   have   also   filed   cross­objections   seeking   higher
compensation.
3. Shri Patil, the learned counsel for the appellant­Vidarbha
Irrigation Development Corporation, submitted that the reference Court
was not justified in relying on a sale instance, which was mentioned by
the land acquisition officer in the land acquisition officer's award dated
15.06.2005  showing  that  the  transaction  fetched  the  consideration  @
Rs.1,22,000/­   per   hectare.     The   learned   counsel   for   the   appellant
submitted   that   the   reference   Court   could   not   have   relied   on   the
transaction mentioned in the award when the claimants had not produced
the sale­deed or the extract of sale index in regard to the transaction at
serial number 11 in the award dated 15.06.2005.  The learned counsel for
the appellant relied on the judgment of the Full Bench of this Court
reported in  2007(5) BCR 847  (State of Maharashtra Versus   Prashram
Jagannath Aute) to substantiate his submission that a reference under

Section 18 of the Land Acquisition Act is not an appeal against an award
and the Court cannot take into account the material relied upon by the
land acquisition officer in his award unless the same material is produced
and proved before the Court.  The learned counsel for the appellant then
submitted that in these cases, there was absolutely no evidence on record
to grant compensation to the claimants @ Rs.1,15,000/­ to Rs.1,64,000/­
per hectare.   The learned counsel for the appellant submitted that the
claimants were seeking compensation @ Rs.3,25,000/­ per acre on the
basis of the sale transaction of village Deulgaon­Mahi, which was a much
bigger village and there was no comparison between the lands at village
Deulgaon­Mahi and village Mehuna Raja.   The learned counsel for the
appellant submitted that certain persons, whose lands were acquired by
the State for the same project by the same section 4 notification had
accepted   ex­gratia   payment   and   this   payment   was   approximately   @
Rs.85,000/­ per hectare.    The learned  counsel for  the  appellant  then
submitted that the reference Court had rightly rejected the sale instance
from village Deulgaon­Mahi though there were also other reasons for
rejection of the same.   The learned counsel for the appellant submitted
that the claimants had admitted in their cross­examination that village
Deulgaon­Mahi   was   a   big   village   on   Chikhali­DeulgaonRaja   road   and
there were hotels on both the sides of the road, banks, Offices, cloth
market, Ginning and Pressing Factories, etc.  and the sale transaction of

village Deulgaon­Mahi was in regard to the land, which was adjoining to
the Ginning and Pressing Factory.  The learned counsel for the appellant
submitted by placing reliance on the 7/12 extracts that the land from
village Deulgaon­Mahi, specially Survey No.124 was also converted to
non­agricultural   use   since   the   year   2000   and,   hence,   there   was   no
comparison between the lands of the claimants from village MehunaRaja
and  the  land  sold  by  the transaction  of  village  Deulgaon­Mahi.    The
learned counsel for the appellant then submitted that there was an error
in the mentioning of the market price of the transaction at serial number
11 of the award dated 15.06.2005 as the sale­deed of the sale transaction
at serial number 11 showed that the market value of the land was not
Rs.1,22,000/­ per hectare but was only Rs.45,112/­ per hectare.   The
learned counsel for the appellant sought permission to file the said saledeed
in this appeal as the same was not produced by the appellant in the
reference Court.  The learned counsel for the appellant submitted that the
award passed by the land acquisition officer in these cases was just and
proper and there was no question of granting enhancement on the basis
of the scanty evidence on record.
4. Shri A.S. Chandurkar and Shri N.B. Kalwaghe, the learned
counsel for the respondents­claimants in these appeals, have supported
the judgments passed by the reference Court and have submitted that the

