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Supreme Court of India

KAZI AKILODDINversusSTATE OF MAHARASHTRA & ORS.

Citation
2024 INSC 505
Decided
10 July 2024

Holding

The High Court was not justified in declaring the entire land a Blue Zone; only the strip within 15 m of the river is a no‑construction zone, and the appropriate market value is Rs 100 per sq ft for the balance of the land, with rental compensation at 8% of the enhanced amount.

Summary

The appellant, owner of a 1.25‑lac‑sq‑ft land in Akola, challenged the award of compensation for land acquired under the Land Acquisition Act, 1894 for a flood‑protection wall, contending that the land was not wholly within the statutory ‘Blue Zone’ and that the market value should be based on arm‑length transactions. The Supreme Court examined whether the land fell within the Blue Zone, the extent of the no‑construction zone under the 1974 Building By‑laws, and which sale exemplars were appropriate for valuation. It held that the acquiring body failed to prove a statutory demarcation of a Blue Zone as of the Section‑4 notification date (03‑06‑1999), and that only the strip within 15 m of the riverbank is a no‑construction zone. Consequently, the market value for the remaining 68.3% of the land is Rs 100 per sq ft, while the portion within 15 m is valued at the rate fixed by the Special Land Acquisition Officer. The Court also affirmed the appellant’s entitlement to rental compensation at 8% of the enhanced amount and modified the operative order accordingly. The High Court’s declaration that the entire land was in the Blue Zone was set aside and the award was partially altered.

Issues considered

  • What is the market value of the appellant's land as on 03‑06‑1999?
  • Does the land fall within the statutory ‘Blue Zone’?
  • If in the Blue Zone, what compensation rate applies?
  • If not in the Blue Zone, what is the extent of the ‘No Construction Zone’ under the applicable by‑laws?
  • What market value is payable for land inside and outside the No Construction Zone?
  • Which sale exemplars (unrelated vs. related parties) should be used for valuation?
  • Should development charges be deducted when acquisition is for a flood‑protection wall?
  • Is the appellant entitled to rental compensation for the period of possession before the award?

Legislation cited

Subjects

Land AcquisitionCompensationMarket value of landBlue ZoneNo Construction ZoneDevelopment chargesExemplarsRental compensationFlood protection wall

Judgment

                 [2024] 7 S.C.R. 2248 : 2024 INSC 505

                             Kazi Akiloddin
                                   v.
                      State of Maharashtra & Ors.
                    (Civil Appeal No. 6776-6777 of 2013)
                                  10 July 2024
              [Surya Kant and K.V. Viswanathan,* JJ.]

                            Issue for Consideration
       What should be the market value of the land of the appellant as on
       03.06.1999; does the site of the appellant fall within ‘Blue Zone’ as
       contended by the acquiring body-Vidarbha Irrigation Development
       Corporation (VIDC); if it falls within the ‘Blue Zone’, what should be
       the market value for the land; if the land or any part thereof is not
       to be determined as a ‘Blue Zone’, what was the ‘No Construction
       Zone’ as per the extant laws; and what should be the market value
       payable for that portion; what should be the market value payable
       for any portion, falling outside the ‘No Construction Zone’.

                                   Headnotes†
       Maharashtra Regional and Town Planning Act, 1966 – ss.14(j),
       21, 22(j) – Land Acquisition Act, 1894 – s.4 – Land of the
       appellant, if fell within the blue zone – Market value thereof
       as on 03.06.1999, the date of the Section 4 notification:
       Held: High Court not justified in declaring the entire land of the
       appellant as falling within the blue zone – If an acquiring body
       relies on a statutory injunction, to establish that the land has
       no potential, then the burden is on the said acquiring body to
       demonstrate without any ambiguity that such a statutory interdict
       is in place – VIDC did not discharge the burden in demonstrating
       that statutorily there was a valid demarcation of a “Blue Zone”
       on the date of the s.4 notification, under the Act – What was
       established was only the existence of the bye-law i.e. “Standardised
       Building Byelaws and Development Control Rules for “B” and “C”
       Class Municipal Councils of Maharashtra” – As on 03.06.1999,
       i.e. the date of the s.4 notification for the appellant’s land, the no
       construction zone can only be taken as 15 meters from the defined
       boundary of the water course which is the Morna river – If the site
       to the extent it is within the 15 meters of the defined boundary of

* Author
[2024] 7 S.C.R.                                                                2249

              Kazi Akiloddin v. State of Maharashtra & Ors.


     water course, that part alone could be said to have no potential
     for development – The land beyond the 15 meters mark from the
     defined boundary of the water course in the site of the appellant
     should be treated independently – Land of the appellant except
     to the extent of 15 meters from the defined boundary of the water
     course is not covered by the no construction zone – Considering
     the potentiality of the land and its situs, except for the lands upto
     15 meters from the defined boundary of the water course, Rs.100/-
     per sq.ft. awarded for 68.3% of the total admeasuring area –
     Thus, appellant entitled to Rs.100/- per sq. ft. for the 68.3% (approx.)
     of the balance area, after excluding the land area, if any, which
     falls within the 15 meters from the defined boundary of the water
     course – For the land falling within the no construction zone, if
     any, as per the Standardized Building Byelaws, he will be paid at
     the rate determined by the Special Land Acquisition Officer in the
     award – Appellant entitled to rental compensation @ 8% of the
     awarded amount, as directed – Operative order of the Reference
     Court modified. [Paras 41, 43, 45, 56, 57, 66]
     Land Acquisition – Exemplars – Reliance upon – Two
     transactions, one between independent/unrelated parties and
     the other between related parties – Both transactions took
     place without much time gap:
     Held: When there is a choice between an exemplar where the
     transaction is between unrelated parties dealing at arm’s length
     and between an exemplar where the transaction is between related
     parties of a higher value, both of which are broadly around the
     same period, prudence would dictate and common sense would
     command that the value set out in the transaction between unrelated
     parties is accepted – In the present case, the transaction which is
     at arm’s length is accepted and the market value of the amount
     of Rs. 100/- per sq. ft. is accepted and the claim of Rs. 175/- per
     sq. ft is rejected. [Paras 62, 65]
     Land Acquisition – Development charges – Determination –
     Acquisition for construction of a flood protection wall:
     Held: The purpose for which the land is acquired must be taken
     into consideration while determining development charges – Since
     the acquisition was for construction of a flood protection wall, thus
     there can be no question of any development or any cost thereof –
     Land was ripe for use for building purposes – In the special facts
     and circumstances of the case, no deduction ordered based on the
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    cost for incurring development – Value fetched by smaller plots,
    when can be applied in valuing larger tracts of land, discussed.
    [Paras 67, 66]

                            Case Law Cited
    State of Orissa v. Brij Lal Misra and Others [1995] Supp. 2 SCR
    354 : (1995) 5 SCC 203; Sardara Singh and Others v. Land
    Acquisition Collector, Improvement Trust, Rupnagar and Others
    (2020) 14 SCC 483; Om Parkash and Others v. State of Haryana
    (2016) 13 SCC 190; Special Land Acquisition Officer v. Karigowda
    and Others [2010] 5 SCR 164 : (2010) 5 SCC 708; Administrator
    General of West Bengal v. Collector, Varanasi [1988] 2 SCR 1025 :
    (1988) 2 SCC 150; Himmat Singh & Ors. v. State of Madhya
    Pradesh & Anr. (2013) 16 SCC 392; Nelson Fernandes v. Land
    Acquisition Officer [2007] 3 SCR 563 : (2007) 9 SCC 447; Bhag
    Singh and Others v. Union Territory of Chandigarh through the
    Land Acquisition Collector, Chandigarh [1985] Supp. 2 SCR 949 :
    (1985) 3 SCC 737; Ashok Kumar and Another v. State of Haryana
    [2016] 1 SCR 1084 : (2016) 4 SCC 544 – relied on.
    Kazi Akiloddin Sujaoddin v. State of Maharashtra & Ors. [2013] 7
    SCR 382 : (2013) 14 SCC 8; Munusamy v. Land Acquisition Officer
    [2021] 9 SCR 1 : (2021) 13 SCC 258; Mehrawal Khewaji Trust
    (Registered), Faridkot and Others v. State of Punjab and Others
    [2012] 4 SCR 24 : (2012) 5 SCC 432; Bhagwathula Samanna
    and Others v. Special Tahsildar and Land Acquisition Officer,
    Visakhapatnam Municipality, Visakhapatnam [1991] Supp. 1 SCR
    172 : (1991) 4 SCC 506; Charan Dass (Dead) by LRs. v. H.P.
    Housing & Urban Development Authority & Ors. [2009] 14 SCR
    163 : (2010) 13 SCC 398; State of M.P. v. Radheshyam [2022]
    9 SCR 743 : 2022 SCC OnLine SC 162; State of Maharashtra
    and Others v. Digamber Bhimashankar Tandale & Ors. [1996] 2
    SCR 90 : (1996) 2 SCC 583 – referred to.

                               List of Acts
    Maharashtra Regional and Town Planning Act, 1966; Land
    Acquisition Act, 1894.

                            List of Keywords
    Land Acquisition; Compensation; Market value of the land;
    Exemplars; Development charges; Special Land Acquisition Officer;
    Acquisition for construction of a flood protection wall; Blue Zone;
[2024] 7 S.C.R.                                                          2251

              Kazi Akiloddin v. State of Maharashtra & Ors.


     Blue colour; No Construction Zone; Water course; Potentiality of
     the land; Potential value; Building Byelaws; Rental compensation;
     Transactions, Independent/unrelated parties; Related parties;
     Agricultural purposes; Non-agricultural purposes; Non-agricultural
     land; Proximity; Developed areas.

                           Case Arising From
     CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 6776-6777 of
     2013
     From the Judgment and Order dated 17.06.2013 of the High Court
     of Bombay at Nagpur in FA No. 1210 of 2008 and FA No. 6 of 2009
     With
     Civil Appeal Nos. 7322, 7323, 7324, 7325, 7326, 7327, 7328 and
     7329 of 2024
                        Appearances for Parties
     Ranjit Kumar, Sr. Adv., R. B. Agrawal, Satyajit A Desai, Ansuman
     Singh, Siddharth Gautam, Gajanan N Tirthkar, Abhinav K. Mutyalwar,
     Vijay Raj Singh Chouhan, Lav Kumar, Ms. Anagha S. Desai, Nishant
     R. Katneshwarkar, Amol Nirmalkumar Suryawanshi, Ms. Srishty
     Pandey, Uday B. Dube, Himanshu Chaubey, Siddharth Garg, Srijan
     Sinha, Ms. Pallavi Aggarwal, S. S. Shroff, Shrirang B. Varma,
     Siddharth Dharmadhikari, Aaditya Aniruddha Pande, Bharat Bagla,
     Sourav Singh, Aditya Krishna, Ms. Preet S. Phanse, Adarsh Dubey,
     Advs. for the appearing parties.
                Judgment / Order of the Supreme Court

                                Judgment
     K.V. Viswanathan, J.
     I.     Civil Appeal Nos. 6776-6777/2013 (Kazi Akiloddin Vs.
            State of Maharashtra & Ors.)
     A.     Facts
1.   These Civil Appeals call in question the correctness of the judgment
     dated 17.06.2013 of the High Court of Judicature at Bombay, Nagpur
     Bench, Nagpur in First Appeal No. 1210 of 2008 (filed by the appellant
     herein) and First Appeal No. 6 of 2009, which was a cross appeal
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     filed by the State of Maharashtra & Ors. By the said judgment, the
     High Court had dismissed the appeal of the appellant. Dealing with
     the appeal of the State, the High Court, while allowing the same,
     directed that the appellant shall refund the excess amount withdrawn
     with interest @ 9% p.a. from the respective dates of withdrawal.
2.   The facts lie in a narrow compass. The appellant is the owner of the
     land bearing Survey No.1 admeasuring 1 hectare and 1700 sq. meters
     (1,25,937 sq. ft.) at Mouza Akola (Bujurg), Taluk and District Akola.
3.   A Section 4 notification under the Land Acquisition Act, 1894
     (for short ‘the Act’) was issued for acquisition of the subject land on
     03.06.1999. Prior to this, on 15.11.1998, in view of the proposal to
     acquire the subject land for construction of a flood protection wall, the
     appellant was approached for handing over the subject land on the
     assurance of rental compensation. On 15.11.1998, the possession
     was also taken. A Section 6 notification under the Act was issued
     on 02.12.1999. In the award proceedings, the appellant claimed
     compensation @ of Rs. 500 per sq. ft. On 04.08.2000, the Land
     Acquisition Officer passed an award to the tune of Rs. 5,61,000/-
     per hectare for the subject land, which works out to Rs. 5/- per sq.
     ft. (approx.). Importantly, in the award, there is no reference to the
     land falling under ‘Blue Zone’ which has become the main issue in
     controversy between the parties before the Reference Court, the
     High Court and this Court.
4.   Before the Reference Court, the appellant claimed additional
     compensation of Rs. 4,30,84,000/- @ of Rs. 500/- per sq. ft. for the
     acquired land of 84,481 sq. ft. on the premise that in the said area
     43 plots have been carved out by him. In the break up given for
     1 Hectare, 17 R totalling 1,25,937 sq. ft. following was provided:
          Total under plots area - 84481 sq. ft. (68.3% approx.)
          Total under roads area – 30106 sq. ft.
          Total under open space area – 11298 sq. ft.
     He also claimed compensation of Rs. 25 lakhs for the expenditure
     made on the road and also prayed for damages of Rs. 50 lakhs. Except
     for claiming expenditure for laying road to the tune of Rs. 25 lakhs,
     no enhanced compensation was claimed for an area of 41,404 sq. ft.
     (The area of the road and the open space area as stated above).
[2024] 7 S.C.R.                                                      2253

              Kazi Akiloddin v. State of Maharashtra & Ors.


