1 IN THE HIGH COURT OF BOMBAY AT GOA. FIRST APPEAL NO. 213/2004. Communidade of Bambolim, a body constituted and functioning under the Code of Communidades, 1961, having their office at Bambolim, Tiswadi, Goa and represented herein by their Special Attorney Mr. Jeronino Monteiro, R/o Bambolim, Goa. … Appellant. V/s 1. Deputy Collector (L.A.), Land Acquisition Officer, Collectorate, Panaji, Goa. 2. The Executive Engineer, Goa Central Division, C.P.W.D., Bambolim, Goa. … Respondents. Mr. A. R. Kantak, Advocate for the Appellants. Mr. C. A. Ferreira, Central Government Standing Counsel for Respondent No. 2. Ms. Sapna Mordekar, Addl. Government Advocate for Respondent No. 1. CORAM : F. M. REIS , J. DATE : 22 nd October 2010 . 2 ORAL JUDGMENT The above appeal challenges the judgment and award dated 25.5.2004 passed by the learned Ist Addl. District Judge, North Goa, Panaji in LAC No. 65/1999. 2. The land belonging to the appellant came to be acquired by respondents admeasuring 4050 Sq. metres pursuant to the notification dated 24.10.1996 from property surveyed under No. 92/1 (part) of Bambolim village for construction of Holiday Home for Central Government Employees at Bambolim. By award dated 31.7.1997 the Land Acquisition Officer (LAO for short) fixed the compensation at the rate of Rs. 25/- per sq. metre for the land acquired and further an amount of Rs. 413/- for the trees existing therein. Smt. Sita Rama Gauns and her children claimed to be agricultural tenants of the said property and one Shri Teofilo Monteiro also claimed to be lease holder. The dispute was referred to the learned District Judge under Section 30 of the Land Acquisition Act, 1894 (hereinafter referred to as the said Act) for apportioning the said compensation. The said proceedings are said to be still pending. Mean while the appellants filed an application under section 18 of the said Act claiming 3 enhancement of compensation at the rate of Rs. 3000/- per sq. metre. After framing issues and hearing the parties, the Reference Court passed the impugned judgment dated 25.5.2004 rejecting the said reference. Being aggrieved by the said judgment, the appellants preferred the present appeal. 3. The learned Counsel appearing for the appellants has assailed the impugned judgment and submitted that the Reference Court has totally discarded the evidence on record and erroneously came to the conclusion that the appellants are not entitled for any compensation. The learned Counsel has further submitted that there is no bar under the Code of Communidade for any transfer of land while on the contrary it only prescribes a procedure in respect of transfer of Communidade land. The learned Counsel further submitted that the land of the appellant is located in the property which is adjoining Bambolim- Siridao road and all facilities for development were available at the site. He further submitted that the appellants have relied on the sale instances which are comparable to the land acquired which demonstrates that the price offered by the LAO was inadequate. The learned Counsel further submitted that the appellants had also relied upon the awards at exhibits 15 and 16 4 wherein the same land was awarded higher compensation. The learned Counsel further submitted that there was also an award produced by the appellant at exhibit 16-A which has been erroneously discarded mainly because the property belonged to private persons. The learned Counsel as such submitted that the tenancy issue is not finally adjudicated and as such the question of rejecting the reference on the ground that the land was tenanted land would not arise. 4. On the other hand, Mr. C. Ferreira, Assistant Solicitor General appearing for the Respondent supported the impugned judgment. He has submitted that the appellants have failed to adduce any evidence of comparable sale instance. He pointed out that in respect of same property bearing survey No. 92/1 this Court in First Appeal No. 40/2002 and First Appeal No. 41/2002 has remanded the matter back to the Reference Court for deciding the tenancy issue. 5. Having heard the learned Counsel and on perusal of the record, the following point for determination arises in the present appeal: POINT FOR DETERMINATION 1. Whether the Reference Court was justified 5 to reject the reference filed by the appellants? 6. On perusal of the impugned judgment, I find that the Reference Court has rejected the claim of the appellants on two grounds namely that there are restrictions in the Code of Communidade with regard to transferability of such land and that there was claim of tenancy thereof. As far as the existence of the restrictions in the Code of Communidade, the Division Bench of this Court has held that such restrictions does not disentitle the Communidade from claiming compensation in respect of the acquired land. The Division Bench in First Appeal No. 103/2003 in the case of Goa Industrial Development Corporation, Panaji Vs. Communidade of Marcaim & anr. at para 15 has held as follows: 15. The aforesaid decision does not contain exhaustive list of negative factors. In case of a land held by a Communidade ,the restriction on transfer will be one of the negative factors, which will have to be considered while fixing the market value. Taking into consideration the said negative 6 factor, some deduction will have to be made depending upon the facts of a particular case while fixing the market value on the basis of a comparable sale instance of a freehold land. In the case of Krishna Yachendra Bahadurvaru Vs. The Special Land Acquisition Officer; AIR 1979 SC 869, the Apex Court held that the process of determination of the market value invariably involves the evaluation of many imponderables and hence it must necessarily be to some extent a matter of conjecture or guess. Therefore, we find that the submission that the market value of the land vesting in Communidade cannot be determined on the basis of sale instance of a comparable freehold land, will have to be rejected by holding that the market value of a land vesting in Communidade can be determined on the basis of comparable sale instance of a freehold land by making appropriate deductions considering the peculiar facts of the case on account of restrictions on transferability of the acquired land vesting in 7 Communidade.” Hence the Reference Court erred in holding that as the acquired land belonged to a Communidade, such land had a bar on transfer and had no potential value for development. 7. With regard to the finding about existence of tenancy over the suit property, I find that there is no dispute that the issue of tenancy was under adjudication before the competent authority. Unless and until such issue is finally decided, the market value of the acquired land cannot be arrived at as the existence or otherwise of a tenant in the acquired land would have a material bearing in fixing such compensation. Whether the acquired land has potential for being issued for non agricultural purpose, can be considered by the Reference Court only after the issue of tenancy is decided. In similar situation, this Court in said two appeals has remanded the matter back to the Reference Court to decide the matter afresh after the issue of tenancy is decided in a competent forum. The Reference Court was not justified to reject the reference filed by the Appellants without awaiting the decision by the competent forum about the claim of tenancy pending in the said proceeding. The point for determination is answered accordingly. 8 8. In view of the above, i) The appeal is partly allowed. ii) The impugned judgment and award dated 25.5.2004 is quashed and set aside. The LAC No. 65/1999 is restored to the file of the Reference Court. iii)The Reference Court is directed to stay further proceedings until the adjudication before the competent authority is finally decided. iv) After such issue is decided, the parties are at liberty to adduce evidence if they so desire in support of their respective claim. The Reference Court shall thereafter decide the reference afresh after considering all the evidence the parties have adduced in the said proceedings in accordance with law. The appeal stands disposed of accordingly with no order as to costs. 9 8. Parties to appear before the Reference Court on 13.12.2010 at 10.00 a.m.. F. M. REIS, J. MF/-