Citation : 2008 Latest Caselaw 109 Bom
Judgement Date : 4 December, 2008
1
FIRST APPEAL NO.605 OF 1997
Date of decision: 4th December, 2008.
For approval and signature.
THE HONOURABLE SHRI JUSTICE NARESH H. PATIL.
THE HONOURABLE SHRI JUSTICE S.R. DONGAONKAR.
1. Whether Reporters of Local Papers }
may be allowed to see the judgment? } Yes
2. To be referred to the Reporter or not? } Yes/No
3. Whether Their Lordships wish to see
the fair copy of the judgment? } No
4.
Whether this case involves a substantial
question of law as to the interpretation
}
}
of the Constitution of India, 1950 or }
any Order made thereunder? } No
5. Whether it is to be circulated to the }
Civil Judges? } No
6. Whether the case involves an important }
question of law and whether a copy of }
the judgment should be sent to Mumbai, }
Nagpur and Panaji offices? } No
[ S.U.Tupe ]
Personal Assistant to
the Honourable Judge.
::: Downloaded on - 09/06/2013 14:07:09 :::
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD.
FIRST APPEAL NO.605 OF 1997
Shri. Babasaheb s/o Dashrathrao Jadhav,
Age: 48 years, Occ: Agril., & Advocate,
R/o. Latur. (Died),
His L.Rs.
1. Ashalata Babasaheb Jadhav,
Age: 52 years,
2. Manisha Kakasaheb Bharate,
Age: 25 years,
3. Madhavi Babasaheb Jadhav,
Age: 20 years,
4. Megha Babasaheb Jadhav,
Age: 16 years,
5. Shilpa Babasaheb Jadhav,
Age: 14 years,
All R/o. Ramnagar,
Tal. & District Latur.
.... APPELLANTS
VERSUS
The State of Maharashtra,
through the Collector, Latur.
.... RESPONDENT
...
Shri.J.B. Bhapkar, Advocate for appellant.
Smt. B.R. Khekale, A.G.P. for respondent-State.
...
CORAM: NARESH H. PATIL, AND
S.R. DONGAONKAR, JJ.
RESERVED ON: 20/11/2008
PRONOUNCED ON: 04/12/2008
JUDGMENT: ( PER : S.R. DONGAONKAR, J.)
. The appellant has preferred this appeal to
challenge the judgment and award in L.A.R. No.
175/1994 decided by the Civil Judge, Senior
Division, Latur on 04-05-1996 by which, in
Reference under Section 18 of the Land Acquisition
Act preferred by the appellant, he awarded
compensation of Rs.9,95,709/- alongwith interest
and other reliefs, for acquired land of the
appellant from Survey No.46/A-1 of village
Kanheri, Tq. Latur.
2. Facts are thus :
. Field Survey No.46/A-1 of village Kanheri,
Tq. Latur, was owned by the appellant. As per
notification under Section 4 of the Land
Acquisition Act, the said land was acquired for
the ring road in Latur. The relevant notification
was issued on 10-05-1990. It is alleged that
though the notification was issued in the year
1990, the possession of the same was already taken
on 02-06-1985. The award was declared in 1993.
It is alleged that potential of the acquired land
was obvious and it is recorded in the award.
According to claimant, same was situated adjacent
to Solapur - Nagpur State Highway. There was
market yard at some distance from the same, so
also cattle bazaar, vegetable market, oil industry
etc., apart from the V.I.P. Rest House, and
residential colonies. It is alleged that despite
this potential and the fact that Latur was
developing city and market value of the land was
Rs.10,000/- per sq. meter, the S.L.A.O. granted
compensation at the rate of Rs.663/- per sq.
meter which was quite inadequate. As such, he
preferred Reference under Section 18 of the Land
Acquisition Act, seeking enhancement in
compensation.