5.   Before the Reference Court, the appellant examined himself as PW-1,
     Mohd. Nadir, photographer, was examined as PW-2 and T.N. Bhoob,
     Civil Engineer, was examined as PW-3. The State examined K.S.
     Bhoyar, Sub-Divisional Engineer, as DW-1 and Laxman Bhika Raut,
     Land Acquisition Officer, as DW-2. The appellant in his deposition
     stated that he had planned to convert the land to non-agricultural
     purposes. Accordingly, the appellant deposed that he had measured
     and demarcated all the 43 plots in the land; that the land was allotted
     Seat No. 28-D and Plot No. 20 in Akola City Nazul record and that the
     payment receipt evidencing payment for conversion to non-agricultural
     purpose was also available on record. The appellant deposed that
     the land was touching the Akola Gaothan and that all the adjacent
     lands were put to residential use; that the surrounding lands have
     been converted to non-agricultural purpose; that the acquired land
     was within the municipal limits of Akola City surrounded by police
     quarters, other government quarters, Maratha Mahasangh Hostel,
     Swami Vivekanand Ashram, Jaju Housing Society, Geeta Nagar,
     Laxmi Nagar, Sneh Nagar, A.P.M.C. Sub-Market, Luxury Bus Stand,
     Dr. Ambedkar Nagar, BR High School and Kamala Nagar.
6.   As exemplars, certified copies of sale transaction dated 10.05.1999
     (exhibit-71) whereby plot no. 50 of an area of 3,000 sq. ft. out of
     layout Survey No. 7/2 purchased for a consideration of Rs. 5,25,000/-
     averaging to Rs. 175/- per sq. ft. was produced by the appellant.
     A Sale Deed of 17.11.1999 (exhibit-72) evidencing an average price
     of Rs. 601/- per sq. ft. was also produced. Index of Sale Deed of
     14.07.1998 @ of Rs. 1047 per sq. ft. (exhibit -73) was produced.
     Sale Deed of 24.08.1998 @ of Rs. 422 per sq. ft. (exhibit-33) was
     produced. The appellant/claimant pleaded that the above transactions
     were at a nominal distance of 200 ft. to 500 ft. and on that basis,
     he claimed an additional compensation @ of Rs. 500/- per sq. ft.
     for the 84,481 sq. ft. land as indicated above.
7.   PW-2 Mohd. Nadir, photographer, also spoke about the land being
     adjacent to the Akola Gaothan and the existence of Rahat Nagar
     Police locality towards west and Maratha Mahasangh towards north.
     Photographs were marked.
8.   PW-3, T.N. Bhoob, deposed that he referred to the town planning
     development plan at the time of inspection of the property and that
     the acquired land did not fall within the ‘Blue Zone’ area.
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9.   DW-1, K.S. Bhoyar, deposed that a joint measurement was carried
     out and a map was prepared depicting the acquired land. In the map,
     the zones were shown. According to DW-1, the land in question in
     field survey no. 1 was situated in ‘Blue Zone’ and was also on the
     river bed. DW-1 stated that the land was an agricultural land but at
     the relevant time, it was barren and was never converted to non-
     agricultural purpose. According to DW-1, the land was valueless
     as it came under ‘Blue Zone’; that the land was always covered
     by water whenever there was flood and that is the reason why the
     land was taken for the construction of flood protection wall and
     even the appellant executed a Rajinama letter. DW-1 stated that he
     had consulted the Town Planning Authority and collected the town
     planning map also.
10. In the cross-examination on 22.01.2008 , DW-1 deposed that he
    had not brought the original map on the basis of which Exh.141
    was prepared and that he was not in a position to say in which
    year Exh.141 was prepared. He though added that it could have
    been prepared probably in 1998-99 but even he could not definitely
    provide the date and month of its preparation. DW-1 also stated
    that after joint measurement, the Taluka Inspector of Land Records
    (TILR) office gave the measurement map and in that map the ‘Blue
    Zone’ is not shown. He denied the suggestion that there was no
    joint measurement and no map was prepared.
11. DW-2 Laxman Bhika Raut, Land Acquisition Officer, deposed that he
    visited the site and inspected the same and found the land to be in
    the river bed and comes under ‘Blue Zone’. DW-2 stated that in the
    award he had not noted the location and other descriptions of the
    property and he could not assign any reason as to why he had not
    so mentioned in the award. DW-2 admitted that he did not mention
    in the award about the inspection of the property. DW-2 stated that
    the sale instance referred to in the case of Brijmohan Bhartiya was
    not considered as that land was far away from the suit property.
    DW-2 admitted that there was no reference in the award Exh.46
    to the effect that the suit property was in a ‘Blue Zone’ and that he
    could not assign any reason why it was not so referred.
     B.   Findings of the Reference Court
12. The Reference Court, by its judgment dated 02.08.2008, after setting
    out the legal position that the potentiality of the acquired lands is to
[2024] 7 S.C.R.                                                       2255

              Kazi Akiloddin v. State of Maharashtra & Ors.


     be seen as relevant consideration, set out to analyze the evidence. It
     noticed the deposition of the claimant witnesses to the effect that the
     land was abutting the Akola Gaothan; that adjoining properties have
     been converted to non-agricultural purpose; that the suit property
     was surrounded by residential houses, societies, sub-markets and
     luxury bus stand; that maps and photographs establishing the said
     fact have been produced and held that the claimant had discharged
     the initial onus. Dealing with the evidence of the State, it held that
     maps produced at Exh.57 to Exh.59 and Exh.141 only showed that
     a small strip of blue colour was shown as passing through the suit
     property and that it was not clear whether the whole area of the
     property is covered under ‘Blue Zone’. It highlighted the fact that in
     the award Exh.46 there was no reference about the suit property
     falling in the ‘Blue Zone’ and that the said factor had no bearing while
     computing the award amount. After discussing the proximity of the
     property to developed areas, it held that the acquired property was
     within the municipal limit of Akoli city and that evidence on record
     showed that the property was surrounded by public offices, roads
     and Government residential quarters.
13. The Reference Court held that the Land Acquisition Officer had not
    worked out the market value properly since many relevant factors
    were ignored. It referred to Exh.71 Sale Exemplar dated 10-5-1999
    and the index II extracts at Exh.73(14-7-98) and Exh.74(27-8-1998)
    to conclude that the suit property had high potential value. It noticed
    that under award Exh.46, the suit property (Survey No. 1), Survey
    No. 5/2, Survey No. 7 and Survey No. 2 situated at Akoli (Bk) were
    acquired by the same notification for the same purpose of construction
    of the said protection wall. On that basis, it held that the claimants
    were entitled to get the compensation at the same rate. It took on
    record the certified copy of the award passed in LAC No. 183 of
    2000 dated 15.10.2005 at Exh.88 and found that in that case the
    Reference Court determined the market value @ of Rs. 100/- per sq.
    ft. It also noticed that copy of the award of LAC No. 209 of 2022 dated
    10.08.2006 with regard to Survey No. 6, Survey No. 7 and Survey
    No. 60 of Akoli Khurd were acquired by another notification for the
    same purpose. In that case also, the Reference Court determined
    the market value @ of Rs. 100/- per sq. ft. Though the certified
    copy of the said award was not exhibited, it was taken on record
    as Exh.131 C. Thereafter, it held that the appropriate market value
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     would be Rs. 100/- per sq. ft. for the acquired property and ordered
     the same with all the other consequential benefits.
     C.   Findings of the High Court
14. The appellant and the State filed Appeals and cross Appeals before
    the High Court. The High Court held that on perusal of the maps, it
    was clear that the suit land was just on the bank of the river Morna
    and that the other Survey Nos. 5, 6 and 7 [which were the lands
    acquired in the awards relied upon by the Reference Court] were
    well above survey no. 1 beyond the Gaothan of Akoli (Bk) away
    from the river. The High Court found that Survey Nos. 5, 6 and 7
    were further sub-divided and Survey No. 7/2 had been converted
    to non-agricultural use by order dated 08.07.1982. According to the
    High Court, the sale deed (Exh.71) dated 10.05.1999 was in respect
    of Plot No. 50 admeasuring 3000 sq. ft. from Survey No. 7/2 @ of
    Rs.175 per sq. ft. The High Court held that the sale deed (Exh.71)
    could not be taken into account since the acquired land in the present
    appeals (Survey No. 1) were never converted to non-agricultural use.
    Insofar as the sale deed (Exh.72) dated 17.11.1999 was concerned,
    it rejected the same holding that the sale deed was after the Section
    4 notification and that the sale deed dealt with a small piece of land
    and also appeared to be suspicious for the reason that while Exh.71
    showed value @ of Rs. 175 per sq. ft., Exh.72 which was after the
    notification under Section 4 showed value @ of Rs. 601 per sq. ft.
    Insofar as Exh.33 was concerned, the High Court held that it was
    not shown from which survey number it arose and as to when the
    property was converted to residential use.
15. The High Court further held that the acquired land in the appeal was
    situated on the bank of river Morna and relied on the evidence of
    DW-2 Laxman Bhika Raut, the Land Acquisition Officer in support of
    the same. It relied on the findings of the Reference Court with regard
    to the blue colour only affecting a small strip of the land and held that
    the appellant had not seriously challenged the findings. It further held
    that upon perusal of Exh.141 map the finding of the Reference Court
    that only a small strip of land was affected by blue colour was also
    wrong since in Exh.141, major area of the suit land was in the ‘Blue
    Zone’. Thereafter, it held that since the suit property was affected by
    the ‘Blue Zone’, the same could not have been converted into non-
    agricultural use like other adjoining survey numbers and observed
[2024] 7 S.C.R.                                                      2257

              Kazi Akiloddin v. State of Maharashtra & Ors.


     that perhaps that was why no attempt to convert the land to non-
     agricultural use was made. It relied on Exh.67 dated 25.02.2000 which
     was a communication by the Assistant Director, Town Planning, Akola
     to the Land Acquisition Officer. That letter mentioned in para 2 that
     the acquired land in the appeal fell in a no development zone and
     as such was not eligible to be converted to non-agricultural purpose.
16. Thereafter, the High Court concluded that the suit land was not having
    non-agricultural potential unlike Survey Nos. 5/2, 6, 7 and 8. It held
    that the award @ of Rs. 100/- per sq. ft. was incorrect. It rejected
    the contention about the proposed layout of 43 plots since the land
    could not be converted.
17. In spite of noticing that certain areas claimed by the appellant as
    developed areas were reckoned and excluded from the computation
    of market value, the High Court still held that the value required for
    carrying out development ought to be deducted. Holding so, it held
    that deduction to the extent of 70% area was required to be made
    and as such went on to allow the appeal of the State and restored
    the award of the Land Acquisition Officer. It further ordered refund
    by the appellant of the compensation withdrawn with interest @ 9%
    p.a. Ultimately, the Appeal of the appellant was dismissed and that
    of the State allowed. Aggrieved, the appellant is in Civil Appeal Nos.
    6776-6777 of 2013 before us.
     D.    Contentions:
18. Mr. Himanshu Chaubey, learned counsel, diligently presented the
    case for the appellant. Learned Counsel contended that Exh.141
    was prepared on the basis of another map and admittedly the
    original map was never produced in Court; that under Section 83
    of the Indian Evidence Act, plans made for the purpose of any
    cause must be proved to be accurate; that DW-1 K.S. Bhoyar (Sub
    Divisional Engineer) deposed that Exh.141 was prepared as part
    of joint measurement to show the exact situation of the land and
    hence presumption of Section 83 is not available to the State; that
    Exh.141 was at best a secondary evidence and is admissible only if
    it is proved that the original has been destroyed or lost or when the
    party offering evidence of its contents cannot, for any other reason
    not arising from his own default or neglect, produce it in a reasonable
    time and as such argued that the ingredients for admitting secondary
    evidence has not been established.
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19. Learned counsel further argued that there was no notification or order
    brought on record by the respondent to prove that the subject land
    was specified as a ‘Blue Zone’ and that the development plan, as
    placed on record by the appellant, showed that no markings were
    present. Learned counsel relied on Section 14(j) and 22(j) of the
    Maharashtra Regional and Town Planning Act, 1966 (hereinafter
    referred to as the ‘MRTP Act’) to contend that the master plan must
    show the flood control area as the ‘Blue Zone’ and contended that no
    such marking was in the master plan. Learned counsel argued that
    no rules or regulations have been brought on record to prove that
    respondent no. 2 the Special Land Acquisition Officer is authorized
    to prepare the map in the absence of any order; that the High Court
    erred in only going by the evidence of DW-1, particularly when DW-1
    did not remember as to when the map was made and furthermore the
    author of the map-Sh. A.K. Kulkarni was also not examined. Learned
    Counsel relied on the affidavit filed by the State of Maharashtra
    dated 02.04.2024, to buttress his submission.
20. Learned counsel contends that admittedly as on the date of issuance
    of Section 4 notification i.e. 03.06.1999, the blue zone lines had not
    been demarcated and the construction was solely governed by the
    1974 byelaws. Learned counsel contends that even the documents
    sought to be relied upon by the respondent-State have been brought
    on record for the first time before this Court and admittedly other
    than the map i.e. Exh.141, no other document has been brought on
    record to establish that the land of the appellant fell under the ‘Blue
    Zone’. Learned Counsel contends that the High Court has failed to
    consider Exh.52, namely, the map issued by the Authority whereby
    the land of the appellant was granted Nazul Sheet No. 28-D and
    Plot No. 20. Learned counsel contends that any land for which Nazul
    Sheet is issued is considered as a non-agricultural land and relies
    on the award dated 05.02.2008 in relation to acquisition of Survey
    No. 11 Shahnawazpur, Akola City. Learned counsel contended that
    the Land Acquisition Officer did not whisper about the ‘Blue Zone’
    issue in his award; and that the Land Acquisition Officer proceeded on
    the basis of the exemplar from Survey No. 9/1A and the issue of the
    ‘Blue Zone’ was raised for the first time before the Reference Court.
21. Learned counsel argued that the potentiality of the land as established
    by the evidence has been ignored by the High Court. Learned counsel
    submits that pending the Appeal before the High Court, the Income
[2024] 7 S.C.R.                                                      2259

              Kazi Akiloddin v. State of Maharashtra & Ors.