market value of the land was much more than what was granted by the
land acquisition officer and also the reference Court.  The learned counsel
for   the   respondents­claimants   submitted   on   the   basis   of   their   crossobjections
filed in some of the appeals that the reference Court ought to
have  considered  the  sale  transaction  of village  Deulgaon­Mahi,   which
showed that the market value of one acre of land was Rs.3,25,000/­.  The
learned counsel for the respondents submitted that in fact, the reference
Court   committed   an   error   in   rejecting   the   sale   transaction   of   village
Deulgaon­Mahi.  The learned counsel for the respondents then submitted
that the land of the respondents was irrigated land and they were taking
several crops like Wheat, Jowar, Tur, Sugarcane, Gram, Sunflower, Corn
and   Cotton   from   the   acquired   land.     The   learned   counsel   for   the
respondents­claimants   submitted   that   this   Court   may   not   permit   the
appellant to produce the copy of the sale­deed shown at serial number 11
in the award passed by the land acquisition officer on 15.06.2005 in this
Court  as  the  appellant  had  failed  to  tender  that  evidence   before   the
reference Court and has not given any justifiable reason for not producing
the   same   before   the   reference   Court.     The   learned   counsel   for   the
respondents­claimants   relied   on   the   judgment   reported   in  2005   (3)
Mh.L.J. 249 (Special Land Acquisition Officer & another  Versus  Mariano
Caetano Clarimundo Francisco Jose De Piedade Menezes alias Caetano De
Piedade Menezes) to substantiate the submission that the production of the

additional evidence cannot be permitted before the appellate Court when
the same could have been produced before the reference Court but, was
not produced.  The learned counsel for the respondents­claimants sought
for   the   dismissal   of   the   appeals   and   higher   compensation   for   the
claimants, who had filed the cross­objections.
5. Shri M.A. Kadu and Mrs. Mayuri Deshmukh, the learned
Assistant   Government   Pleaders   appearing   on   behalf   of   the   State   of
Maharashtra, adopted the submissions made on behalf of the appellant
and submitted that the reference Court was not justified in enhancing the
compensation   when   the   land   acquisition   officer   had   granted
compensation to the claimants at a rate, which was higher than the rate
prescribed   by   the   Ready   Reckoner   and   on   the   basis   of   the   sale
transactions   considered   by   the   land   acquisition   officer.     The   learned
Assistant Government Pleaders submitted that the award passed by the
land acquisition officer was just and proper and the reference Court could
not have enhanced the compensation, specially in the absence of any
cogent evidence to grant the same.
6. On   hearing   the   learned   counsel   for   the   parties   and   on
perusal of the Record & Proceedings, it appears that the following points
arise for determination in this appeal.

I) Whether the reference Court was justified in granting
compensation ranging from Rs.1,15,000/­ per hectare
to   Rs.1,64,000/­   per   hectare   to   the   respondents
and/or   whether   the   compensation   needs   to   be
enhanced or reduced ?
II) What order ?
7. It is necessary to note that the evidence tendered by the
claimants in these cases is extremely scanty.  The claimants have merely
stated about the crops fetched by the claimants from their agricultural
lands.     They   have   produced   only   two   sale   transactions   of   village
Deulgaon­Mahi to show that one acre of land was sold @ Rs.3,25,000/­
per acre.  The claimants have also produced two documents to show that
the State had given ex­gratia payment to certain claimants, whose lands
were acquired by the same section 4 notification and these persons had
accepted the ex­gratia payment.   These documents, however, show that
the   ex­gratia   payment   was   made   to   the   other   persons,   who   had
undertaken not to file the reference by accepting the ex­gratia payment at
the rate of approximately Rs.85,000/­ per hectare.   Apart from these
documents,   nothing   has   been   produced   by   the   claimants   before   the
reference Court.  However, the reference Court considered the transaction
at serial number 11 in the award of the land acquisition officer, dated
15.06.2005 to hold that the transaction at serial number 11 fetched the
market value @ Rs.1,22,448/­ per hectare.  The reference Court was not

justified in considering the sale transaction at serial number 11 in the
award   passed   by  the   land   acquisition   officer   on   15.06.2005   to   grant
enhanced   compensation   to   the   claimants   at   the   rate   ranging   from
Rs.1,15,000/­ to Rs.1,64,000/­ per hectare.  The learned counsel for the
appellant­Vidarbha Irrigation Development Corporation has rightly relied
on the decision of the Full Bench of this Court reported in 2007(5) BCR
847 (State of Maharashtra Versus  Prashram Jagannath Aute), which had
considered the decision of the Hon’ble Supreme Court reported in 1988
(3) SCC 751  (Chimanlal Hargovinddas   Versus   Special Land Acquisition
Officer)  which laid down the principle that the reference Court cannot
take into account the material relied upon by the land acquisition officer
in his award unless the same material is produced and proved before the
reference court  as the reference Court under  Section 18  of  the Land
Acquisition Act is not an appeal against an award passed by the land
acquisition officer.   In view of the well settled principle of law that the
reference Court could not have relied upon the material relied upon by
the land acquisition officer in his award, the reference Court in these
cases could not have taken into account the transaction at serial number
11 in the award passed by the land acquisition officer dated 15.06.2005
when the sale­deed or the extract of sale index of the transaction at serial
number 11 of the award was not produced and proved by the claimants
before the reference Court.