3. During the Reference proceedings, he led
evidence of C.W.1 Surendra Bhagwat Kotalwar, C.A.,
to prove that he had purchased a plot for
Rs.10,78,560/- on 08-07-1988 and it is a
Vithal Sitaram Pawar, Stamp Vendor on the point
that one Chandrakant Chaunda sold his plot to one
Hanmant Patil on 11-09-1989 for Rs. 64,000/-,
which was admeasuring 20 x 20 ft., According to
the appellant, this is also a comparable sale. He
also led his own evidence as C.W. 3 on the issues
involved in the Reference. He also relied on the
award Exhibit 39 by which the compensation was
granted at the rate of Rs.1400/- per sq. meter
though in the evidence, he stated that the
compensation was granted at the rate of Rs.1112/-
per sq. meter. The appellant - claimant had thus
relied on the evidence of alleged comparable sale
instances which are produced at Exhibit Nos. 47,
48 and 49 through these witnesses. Besides, he
relied on Exhibit 39 award claiming that the said
award was for the land acquired for the same
purpose i.e. for ring road, at the same time,
though his land was acquired by other notification
under Section 4.
4. The learned Reference Judge, allowed the
Reference partly. He awarded compensation to the
appellant as stated above.
5. This judgment in Reference is challenged by
the appellant in this appeal.
6. It is not out of place here to state that
the impugned judgment was also challenged by the
respondent. However, that first appeal was quite
delayed, so the respondent had preferred C.A. No.
7400/2004 for claiming condonation of delay in
filing that appeal which was of about 2658 days.
The said application was however rejected by this
Court and therefore, said appeal was not heard on
merits. It may be stated that in delay
condonation application, the present appellants
who are L.Rs. of original claimant were heard.
This Court made some observations on the merits of
the judgment in that order. What is its effect,
we will indicate later. Suffice it to say that
though that appeal and this appeal being counter
appeal, were required to be heard at the same
time, both the parties, perhaps, did not bring the
fact
that this appeal was pending, to the notice
of this Court at the time of hearing of
application for delay condonation. Consequently,
the appeal filed by the respondent was disposed of
separately.
7. Learned counsel for the appellant has
submitted that the claimant has proved the
relevant sale deeds Exhibits 47, 48 and 49. They
are of the relevant period and of the plots which
are in the vicinity of the land which is the
subject matter of the acquisition in the
Reference. According to him, these are comparable
sales, as such, the rates therein should have been
considered by the learned Reference Judge as
indicative of market price for determination of
the compensation in the instant Reference.
Therefore, according to him, the learned Reference
Judge has landed into error in determining the
compensation at a very low rate in favour of the
claimant. He has further submitted that the
learned Reference Court has not taken into
consideration the fact that claimant had relied on
award Exhibit - 39 of the adjacent land which was
acquired for the same purpose i.e. ring road. He
has tried to make out a case that his land was to
be acquired
alongwith that land by the same
notification. However, this did not happen, as
such, this award came to be passed separately
though the purpose of both these acquisitions and
the village from which both these lands were
acquired are the same. He has strongly relied on
the decision of this Court in 2007 (5) Mh. L.J.
187 State of Maharashtra vs. Trimbak Joma Thakur,
deceased through his legal representatives
Dashrath Trimbak Thakur and others, to contend
that the potential of the land has to be the
guiding factor for determining the market value of
the land. When the lands are similarly situated,
the market price or the awards in respect of other
land would be indicative factor for the
determination of market price of the acquired
land. According to him, no discrimination in the
award of compensation ( rates of the land ) could
be permissible when the lands acquired are from
the same village for the same purpose and at the
same time, more particularly market price of this
land should be the same as it is in the case of
award Exhibit 39. According to him, the market
price of the land acquired in Reference of the
claimant should be treated as Rs. 1400/- per sq.
meter. Therefore, he submitted that this appeal
should be
allowed. As regards, order on
application for delay condonation of the
respondent and its appeal, he submitted that
observations of this Court therein would not have
any effect on this appeal. According to him,
though appeal of the respondent is dismissed when
this appeal of the appellant was pending, it would
not affect the merits of this appeal and the
instant appeal can be decided on merits by this
Court.
8. As against this, learned A.G.P. for
respondent has contended that the judgment of the
Reference Judge impugned in this appeal is
correct. Sale instances relied by the claimant
are not comparable. The acquired land is not the
part of the Municipal Council area of Latur and
the same was not in the vicinity of then Municipal
area. It is also submitted that the evidence of
the claimant himself in cross examination shows
that the acquired land was away from the
commercial area at the time of acquisition. The
learned A.G.P. submitted that the judgment
impugned is correct, as regards market value of
the land and therefore, it is not liable to be set
aside.