     Tax Department had passed an order dated 31.08.2012 wherein
     the land of the appellant was considered as an urban land and a
     non-agricultural land. Learned counsel stated that the respondent in
     the said proceedings did not object to the same and rather acceded
     to the finding that the land of appellant which is acquired is a non-
     agricultural land.
22. Learned counsel relying on the standardized building byelaws and
    Government resolution of 02.04.1974 contended that the acquired
    land was not in a no-construction zone and argued that the State
    Authorities have failed to bring on record any document to establish
    any average flood mark. Learned Counsel stated that as per the
    Joint Measurement Report submitted by the respondent-State
    Irrigation Department before this Court, the distance between the
    land of the appellant and the defined boundary of the water course
    is between 15 to 20 meters and therefore, as per the extant byelaws
    the land of the appellant is outside the no-construction zone. The
    learned counsel argued that the said Joint Measurement Report
    was prepared by the respondent at the time of the acquisition and
    has even been referred to in the evidence of DW-1. It is stated that
    DW-1 further admitted that based on Exh.32 there was an open land
    between the river Morna and Survey No. 1. According to the learned
    counsel, the explanation offered by the VIDC (Vidarbha Irrigation
    Development Corporation) during the hearing that the gap is due
    to the curved bank of the river and ought not to be considered as
    a gap is unacceptable. According to the learned counsel, such an
    argument is itself an admission to the fact that firstly the land of the
    appellant was at a height from the river and secondly that there is
    a gap between the river and the land of the appellant. According to
    the learned counsel for the appellant, the width of the flood wall is
    30 meters taking the measurement from the defined boundary water
    course till the end of the wall; that as per the Joint Measurement Map
    the width of the appellant land is on an average between 50 to 55
    meters and the counsel contended that hence the total distance from
    the boundary of the water course till the end of the appellant land
    is 65 meters. Learned counsel contended that in spite of the rules
    declaring that only land upto 15 meters from the defined boundary
    of the water course as falling under the no development zone, the
    whole land of the appellant has been considered as falling under
    the no development zone.
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23. The learned counsel assailed the finding of the High Court about
    failure to convert the land to non-agricultural by contending that the
    appellant had obtained a Nazul Plot No. from the revenue authority
    and carved out 43 plots and even fees were paid and the receipt
    was placed on record; and that the only reason why steps could
    not be taken was in the meantime Section 4 notification came to be
    issued. Learned counsel contended that sale instances cited have
    not been taken into consideration by the High Court. In this regard,
    he relied on Exh.33 (Rs. 422 per sq. ft.), Exh.71 (Rs. 175 per sq. ft.)
    and the sale index of Survey No. 5/1,in Akholi Bk where there was
    a transaction of sale deed dated 12.02.1999 of Rs. 1,50,000/- for
    1500 Sq. ft. area of plot no 78. Learned counsel contended that the
    highest exemplar should have been considered. Learned counsel
    argues that the question of development charges does not arise
    since that purpose of acquisition did not entail any development.
24. Mr. Uday B. Dube, learned Counsel for the Vidarbha Irrigation
    Development Corporation (VIDC) strongly opposed the appellant’s
    submissions and contended that admittedly the land is situated on the
    bank of the river and concurrent findings have been recorded in that
    regard. Learned counsel placed reliance on the evidence of DW-1 in
    respect of the location of the land. Learned counsel relied on Exh.67
    dated 25.02.2000 wherein it is recorded that Survey No. 1 fell in a
    no development zone. Learned counsel relied on the evidence of
    DW-2-the Special Land Acquisition Officer. Learned Counsel argued
    that the soil for the wall was obtained from digging the land of the
    appellant. Learned counsel submits that the appellant in spite of
    being a developer has not obtained a non-agricultural use permission;
    learned counsel contends that the land was prone to floods and that
    the award of Rs. 100/- per sq. ft. in the case of appellant was totally
    untenable. Learned counsel stated that the map relied upon by the
    appellant to show that there was a road in between the land of the
    appellant and river is completely incorrect and that the dotted land
    denoted the slope. Learned counsel prayed that the map produced
    during the hearing in this Court should be rejected.
25. Insofar as the issue of ‘Blue Zone’ is concerned, learned counsel
    contended that it was the duty of the Irrigation Department to draw
    blue or red line and that the Irrigation Department has done its
    duty. In the written submission of VIDC, it is categorically averred
    as follows :-
[2024] 7 S.C.R.                                                          2261

                 Kazi Akiloddin v. State of Maharashtra & Ors.


           “Mere failure on the part of the Town Planning Department
           to give effect to it in Development Plan would not have
           any bearing on the valuation”.
26. Learned counsel submitted that three sale deeds produced in the
    matter of Bhartiyas (LAC No. 183) were suspicious transactions
    between related parties, and hence prayed that the Appeals be
    dismissed.
27. We have also heard Mr. Shrirang B. Varma, the learned counsel for
    the State who has placed reliance on the affidavit dated 02.04.2024
    filed by them pursuant to the order of 20.03.2024. We have considered
    the affidavit in detail hereinbelow.
28. We have given our anxious consideration to the contentions urged
    by the parties.
     E.    Questions
29. The following questions arise for consideration:
     (i) What should be the market value of the land of the appellant as
     on 03.06.1999? To answer this, the following further questions need
     to be considered.
     (a) Does the site of the appellant fall within ‘Blue Zone’ as contended
     by the acquiring body –VIDC?
     (b) If it falls within the ‘Blue Zone’, what should be the market value
     for the land?
     (c) If the land or any part thereof is not to be determined as a ‘Blue
     Zone’, what was the ‘No Construction Zone’ as per the extant laws
     and what should be the market value payable for that portion?
     (d) What should be the market value payable for any portion, falling
     outside the ‘No Construction Zone’?
     Reasoning and conclusion:
     We have considered question no. 1(a) to 1(d) together for
     convenience.
30. During the course of hearing on 20th March, 2024, we made the
    following order:
           "1.     Arguments by the parties remained inconclusive.
                   Meanwhile, original records have been requisitioned.
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           2.   Learned counsel for the parties seek and are granted
                time to inspect the original record and make further
                submissions.
           3.   An officer of the Irrigation Department is present along
                with some latest photographs of the site. However, he
                has not brought the original record regarding fixation
                of blue line by the Irrigation Department in purported
                exercise of its power under the Maharashtra Regional
                & Town Planning Act, 1966.
           4.   Mr. Uday B. Dube, learned counsel for the respondent
                Corporation undertakes to produce such record.”
31. Pursuant to the said Order, a duly sworn affidavit of 2nd April, 2024
    has been filed by the Assistant Director of Town Planning (Branch
    Office, District Akola) which reveals certain telling facts. The affidavit
    states that its contents are confined to marking of flood lines in the
    city Akola and the maps thereof. It avers that the land in question in
    these Appeals was situated outside the Municipal Council of Akola
    which fact, however, is disputed by the appellant. Be that as it may,
    the affidavit acknowledges that under Section 14(j) of the MRTP Act,
    the proposals for irrigation, water supply and hydro-electric, works,
    flood control and prevention of river pollution are the constituents
    of the regional plan. It further avers that as per the provisions of
    Section 22(j) of the MRTP Act, the proposals for flood control and
    prevention of river pollution are constituents of the development plan.
32. Digressing a bit from the affidavit, it may be pointed out herein that
    under the MRTP Act, Section 2(25) defines regional plan to mean
    a plan for the development or redevelopment of a region which is
    approved by the State Government and has come into operation
    under the Act. Under Section 21, development plan is defined to
    mean a plan for the development or redevelopment of the area
    within the jurisdiction of a planning authority and includes revision
    of a development plan and proposals of a special planning authority
    for development of land within its jurisdiction. Section 14 which deals
    with the contents of the regional plan along with sub-clauses - a and j
    are extracted herein below:
           “14. Contents of Regional Plan
           Subject to the provisions of this Act and any rules made
           thereunder for regulating the form of a Regional Plan and
[2024] 7 S.C.R.                                                             2263

              Kazi Akiloddin v. State of Maharashtra & Ors.


           the manner in which it may be published, any such Regional
           plan shall indicate the manner in which the Regional Board
           propose that land in the Region should be used, whether
           by carrying out thereon development or otherwise, the
           stages by which any such development is to be carried
           out, the network of communications and transport, the
           proposals for conservation and development of natural
           resources, and such other matters as are likely to have
           an important influence on the development of the Region;
           and any such plan in particular, may provide for all or any
           of the following matters, or for such matters thereof as the
           State Government may direct, that is to say-
           (a) allocation of land for different uses, general distribution
           and general locations of land, and the extent to which the
           land may be used as residential, industrial, agricultural,
           or as forest, or for mineral exploitation;
           xxx      xxx
           (j) proposals for irrigation, water supply and hydro-electric
           works, flood control and prevention of river pollution;”
33. Section 21 speaks of the Development plan and Section 22 which
    speaks of the contents of the development plan, insofar as they are
    relevant, are extracted herein below:
           “21. Development Plan
           (1) As soon as may be after the commencement of this Act,
           but not later than three years after such commencement,
           and subject however to the provisions of this Act, every
           Planning Authority shall carry out a survey, prepare an
           existing land-use map and prepare a draft Development
           plan for the area within its jurisdiction, in accordance with
           the provisions of a Regional plan, where there is such a
           plan [publish a notice in the Official Gazette and in such
           other manner as may be prescribed stating that the draft
           Development plan has been prepared] and submit the
           plan to the State Government for sanction. The Planning
           Authority shall also submit a quarterly Report to the State
           Government about the progress made in carrying out the
           survey and prepare the plan.
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          22. Contents of Development Plan
          A Development plan shall generally indicate the manner
          in which the use of development land in the area of a
          Planning Authority shall be regulated, and also indicate
          the manner in which the development of land therein shall
          be carried out. In particular, it shall provide so far as may
          be necessary for all or any of the following matters, that
          is to say,—
          (a) proposals for allocating the use of land for purposes,
          such as residential, industrial, commercial, agricultural,
          recreational;
          ....
          (j) proposals for food control and prevention of river
          pollution;”
34. Reverting to the affidavit of the State dated 02.04.2024, the affidavit
    avers that the draft regional plan was of the year 2002 and the draft
    development plan (revised) was of the year 2000. It is averred that
    under Section 26(1) of the MRTP Act, the publication of notice of
    draft development plan was of 03.02.2000. The affidavit avers that
    the notice of regional plan for Akoli Washim District in draft form
    under Section 16 was published on 25.12.2002. The draft regional
    plan itself is of 2002 and the affidavit indicates that it was sanctioned
    under Section 15(1) of the MRTP Act on 23.04.2012 and came into
    force on 15.06.2012.
35. The State makes out a case that both for the draft regional plan
    of 2002 for the Akola Washim region as well as draft development
    plan (revised) 2000, the blue and red flood lines which have been
    produced by the concerned Executive Engineer, Irrigation Section
    Akola vide letter dated 18.01.1999 were taken into consideration
    as constituents. It is a case that the blue and red flood lines were
    shown on the maps of the peripheral plan of the Akoli City based
    on the proposal of the Executive Engineer.
36. The affidavit has certain other interesting averments. It avers that
    the development plan for the original limits of the Akola Municipal
    Council was in force from 01.04.1977 where Survey no. 1 wherein
    appellant’s land is situated, was not included in the No Development
[2024] 7 S.C.R.                                                           2265

              Kazi Akiloddin v. State of Maharashtra & Ors.


