2009 (6) TMI 1019 - HC - Indian Laws

Summary

Issues Involved:
1. Market rate determination for acquired land.
2. Severance compensation for unacquired land.
3. Deduction of land area for public use.
4. Validity of Government Resolutions in determining compensation.
5. Burden of proof for enhancement of compensation.

Detailed Analysis:

1. Market Rate Determination for Acquired Land:
The appeals arose from the award dated 29/4/1995 by the Civil Judge, S.D. at Solapur, fixing the market rate at Rs. 600/- per sq. mtr. for 7620 sq. mtrs. of land. The Reference Court relied on the valuation report by PW 2 and the ready reckoner (Exhs. 78 and 79), which indicated a market rate of Rs. 650/- per sq. mtr. However, the Court fixed the rate at Rs. 600/- per sq. mtr. without clear reasoning. The High Court noted that the ready reckoner for 1989 (Exh. 78) set the rate at Rs. 500/- per sq. mtr., which should have been considered. The High Court thus modified the market rate to Rs. 500/- per sq. mtr., finding the Reference Court's rate unsustainable.

2. Severance Compensation for Unacquired Land:
The claimants argued that the remaining 344 sq. mtrs. of land, not acquired, was not useful and sought severance compensation. The Reference Court granted compensation at the same rate of Rs. 600/- per sq. mtr. for this unacquired land. The High Court upheld this decision, noting no evidence was provided by the State or Municipal Corporation to show that the plot had independent access or could be used by the owners.

3. Deduction of Land Area for Public Use:
The Land Acquisition Officer deducted 1789 sq. mtrs. from the 9409 sq. mtrs. for road and open space development. The Reference Court and the High Court confirmed this deduction, noting it was less than 20%, which is permissible as per legal precedents. The deduction was not contested by the State or Municipal Corporation in their appeals.

4. Validity of Government Resolutions in Determining Compensation:
The Reference Court relied on the Government Resolution dated 31/10/1994, which stated that compensation should be based on the higher value between sale transactions and the ready reckoner. The High Court upheld this reliance, stating that the policy aimed to offer better compensation to landowners and was binding on the State. The High Court dismissed arguments against the GR, emphasizing that it was within the Government's authority to set such policies.

5. Burden of Proof for Enhancement of Compensation:
The State and Municipal Corporation argued that the claimants did not provide comparable sale instances to justify the enhancement. The High Court noted that the Reference Court had considered various pieces of evidence, including valuation reports and sale instances from neighboring plots. The High Court found that the Reference Court's reliance on these pieces of evidence was appropriate, though it corrected the final market rate based on the ready reckoner for 1989.

Conclusion:
The High Court dismissed the appeal for further enhancement by one of the claimants and partly allowed the appeals by the State and Municipal Corporation. The market rate was reduced from Rs. 600/- to Rs. 500/- per sq. mtr. for the acquired land, while the severance compensation for 344 sq. mtrs. was upheld. The decision emphasized the validity of Government Resolutions in determining compensation and confirmed the deduction of land for public use.