9. At this stage, it is necessary to see the
observations of this court, in the order dated
13-12-2006 by which the application for
condonation of delay of the respondents was
rejected. (Coram N.V. Dabholkar, and P.R.
Borkar, JJ.). The same are thus:
Para (4) : The delay in filing appeal is enormous. In fact, in the light of ratio laid down by the Supreme Court in the matter of Collector, Land Acquisition and another Vs. Mst. Katiji and others (AIR 1987, SC, 1353), 1353) we have been taking a
liberal view while condoning the delay in filing appeals of the State against Land Acquisition References. We have been following two parameters for the purpose. Firstly, that by delayed appeal State does not benefit, which is required to pay interest at 15 per cent per annum for the
amount awarded by way of compensation. Secondly, we had been liberal in condoning the delay where enhancement by the Reference Court is enormous and, therefore, to some extent also, we feel second
examination to be necessary.
Para (5) : So far as present matter is
concerned, we do not think that matter needs any such parameters.
Para (6) : Advocate Shri. Bhapkar has taken us through contents in the judgment
of the Reference Court and more particularly those from paragraph No. 13. It is evident that learned Judge has rejected all the sale instances brought on record by the claimant for the purpose of comparison and enhancement of compensation
in the light of the rates at which land was sold in those sale instances. Paragraph
No.13 is concluded by the Judge as under :
" So, according to me, it is not just and proper to determine the
price of the claimant's land on the basis of the sale instances produced by him. If we peruse the contents of the Award, I find no reason to interfere in the compensation determined by the
L.A.O. to the claimant's acquired land @ Rs.1040/- per sq. mtr., and
and 2 accordingly".
From the contents quoted hereinabove, it is evident that the rate of market price as
awarded by S.L.A.O. is confirmed by the Reference Court. Rate of the market price offered by S.L.A.O. is an offer by the State and not the market price adjudicated by a judicial forum and, therefore, State cannot challenge the said rate which was offered by its own officer.
Para (7) : Our attention was drawn by Shri. Bhapkar to paragraph No. 16 of the judgment in order to demonstrate us as to why compensation awarded by Land Acquisition Officer, Rs.12,17,931/-, is increased to Rs. 22,13,640/- by the
Reference Court. The Reference Court has taken a note of the fact that S.L.A.O. had not granted benefits under Section 23(1A) of the Act i.e. component of 12 per cent per annum on the market value, for the
period commencing on and from the date of publication of the notification under Section 4 of the Act to the date of the
award of the Collector or date of taking possession. This amount was calculable for the period 02-06-1985 to 25-05-1993 i.e. 95 months and, therefore, an amount of Rs. 9,78,120/- becomes payable to the
claimants, which the Reference Court has awarded. We are, therefore, unable to find that this is a case wherein Reference Court has granted exorbitant enhancement and that is not available as a ground for the State to pray that the matter needs to be
examined once again.
Nos.
Para (8) : Having gone through paragraphs 3 and 4 of the Civil Application and more particularly Paragraph No. 4, we do not think those grounds are available to
the State in this particular matter, when we convinced that the Reference Court did not enhance the market price but only granted statutory benefits under Section 23(1A) of the Act which were not allowed by the S.L.A.O.
10. Consequently, this court did not condone
the delay and Civil Application was dismissed.
11. It thus, appears that at that time Counsel
for the appellant was heard. It is specifically
observed that the learned Judge had rejected all
sale instances brought on record by the claimant
for the purpose of comparison and enhancement of
compensation in the light of rates at which the
land was sold in those sale instances. In Para.
7 it is observed that " We are, therefore, unable
to find that this a case wherein Reference Court
has granted exorbitant enhancement and that is not
available as ground for the State to pray that the
matter needs to be examined once again."
12. Thus, it is obvious that though this appeal
was pending at the time when that delay
condonation application was considered by this
Court, the appellant failed to contend that his
appeal was
pending and sale instances relied by
him should be considered by this court for
enhancement of compensation in his appeal.
