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2007 (10) TMI 549

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..... tice under section 269D(1) asking the parties to show cause as to why the order of acquisition not be passed. The competent authority also issued a notice of initiation of acquisition proceedings. The fair market value was fixed at Rs. 1,600 per sq. ft. The competent authority cited two sale instances, one of a flat situated at Gold Coin Building at Tardeo and the other flat situated in a building known as Wallace Apartment at Sleater Road. The petitioners filed objection and also enclosed a report dated November 17, 1987, of a registered valuer, pointing out as to how the sale instances cited by the competent authority were not comparable. On October 31, 1988, the competent authority passed an order recording satisfaction that it was not a .....

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..... hat was passed was also made available. In the reasons recorded it was stated that the rate at which the petitioners had agreed to purchase the flat at Rs. 1,000 per sq. ft. is low having regard to the sale instances. Three sale instances were cited (1) building known as Windcliffee at Peddar Road, (2) Building known as Ocean Crest at B. D. Road, and (3) building known as Vastu at Maulana Gaffar Road, Worli. The petitioners filed a reply to the show-cause notice on February 8, 1993 and made their submissions as to why no order ought to be passed. Apart from the legal objections as to why Chapter XX-C was not applicable they also submitted a report of the registered valuer wherein the valuer had analysed the various comparative sale instance .....

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..... easons : Firstly, it is submitted that the show cause notice was issued based on a valuation report prepared by the Revenue, when asked for was not made available to the petitioners. Secondly, it is submitted that the sale instances relied upon by the appropriate authority when asked for ought to have been made available to the petitioners herein. The submission in respect of these two points is that the petitioners herein ought to have been given an opportunity to file an effective reply to the show-cause notice and the reasons given by the appropriate authority. In the absence of the same, it is submitted that the order suffers from violation of the principles of natural justice and fair play and consequently the order on this count is .....

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..... quo was ordered. Pursuant to that order the petitioners who were put in possession continue to be in possession of the property. In the first instance once the petitioners had asked for the valuation report, it ought not to have been summarily rejected on the ground that the reasons have been disclosed to the petitioners. The valuation report is a valuable document inasmuch as, it is that report based upon which the showcause notice was issued considering the fair market value. That document would be necessary to enable the petitioners to show cause as to why the report ought not to have been considered. Secondly, the sale instances relied upon by the appropriate authority also ought to have been made available, to enable the petitioners .....

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..... stance. The competent authority under Chapter XX-A had accepted those sale instances. In our opinion while considering the fair market value it was incumbent on the appropriate authority to have dealt with the objections raised by the petitioners as to why the sale instances relied upon by the petitioners were not comparable. In the absence of such exercise vis-a-vis the sale instances cited by the petitioners and the valuation report it would not be possible to arrive at a fair market value. In the instant case the fair market value has not been determined. Reliance is also placed on the comparative sale instances. In our opinion the order also suffers from the vice of non-application of mind. On that count also the impugned order is liabl .....

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