CHINTAMAN AND ANR.versusSTATE OF MAHARASHTRA AND ANR.
- Citation
- 1996 INSC 843
- Decided
- 7 August 1996
- Disposal
- Appeal(s) allowed
Holding
The High Court was correct in rejecting the reference court’s award; compensation must be based on market value and the sale deeds not produced cannot be relied upon.
Summary
The appellants challenged the award of compensation for land acquired by the State of Maharashtra for a spinning mill near Nagpur. The Land Acquisition Officer had fixed compensation at Rs 5,000, Rs 3,000 and Rs 2,000 per acre for three categories of land. The reference court enhanced the compensation to Rs 0.40 per square foot, but the High Court set aside that award and restored the collector’s award. On appeal, the Supreme Court held that the sale deeds relied upon by the reference court were not produced and therefore inadmissible, and that oral evidence could not be used in their absence. Consequently, the Court modified the compensation to market values of Rs 8,000, Rs 6,000 and Rs 4,000 per acre respectively and awarded solatium at 15 % and interest at 6 % per annum. The appeals were allowed.
Issues considered
- Whether sale deeds not produced in court are admissible as evidence
- Whether oral testimony can be relied upon in the absence of documentary evidence
- Whether the reference court’s enhanced compensation of Rs 0.40 per sq ft is legally valid
- How the market value of the acquired land should be determined for compensation
- Whether the claimants are entitled to solatium and interest under the Land Acquisition Act
Legislation cited
- Land Acquisition Act, 1894s. 11, s. 23(2), s. 28, s. 34, s. 4(1)
Subjects
Judgment
A CHINTAMAN AND ANR.
v.
STATE OF MAHARASHTRA AND ANR.
AUGUST 7, 1996
B [K. RAMASWAMY AND G.B. PATTANh.IK, JJ.]
Land Acqllisition Act, 1894 :
S.4(1), 11, 23(2), 34-Acquisition of /and-Compensati01t-Land Ac-
C qllisition Officer awarding compensation at the rate of Rs.5, 000, Rs. 3, 000
and Rs.2,000 per acre respectively for three different categ01ies of lands and
granting solatium and interest Z1nder ss.23(2) and 34-Reference cowt en-
lzancing compensation at the rate of Rs. 0.40 per sq. ft.-High Cowt setting
aside the award and decree of reference col/rt and confinning award of the
Land Acqllisition Office1-Held, High Col/rt was right in its con-
D clllsion-Since neither the sale deeds nor ce1tified copies thereof were ex-
hibited in cowt, oral evidence of witnesses examined to speak 011 the
transactions collld not be relied on-However, in view of the fact that the
lands are very near to the city and possessed of potential value, market va/l/e
of the lands is detennined at Rs. 8,000 Rs. 6,000 and Rs. 4,000 respectively
E for the three categories of /ands-Claimants woZ1ld be entitled to solatiwn @
15% and inte1~st @ 6% per annllm.
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 10215-16
of 1983.
F From the Judgment and Order dated 5.8.1981 of the Bombay High
Court in First Appeal Nos. 63 and 64 of 1971.
H.W. Dhabe and AK. Sanghi for the Appellants.
D.M. Nargolkar for the Respondents.
G
The following Order of the Court was delivered :
Notification under Section 4(1) of the Land Acquisition, 1894 (for
short, the 'Act') was published in respect of different parcels of lands on
February 23, 1964 and March 1, 1964 acquiring an extent of 6.67 acres in
H the first notification and 2.75 acres in the second notification for the
368
CHINTAMAN v. STATii 369
purpose of setting up spinning mill. The lands are situated near Nagpur A
Municipal Corporation practically now within urban agglomeration. The
Land Acquisition Officer in his award dated October 6, 1966, determined
the compensation @ Rs. 5,000 per acre in respect of some lands and Rs.
3,000 per acre in respect of other lands in the first notification and Rs.
2,000 per acre for the lands in the second notification and solatium and
B
interest under Section 23(2) and Section 34 of the Act.
On reference, the civil Court by decree and award dated November
' 18, 1968 enhanced the compensation to Rs. 0.40 per sq. ft. On appeal by
,' the State and cross-objection by the claimants, the High Court reversed the
decree and award of the reference Court and confirmed the award of the C
Collector. Thus, these appeals by special leave.
Though learned counsel for the appellants stated that the High Court
was in error in not relying upon the sale deed Exts. 39 and 40) to an extent
of Rs. 5,000 per sq. ft. and Rs. 4,000 per sq. ft. respectively, the High Court
was wholly right in its conclusion for the reason that neither the sale deeds D
nor the certified copies thereof were exhibited in the Court. In these
circumstances, the documents are inadmissible, though the witnesses, AW
9 and 10 have been examined to speak on these transactions. In the absence
of the sale deeds, no oral evidence could be relied upon. The reference
Court had committed manifest error of law in relying on that evidence. But E
the fact that the lands are very near to the city and possessed of a potential
value is not in dispute. Under these circumstances, we think that the
appropriate course would be that the market value of the lands in respect
of which Rs. 5,000 was awarded by the Collector shall be determined @
Rs. 8,000 per acre and the land for which Rs. 3,000 was awarded, would
be valued @ Rs. 6,000 per acres. Similarly, in the case of second notifica- F
tion, the market value would be determined @ Rs. 4,000 per acre.
The award and decree of the reference Court is modified to the
above extent. The claimants are entitled to solatium and interest under
Section 23(2) @ 15% on the enhanced compensation and interest under G
Section 28 @ 6% per annum from the date of taking possession till date·
of deposit of enhanced compensation.
The appeals are accordingly allowed. No costs.
R.P. Appeals allowed. H
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