Needless to say that in such cases, both the cross
appeals i.e. one filed by the claimant and other
filed by the respondent - State or Acquiring Body
have to be heard and decided together obviously,
to avoid conflicting judgments. The duty is cast
on the parties, more particularly on their
Counsel, to inform the court regarding pendency of
appeals or the proceedings which are filed and
pending or for that matter even disposed of
arising out of the same judgments or proceedings.
This aspect need not be over-emphasized, but the
fact remains that in the case at hand, the
appellant did not raise issue of relying his sale
deeds for determination of the compensation
afresh, by answering the same in his favour, for
which this appeal was pending. In our opinion
therefore, it needs to be held that the appellant
should not be permitted to re-agitate this matter
again in this appeal. It is rather difficult to
hold that the appellant should be allowed now to
contend that the impugned judgment is incorrect
because his sale instances were not properly
considered, when he did not make this submission,
when he had
first opportunity to agitate the
matter. We would, however, not dismiss the appeal
on this ground alone, just to avoid injustice to
the claimants - appellant, for the party should
not suffer for the lapse on the part of the
Counsel, to take appropriate steps at the
appropriate time, as an exceptional matter.
13. For appreciation of the relevant
contentions of the parties, it is necessary to
bear in mind that the witnesses examined by the
claimant are not the rustic villagers, whose
evidence can be appreciated with some liberal
attitude. C.W.1 Surendra Kotalwar is C.A. C.W.
2 Vithal Pawar is Stamp Vendor. C.W. 3 claimant
Babasaheb Jadhav himself is an Advocate.
Therefore, their admissions in cross examination,
could be quite material to devalue their evidence.
How, we would indicate at the appropriate places.
14. C.W. 1 Kotalwar has purchased the said
plot under sale deed by way of auction. It is
difficult to hold that it is indicative of market
price as in auction normally the prices are
escalated because of the competition in bids. In
cross examination, ig this witness has stated that
his bid was highest bid and hence that plot was
allotted to him. In further cross examination, he
stated that at the time of purchase of that plot,
market yard was already established there. There
were about 400 to 500 shops in market yard since
1988. Latur Market Committee is prominent in
Maharashtra. What is important to note is that he
stated, Kava road is to the western side of plot
purchased by him and there were shops to both the
sides of the road prior to the purchase of his
plot. There was Jaggery market at the distance of
200 ft. from his plot. He further stated that
there is Majage nagar, Manthale Nagar to the
southern side of his plot which was developed and
ring road is at the distance of about 1/2 to 3/4th
km. from his plot on southern side. He further
stated that on one side, there is Basaveshwar
statue near ring road and claimant's land is on
the western side of that statue. Not this enough,
he further admitted that plot purchased by him is
from the business locality. It goes without
saying that his plot was from business locality
and commercial side, as such, he would have
purchased it at a rate which was more than what
was the actual market price. In our opinion, that
cannot be said ig to be a comparable sale for
determing the market value of acquired land.
15. Turning to the evidence of C.W.2 Pawar, it
would be seen that he is not a party to the sale
deed which he wanted to prove. He has
specifically stated in examination in chief itself
that he knew the claimant Babasaheb Jadhav and his
acquired land is situated at the distance of 1 km.
from the plot sold by Chaunda. In cross
examination, he stated that the plot sold by
Chaunda is on Latur Ausa Highway. It is true that
Latur Ausa road is fully developed from Shivaji
Chowk to Rajiv Gandhi statue and it is residential
area and there are all the facilities on the road.
The plots adjoining to the road fetch more prices
than the plots situated at interior side. What is
important, is, he further stated that the
facilities available to the plot sold by Chaunda
are not available to the acquired land. He
further admitted that the acquired land has got
importance due to construction of ring road only.
He further admitted that "it is true that in the
year 1990, the rates of the plot sold by Chaunda
were not comparable with the acquired lands." He
has further stated that he knew claimant since 10
to 12 years.
His relations with him are good and
on that day, he had not received summons from the
court and he attended the court as per the say of
the claimant. He is Stamp Vendor and the claimant
is an Advocate. As such, his evidence appears to
be of little help to the claimant.
