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2011 BHC 6648
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Smart Summary

Factual and Procedural Background

This judgment disposes of two sets of companion appeals arising from Land Acquisition References under section 18 of the Land Acquisition Act, 1894.

First set (First Appeal Nos. 770 of 1991 and 751 of 1992): Acquisition concerned Plot No. 47 (admeasuring 1,366 sq. meters) at village Saidapur, Taluka Khandala, District Satara. Notification under section 4 was issued on 18 January 1985. An award under section 11 was made on 8 January 1988. The Special Land Acquisition Officer offered market value at Rs. 26 per sq. meter (total Rs. 57,229). The claimant claimed Rs. 90 per sq. meter in the reference under section 18. The Reference Court fixed market value at Rs. 85 per sq. meter. The State Government filed First Appeal No. 770 of 1991 challenging that award; the claimant filed First Appeal No. 751 of 1992 seeking further enhancement.

Second set (First Appeal Nos. 1048 of 1991 and 211 of 1992): Acquisition concerned Plot No. 6 (admeasuring 607 sq. meters) at village Saidapur. The dates of notification and award were the same as above. The Special Land Acquisition Officer offered Rs. 22.50 per sq. meter. The Reference Court fixed market value at Rs. 85 per sq. meter. The State Government filed First Appeal No. 1048 of 1991 challenging the enhancement; the claimant filed First Appeal No. 211 of 1992 seeking further enhancement.

Legal Issues Presented

  1. Whether the claimants discharged the initial burden (after a reference under section 18) of proving that the market value offered by the Special Land Acquisition Officer was inadequate.
  2. Whether a draft award (or statements therein) prepared by the Special Land Acquisition Officer can be relied upon as an admission or as evidence of market value where the draft award was not approved by the officer required to give prior approval under the proviso to sub-section (1) of section 11.
  3. Whether the Reference Court erred in fixing market value at Rs. 85 per sq. meter in the absence of proved comparable sale instances or other admissible evidence.

Arguments of the Parties

Argument on behalf of the State (learned A.G.P.)

  • The claimants did not adduce any evidence to discharge the burden of proving that the market value offered by the Special Land Acquisition Officer was inadequate.
  • The Reference Court erroneously relied upon the rate mentioned in a draft award prepared under section 11; a draft award is not relevant as an authoritative award.
  • The rate in the draft award (Rs. 85 per sq. meter) cannot be treated as admissible evidence of market value.

Argument on behalf of the Claimant

  • What is stated in the award (and draft award) is an admission of the State Government; the statement that market rate was Rs. 85 per sq. meter is a clinching admission and estops the State from contending a lower market value.
  • On that basis, no interference should be made with the Reference Court's enhancement and the claimant sought further enhancement as well.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court set out the legal framework and applied it to the facts as follows:

  • An award under section 11 of the Land Acquisition Act, 1894 is in the nature of an offer; a claimant who does not accept it may seek a reference under section 18, after which the claimant stands in the position of a plaintiff.
  • Once a reference is made, the claimant bears the initial burden of proving that the market value offered by the Special Land Acquisition Officer is inadequate. After discharging that burden, the claimant must adduce evidence to establish the correct market value on the relevant date.
  • The usual and well-accepted method is the comparison method: producing and proving comparable sale instances or awards in acquisition cases regarding comparable land.
  • In these cases the claimants did not rely upon or produce any comparable sale instances or awards. The claimants gave oral evidence about the area and their claim, but no sale documents were exhibited; consequently there was no admissible evidence to show the offered market value was inadequate.
  • The impugned Reference Court awards were based solely on a draft award prepared by the Special Land Acquisition Officer, which contained the officer's observation that Rs. 85 per sq. meter was fair and reasonable. However, under the proviso to sub-section (1) of section 11, the Collector/Special Land Acquisition Officer could not make an award without prior approval of the officer appointed by the appropriate Government (in these cases, the Revenue Commissioner).
  • Because the Revenue Commissioner did not approve the rate of Rs. 85 per sq. meter and approved a lesser market value, the draft award could not be treated as an award under section 11; the suggestion in the draft award therefore could not be relied upon as an admission in an award.
  • The Reference Court also appeared to rely on sale instances considered by the Special Land Acquisition Officer, but those sale instances were not produced and proved before the Reference Court and thus could not validly be considered.
  • Given the absence of proved comparable evidence and the inability to treat the draft award's suggestion as binding or admissible, the claimants failed to discharge the necessary burden; accordingly the appeals of the State must succeed and the claimants' appeals must fail.

Holding and Implications

Holding: The court quashed and set aside the impugned judgments and awards made in Land Acquisition Reference Nos. 4 of 1988 and 10 of 1988 and dismissed those references. First Appeal Nos. 770 and 1048 of 1991 were allowed. First Appeal Nos. 211 and 751 of 1992 were dismissed. There was no order as to costs in the principal disposals.

Implications: The direct effect is that the Reference Court's enhancement of market value to Rs. 85 per sq. meter was set aside for lack of admissible evidence proving inadequacy of the original offer; the claimants' attempts at further enhancement failed. The opinion does not announce or rely upon any broader new precedent beyond the application of established burden and evidence principles in acquisition references.

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    State Of Maharashtra v. Kantilal Manikchand Shah & Ors.