     Zone. Thereafter, the development plan for the extended limits of
     the Akola Municipal Council was sanctioned by the Government
     on 30.12.1992 and came into force from 01.03.1993. In the said
     development plan, the affidavit states that the land in question was
     not part of the sanctioned development plan. The affidavit states
     that the Municipal Council was converted into Municipal Corporation
     since 01.10.2001 and that the revised development plan which came
     into force on 15.12.2004 also did not include the appellant’s land.
     Thereafter, the following crucial paras occur in affidavit which have
     a great bearing in deciding the present controversy, particularly the
     issue as to whether the land of the appellant falls in the Blue Zone:-
           “vii. Meanwhile, the Regional Plan for Akola – Washim
           Region was published in the year 2002 wherein for
           the first time the Blue and Red flood lines were incorporated
           by taking into consideration the letter and circular of the
           concerned Irrigation Department as mentioned above. The
           said map of the Peripheral Plan of the said Regional Plan
           which further has been sanctioned by the Government
           in Urban Development Department vide Notification No.
           TPS-2502/205/CR-106/2009/UD-30, dated 23.04.2012
           which came in force from 15.06.2012.
           viii) According to the Peripheral Plan of the said Regional
           Plan, the land bearing Survey No. 1 of Mouza Akoli (Budruk)
           was included in the “Agriculture Zone/No Development
           Zone and also the part of this land is situated within the
           River Bank and Blue Flood Line, whereas, the other lands
           bearing Survey No. 6 and 7 of Mouza Akoli (Khurd) are
           included in Residential Zone. A true copy of the part plan
           of the said Peripherial Plan showing the aforesaid lands
           is annexed herewith and marked as Annexure R-5.
           ix) Now, the Development Plan for the whole limits of the
           Municipal Corporation, Akola named as Draft Development
           Plan of Original Limit (2nd revision) + First Extended Limit
           (R.) + 2nd Extended Limit is being prepared for which
           notices has been published in the Maharashtra Government
           Gazette dated 25 - 31/01/2024 under the provisions of the
           section 26 of MRTP Act and further process is in progress
           as per the legal framework of the said Act.
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           x) According to the said draft Development Plan, the land
           under reference bearing Survey No. 1 & 7 of Mouza Akola
           (Budruk) and other lands bearing Survey No.6, 7 & 60
           of Mouza Akoli (Khurd) are proposed to be included in
           ‘Residential Zone’.
           In the said draft proposed development plan, the Blue and
           Red Flood lines are shown as per the information available
           from Akola Irrigation Department, Akola vide letter No.
           5396/Line- 1/2023, dated 06/10/2023. A true copy of the
           letter dated 06.10.2023 is annexed herewith and marked
           as Annexure R-6.
           xi) The land under reference bearing Survey No.1 of
           Mouza Akoli (Budruk) is situated between the Blue and
           Red Flood lines.”
                                                  (Emphasis supplied)
37. The affidavit clearly indicates that on the date of Section 4 notification
    i.e. 03.06.1999 there was no published notice of draft regional plan
    or draft development plan. The attempt made is to rely on the letter
    of the Executive Engineer of 18.01.1999 containing proposals for
    demarcation of red and blue lines. The affidavit further avers that
    on 03.06.1999 the statutory scheme that was in force was the
    Standardized Building Byelaws and Development Control Rules
    for ‘B’ and ‘C’ Class Municipal Councils of Maharashtra which
    were applicable for the outside Municipal limits as per Government
    resolution dated 02.04.1974. The affidavit avers that according to
    Rule No. 17.1.2 no permission to construct a building on a site shall
    be granted, if
           “the site is within 9 (nine) meters of the highest water
           mark, and if there be major water course nearby the
           distance of the plots from the same shall be 9 m. from
           average high flood mark or 15 mt. from the defined
           boundary of water course whichever is more.”
38. The appellant has filed a response to the affidavit on 15.04.2024. The
    appellant has pointed out that the map annexed to the Engineer’s
    letters as produced by the State Government in its affidavit of
    02.04.2024 is at variance with Exh.141 produced before the Reference
    Court and submits that either of them cannot be correct. The appellant
[2024] 7 S.C.R.                                                       2267

              Kazi Akiloddin v. State of Maharashtra & Ors.


     also controverts the fact that the land was outside the municipal limits
     and relies on the letter of 25.02.2000 issued by the Deputy Director,
     Town Planning indicating that the land was within the municipal limits.
     The appellant avers that as on date of the acquisition admittedly
     none of the sanctioned development/regional plan demarcated the
     whole area of survey no. 1 as No Development Zone. The appellant
     also relied on the Standardized Building Byelaws and Development
     Control Rules for ‘B’ and ‘C’ Class Municipal Councils of Maharashtra
     referred to in the affidavit of the State Government.
39. In the written submissions of the appellant, it is submitted that
    since there is no valid document determining the flood mark, the
    no construction zone will have to be determined with reference to
    the defined boundary of the major water course. According to the
    appellant, as per the Joint Measurement Report submitted by the
    respondent-Irrigation Department, the distance between the land
    of the appellant and the defined boundary of the water course is
    15 to 20 meters. The appellant disputes the explanation of the VIDC
    that the dotted lines indicate the curved bank of the river.
40. Be that as it may, the appellant submits that as per the Joint
    Measurement Map, the width of the appellant land is between
    50 to 55 meters. The appellant submits that the extant rules declare
    that only in land up till 15 meters from the defined boundary of the
    water course shall fall in the no development zone and as such
    the whole land could not have been considered as falling under no
    development zone.
41. Having considered the facts and circumstances including the affidavit
    of the State filed before us, we are constrained to hold that the High
    Court was not justified in declaring the entire land of the appellant
    as falling within the blue zone.
42. As has been demonstrated hereinabove, the statutory documents
    under the MRTP Act demarcating the blue zone/blue line came in its
    draft form only in 2000 as far as the development plan was concerned
    and in 2002 as far as the regional plan was concerned. The Section 4
    notification under the Act in this case is of 03.06.1999. Before the
    Reference Court, the document that was available was Exh.141 map.
    However, we are not inclined to place any reliance on the same for
    the reason that DW-1 K.S. Bhoyar, Sub-Divisional Engineer, who
    filed his affidavit in chief on 05.01.2008 clearly deposed that he
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     was not in a position to definitely say as to in which year Exh.141
     was prepared. He also deposed that he had not brought the original
     map on the basis of which Exh.141 was prepared. Since under the
     MRTP Act, there is a procedure for notifying the plans and since
     the whole process commenced after the Section 4 notification dated
     03.06.1999 was issued, it will be very unsafe to proceed on the basis
     of the proposal, if any, in the letter of the Executive Engineer dated
     18.01.1999, though it may have the basis for ultimately drafting the
     regional plan and the development plan.
43. If an acquiring body relies on a statutory injunction, to establish
    that the land has no potential, then the burden is on the said
    acquiring body to demonstrate without any ambiguity that such a
    statutory interdict is in place. In the present case, the VIDC has not
    discharged the burden in demonstrating that statutorily there was
    a valid demarcation of a “Blue Zone” on the date of the Section 4
    notification, under the Act. What has been established is only the
    existence of the byelaw i.e. “Standardised Building Byelaws and
    Development Control Rules for “B” and “C” Class Municipal Councils
    of Maharashtra”.
44. The statutory regime that was in force admittedly, according to the
    State, was the Standardized Building Byelaws and Development
    Control Rules for ‘B’ and ‘C’ class Municipal Councils of Maharashtra
    which by a Government resolution of 02.04.1974 was even made
    applicable to lands outside Municipal limits. Going by that, the building
    permissions could be denied only if the site was within 9 meters of
    the highest water mark and if there be a major water course nearby,
    the distance of the plot from the same shall be 9 meters from the
    average high flood mark or 15 meters from the defined boundary of
    water course whichever is more.
45. There is no definitive evidence on record to indicate as to what
    was the highest water mark or the average high flood mark, with
    the result we conclude, in the peculiar facts of the case, that as
    on 03.06.1999, i.e. the date of the Section 4 notification for the
    appellant’s land, the no construction zone can only be taken as
    15 meters from the defined boundary of the water course which is
    the Morna river. If the site to the extent it is within the 15 meters
    of the defined boundary of water course, that part alone could be
    said to have no potential for development. The land beyond the
[2024] 7 S.C.R.                                                       2269

              Kazi Akiloddin v. State of Maharashtra & Ors.


     15 meters mark from the defined boundary of the water course in
     the site of the appellant should be treated independently and as to
     what would be the value thereof, we shall discuss herein below. For
     the land up to 15 meters (in the event of the site or part of the site
     falling within 15 meters of the defined boundary of the water course)
     shall be paid the amount as determined by the Land Acquisition
     Officer in the award dated 04.08.2000.
46. Now that we have concluded that the land of the appellant except to
    the extent of 15 meters from the defined boundary of the water course
    is not covered by the no construction zone, the question arises as
    to what should be the market value payable as on 03.06.1999. As
    has been narrated earlier, the LAO in his Award (Exh. 46) awarded
    an amount of Rs.5,61,000/- per hectare for the entire extent of
    1,25, 937 sq. ft. which works out to Rs. 5/- per sq. ft. The Land
    Acquisition Officer relied on a sale transaction pertaining to one parcel
    of land in Survey No. 9/1A dated 24.04.1998. On a reference under
    Section 18, after noticing the status of the land and after concluding
    that the land is not covered under the blue zone and after finding
    that the Land Acquisition Officer made no reference to the land being
    on the blue zone in the award, the Reference Court awarded a sum
    of Rs.100/- per sq. ft.
47. The Reference Court found that the property was within the Akoli City
    Municipal limits and referring to Exh. 71, 73 and 74 had concluded
    that the land had high potential and value. Thereafter, it relied on
    the award of the Reference Court in LAC No. 183 of 2000 (Civil
    Appeal arising out of SLP (C) No. 6820 of 2023 and Civil Appeal
    arising out of SLP (C) No. 2753 of 2023) and LAC No. 209 of 2002
    dated 10.08.2006 (Civil Appeal arising out of SLP (C) No. 6817 of
    2023 and Civil Appeal arising out of SLP (C) No. 2324 of 2023)
    which are appeals in this very batch.
48. Our discussion hereinbelow on LAC No.183/2000 dated 15.01.2015
    shall insofar as they are relevant, also apply to the disposal by this
    judgment of Civil Appeal arising out of SLP (C) No. 6820 of 2023 and
    Civil Appeal arising out of SLP(C) No. 2753 of 2023. Similarly, our
    discussion on LAC No. 209 of 2002 dated 10.08.2006 shall insofar
    as they are relevant also apply to the disposal by this judgment of
    Civil Appeal arising out of SLP(C) No. 6817 of 2023 and Civil Appeal
    arising out of SLP(C) No. 2324 of 2023.
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49. In Civil Appeal arising out of SLP (C) No. 6820 of 2023 and Civil
    Appeal arising out of SLP (C) No. 2753 of 2023, the Section 4
    notification was common. In those appeals, the land was situated
    in Survey No. 7/2 of Akoli Village Bujurg (Bk). The Reference Court
    by judgment dated 15.01.2005 in LAC No. 183 of 2000 awarded
    Rs. 100 per sq. ft. which was the same rate awarded in
    LAC No. 209 of 2002 dated 10.08.2006, though in those matters
    lands were situated in Survey Nos. 6,7 and 60 at Akoli Khurd Village.
50. In matters involved in LAC No. 183 of 2000, the Land Acquisition
    Collector awarded Rs.5,61,000/- per hectare. It is important to note
    that even though the land was situated in Survey No. 7/2 of Akoli
    Bujurg, the Land Acquisition Collector awarded equal value for
    the lands in Survey No. 1 (the present appeals) as well as Survey
    No. 7/2 and the Reference Court also awarded Rs.100/- per sq. ft.
    for both the Survey Nos.
51. In LAC No. 209 of 2002, the Land Acquisition Officer awarded
    Rs.72,400/- per hectare for the land situated in Survey Nos, 6,7 and
    60 of Akoli Khurd Village. The Reference Court and the High Court
    have awarded Rs.100/- per sq. ft. even for those set of lands, for
    plotted area of 359684.44 sq. ft.
52. The only reason why in the present the High Court did not award
    Rs.100/- per sq. ft. was the finding that the land was on the blue
    zone, which finding we have already set aside. The Land Acquisition
    Officer found similarity between the lands that are subject matter
    of LAC No. 183 of 2000 dated 15.01.2005 and the present land. If
    we are persuaded to hold that the order of the Reference Court in
    LAC No.183 of 2000 with regard to the land in Survey No. 7/2 of
    Akola Bujurg Village is correct then there is no reason why the same
    value should not be awarded to the present appellant except to that
    extent of the land, if any, falling within the 15 meters restriction from
    the defined boundary of the water course as explained earlier.
53. If we peruse the award of the Reference Court dated 15.01.2005 in
    LAC No. 183 of 2000, as an exemplar, a sale deed marked in that
    case as (Exh. 45) executed by one Usha Santosh Gode in favour
    of Ashok Krushnarao Sapkal dated 12.02.1999 in respect of plot
    no. 78 was relied upon. This is the sale deed set out in the present
    case in the claim statement as well as in IA No. 85664 of 2019
    which is an application for permission to file additional documents
[2024] 7 S.C.R.                                                         2271

              Kazi Akiloddin v. State of Maharashtra & Ors.