16. Turning to the evidence of the claimant
himself, in his evidence he has deposed about
potential of acquired land. He has stated that
the L.A.O. has granted compensation @ Rs.10.40
per sq. ft. He claimed compensation @ Rs.2000/-
per sq. ft. It is necessary to evaluate his
evidence vis a vis his cross examination. He had
produced the copy of the map of Municipal limits
at Exhibit 40. As seen from the map, acquired
land is not shown within the Municipal limits. He
further stated that except that map, he has not
produced any other map showing Municipal limit.
He has not produced any map showing that acquired
land was within municipal limits at the relevant
time. Needless to say that vis a vis this
evidence, the certificate issued by the Chief
Officer in his favour that the acquired land was
within the Municipal limits in the year 1990 has a
little value. Admittedly, he has got converted
his land into ig N.A. after publication of
notification under Section 4 of the Land
Acquisition Act. It is difficult to say that this
would attract favourable inference to the
claimant. He has stated that he did not produce
the sale instances from the adjacent land and it
is true that he had produced those sale instances
as they are of higher side. He has admitted that
price of the plot goes on decreasing when one
proceeds from Rajiv Gandhi statue towards eastern
side by ring road. In further cross examination,
he stated that Survey No.33 and 34 are adjacent to
his acquired land and plots from those lands are
sold. The acquired lands from Survey Nos. 33 and
34 are the same. The plot Survey No. 38 might
have been sold @ Rs.538/- per sq. meter. He
admitted that L.A.O. had determined the price of
acquired land on the basis of plot Survey No.
33/B and 34. This is a circumstance which speaks
against the claim of the claimant. In further
cross examination, he admitted that he did not
know whether there are any sale instances from
Kanheri. He has added that as per map produced by
him, Kanheri is not within Municipal limit of
Latur. He did not produce his claim statement
before the Reference court.
17. As regards Exhibit 47 sale deed, suffice it
to say that the sale was in respect of the small
plot and it was from Latur Municipal area of
Bhandegalli which had good boundaries including a
shop in the vicinity and as such, the same is not
comparable. All this will indicate that the sale
instances relied by the claimant are of little
value to enable the court to draw the inference
that those are of comparable sales as indicative
of market price of the acquired land.
18. Learned counsel for the appellant has
relied on the decision of this Court in 2007 (5)
Mh. L.J. 187 State of Maharashtra vs. Trimbak
Joma Thakur deceased through his legal
representatives Dashrath Trimbak Thakur and
others, particularly Para. Nos. 7 and 10 of the
judgment, which read thus:
Para. 7 : It is an undisputed case that there are no sale instances vide which the
freehold rights have been transferred between the private parties and for that matter, even between the State, its Corporations, on the one hand and private individuals or Companies, on the other. The learned counsel appearing for the
State, as already noticed, had argued that the claimants have failed to produce some
record of sale instances, and they have failed to discharge the onus placed upon them for determination of a fair market value of the land at the time of
acquisition; and as such their claim should be dismissed. This argument appears to be some what strange, but it is examined in its proper perceptive, and has to be noticed only to be rejected. It is a conceded case before us that the lands for
the first time were acquired in the year 1970 and the acquisition, of course, was
permitted to lapse and fresh Notification was issued in the year 1986. In other words, the lands all throughout this long period, remained the subject matter of Notification under Section 4 of the Act,
thus necessarily debarring transfer of lands. The claimants cannot be blamed for not producing on record the sale instances for the relevant period. They have produced their own best evidence which was available to them in the form of lease deeds, vide which CIDCO has transferred the
lands of the Companies or individuals for different amounts. They have to be treated as evidence admissible in law and relevant for determining the question in controversy. The potential of the acquired lands is the relevant consideration. The potential has to be determined on the basis
of factors available and existence as on the date of the issuance of the Notification under Section 4 of the Act. The further potential of the lands i.e. what the land price would be after a lapse
of one year or more, would hardly be relevant consideration. The potential cannot be treated as a mere expectation of
future, but should be close to reality at site at the time of acquisition of the lands. The potential itself has to be on the basis of existing evidence which will reflect the potential and scope of
development of the area with reference to the surrounding area.
