land acquisition, compensation, landowner rights, property law
0  17 Jul, 2019
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Namdeo Shankar Goverdhane (D) Thr. Lrs. & Ors. Etc. Etc. Vs. State of Maharashtra & Ors.

  Supreme Court Of India Civil Appeal /10217/2011
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Case Background

These appeals challenge the conclusive judgments and directives issued by the High Court of Judicature at Bombay in relation to the First Appeal and its corresponding order.

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     REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL Nos.10217­10250 OF 2011

Namdeo Shankar Govardhane(D)

Thr. L.Rs. & Ors. etc.etc.              ….Appellant(s)

VERSUS

State of Maharashtra & Ors.          …Respondent(s)

WITH

CIVIL APPEAL Nos.10305­10308 OF 2011

AND

CIVIL APPEAL No.10309 OF 2011

J U D G M E N T

Abhay Manohar Sapre, J.

1.These   appeals   are   directed   against   the   final

judgment  and  orders passed by  the  High Court of

Judicature   at   Bombay   dated   11.10.2007     in   First

Appeal Nos.2673, 2678­2695, 2697­2708, 2710­2712

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and 2674­2677 of 2006 and order dated 23.08.2007 in

First Appeal No.1241 of 2007.

2.A   few   facts  need  mention   hereinbelow   for  the

disposal   of   these   appeals,   which   involve   a   short

question.

3.The   appellants   are   the   landowners   (claimants)

whereas the respondents are the State of Maharashtra

and its authorities in the proceedings before the Trial

Court out of which these appeals arise. 

4.In exercise of powers under Section 4 of the Land

Acquisition Act, 1894 (hereinafter referred to as “the

Act”), the State of Maharashtra issued a notification on

03.03.1994 for acquiring land measuring 26,554.39

hectares situated in village Sanjegaon, Taluka Igatpuri

District Nasik (MH). The purpose of acquisition of the

land in question was construction of Mukane Dam.

This was followed by issuance of declaration under

Section 6 of the Act on 17.06.1994. The appellants’

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land in question was also acquired in the acquisition

proceedings. 

5.This led to initiation of proceedings by the Land

Acquisition Officer (LAO) under Section 11 of the Act

for   determination   of   compensation   payable   to   the

appellants along with other landowners whose lands

were also acquired in the acquisition proceedings. 

6.By   award   dated   14.07.1995,   the   LAO   offered

compensation   to   the   landowners   by   classifying   the

land in three categories, namely, Jirayat land, Bagayat

Land and Pot Kharab land at the rates mentioned

below: 

Jirayat land Rs.40,000/­   to   Rs.1,11,000/­   per

hectare

 Bagayat land  1.5 times the rate of Jirayat land

Pot Kharab land Rs.200/­ per hectare

7.The landowners  (appellants herein) felt aggrieved

by the award made by the LAO and accordingly sought

reference   under  Section   18   of   the   Act   to   the   Civil

Court. By award dated 24.03.2006, the Civil Court

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partly   enhanced   the   rate   of   compensation   in

appellants’ favour as under:

Jirayat land Rs.1,69,231/­ per hectare

 Bagayat land  Rs.2,11,539/­ per hectare

Pot Kharab land Rs. 84,616 per hectare

8.The State felt aggrieved by the award of the Civil

Court and filed appeals under Section 54 of the Act

before   the   Bombay   High   Court.   So   far   as   the

landowners are concerned, they did not file any cross

objection to claim further enhancement in the rate of

compensation determined by the Civil Court except

complaining of wrongly making the classification of

their land by the Civil Court. 

9.So,   the   question   before   the   High   Court   was

whether   the   Civil   Court   was   justified   in   partly

enhancing the rate of compensation mentioned above.

The case of the State in their appeals was that the

Civil Court was not justified in enhancing the rate of

compensation and whatever the Reference Court had

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determined, the same should be upheld as being just

and   reasonable   compensation   awarded   to   the

landowners (appellants herein).

10.By impugned order, the Division Bench of the

High   Court   partly   allowed   the   State's   appeals   and

accordingly reduced the rate of compensation. The rate

of compensation awarded by all the Courts are as under:

For Jirayat Land For Bagayat Land For   Pot   Kharab

Land

Land

Acquisition

Officer

From

Rs.40,000/­   to

Rs.1,11,000/­

per hectare

1.5   times   the

rate   of   Jirayat

land per hectare

Rs.200/­   per

hectare

Reference

Court

@   Rs.1,69,231/­

per hectare

@   Rs,2,11,539/­

per hectare

@     Rs.84,616/­

per hectare

High Court @   Rs.1,26,924/­

per hectare

@   Rs.1,58,655/­

per hectare

@   Rs.1,07,886/­

per hectare

 

11.  Some   landowners   (appellants   herein)   felt

aggrieved by the order of the High Court and have filed

these appeals by way of special leave in this Court.

12.  So, the question, which arises for consideration

in   these   appeals,   is   whether   the   High   Court   was

justified   in   partly   allowing   the   State’s   appeals   and

thereby   was   justified   in   reducing   the   rate   of

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compensation as against what was determined by the

Civil Court. 

13.Heard learned counsel for the parties.

14.Learned counsel for the appellants (landowners)

has essentially confined his submission to the rate

determined by the High Court in relation to Jirayat

land  and Bagayat land. In other words, the appellants

are aggrieved only by  the rates of Jirayat and Bagayat

lands. 

15.According   to   the   learned   counsel,   the   rates

determined   by  the   Civil   Court  (Reference  Court)  in

relation to Jirayat and Bagayat lands were just and

proper, therefore, it should not have been interfered

with by the High Court. It was his submission that

keeping   in   view   the   exemplars   relied   on   by   the

landowners   and,   particularly   (Ex­P­42),   the   rate

mentioned   therein   should   have   been   applied   for

determining the market value of the acquired land. 