     as Annexure-A3. Though what is given in the present case is an
     index of sale-purchase details as on 21.05.1999, the sale Exh.45
     referred to in C.A. arising out if SLP (C) No. 6820 of 2023 and
     C.A. arising out of SLP (C) No. 2753 of 2023, is mentioned at entry
     No. 8 dated 12.02.1999. There an extent of 1500 sq. ft. was sold
     for Rs.1,50,000/- which would be @ 100 per sq. ft. Ultimately in
     the order of the Reference Court in LAC No. 183 of 2000 dated
     15.01.2005, the Court considered the valuation offered by the valuer
     in that case of Rs.200/- per sq. ft.; sale instance of Rs.175/- per sq.
     ft. in one of the exemplars and after reducing the value of the land
     for fluctuations in the market value and the prevailing ambience had
     arrived at a figure of Rs.100/-. This coincidentally tallies with the sale
     instance mentioned in Exh. 45 therein. In that case, other statutory
     benefits were awarded.
54. Be that as it may, in law what is mandated is to examine the potentiality
    of the land. Indisputably, by a common award the appellant’s land
    and the land in Survey No. 7/2 in Akoli Bujurg were treated on par
    by the Land Acquisition Officer. Admittedly, the surrounding areas
    have lands for which non-agricultural permission had been given. It
    has also come in evidence that the land is in a locality surrounded by
    bustling commercial establishments and educational institutions and
    even the evidence of the acquiring body admits that the Tehsil’s office
    and Collector’s office in Akola District and Akola Taluk are located
    in the nearby area (evidence of DW-1). Photographs produced by
    PW-2 also show that there have been developments around the area.
55. The question here is whether in the present appeals the Reference
    Court was justified in following the award in LAC No. 183 of 2000.
    The High Court has held that the land fell in the blue zone which
    finding we have set aside. It further held that while the land of the
    appellant was on the bank of the river Morna, other Survey Nos.,
    namely, Survey Nos. 5, 6 and 7 were above Survey No.1 and beyond
    the Gaothan of Akoli Bk. and away from the bank of river Morna. It
    also held that Survey No.7/2 was converted into non-agricultural use.
    It held that Survey No. 1 was never converted to non-agricultural
    land and hence Exh.71 sale deed of 10.05.1999 could not be relied
    upon. The High Court also relied on Exh.67 a letter dated 25.02.2000
    wherein it is mentioned in para therein that Survey No. 1 (suit land)
    Survey No. 5/2, Survey Nos. 5/1, 7, 8 2, 25, 9/1-A of mauza Akoli fell
    in the no Development zone and therefore could not be converted
2272                                                     [2024] 7 S.C.R.

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     into non-agricultural purpose though the said lands fell within the
     municipal town. This finding has been countered by the appellant
     by stating that in fact non-agricultural permission has been granted
     for Survey Nos.5/1, 7 8, 9/1-A and 28 in the written submissions.
     The same has not been converted by the respondent-authorities.
56. The surrounding land to the appellant’s land has already been
    converted and the appellant has been granted the Nazul sheet and
    necessary charges have also been paid. We say nothing more on
    this aspect except that while determining the market value we are
    really concerned with the potentiality of the land. If except to the
    extent of 15 meters from the defined boundary of the water course
    the other land was not in the no construction zone, there is no
    reason why the same market value could not be awarded. In view
    of the above, considering the potentiality of the land and its situs,
    except for the lands upto 15 meters from the defined boundary of
    the water course, we are inclined to award Rs.100/- per sq.ft. for
    68.3% of the total admeasuring area. It should not be forgotten that
    the LAO treated the land in Survey No. 7 Akoli Bk. No.1, namely,
    the appellant’s land alike. The Reference Court also awarded them
    @ Rs. 100/-. The High Court proceeded on the basis that the land
    was purportedly in the blue zone and set aside the order of the
    Reference Court and the award.
57. We are inclined to restore the award insofar as the land if any within
    the 15 meters of the defined boundary of the water course and for
    the rest of the land in Survey No.1 belonging to the appellant for the
    68.3% of the balance area, we award the rate of Rs.100/- per sq.ft.
58. LAC No. 209 of 2002 dated 10.08.2006, is the Reference Court order
    which is under consideration in C.A. No. @ SLP (C) No. 6817 of 2023
    and C.A. No. @ SLP (C) No. 2324 of 2023 which are part of this
    very batch of matters. The Land involved in the said reference case
    is situated in village Akoli Khurd bearing Survey Nos. 6, 7 and 60.
    Here again, the Section 4 notification was issued on 03.06.1999. The
    lands were no doubt converted to non-agricultural use on 03.03.1983.
59. The plot area involved in LAC No. 209/2002 is 33415.50 sq. mts and
    the applicants were claiming for the plotted area and not claiming
    compensation for the open area and roads. In LAC No. 209/2002,
    the LAO awarded Rs. 72,400 per hectare resulting in a reference
    under Section 18. There is no case for the government that the land
[2024] 7 S.C.R.                                                      2273

              Kazi Akiloddin v. State of Maharashtra & Ors.


     is adjacent to Morna river. The Land in question in LAC No. 209/2002
     was situated near several educational and other religious institutions.
     The claim for enhancement in LAC No. 209/2002 was based on
     Exh. 78 dated 10/11.05.1999 where plot no. 50 Survey No. 7/2 of
     Akoli Bk. was sold @ Rs. 175/- per sq. ft. The LAO admits that
     the Akoli (Bk) and Akoli Khurd are adjoining twin villages. It is also
     recorded that the lands lying therein are similar in nature. Based on
     the previous award Rs.100/- per sq. ft. was awarded. The High Court
     upheld the said award. Exh. 75 was the sale deed of 12.02.2009
     of plot no. 75 of Akola Survey No.8 and Survey No. 5/1. The price
     in the said sale deed was Rs. 100 per sq.ft. for an area of 1500
     sq.ft. This is the document which is Exh.45 in C.A.No. @ SLP (C)
     No. 6820 of 2023 and C.A. No. @ SLP (C) No. 2753 of 2023 and this
     document is also one of the basis for the enhancement. According
     to our conclusion in this batch of appeals, decided hereinabove, the
     High Court was right in rejecting the other sale deeds.
     Relevant Legal Principles:
60. It is well settled that in determining the compensation the court would
    take into consideration the potentialities of the land existing as on
    the date of the notification published under Section 4(1) (State of
    Orissa vs. Brij Lal Misra and Others (1995) 5 SCC 203)
61. This Court in Sardara Singh and Others v. Land Acquisition
    Collector, Improvement Trust, Rupnagar and Others (2020)
    14 SCC 483, has held that the rates of compensation awarded in
    adjacent villages cannot be disregarded if in the given set of facts
    and evidence, similarity is established. Similarly, in Om Parkash and
    Others v. State of Haryana (2016) 13 SCC 190, the Court held that
    compensation awarded in the adjoining village can be considered
    when there was similarity in potentiality. [See also Special Land
    Acquisition Officer v. Karigowda and Others (2010) 5 SCC 708].
    In view of this settled position of law, we see no ground to interfere
    with this finding.
62. When there is a choice between an exemplar where the transaction
    is between unrelated parties dealing at arm’s length and between
    an exemplar where the transaction is between related parties of a
    higher value, both of which are broadly around the same period,
    prudence would dictate and common sense would command
    that we accept the value of set out in the transaction between
2274                                                          [2024] 7 S.C.R.

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     unrelated parties. We are inclined to accept the transaction which
     is at arm’s length and accept the market value of the amount of
     Rs. 100/- per sq. ft. and reject the claim of Rs. 175/- per sq. ft.
63. It is well settled that market value is determined based on the price
    of a willing buyer- a willing seller at arm’s length. In Administrator
    General of West Bengal Vs. Collector, Varanasi (1988) 2 SCC
    150, it was held :
          “8. The determination of market value of a piece of land with
          potentialities for urban use is an intricate exercise which
          calls for collection and collation of diverse economic criteria.
          The market value of a piece of property, for purposes of
          Section 23 of the Act, is stated to be the price at which the
          property changes hands from a willing seller to a willing,
          but not too anxious a buyer, dealing at arm’s length. The
          determination of market value, as one author put it, is the
          prediction of an economic event viz. the price outcome of
          a hypothetical sale, expressed in terms of probabilities.
          Prices fetched for similar lands with similar advantages
          and potentialities under bonafide transactions of sale at
          or about the time of the preliminary notification are the
          usual, and indeed the best, evidences of market value.
          Other methods of valuation are resorted to if the evidence
          of sale of similar lands is not available.”
64. In this case, when we have two exemplars, one between two
    independent parties and the other between two admittedly related
    parties and both transactions have taken place without much of a
    time gap.
65. Insofar as the where the exemplar is a small extent of land is
    concerned, it is now clear that even in these lands in Survey No. 1
    where the permission is not yet obtained, except to the extent of
    those lands falling within the 15 meters from the defined boundary of
    the water course, they were also ripe for use for building purposes
    and hence to adopt the same value as was done in the case of
    sale deed dated 12.02.1999 @ Rs. 100/- per sq. ft. is justified.
    There is evidence on record to the effect that the area was plotted
    to the extent of 7948 sq. mtrs. and there were 43 plots. It is also
    in evidence given by them that roads were constructed. Though
    this is disputed in the evidence of the acquiring body, the evidence
[2024] 7 S.C.R.                                                          2275

              Kazi Akiloddin v. State of Maharashtra & Ors.


     led by them is to the effect that the land is of agricultural use,
     barren and there is no development. There is no specific denial
     that there were no demarcated plots. It is also true that on the date
     of the acquisition there was no non-agricultural permission though
     the case of the appellant is he had taken preparatory steps and
     deposited the fees.
66. In Administrator General of West Bengal (Supra) dealing with the
    aspect of valuing large tracts of land based on the price fetched for
    smaller plots, this Court held as under:
           “12. It is trite proposition that prices fetched for small
           plots cannot form safe bases for valuation of large tracts
           of land as the two are not comparable properties. (See
           Collector of Lakhimpur v. B.C. Dutta [(1972) 4 SCC 236] ;
           Mirza Nausherwan Khan v. Collector (Land Acquisition),
           Hyderabad [(1975) 1 SCC 238] ; Padma Uppal v. State
           of Punjab [(1977) 1 SCC 330] ; Smt Kaushalya Devi
           Bogra v. Land Acquisition Officer, Aurangabad [(1984) 2
           SCC 324] The principle that evidence of market value
           of sales of small, developed plots is not a safe guide in
           valuing large extents of land has to be understood in its
           proper perspective. The principle requires that prices
           fetched for small developed plots cannot directly be
           adopted in valuing large extents. However, if it is shown
           that the large extent to be valued does not admit of and
           is ripe for use for building purposes; that building lots
           that could be laid out on the land would be good selling
           propositions and that valuation on the basis of the method
           of hypothetical lay out could with justification be adopted,
           then in valuing such small, laid out sites the valuation
           indicated by sale of comparable small sites in the area
           at or about the time of the notification would be relevant.
           In such a case, necessary deductions for the extent of
           land required for the formation of roads and other civil
           amenities; expenses of development of the sites by laying
           out roads, drains, sewers, water and electricity lines, and
           the interest on the outlays for the period of deferment
           of the realisation of the price; the profits on the venture
           etc. are to be made…. …”
2276                                                      [2024] 7 S.C.R.

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     The appellant was claiming compensation @ Rs. 500 per sq. ft. and
     examined the valuer to substantiate the same which the Reference
     Court was not inclined to award and we agree with the Reference
     Court in that regard. We are also not awarding any amount for the
     32% (approx.) of the land which, even according to the claimant,
     pertain to the area covered by roads and open space. We are not
     inclined to award any compensation or damages. Additionally for that
     reason also, we are not inclined to make any deductions from the
     market value fixed @ Rs. 100 per sq. ft. for the 68.3% (approx.) of
     the land. We have evidence to show that the land was ripe for use
     for building purposes. We are not inclined to, in the special facts
     and circumstances of the case, to order any deduction based on
     extent of land and the cost for incurring development. The LAO in
     the award which in law is an offer, treated the appellant’s land and
     the land in Survey No. 7/2 (subject-matter of LAC No. 183/2000) on
     par and the Reference Court also treated them on par.
67. In this case since the acquisition is for construction of a flood
    protection wall, the question of there being any development or
    any cost thereof cannot arise. It is well settled that the purpose for
    which the land is acquired must be taken into consideration while
    determining development charges.
68. In Himmat Singh & Ors. Vs. State of Madhya Pradesh & Anr.
    (2013) 16 SCC 392, this Court, dealing with the issue of deduction
    of development charges in the context of acquisition for a railway
    line held as under:
          “33. The approach adopted by the Reference Court and
          the High Court in making deductions towards the cost of
          development/development charges from the market value
          determined on the basis of the sale deeds produced by the
          appellants was clearly wrong. The respondents had not
          even suggested that the development envisaged by the
          Reference Court i.e. laying of roads, drains, sewer lines,
          parks, electricity lines, etc. or any other development work
          was required to be undertaken for laying the railway line.
          Therefore, 25% deduction made by the Reference Court
          and approved by the High Court under two different heads
          is legally unsustainable.”
[2024] 7 S.C.R.                                                         2277

              Kazi Akiloddin v. State of Maharashtra & Ors.


