Maharashtra Industrial Development Act, 1961 – Land Acquisition Act, 1894 – Grant of compensation – Highest exemplar sale deed – Benefit of, ought to be given to the Appellants – Appellants’ land and other adjoining lands were acquired under the 1961 Act for the establishment of Jintur Industrial Area – LAO awarded compensation to the tune of Rs. 10,800/- per Acre – Appellants sought enhancement of compensation – Reference Court enhanced the compensation to Rs. 32,000/- per Acre however, ignored the highest exemplar sale deed showing market value of Rs. 72,900/- per Acre relied upon by the Appellants – First Appeal filed by Appellants, dismissed by High Court – Interference with:
Held: When there are several exemplars with reference to similar land, usually the highest of the exemplars, which is a bona-fide transaction, will be considered – The highest exemplar sale deed showing market value of Rs. 72,900/- per Acre, available at Sr. No.4 and relied upon by the Appellants as a bona-fide sale instance was completely overlooked by the Reference Court – Though, the High Court recorded that the Reference Court considered in all ten exemplars and that it did not consider the sale instance at Sr. No.4 which is from Jintur, however, it took a diametrically opposite view that the Reference Court had considered the sale instance at Sr. No.4 since they are found nearby to the notification under the 1961 Act – Such finding recorded by the High Court is erroneous – Impugned judgment not sustainable – Sale exemplar at Sr. No.4 is the most proximate to the date of transaction – Land of the Appellants was situated in a prime location and they deserve the benefit of the highest sale exemplar – However, on facts, the Reference Court rightly applied a deduction of 20% in the price determined – Thus, while accepting the sale exemplar at Sr. No.4, having market value of Rs. 72,900/- per Acre, a deduction of 20% i.e., Rs. 14,580/- per Acre is applied – Compensation granted to the Appellants enhanced from Rs. 32,000/- per Acre to Rs. 58,320/- per Acre with all other consequential benefits, as directed. [Paras 22, 25, 26, 28, 33, 50, 51]
Land Acquisition Act, 1894 – Maharashtra Industrial Development Act, 1961 – Potential value of the land to be considered – Appellants’ land and other adjoining lands were acquired under the 1961 Act for the establishment of Jintur Industrial Area – Respondent No.3-Maharashtra Industrial Development Corporation contended that the Courts below rightly excluded the sale exemplar at Serial No. 4 on account of it being of an abnormally high value:
Held: Contention rejected – The compensation payable to the owner of the land is determined by reference to the price which a seller might reasonably expect to obtain from a willing purchaser– Also, the land acquired has to be valued not only with reference to its condition at the time of notification u/s.4, LA Act but its potential value must be taken into account – Thus, the sale deeds of lands situated in the vicinity and the comparable benefits and advantages which they have, provide a ready method of computing the market value – In the present case, the sale exemplar at Sr. No.4 i.e., the sale instance dated 31st March 1990, is the most proximate to the date of transaction – Further, the sale instances at Sr. Nos.9 and 10, from Jintur, show that after the notice under the 1961 Act, there has been a very high rise in the prices of the land in the nearby areas – Land of the Appellants was situated in a prime location and they deserve the benefit of the highest sale exemplar. [Para 41] Land Acquisition – Compensation – Method of computation – Plea of the Respondent No.3-Corporation that the Reference Court rightly used the principle of averaging of sale price of sale exemplars at Sr. Nos.1, 2, 3 and 5 for determination of market value of acquired land:
Held: Not accepted – In the event, the values of the sale instances taken into consideration by the Reference Court had a “marginal variation”, averaging thereof would have been permissible – But, the sale exemplars taken into consideration by the Reference Court, were the ones from Sr. Nos.1 to 6 and they ranged from Rs. 25,000/- per Acre to Rs. 72,900/- per Acre – In such a case, the averaging thereof was clearly not permissible – Further, only because the Reference Court, without recording any reason, decided to completely overlook/omit the sale instance at Sr. No.4 and only took into consideration the sale instances at Sr. Nos.1, 2, 3 and 5, which are having value of Rs. 40,000/- per Acre, Rs. 41,000/- per Acre, Rs. 40,000/- per Acre and Rs. 40,000/per Acre respectively; the averaging of these sale instances, having a marginal variation, could have been envisaged by the Reference Court – However, such an approach taken by the Reference Court was completely impermissible. [Paras 48, 49]
Land Acquisition Act, 1894 – s.51A – Respondent No.3Corporation contended that the Reference Court did not enter any finding that the sale instance at Sr. No.4 is a bona-fide transaction and it was justified in not considering the same as it reflected an unusually high rate:
Held: The contention of the Respondent No.3 qua sale instance at Sr. No. 4 not being a bona-fide transaction is rejected on the basis of s.51A as per which the certified copy of a document can be accepted as evidence of transaction recorded in the said document – Further, though the Respondent State denied the correctness of the said documents, it did not lead any rebuttal evidence – Maharashtra Industrial Development Act, 1961. [Para 44]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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