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16.It was urged that the principle that price of small

piece of land cannot be applied for determining the

price of large chunk of acquired land may be good in

relation to those cases where the acquired land is non­

agricultural and is situated in urban areas but where

the land is an agricultural land such as the one in the

present case, the rate of small piece of land can be

taken into consideration while determining the large

chunk of land.

17.  It   was   pointed   out   that   since   the   land   in

question was an agricultural land, the market value of

the acquired land could be determined keeping in view

the price of the land purchased under exemplar (Ex­P­

42) even though it was for a small piece of land.  

18.In   reply,   learned   counsel   for   the   respondent

(State) supported the well reasoned order of the High

Court and prayed for dismissal of these appeals.

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19.Having heard the learned counsel for the parties

and on perusal of the record of the case, we find no

merit in these appeals. 

20.In our view, the reasoning and the conclusion

arrived at by the High Court, which resulted in partly

allowing the State’s appeals and thereby reducing the

rate of compensation to some extent is just and proper

and hence does not call for any interference. This we

say for the following reasons.

21. We find that the High Court rightly appreciated

the evidence and especially the 3 sale deeds filed by

the State and 3 sale deeds filed by the landowners for

determining the market value of the acquired land. It

is apposite to set out the details of the six sale deeds

hereinbelow:

Three sale deeds produced by the State

Date   of   Sale

deed

Exh. Village Area Rate   per

hectare

28.02.1992 140 Sanjegaon

Gat No.777

Paddy/grass

0.45 Ares Rs.40,000/­

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land

14.02.1994 141 Sanjegaon

Gat No.941

1.50

Hectare

Rs.32,666/­

17.07.1991 142 Sanjegaon

Gat

No.971/1

Jirayat land

85 Ares Rs.15,882/­

Three sale deeds produced by the landowners

Date   of   Sale

deed

Exh. Village Area Rate   per

hectare

04.07.1989 42 Sanjegaon

Gat No.810

Jirayat land

13 Ares Rs.1,15,385/­

30.05.1990 124 Sanjegaon

Gat No.516

Jirayat Land

4.8 Ares Rs.1,35,417/­

31.01.1995 129 Mukane

Gat   No.447

A

60 Ares Rs.2,12,500/­

22.Learned     counsel   for   the   appellants,   in   his

submissions, placed heavy reliance on the sale deed

(EX­ 42) dated 04.07.1989 and contended that the

market   value   of   the   suit   land   should   have   been

determined   keeping   in   view   the   price   of   the   land

mentioned in this sale deed. 

23.On   the   other   hand,   learned   counsel   for   the

respondent (State) placed reliance on the sale deed

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dated 14.02.1994 (EX­141) and contended that if the

price mentioned in this sale deed is relied on then it is

amply   clear   that   the   High   Court   has   awarded   the

compensation   on   higher   side   and,   therefore,   it

deserves to be rather reduced. 

 24. In   our   opinion,   the   relevant   sale   deed   to

determine the market value of the suit land is (EX­

141), which is dated 14.02.1994. This we say for two

reasons. First, it is very near to the date of acquisition

(03.03.1994); and Second, it is for a larger chunk of

land. As a matter of fact, if we only rely upon Ex­141

then   perhaps   the   determination   made   by  the   High

Court in relation to two kinds of land can still be

reduced. 

25.Since the State has not filed any appeal against

the order of the High Court and on the other hand has

accepted the determination made by the High Court,

we need not examine the question of reducing the rate

1

determined by the High Court in these appeals. It is

not legally permissible. 

26.Having   examined   the   issue,   we   cannot   place

exclusive reliance on Ex­P­42 as was urged by the

learned counsel for the appellants neither for restoring

the rates determined by the Civil Court and nor for

making   any   further   enhancement   in   the   rates

determined by the High Court. 

27.As a matter of fact, we find that Ex­P­42 is of the

year 1989 and that too of a very small piece of land. It

would not, therefore, be safe to place exclusive reliance

on this sale deed. It is more so when we find that Ex­

141   relied   on   by   the   learned   counsel   for   the

respondent (State) was executed just one month prior

to the date of acquisition and is also of a large chunk

of land situated in the same village. 

28.We are also not impressed by the submission of

learned counsel  when he  contended  that  since the

1

land in question is an agricultural land and, therefore,

price   of   small   piece   of   land   can   be   taken   into

consideration for determining the large chunk of land.

We cannot accept this submission in the light of what

we have held above on facts.

29.In our opinion,  the High Court, therefore, rightly

took into consideration all the six sale deeds and then

on appreciation of entire evidence rightly came to a

conclusion   that   the   rates   determined   by   the   Civil

Court   in   relation   to   Jirayat   and   Bagayat   lands

appeared to be on higher side and hence need to be

reduced.   Accordingly,   the   rate   of   Jirayat   land   was

reduced   from   Rs.1,69,231/­   per   hectare   to   Rs.

1,26,924/­ per hectare and the rate of Bagayat land

was   reduced   from   Rs.2,11,539/­   per   hectare   to

Rs.1,58,655/­   per   hectare   by   the   High   Court.   The

marginal reduction of the rates in two types of land,

1

which is based on cogent reasoning of the High Court,

cannot, therefore, be faulted with.    

30.In view of the foregoing discussion, we find no

merit in these appeals. The appeals are accordingly

dismissed.

          ………...................................J.

       [ABHAY MANOHAR SAPRE]

                                 

    …...……..................................J.

                [INDU MALHOTRA]

New Delhi;

July 17, 2019

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