69. Insofar as the Development charge is concerned, as held in
    Himmat Singh, where no Development is envisaged like laying of
    roads, drains, sewer lines, parks etc. and what is required is only
    construction of a flood control wall, the question of deducting any
    development charge cannot arise. [See also Nelson Fernandes vs.
    Land Acquisition Officer (2007) 9 SCC 447 ].
70. The VIDC has relied upon certain circulars to show the consequence
    of blue zone. Since the finding is that no construction area is limited
    to 15 meters from the boundary, the circulars do not carry the case of
    the State any further. In any event, the State Government’s affidavit
    has clearly stated that what was in vogue in the relevant time was the
    Standardized Building Byelaws and Development Control Rules for
    B and C Class Municipal Councils of Maharashtra which was made
    applicable to even areas outside Municipal limits by Government
    resolution of 02.04.1974. The State does not in its affidavit make
    any reference to any applicable circular.
71. The appellant had averred that out of the total extent of 125937.8 sq. ft.,
    he had claimed @ Rs, 500/- per sq. ft. for 84481 sq. ft. which
    constitutes 68.3% (approx.) of the total extent. The balance area of
    41404 sq. ft. which constituted approximately 32%, according to him
    were the area covered by roads and open space. He had claimed
    Rs.25 lakhs for the extent of making the roads and also prayed for
    damages at Rs. 50 lakhs.
72. In view of our judgment, the appellant will be entitled to Rs.100/- per sq.
    ft. for the 68.3% (approx.) of the balance area, after excluding the land
    area, if any, which falls within the 15 meters from the defined boundary
    of the water course. For the land falling within the no construction
    zone, if any, as per the Standardized Building Byelaws, he will be
    paid at the rate determined by the Special Land Acquisition Officer
    in the award. Insofar as the market value of the land in question and
    other statutory benefits are concerned, the judgment of the Reference
    Court will continue to operate, subject to one modification. The
    possession of the land in this case was taken on 15.11.1998 before
    the issuance of Section 4 notification. In another Appeal decided by
    us in this batch today, we have held the appellant entitled to rental
    compensation at the rate of 8% of the awarded amount for the period
    from 15.11.1998 to 04.08.2000, the date of the award. In view of the
    same, direction no. 5 in the operative order of the Reference Court
    requires to be modified. That direction was under Section 28 of the
2278                                                      [2024] 7 S.C.R.

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     Act. In view of the entitlement for the rental income till 04.08.2000,
     the appellant shall be entitled to interest on the enhanced amount
     at 9% for a period of one year from 04.08.2000 and at the rate of
     15% for the period thereafter till payment of amount in the court. If
     the amount is already deposited, nothing further needs to be done.
     If not, the State may pay the deficit, if any.
73. In view of our findings hereinabove, Civil Appeal Nos. 6776-6777 of
    2013 are partly allowed. The impugned judgment dated 17.06.2013
    in First Appeal No. 1210 of 2008 and First Appeal No. 6 of 2009
    are set aside and will stand superseded by our present judgment.
    No order as to costs.
     II.   Civil Appeal arising out of SLP (C) No. 21611 of 2018
           (Kazi Akiloddin Sujaoddin Vs. State of Maharashtra & Ors.)
74. Leave granted.
75. In this case, the facts are identical with Civil Appeal Nos.
    6776-6777 of 2013. The question involved is about the payment
    of rental compensation for the period from 15.11.1998 (when the
    possession of the appellant’s land was taken) to 04.08.2000 (when
    the award was passed by the Land Acquisition Officer). After the
    Reference Court enhanced the compensation on 02.08.2008, the
    appellant and the State filed Appeals and cross Appeals in the High
    Court, namely, First Appeal No. 1210 of 2008 by the appellant and
    First Appeal No. 6 of 2009 by the State. Pending the Appeal in the
    High Court, the appellant applied to the 3rd respondent herein, the
    Special Land Acquisition officer, for grant of rental compensation
    on the basis of enhanced compensation awarded by the Reference
    Court by its order dated 02.08.2008. Receiving no reply, the appellant
    filed Writ Petition No. 2763 of 2009 before the High Court. That Writ
    Petition was disposed off on 06.07.2009 by recording the statement
    of the Assistant Government Pleader that the application of the
    appellant would be decided on merits at the earliest.
76. Thereafter, on 05.10.2009, the application was rejected on the ground
    that order of the Reference Court was under challenge before the
    High Court.
77. Aggrieved, the appellant filed Writ Petition No. 3883 of 2010. By
    the judgment of 15.09.2011, Writ Petition No. 3883 of 2010 was
    allowed directing that enhanced rental compensation @ 8% of the
[2024] 7 S.C.R.                                                       2279

              Kazi Akiloddin v. State of Maharashtra & Ors.


     enhanced amount as directed to be paid by the Reference Court,
     be deposited in the High Court. It further directed that the appellant
     could withdraw half the amount by furnishing the security and
     remaining amount to be kept in fixed deposit. It is undisputed that
     8% was calculated for the period 15.11.1998 till the date of award
     i.e. 04.08.2000.
78. The State Government did not challenge the order dated 15.09.2011
    which determined the entitlement for rental compensation from
    15.11.1998 (the date of taking advance possession) till 04.08.2000
    (date of the award). The appellant, aggrieved by the judgment of
    15.09.2011 in Writ Petition 3883 of 2010, filed Civil Appeal No. 5084
    of 2013 before this Court which was disposed off on 3rd July, 2013,
    directing that in case compensation is enhanced, the appellant shall
    be entitled for the rental compensation as per the enhanced amount.
    It did not interfere with the order of the High Court directing the State
    Government to deposit the rental compensation @ of 8% of the
    amount awarded by the Reference Court with the Appellate Court
    and allowing the appellant to withdraw only half the amount. Liberty
    was also reserved to the appellant to claim proportionate higher
    rental compensation, if the order of the Reference Court is upheld
    or further enhancement of compensation is made by the Appellate
    Court. So holding, the Appeal of the appellant was dismissed.
79. What is significant is that this Court by its judgment referred
    to above of 3 rd July, 2013 in Civil Appeal No. 5084 of 2013
    [Kazi Akiloddin Sujaoddin Vs. State of Maharashtra & Ors.]
    reported in (2013) 14 SCC 8, in the absence of any appeal by the
    State had no occasion to disturb the mandamus issued in Writ
    Petition 3883 of 2010 by the High Court, insofar as it fixed the
    entitlement to the rental compensation for the period 15.11.1998
    till 04.08.2000. Hence, the State cannot challenge the period for
    which the appellant was entitled to rental compensation, in these
    proceedings. The rental compensation and the period were based
    on the Government Resolutions dated 02.05.1961, 01.12.1972,
    02.04.1979 and 24.03.1998.
80. Hence, the appellant is entitled for the rental compensation for the
    period 15.11.1998 till 04.08.2000 on the basis of 8% of the awarded
    amount as decided by us today in Civil Appeal Nos. 6776-6777 of
    2013 by this very judgment. The Civil Appeal is allowed in the above
2280                                                      [2024] 7 S.C.R.

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     terms and the impugned judgment in Writ Petition No. 4062 of 2018
     dated 10.07.2018 stands superseded by the present judgment.
     No order as to costs.
     III.   Civil Appeal arising out of SLP (C) No. 6490 of 2022 (Sau.
            Dwarkabai Vs. The State of Maharashtra & Anr.)
81. Leave granted.
82. The present Appeal arises from the judgment of the High Court of
    Judicature at Bombay, Nagpur Bench, Nagpur in First Appeal No.
    896 of 2016 dated 18.02.2021. The facts are as follows. Section 4(1)
    notification under the Act was published on 11.03.1999. The land of
    the appellant situated in Field Gut No. 4/2 admeasuring 0.86 Hectares
    i.e. 2 acres and 6 Gunthas at village Hingana Mhaispur, Tq. & District
    Akola (Maharashtra) was sought to be acquired by the respondents
    for the purpose of construction of a flood protection wall for Akola
    city. Thereafter, on 22.06.2000, award was passed awarding a total
    compensation of Rs. 56,588/- per hectare. On a reference being
    made under Section 18 of the Act, the appellant claimed higher
    compensation. Four witnesses were examined on the side of the
    appellant. The appellant examined himself as PW-1. A map was
    produced by him to show that the surrounding area was completely
    non-agricultural and developed. Three certified copies of sale deeds,
    one of which is a post-notification deed was also produced. A list
    pertaining to plots sold in Survey Nos. 7/1 and 7/2 of Akola Bujurg was
    also produced. The appellant contended that the situation of the land
    was in a developed area adjoining to Ramakrishna Vivekanand Vikri
    Kendra, Maratha Sewa Sangh, Vyankatesh Restaurant, Agricultural
    Produce Market Committee etc. Strangely, the State did not subject
    the appellant to any cross-examination.
83. The appellant examined two Talathies of the village, namely,
    Sudhakar Namdeorao Ambuskar (PW-3) and Bhagwan Shamrao Thite
    (PW-4). PW-3 marked the sketch of Hingana Mhaispur to establish
    that towards the north of the property is a cart track and towards
    the south of the cart track is the boundary of village Akoli. In the
    cross-examination, he deposed that Survey No.4 was adjacent to
    the river and since there was a possibility of proceeding of water
    only, it was not useful for non-agricultural purpose. To the similar
    effect is the evidence of PW-4.
[2024] 7 S.C.R.                                                           2281

              Kazi Akiloddin v. State of Maharashtra & Ors.


84. The respondents did not adduce any evidence. The Reference Court
    awarded Rs. 100/- per sq. ft. Para 9, 10 and 11 of the order of the
    Reference Court are extracted herein below:
           “9. The acquired land physical situation is supported by
           oral evidence of P.W. Nos.3 and 4, who are Talathi and
           concern with the said landed portion. Both these witnesses
           have proved the vicinity of the landed portion, which is
           acquired. Not only the oral evidence of P.W. Nos.3 and 4
           support to the vicinity of landed portion allegedly contended
           by the petitioner, but it is also supported to the blue-print
           map, which is available on record and other maps also
           available, which are drawn by the revenue authorities
           itself. There are two maps filed on record. One is of Akoli
           Kd. and another is of Hingana Mhaispur. These two lands
           appears to be accessible and fetchable for the residential
           purposes before the time of notification. There is no any
           rebuttable evidence regarding the physical status of landed
           area in question and objection raised by respondent in
           their written statement.
           10. It is exfacie proved on the basis of sale-deeds, maps,
           oral evidence in support of petitioner’s case that the landed
           zone of Akoli Kd. and Hingana Mhaispur having concern
           with the residential zone, and therefore, there are so many
           possibilities of high escalation in market value that too,
           since the time of notification.
           11. ...On the basis of materials on record and the oral
           evidence supported to the case, the petitioner’s case
           for enhancement of the compensation appears to be
           well founded. Not only this, petitioner has supported
           with the relevant judgment passed in L.A.C.No.183/2000
           dated 15/01/2005. Certified copy is on record, which
           clearly shows the fetchable prevailing rate as per market
           valuation of the concern land was Rs.100/- per square
           feet. This rate cannot be remained constant. In the present
           circumstances, there must be escalation in the market
           valuation. Considering this fact, petitioner did not make
           any amendment in his pleading. At the stage of argument
           vide written argument Exh.48 on Page No.8 of it, claiming
2282                                                       [2024] 7 S.C.R.

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          the enhanced compensation at the rate of Rs.100/-, that
          found me justifiable and natural and supported with all
          backgrounds about market valuation.”
          Other statutory benefits were also awarded.
85. Aggrieved by the order of the Reference Court, the State preferred
    First Appeal No. 896 of 2016 before the High Court. The State
    contended that reliance placed by the Reference Court on
    LAC No. 183/2000 was not justified as the judgment in the said
    LAC No. 183/2000 was pending Appeal in the High Court; that the
    land that was subject matter of LAC No. 183/2000 was located in
    a different village and the land was not similar in nature; that the
    judgment in LAC No. 183/2000 has been mechanically relied upon
    without considering its applicability to the case at hand; that the
    sale deeds relied upon related to small non-agricultural plots which
    had construction potentiality and are not comparable instances. The
    State further argued that in another First Appeal No. 1210 of 2008
    arising from LAC No. 140/2000 (subject matter of the Appeal in Civil
    Appeal Nos. 6776-6777 of 2013 herein), the Appeal of the State was
    allowed and the compensation fixed at Rs. 100/- per sq. ft. was set
    aside and the compensation fixed by the Land Acquisition Officer at
    Rs. 5.30/- per sq. ft. was restored.
86. Mr. Nishant Katneshwarkar, learned counsel for the appellant
    contended that though the land is situated in Village Hingana
    Mhaispur, the said village is separated from Village Akoli (Bk) only
    by a bullock-cart track; that civic amenities were available in and
    around the acquired land; that the land had construction potentiality;
    that the judgment in LAC No.183/2000 was not the only basis and
    that sale deeds dated 04.05.1999 (Exh.40), 11.06.1998 (Exh.41)
    and 15.07.1998 (Exh.42) were relied upon which showed that the
    land located in the same vicinity was sold @ of Rs. 110/- per sq.
    ft., Rs. 60/- per sq. ft. and Rs. 50/- per sq. ft. It was also submitted
    that there was no evidence to show that the land was along the
    riverbank and was prone to flooding. It was also submitted that the
    judgment in First Appeal No. 1210 of 2008 (subject matter in Civil
    Appeal Nos.6776-6777 of 2013 herein) had not attained finality.
87. The High Court, in the impugned order, proceeded as if the only
    basis of the judgment of the Reference Court was the order in
    LAC No. 183/2000. That is clear from the reading of para 8 of
[2024] 7 S.C.R.                                                          2283

              Kazi Akiloddin v. State of Maharashtra & Ors.