8. The   only   basis   for   enhancing   the   compensation   by   the
reference Court is the transaction at serial number 11 mentioned in the
award dated 15.06.2005.  Even if this Court may accept the submission of
the respondents­claimants that the appellant may not be permitted to
tender additional evidence in this Court in the form of a sale­deed of the
transaction at serial number 11 in the award dated 15.06.2005 to show
that the rate is mistakenly quoted in the award as Rs.1,22,448/­, in stead
of Rs.45,112/­ the awards passed by the reference Court in these cases
are still liable to be set aside as the reference Court has relied upon the
material relied upon by the land acquisition officer in his award though
the same material was not produced and proved before the reference
Court.  In case, the transaction at serial number 11 in the award passed
by the land acquisition officer on 15.06.2005 is ignored as it has to be in
view of the law laid down by the Supreme Court in the judgment reported
in  1988 (3) SCC 751  (Chimanlal Hargovinddas   Versus   Special Land
Acquisition Officer), there is hardly anything on record to support the
claim of the respondents­claimants for higher compensation.
9. Though the respondents have stated in their evidence that
there was a ban on sale transactions in village MehunaRaja since the year
2000 and hence the sale­deeds could not be filed, it is necessary to note
that the respondents could have definitely filed the evidence in regard to

the sale transactions, which were effected in village MehunaRaja prior to
2000 in the years between 1995­96 to 1999­00 so that the Court could
have had at least some relevant material before it for determining the
market value of the land.  Since no sale transaction of village MehunaRaja
was produced on record, it needs to be inferred that the sale transactions
from village MehunaRaja prior to the year 2000 were not such, which
could   have   fetched   enhanced   compensation   for   the   claimants.     The
claimants   ought   to   have   produced   the   sale   transactions   of   village
MehunaRaja executed prior to Year­2000 before the alleged ban on the
sale of lands in village MehunaRaja for seeking higher compensation in
stead of producing the sole sale transaction of village Deulgaon­Mahi,
which was not comparable to the lands at village MehunaRaja in any
respect.
10. The claimants had merely banked on the two sale­deeds of
village   Deulgaon­Mahi   by   which   one   acre   of   land   was   sold   for
Rs.3,25,000/­.     The   said   sale   transactions   are   rightly  rejected   by  the
reference Court though the reason for the rejection of the same may not
be correct.   The reference Court had rejected the sale transaction from
village Deulgaon­Mahi only because on acre of land was sold by this
transaction and the extent of the acquired lands of the respondents was
more than one acre.  The learned counsel for the appellant was justified

in submitting that there were other reasons also for rejecting the sale
transactions of village Deulgaon­Mahi.  It would be necessary to refer to
the map, which is produced on record in most of these cases.  The map
clearly  shows  that  though village  Deulgaon­Mahi  and  village  Mehuna
Raja are adjoining villages, village Deulgaon­Mahi is a very large village
as compared to village DeulgaonRaja.   Moreover apart from producing
the map of the adjoining villages, there is no evidence tendered by the
claimants on record to show that the lands of village Deulgaon­Mahi sold
by the sale transaction of 2000 were in regard to comparable lands, as
those of the respondents from village MehunaRaja.  In fact, the claimants
had admitted in their cross­examination that Deulgaon­Mahi village was
on Chikhali – DeulgaonRaja road and there were hotels, banks, Offices,
Shops for selling Tractors, cloth market, a market place and three Ginning
and   Pressing   Factories   at   village   Deulgaon­Mahi.     In   fact,   the   sale
transaction of village Deulgaon­Mahi shows that one of the boundaries of
the land sold by the said transaction was a Ginning and Pressing Factory.
It also appears from the 7/12 extract on record that Survey No.124,
which was sold by one of the transaction of village Deulgaon­Mahi was
converted to non­agricultural use since the year 2000.  There is not only
no evidence on record as regards the similarity between the acquired land
and the land sold by the transaction of village Deulgaon­Mahi but, there
is evidence adverse to the claimants on record to show that there is a vast