Para. 10 : Location and potential of an acquired land are two features of mode of acquisition which go hand-in-hand. The
location of a land is the stepping stone for examining the potential of the land.
If the location of the land is that it is surrounded by developed area and has facilities available and is near to the Highways, its accessibility is easier, then
it is said to be a very located land; and if the surrounding areas are already developed and the acquisition of the land is for some purpose, then obviously, it has great potential as well. At the cost of repetition, we may notice that the lands
were initially acquired in the year 1970. The said Notification remained in operation
till it was permitted to lapse, in view of the amendment in law, and therefore, a fresh Notification was issued. During this period, the areas had developed and the warehousing purpose was the specified
purpose for acquisition of the lands. CIDCO, in its Development Plan, has stated the area to be residential, which purpose was subsequently modified in the year 1979, and finally, the lands were acquired in the year 1986.
19. It cannot be disputed that potential of the
land has to be considered while determining the
market price of the land. However, the future
potential, in view of the same decision may not be
indicative of the market price. The potential and
the facilities of the acquired land, as available
on the date of Notification are to be considered
while drawing inference of market price. In our
opinion, in view of the admissions of the
witnesses examined by the claimant, it would not
be possible to say that these sale instances, are
of necessary help to the claimant as indicative of
market price of acquired land. He could have
produced
sale instances of village Kanheri or of
the plots which are in the vicinity of the
acquired land. As he has not done so, the sale
instances relied by him as they appear from
commercial area, would be required to be held as a
not reliable for judging market value of the
acquired land. The inferences drawn by the
learned Judge as regards these sale deeds, cannot
be said to be unwarranted.
20. This takes us to consider the impact of
award Exhibit - 39 which is pressed into services
by the claimant, contending that the same was the
award passed in the case of the acquisition of the
lands which were acquired for the same purpose
from the same village and at the same time, though
his land was not included in that notification.
It is evident that there is nothing on record to
suggest as to what had happened to that award,
whether it has been accepted or challenged. The
crucial question would be whether that award can
be treated as a indicative of market price of the
present land. It is claimed by the
appellant-claimant that compensation in that case
is awarded @ Rs.1400/- per sq. mtr. and at least
that can be awarded in the present case. The
learned Reference ig Judge seems to have not
considered this aspect. However, on perusal of
the contents of the said award Exhibit - 39 it
would be seen that situation of that land was such
that it was in the limits of Latur Municipal area.
In the area surrounding to that land, there were
plots which were put to non agricultural use. It
was also observed that the area is developed for
commercial complex and residential area and it is
located on Latur Ausa State Highway. In that
award, rate of some lands was fixed to Rs.1400/-
per sq. mtr. and some land to Rs.1000/- per
sq.mtr. Therefore, unless it is shown with
specific evidence subjected to the test of cross
examination, that land for which rate therein was
granted to the tune of Rs. 1400/- per sq. mtr.
was similarly situated with acquired land it would
not be possible to hold that compensation for the
land under present acquisition can be fixed at the
rate of Rs. 1400/- per sq. mtr. Here is the
case where rate more than Rs.1000/- per sq. mtr
i.e. above the minimum rate fixed in that award
has been granted. Needless to repeat, in that
award, uniform rate of Rs. 1400/- per sq. mtr.
is not awarded.
21. In our
opinion, that award is also not
helpful to the claimant. As such, contention of
the learned counsel for appellant in this regard
is far from acceptance.
22. It may also be stated that though it was
expected of respondents to lead evidence to
justify its award, the same was not done.
However, in the present case, as appellant has
failed to establish his claim for enhancement in
Reference, the contention that the respondents
have failed to lead any evidence to justify the
award therefore, adverse inference should be
drawn, merits no consideration. Accordingly, it
is liable to be rejected.
23. The appeal of the State has been dismissed,
consequent to dismissal of its application for
condonation of delay and as State has not
preferred any proceedings to challenge that order,
it will have to be held that the State also can
not be now permitted to say anything against the
impugned judgment.
24. In sequel, we find that the appeal has to
be dismissed.
ig The same is dismissed, however,
with no order as to costs.
[ S.R. DONGAONKAR, J.] [ NARESH H. PATIL, J.]
sut/u/NOV08/fa605.97
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!