     the impugned order which states that “the Reference Court has
     determined the market rate of the acquired land on the basis of the
     judgment in LAC No.183/2000.” This may not be entirely an accurate
     statement as a careful perusal of the portions of the Reference
     Court judgment extracted herein above indicates that the order in
     LAC No. 183/2000 was an additional factor. Be that as it may, the High
     Court held that the land in LAC No. 183/2000 pertained to a small plot,
     namely, Survey No. 7/2 which was converted to non-agricultural use
     way back in the year 1982. It was also found that unlike the present
     plot, the land that was subject matter in LAC No. 183/2000 was not on
     the riverbank. The High Court found that the sale deed of 04.05.1999
     (Exh.40) was a post notification transaction. As far as the sale deeds
     dated 11.06.1998 (Exh.41) and 15.07.1998 (Exh.42) are concerned,
     the High Court held that they pertained to plot nos. 117, 162 and 12
     respectively carved out from Survey Nos. 6, 7 and 60 of village Akoli
     (Khurd) which was converted to non-agricultural land way back in the
     year 1982. Thereafter, the High Court held as follows:
           “11. The Respondent had also relied upon the sale-deed
           dated 04/05/1999 at Exh.40, which is a post notification
           transaction. The said sale-deed as well as sale-deeds
           dated 11/06/1998 at Exh.41 and 15/07/1998 at Exh. 42
           relate to plot Nos.117, 162 and 12 respectively carved
           out from Survey No.6, 7 and 60 of village Akoli (khurd),
           which was converted to non-agricultural land way back
           in the year 1982. These sale-deed plots were sold at the
           rate of Rs. 50-60 per sq.ft. It is not in dispute that these
           sale-deed plots are situated in village Akoli khurd which
           is separate from village Hingana by a bullock cart track.
           These sale-deed plots were small in size and were suitable
           for construction purpose. Moreover, these sale-deed plots
           were away from the river bank and were not prone to
           getting submerged during rainy season or floods.
           12. As compared to the sale-deed land, the acquired
           land is a vast track of agricultural land, along the river
           bank and was prone to getting inundated during rainy
           season and hence was not suitable for construction
           purpose. On account of these dissimilarities, the acquired
           land would not have fetched the same price as that of
           the sale-deed land. The above stated disadvantageous
2284                                                       [2024] 7 S.C.R.

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          factors possessed by the acquired land would warrant
          appropriate deductions.
          13. The above referred sale-deed plots were sold in the
          year 1998 at the rate of Rs. 50-60 per sq.ft.. Considering
          the fact that the notification under Section 4 is of the year
          1999, and further considering increase in the price of land
          at 10% per annum, the rate of these developed plots can
          be considered at Rs.60/- per sq.ft. upon deducting 30%
          towards development charges, 30% towards the difference
          in area and 15% in view of disadvantageous location of
          the acquired land vis-a-vis the sale-deed land, the price
          works out to Rs.15/- per sq. ft.”
     So holding, the compensation was fixed at Rs. 15/- per sq. ft. The High
     Court not only deducted 30% towards development charges, which
     we find is unjustified, it further went on to deduct 30% towards the
     difference in area and 15% in view of the disadvantageous location.
88. We notice that the State is not in the Appeal in this matter and there
    is no dispute about the applicability of the exemplars Exh.41 dated
    11.06.1998 and Exh.42 dated 15.07.1998 to determine the base
    value. We also note that the appellant’s own witness PW 3 and 4
    deposed in cross-examination that the land could not be put to
    non-agricultural use. The appellant did not re-examine them.
89. While we do not fault the judgment of the High Court in fixing Rs.
    60/- per sq. ft and applying 30% towards difference in area, we
    feel that further deduction towards development charges while
    the acquisition was for the construction of the wall involving no
    development and further 15% due to disadvantageous location was
    completely unjustified. Hence, we award the compensation for the
    land in question in this Appeal @ of Rs. 42/- per sq. ft. The Rest
    of the order with regard to the statutory benefits and interest is
    maintained. We are conscious that the amount of Rs. 42 per sq. ft.
    awarded by us is above the amount claimed.
90. In the affidavit-in-chief of the appellant, there is a poignant averment
    to the following effect “…. But as I could not be able to arrange for
    the Court fee, I have claimed the price of the land @ Rs. 30/- per sq.
    ft. which comes to Rs.19,35,000/-. The Land Acquisition Officer paid
    Rs. 56,585/- towards the value of the land and hence I am claiming
[2024] 7 S.C.R.                                                          2285

              Kazi Akiloddin v. State of Maharashtra & Ors.


     Rs.18,78,450/- towards the balance market value of the land along
     with all other benefits, interest and solatium and also give other
     benefits given to landless persons. I have no land on my own now.”
91. We are supported in this course of action by the earlier judgments
    of this Court in Bhag Singh and Others vs. Union Territory of
    Chandigarh through the Land Acquisition Collector, Chandigarh
    (1985) 3 SCC 737 where Chief Justice Bhagwati held while tempering
    law with justice:-
           “3… The learned Single Judge and the Division Bench
           should not have, in our opinion, adopted a technical
           approach and denied the benefit of enhanced compensation
           to the appellants merely because they had not initially paid
           the proper amount of court fee. It must be remembered
           that this was not a dispute between two private citizens
           where it would be quite just and legitimate to confine the
           claimant to the claim made by him and not to award him
           any higher amount than that claimed though even in such
           a case there may be situations where an amount higher
           than that claimed can be awarded to the claimant as for
           instance where an amount is claimed as due at the foot of an
           account. Here was a claim made by the appellants against
           the State Government for compensation for acquisition of
           their land and under the law, the State was bound to pay
           to the appellants compensation on the basis of the market
           value of the land acquired and if according to the judgments
           of the learned Single Judge and the Division Bench, the
           market value of the land acquired was higher than that
           awarded by the Land Acquisition Collector or the Additional
           District Judge, there is no reason why the appellants should
           have been denied the benefit of payment of the market
           value so determined. To deny this benefit to the appellants
           would tantamount to permitting the State Government to
           acquire the land of the appellants on payment of less than
           the true market value. There may be cases where, as for
           instance, under agrarian reform legislation, the holder of
           land may, legitimately, as a matter of social justice, with
           a view to eliminating concentration of land in the hands
           of a few and bringing about its equitable distribution, be
           deprived of land which is not being personally cultivated by
2286                                                        [2024] 7 S.C.R.

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          him or which is in excess of the ceiling area with payment
          of little compensation or no compensation at all, but where
          land is acquired under the Land Acquisition Act, 1894, it
          would not be fair and just to deprive the holder of his land
          without payment of the true market value when the law, in
          so many terms, declares that he shall be paid such market
          value. The State Government must do what is fair and just
          to the citizen and should not, as far as possible, except in
          cases where tax or revenue is received or recovered without
          protest or where the State Government would otherwise
          be irretrievably be prejudiced, take up a technical plea to
          defeat the legitimate and just claim of the citizen. We are,
          therefore, of the view that, in the present case, the Division
          Bench as well as the learned Single Judge should have
          allowed the appellants to pay up the deficit court fee and
          awarded to them compensation at the higher rate or rates
          determined by them.”
     The said principle has been followed in other cases including in
     Ashok Kumar and Another vs. State of Haryana (2016) 4 SCC 544
     wherein para 7 it was held as under: -
          “7. The pre-amended provision puts a cap on the maximum :
          the compensation by court should not be beyond the amount
          claimed. The amendment in 1984, on the contrary, puts a
          cap on the minimum : compensation cannot be less than
          what was awarded by the Land Acquisition Collector. The
          cap on maximum having been expressly omitted, and
          the cap that is put is only on minimum, it is clear that the
          amount of compensation that a court can award is no longer
          restricted to the amount claimed by the applicant. It is the
          duty of the court to award just and fair compensation taking
          into consideration the true market value and other relevant
          factors, irrespective of the claim made by the owner.
92. The above are classic instances where this Court ensured that justice
    and fairness triumphed over technicalities. By the said course, it is
    ensured that a balance was struck between recognizing the right of
    the State in exercising its power of eminent domain with the right
    of the citizen to receive what was legally due. In accordance with
    the above judgment, we also direct that the deficit court fee which
[2024] 7 S.C.R.                                                       2287

              Kazi Akiloddin v. State of Maharashtra & Ors.


     will now become payable when compensation is awarded @ of
     Rs. 42/- per sq. ft along with other statutory benefits shall be payable
     by the appellant.
93. The Civil Appeal is allowed in the above terms and the impugned
    judgment dated 18.02.2021 in First Appeal No. 896 of 2016 stands
    set aside and will be superseded by the present judgment insofar
    as fixing the market value is concerned. All statutory and other
    benefits as ordered by the Reference Court shall continue to operate.
    No order as to costs.
     IV.   Civil Appeal arising out of SLP (C) No. 6817 of 2023
           (Smt. Vijayadevi Navalkishore Bhartia & Ors. Vs. State
           of Maharashtra & Anr.) and Civil Appeal arising out of
           SLP(C) No. 2324 of 2023 (The Executive Engineer Vs. Smt.
           Vijayadevi Navalkishore Bhartia & Ors.)
94. Leave granted in both the matters.
95. Civil Appeal arising out of SLP (C) 6817 of 2023 is filed by the
    family of landowners aggrieved by the judgment of the High Court of
    Judicature at Bombay, Nagpur Bench, Nagpur in First Appeal No. 643
    of 2006 dated 27.09.2022. Civil Appeal arising out of SLP (C) 2324 of
    2023 is filed by the State against the dismissal of their First Appeal
    No. 541 of 2007 by the same judgment dated 27.09.2022. By virtue
    of the said judgment, the High Court confirmed the judgment of the
    Ld. Ad-hoc Additional District Judge, Akola awarding compensation
    @ of Rs. 100/- per sq. ft. for the plot area admeasuring 359684.44
    sq. ft., further @ of Rs. 50/-per sq. ft. for open belt area admeasuring
    108501.12 sq. ft. and @ of Rs. 25/- per sq. ft. for the plot area created
    due to division admeasuring 28809.84 sq. ft. with consequential
    benefits.
     A.    Brief Facts:
96. Brief facts giving rise to the case are as follows. The lands of the
    claimants are situated in Survey Nos. 6, 7 and 60 at Mauza Akoli
    Khurd district Akola. According to the appellants, on 03.03.1983 the
    land was converted to non-agricultural use. Survey No. 7 was reserved
    for development of residential tenements by the Nagpur Housing and
    Area Development Board vide gazette notification dated 11.10.1984.
    A notification under Section 4 of the Act was issued on 03.06.1999
    for acquiring the land for construction of flood protection wall.
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     On 06.10.1999, notice under Section 6 of the Act was published.
     On 09.04.2001, an award was passed @ of Rs. 72,400/- per hectare.
     The appellants have a case that originally the award was proposed for
     higher amount but the same was re-evaluated and reduced ultimately
     in the final award of 09.04.2001. This issue need not detain the Court
     as ultimately there is no dispute that the amount as awarded by the
     Land Acquisition Officer was Rs. 72,400/- per hectare. In fairness to
     the claimant owners, no serious argument in this Court was even
     canvassed. In fact, a Writ Petition was filed, namely, Writ Petition
     No. 753 of 2003 challenging the decision of the Commissioner in
     reducing the compensation. That Writ Petition was dismissed and
     in Civil Appeal No. 2045 of 2003 filed in this Court, an order was
     made on 12.02.2004. By the said order, the claimant owners were
     asked to raise all the issues before the Reference Court.
97. In the meantime, on 13.05.2002, aggrieved by the award passed by
    the Land Acquisition Officer, the appellants filed reference application
    bearing LAC No. 209 of 2002. Evidence was adduced about the
    situs of the land and a claim was made that compensation should
    be awarded @ of Rs. 175/- per sq. ft. Primarily, four sale deeds
    were relied upon being (i) Exh.75 dated 12.02.1999 pertaining to
    plot no. 78 of Akoli (Bk) from Survey Nos. 8 and 5/1. The total area
    of the plot was 1500 sq. ft. and it was sold @ of Rs. 100/- per sq. ft.
    (ii) Exh.76 dated 04.05.1999 pertained to plot no. 58 from Survey
    Nos. 6, 7 and 60 of Akoli (Kh) and it was sold @ of Rs. 100/- per
    sq. ft. (iii) Exh.77 dated 04.05.1999 was in respect of plot no. 117 from
    Survey Nos. 6, 7 where the plot was sold at Rs. 110/- per sq. ft. and
    (iv) Exh. 78 is the sale deed of Plot No. 50 dated 11.05.1999 from
    Survey No. 7/2 of Akoli (Kh) and it was sold @ of Rs. 175/- per sq. ft.
98. The main case of the claimant owners is that compensation should
    have been awarded based on the sale deed of 11.05.1999 which
    pertained to plot No. 50 from Survey no. 7/2 of Akoli (Bk) where the
    price was Rs. 175/- per sq. ft.
99. By the judgment of 10.08.2006, the Reference Court awarded
    enhanced compensation. For the plot area admeasuring 359684.44
    a sum of Rs. 100/- per sq. ft. was awarded. For area under open
    belt admeasuring 108501.12 sq. ft. enhanced compensation at
    Rs. 50 per sq. ft. was awarded. For the balance area of divided
    plots admeasuring 28809.84 sq. ft., Rs. 25/- per sq. ft. was awarded.
[2024] 7 S.C.R.                                                        2289

              Kazi Akiloddin v. State of Maharashtra & Ors.