difference between village MehunaRaja and village Deulgaon­Mahi and
there is no comparison between the two villages.  There is evidence on
record to show that village Deulgaon­Mahi is a much large village with
considerable development.   But, there is no evidence on record to that
effect in respect of the land at village MehunaRaja.   Even in the map
produced by the claimants, it is shown that village Deulgaon­Mahi has a
big market place.   The reference Court has rightly discarded the sale
transaction of village Deulgaon­Mahi but, there are additional reasons for
supporting   the   finding   of   the   reference   Court   for   discarding   the   sale
transaction of village Deulgaon­Mahi.  
11. There is also absolutely no reason for the reference Court to
grant different compensation ranging from Rs.1,15,000/­ per hectare to
Rs.1,64,000/­ per hectare in cases of different claimants, specially when
the judgment in all the reference cases is identical and it may not be
wrong to say that it is almost cyclostyled and having the same contents.
Merely because the land acquisition officer had granted different rate of
compensation to the claimants on the basis of the land revenue paid by
them, the reference Court could not have granted different compensation
to the respondents­claimants.  In fact, the Division Bench of this Court has
observed   in   the   judgment   reported   in  2008(1)   BCR   204  (State   of
Maharashtra & others   Versus   Yashwant Kahnu Shirsath) and  1995(1)

BCR 277 that the placing of the land in different classes on the basis of
the land revenue of the lands and then determining the market value on
the basis of the land revenue is not a correct method of valuation.
12. Hence, in the facts and circumstances stated hereinabove,
the   reference   Court   was   surely   not   justified   in   enhancing   the
compensation   and   granting   it   @   Rs.1,15,000/­   per   hectare   to
Rs.1,64,000/­ per hectare.  These are the cases, where there is absolutely
no evidence on record to seek enhanced compensation @ Rs.1,15,000/­
per   hectare   to   Rs.1,64,000/­   per   hectare,   much   less,   at   the   rate   of
Rs.3,25,000/­ per acre.
13. On   an   overall   view   of   the   evidence   on   record   and   by
applying some guess­work, this Court is of the view that the reference
Court could have granted compensation, to the claimants at the most, @
Rs.1,00,000/­ per hectare.   The documents produced by the claimants
before   the   reference   Court   showing   the   acceptance   of   the   ex­gratia
payment   @   Rs.85,000/­   per   hectare   by   several   persons   of   village
MehunaRaja after giving an undertaking not to file a reference, could
have been a guide for determining the compensation in these cases.  It is
necessary   to   note   that   the   other   persons   from   village   MehunaRaja
have   accepted   the   ex­gratia   payment   at   the   rate   of   approximately

Rs.85,000/­ per hectare as could be seen from the documents produced
by the respondents before the reference Court.  It would be worthwhile
to mention here that those persons from village MehunaRaja have not
received   any   statutory   benefits   on   the   ex­gratia   payment,   and   the
payment @ Rs.85,000/­ is without any statutory benefits.  The  acceptance
of the ex­gratia payments by a number of villagers, whose lands were
acquired by the same Section 4 notification itself shows that the market
value   of   the   lands   at   village   MehunaRaja   at   the   relevant   time   was
Rs.85,000/­ per hectare or at the most, a little more than that.
14. Hence,   for   the   reasons   aforesaid,   the   first   appeals   are
partly allowed.   The judgments passed by the reference Court in the
land acquisition cases of the respondents are modified.   It is held that
the   respondents   would   be   entitled   to   compensation   @   Rs.1,00,000/­
(Rupees  One Lac) per hectare with  statutory benefits  and  not at the
rates   at   which   the   compensation   is   granted   to   the   respondentsclaimants
  by   the   reference   Court.     The   cross­objections   filed   by   the
respondents­claimants   are   dismissed   in   view   of   the   findings   recorded
hereinabove. 
Order accordingly.  No order as to costs. 

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