    Oka A.S, J.:— These appeals can be disposed of by a common judgment. First appeal Nos. 770 of 1991 and 751 of 1992 arise out of the Award made in a Land Acquisition Reference No. 4 of 1988 under section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as the said Act). The acquisition relates to land bearing Plot No. 47 admeasuring 1366 sq. meters situated at village Saidapur, Taluka Khandala, District Satara. Notification under section 4 of the said Act was issued on 18th January 1985. Award was made under section 11 of the said Act on 8th January 1988. The Special Land Acquisition Officer by the impugned Award offered market value at the rate of Rs. 26/- per sq. meter and granted compensation of Rs. 57,229/-. In the reference under section 18 of the said Act made at the instance of the claimant, market value was claimed at Rs. 90/- per sq. meter. By the impugned judgment and Award, the Reference Court granted enhancement in the market value by fixing the market value at the rate of Rs. 85/- per sq. meter. First appeal No. 770 of 1991 is preferred by the State Government for challenging the said award. First appeal No. 751 of 1992 has been preferred by the claimant seeking enhancement in the market value.

    2. First Appeal Nos. 1048 of 1991 and 211 of 1992 arise out of Land Acquisition Reference No. 10 of 1988 under section 18 of the said Act. Acquisition is in respect of the plot No. 6 admeasuring 607 sq. meters at village Saidapur. The date of notification under section 4(1) of the said Act and the date of award under section 11 is the same as in case of companion appeals. In this case, market value offered by the Special Land Acquisition Officer was Rs. 22.50 per sq. meter. Reference Court fixed the market value at the rate of Rs. 85/- per sq. meter. The First appeal No. 1.048 of 1991 has been filed by the State Government for challenging the enhancement granted. The First appeal No. 2119 of 1992 is preferred by the claimant for seeking further enhancement in the market value.

    3. The learned A.G.P appearing for the State of Maharashtra submitted that in these cases the claimants have not adduced any evidence for discharging the burden on them to prove that the market value offered by the Special Land Acquisition Officer was inadequate. He submitted that in absence of any evidence adduced by the claimants, the learned Reference Court has erroneously relied upon the rate mentioned in a draft award made under/section 11 of the said Act. He submitted that the rate of market value in the draft award is not at all relevant. The learned Counsel for the claimant submitted that what is stated in the award is the admission of the State Government and there is a clinching admission that the market rate of Rs. 85/- per sq. meter is reasonable. Therefore, the State Government is estopped from contending that the market value of the acquired land is less than Rs. 85/- per sq. meter. He, therefore, submitted that no interference is called for in the appeals preferred by the State Government and enhancement as prayed be granted in the appeal preferred by the claimant.

    4. I have given careful consideration to the submissions. Award under section 11 of the said Act is in the nature of an offer. The claimant who does not accept the award can seek a reference under section 18 of the said Act. After reference under section 18 of the said Act is made, the claimant is in a position of the plaintiff who has to discharge the initial burden of proving that the market value offered by the Special Land Acquisition Officer is inadequate. After the said burden is discharged, for establishing the correct market value on the relevant date, the claimant is duty bound to adduce evidence. The well accepted method which is normally adopted in such matters is comparison method by producing and proving the comparable sale instances or Awards made under sections 11 or 18 of the said Act in respect of comparable lands. In the present case, it is an admitted position that the claimants have not relied upon any comparable sale instances or any awards in land acquisition cases. The claimants have stepped into witness box and have deposed regarding the area of the acquired land and the claim made by them. The perusal of the Roznama of the proceedings shows that no document of sale instance has been exhibited. Thus, in short, the claimants have not adduced any evidence in the form of comparable sale instances. There is no evidence adduced to show that the market value offered under the Award made by the Special Land Acquisition Officer is inadequate.

    5. The impugned awards under section 18 of the said Act are based only on the draft award prepared by the Special Land Acquisition Officer. In the draft award prepared by the Special Land Acquisition Officer, there is an observation made that the market value of Rs. 85/- per sq. meter is quite fair and reasonable. There is a similar statement found in the award published under section 11 of the said Act. However, the said observation is to the effect that he had made valuation at the rate of Rs. 85/- per sq. meter. Under the proviso to sub section 1 of section 11, the Collector/Special Land Acquisition Officer cannot make an award without prior approval of the officer appointed by appropriate Government. In the present case, the officer appointed is Revenue Commissioner who did not approve the award at the rate of Rs. 85.per sq. meter and approved a lesser market value. Award was accordingly made by which lesser market value was offered. Hence, it must be stated here that reliance cannot he placed on a draft award as the draft award cannot be said to be an award under section 11 of the said Act. The rate of Rs. 85/- per sq. meter was a mere suggestion in the draft award. While approving the draft award, the said suggestion of the Special Land Acquisition Officer was not accepted and therefore, the claimant cannot place reliance on what is stated in the draft award. The suggestion of the Special Land Acquisition Officer that market value was Rs. 85/- per sq. meter cannot be said to be an admission in the award under section 11 of the said Act.

    6. Perusal of the impugned judgments shows that without there being any evidence of comparable sale instances, the learned trial Judge has come to the conclusion that the market value of the acquired land was Rs. 85/- per sq. meter. There is some reference in the impugned judgments to the sale instances which are considered by the Special Land Acquisition Officer. The said sale instances were not produced and proved before the Reference Court and therefore, same could not have been considered. Thus, the only conclusion can be that the claimants have miserably failed to discharge the burden on them and therefore, the appeals preferred by the State Government must succeed. The appeals preferred by the claimants must fail.

    7. Hence, I pass the following order:

    i) Impugned judgments and Awards arc quashed and set aside and the Land Acquisition Reference Nos. 10 of 1988 and 4 of 1988 stand dismissed. First appeal Nos. 770 and 1048 of 1991 are accordingly allowed. There will be no order as to costs.

    ii) First appeal No. 211 of 1992 and 751 of 1992 stand dismissed with no order as to costs.

    8. Appeal dismissed.

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    State Of Maharashtra v. Kantilal Manikchand Shah & Ors.
    (Mar 16, 2011)