100. This judgment dated 10.08.2006 was challenged by filing First Appeal
     No. 643 of 2006 by the claimant owners and the First Appeal No. 541
     of 2007 by the State. The High Court by the impugned judgment
     has affirmed the findings of the Reference Court. The appellants
     and the State are in Appeal.
     B.    Contentions:
101. Shri Ranjit Kumar, learned senior counsel for the appellants
     contended that land was developed non-agricultural land converted to
     non-agricultural use on 03.03.1983; that the area around the land is
     fully developed and is abutting the road leading to national highway
     at 1 km; that roads are available; development works were going on
     and that the land did not fall under ‘Blue Zone’ and in any case the
     said contention was given up by the State insofar as the appellant’s
     land was concerned. The learned senior counsel further contended
     that the highest exemplar at Rs. 175/- per sq. ft. ought to have been
     taken and the stand that the sale was between the related parties
     ought to be rejected since there was no evidence to show that the
     sale was intended to obtain higher compensation. Additionally, the
     sale was in favour of the legal entity. The learned counsel relied
     upon the judgments in Munusamy v. Land Acquisition Officer
     (2021) 13 SCC 258 and Mehrawal Khewaji Trust (Registered),
     Faridkot and Others v. State of Punjab and Others (2012) 5
     SCC 432 to contend that Exh. 78 the sale dated 11.05.1999 of
     plot no. 50 in Survey No. 7/2 of Akoli (bk) should have been taken
     being the highest exemplar. The learned senior counsel also submits
     that no deduction for development charges ought to have been made.
     According to learned counsel, since it is for the construction of a flood
     wall no development is required and in any event no compensation
     has been awarded for the portions of the land consisting of roads,
     lanes and open space. Learned counsel relied on Bhagwathula
     Samanna and Others Vs. Special Tahsildar and Land Acquisition
     Officer, Visakhapatnam Municipality, Visakhapatnam (1991) 4
     SCC 506; Charan Dass (Dead) by LRs. Vs. H.P. Housing & Urban
     Development Authority & Ors. (2010) 13 SCC 398 and State of
     M.P. vs. Radheshyam, 2022 SCC OnLine SC 162.
102. Rebutting the arguments, Shri Uday B. Dube, learned counsel for
     the Vidharbha Industrial Development Corporation (hereinafter
     referred to as ‘VIDC’) contends that of the four sale deeds, Exh.75
     dated 12.02.1999 was a transaction between unrelated parties.
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     The other three Exh.76, Exh.77 and Exh.78 were also executed
     just prior to the issuance of the Section 4 notification and were
     between the related parties. The sale deeds were executed just
     prior to the initiation of the acquisition and according to the State,
     the parties had full knowledge regarding sanction of the project
     for construction of flood control wall and as such sale deeds are
     suspicious in nature and are intended only for the purpose of
     getting more compensation for the plots which could not be sold for
     15 to 16 long years. The State relied upon State of Maharashtra
     and Others Vs. Digamber Bhimashankar Tandale & Ors. (1996)
     2 SCC 583 to contend that though the lands were converted for
     non-agricultural purpose, there was no development and hence
     compensation on per sq. ft. basis could not have been awarded.
     According to the State, the claimant owners were not available to
     sell a single plot for 15 to 16 long years.
103. It is further contended that the land extend to more than 7 lac sq. ft.
     in all the matters pertaining to the family and as such compensation
     at Rs. 100/- per sq. ft. relying on an exemplar sale deed involving
     sale of an area measuring 1500 sq. ft. was not justified.
104. The State vehemently argues that the intra family sale deed Exh.
     78 dated 11.05.1999 executed just twenty-three days prior to the
     notification under Section 4 cannot be the basis for the award of
     compensation @ of Rs. 175/- per sq. ft. In fact, the claimants prayed
     only for an average compensation of Rs. 121.25/- per sq. ft. So
     praying, the State prayed for restoration of the award passed by
     Land Acquisition Officer.
     C.   Findings of the High Court:
105. The High Court in the impugned order has found that the land was
     reserved for development of residential tenements. It relied on
     Exh. 67 a notification dated 21.09.1984 published in the Government
     Gazette. In fact, the High Court records that the witness for the
     respondent-State had not countered this fact that the document was
     produced and the document had remained unrebutted. Dealing with
     the argument of the claimants/land owners that the Commissioner
     could not sit in appeal against the proposed award, the High Court
     rightly rejected the plea stating that in the reference proceedings
     all the issues have been raised and as such no prejudice has been
     caused to the claimant land owners. Dealing with the situs of the
[2024] 7 S.C.R.                                                            2291

              Kazi Akiloddin v. State of Maharashtra & Ors.


     land, the High Court recognized the fact that the land was in close
     proximity to the various institutions of prominence in Akola City. It
     recorded the following finding:
           “20. ….It is to be noted that in the award passed by the
           SLAO, a reference has been made to the prominent
           location of the acquired land. The distance of the acquired
           land from various institutions of prominence and the close
           proximity of the land to Akola city has been mentioned. It
           has been proved that on the Northern side of the acquired
           land, there are police quarters known as Rahat Nagar,
           Sneh Nagar and to the North-west, there is Ambedkar
           Nagar, Vijay Oil Industries and Krushi Utpanna Bazar
           Samiti market. So also, near the acquired land, there are
           Ramkrushna Vivekanand Ashram, Maa Sharda Balak
           Mandir, Ramkrushna Vivekanand Sahitya Kharedi Vikri
           Kendra and Saint Anne’s School of Hyderabad etc. It
           has been proved that temple of Lord Vyankatesh Balaji,
           Maratha Seva Sangh, Swami Vivekanand High School,
           Jijau Vasatigruha. Vyankatesh Restaurant, Wholesale
           Grain Merchant’s Housing and Commercial Complex
           Society and Alankar Petrol Pump, are located in the close
           proximity of the acquired land.
           21. PW2 Brijmohan Modi, a registered valuer, examined by
           the claimants has proved the Valuation Reports at Exhs.63
           and 64. The map drawn by the valuer is at Exh.83. On
           the basis of the evidence of PW1 and PW2, prominent
           location of the acquired land in close proximity of Akola city
           has been proved. It has been proved that in the vicinity of
           the acquired land, there has been development. There are
           residential and commercial complexes. Evidence adduced
           in rebuttal by the respondents is not sufficient to disprove
           the above aspects. The only statement reiterated time
           and again by the respondents is that the acquired land
           being situated on the bank of Morna river, it had no future
           prospects of development. In our opinion, this contention
           of the respondents cannot be accepted in view of the
           positive evidence adduced by the claimants. Learned
           Presiding Officer of the Reference Court has accepted
           this evidence. We do not see any reason to discard or
           disbelieve this evidence.”
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106. Analysing Exh. 75 to Exh. 78 relied upon by the Appellants, the High
     Court observed as follows:
          23. In order to prove that the market price of the land on
          the date of Section 4 notification was not less than Rs.200/-
          per sq.ft., the claimants have placed on record four sale
          instances at Exhibits-75 to 78. Exh.75 is the sale deed
          dated 12.02.1999 of plot no.78 of Akoli (Bk.) from survey
          nos. 8 and 5/1. Total area of the plot was 1500 sq.ft. It
          was sold @ Rs.l00/- per sq.ft. It has come on record that
          this plot was sold by one Usha Santoshrao Gole to Ashok
          Krushnarao Sapkal and Shalikram Ramkrushna Zamre.
          It is to be noted that this sale transaction has been made
          the basis for quantifying the enhanced compensation by
          the learned Presiding Officer of the Reference Court. The
          vendor and vendee are not concerned with the claimants
          in any manner. In our opinion, therefore, the contention of
          the respondents that this sale instance was brought into
          existence to claim excessive and exorbitant compensation
          by the claimants cannot be accepted. On a perusal of the
          oral evidence adduced by the claimants and supporting
          documentary evidence, we do not see any reason to
          discard and disbelieve this sale instance.”
107. Hence, the High Court ultimately confirmed the order of the
     Reference Court relying upon Exh. 75 sale deed dated 12.02.1999 for
     Rs. 100/- per sq. ft. It expressly recorded that the vendor and vendee
     were not concerned with the claimants in any manner and that was
     also the admitted case of the State. Rejecting Exh. 76, Exh. 77 and
     Exh. 78, the High Court recorded that the sale deeds were executed
     by members of the family and as such it did not chose to rely upon
     the same.
     Findings:
108. We have already in this judgment while dealing with Civil Appeal
     Nos. 6776-6777 of 2013 hereinabove, discussed the correctness of
     the judgment and order in LAC No. 209 of 2002, which reference
     concerned the present appellants. We have also discussed the law on
     reliance of exemplars of unrelated parties and related parties and as
     to how when there are two exemplars, one between unrelated parties
     at arm’s length and the other between related parties mentioning a
[2024] 7 S.C.R.                                                      2293

              Kazi Akiloddin v. State of Maharashtra & Ors.


     higher value and when both are within reasonable time gap, prudence
     would dictate and common sense would command the acceptability
     of the exemplars involving unrelated parties. The same reasoning
     applies here also.
109. We have also therein discussed the law on the applicability of the
     development charges and also dealt therein the aspect of in what
     circumstances the value fetched by smaller plots can be applied in
     valuing larger tracts of land. Additionally, it has also to be borne in
     mind that while Rs.100/- per sq. ft. was awarded by the Reference
     Court for plotted area admeasuring 359684.44 sq. ft., for the open
     belt area admeasuring 108501.12 sq. ft., the enhanced compensation
     was only @ Rs. 50/- per sq. ft. Additionally, for the plot area created
     due to division admeasuring 28809.84 per sq. ft., the enhanced
     compensation was @ Rs. 25/- per sq. ft. For this reason also,
     additionally, we are not inclined to make any deduction in the
     amount of Rs.100/- per sq. ft. awarded for the plot area admeasuring
     359684.44 sq. ft. In view of the above, both the Civil Appeals are
     dismissed. No order as to costs.
     V.    Civil Appeal arising out of SLP (C) No. 6819 of 2023
           (Vijayadevi Navalkishore Bhartia & Ors. vs. The State
           of Maharashtra & Anr.) and Civil Appeal arising out of
           SLP (C) No. 2892 of 2023 (The Executive Engineer Vs. Smt.
           Vijayadevi Navalkishore Bhartia & Ors.)
110. Leave granted in both the matters.
111. These Appeals are similar to Civil Appeal arising out of SLP (C)
     2324 of 2023 and Civil Appeal arising out of SLP (C) No. 6817 of
     2023. The only difference being that the land is situated in Survey
     No. 6 and Survey No. 7 in Akoli (kd) and measures 26016.59 sq.
     ft. Section 4 notification under the Act was dated 21.07.2000; and
     Section 6 notification of the Act was dated 02.02.2001. The Special
     Land Acquisition Officer published the award on 27.06.2002 @ of
     Rs. 96364/- per hectare. On 20.04.2006, the Reference Court allowed
     LAC No. 53/2005 and granted Rs. 100/- per sq. ft. The High Court
     has dismissed the First Appeal No. 384/2006 filed by the claimant
     and First Appeal No. 621/2006 filed by the respondents. Both parties
     have relied on the arguments raised in Civil Appeal arising out of
     SLP (C) No. 2324 of 2023 and Civil Appeal arising out of SLP (C)
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     No. 6817 of 2023 and as such whatever has been held therein holds
     good for these Appeals also. In view of the above, both the Civil
     Appeals are dismissed. No order as to costs.
     VI.     Civil Appeal arising out of SLP (C) No. 6820 of 2023
             (Smt. Taradevi Chimanlalji Bhartia & Ors. Vs. The State of
             Maharashtra & Anr.) and Civil Appeal arising out of SLP (C)
             No. 2753 of 2023 (The Executive Engineer Vs. Smt. Taradevi
             Chimanlalji Bhartia & Ors.)
112. Leave granted in both the matters.
113. The claimants filed First Appeal No. 282 of 2005 and the State filed
     First Appeal No. 155 of 2005 arising out of LAC No. 183/2000. The
     facts are same as in Civil Appeal arising out of SLP (C) No. 6817 of
     2023 and Civil Appeal arising out of SLP (C) No. 2324 of 2023. The
     slight difference being the area involved i.e. plot area of 15562 sq. ft.
     and open sub divided area of 9464 sq. ft. On 03.06.1999, Section 4
     notification under the Act was issued and Section 6 notification under
     the Act was issued on 02.12.1999. On 04.08.2000, the LAO made
     award @ of Rs. 5,61,000/- per hectare. On a reference being filed,
     the Reference Court in LAC No. 183/2000 awarded compensation
     @ of Rs. 100/- per sq. ft. Both the claimants and the State filed
     Appeals. We have already in this judgment affirmed the findings in
     LAC No. 183/2002 out of which these Appeals arise. By the impugned
     order, the High Court confirmed the order of the Reference Court.
     Arguments are similar, hence, whatever has been held in Civil Appeal
     arising out of SLP (C) No. 6817 of 2023 and Civil Appeal arising out
     of SLP (C) No. 2324 of 2023 would hold good for these Appeals also.
     In view of the above, the Civil Appeals of the appellant landowners
     as well as the acquiring body are dismissed. No order as to costs.

     Result of the case: Civil Appeal Nos. 6776-6777 of 2013 partly
                          allowed, and other connected Civil Appeals
                          disposed of.



     †
         Headnotes prepared by: Divya Pandey


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