Case: Ramrao Shankar Tapase Vs. Maharashtra Industrial Development Corpn. &amp; Others

non-agricultural potentiality and are situated nearer to the industrial area, the High Court has further added 15% and has determined and awarded the compensation at the rate of Rs. 2,00,000/- per hectare for cultivable land. In some of the cases, the same is reduced to Rs.1,80,000/- per hectare or reduced to Rs.1,50,000/- per hectare (Civil Appeal Nos. 2733- 2734/2022), by considering the location of the lands acquired. 10. Looking to the fact that the sale deed produced at Ex. 41 with respect to the land bearing Survey No. 20/2 was with respect to the very village Bhoyar which was the only sale exemplar of the same village and other sale exemplars/sale deeds were with respect to another village Lohara and also with respect to small pieces of land, we are of the considered view that the High Court has rightly relied upon and considered the sale exemplar at Ex. 41 while determining the compensation in the present cases with respect to the lands of very village Bhoyar. However, at the same time, bearing in mind the decision of this Court in the case of Pehlad Ram (supra), by which this Court has observed and held that a cumulative increase of 10 to 15% per year in the market value of the land may be accepted, in the facts and circumstances of the case, we are of the opinion that instead of 10% cumulative increase as adopted by the High Court, if 12% cumulative increase would have been adopted, it would have been just and proper and in the fitness of things. 11. Now, so far as the submission on behalf of the claimants that the lands in question were acquired for the industrial corporation and were to be used for the industries/commercial purpose and accordingly the compensation should have been paid is concerned, what is required to be considered is that the lands in question were agricultural lands. Even for the purpose of industrial use and/or industries, the corporation is required to incur the expenditure towards its development and therefore the development charges would have to be deducted while determining the compensation. However, in the present case, the development charges are not deducted. Even otherwise, the future use of the acquired land cannot be the main criteria to determine the compensation for the lands acquired. 12. In the case of Hookiyar Singh (supra), it is observed and held that while determining the compensation, the future use of the land is not the relevant consideration. 12.1 In the case of Subh Ram (supra), it is observed and held that the purpose of acquisition is also a relevant factor. However, the said observation may not apply in all cases and all circumstances as the general rule is that the landowner is being compensated for what he has lost and not with reference to the purpose of acquisition. It is further observed and held that the purpose of acquisition can never be a factor to increase the market value of the acquired land. 13. Now, so far as the compensation determined differently for different lands acquired with respect to the same village Bhoyar, ranging from Rs. 1,50,000/- per hectare to Rs. 2,00,000/- per hectare is concerned, different market value/compensation can be determined for different lands located differently in the same village or locality. In the case of Tarlochan Singh (supra), it is observed and held that it is common knowledge that all the lands in the same village may not possess the same quality and command a common market price. 13.1 In the case of Basant Kumar (supra), it is observed and held that even in the same village, no two lands command same market value. The lands abutting the main road or national highway would command a higher market value and as the location of the land is interior, the market value of such land would be lesser despite the quality of land being similar to the land on the main road or highway. 13.2 In the case of Kanwar Singh (supra), it is observed and held that generally there would be difference in the potentiality of lands situated in two different villages. 14. In the present case, as such, there is already a sale exemplar at Ex. 41 with respect to very village Bhoyar which as observed hereinabove can be said to be the best exemplar while determining the compensation with respect to the lands acquired of the same village Bhoyar. The High Court has rightly relied upon and considered the sale deed at Ex. 41 being land survey no. 20/2 and determined the market value at Rs.1,00,000/- per hectare in the year 1992 and has rightly determined the compensation relying upon the sale exemplar produced at Ex. 41. However, at the same time, as observed hereinabove, instead of 10% cumulative increase, the High Court ought to have added 12% increase cumulatively for about three years. To that extent, the impugned common judgment and order passed by the High Court is required to be modified and the appeals preferred by the original claimants are required to be partly allowed to the aforesaid extent. Thus, the market value of the acquired land would be Rs. 1,40,492/- per hectare and after rounding off, it will become Rs.1,50,000/- per hectare. Further adding 50% towards the non-agricultural potentiality, the fair market value for determining the compensation would be Rs. 2,25,000/- per hectare in the cases where the High Court has determined and awarded the compensation at Rs. 2,00,000/- per hectare. There shall be corresponding reduction in the compensation with respect to other lands as made by the High Court looking to the location of the lands. Thus, wherever the High Court has determined the compensation at Rs.1,80,000/- per hectare, it will come to Rs. 2,00,000/- per hectare and wherever the High Court has determined the compensation at Rs. 1,50,000/- per hectare, it will come to Rs. 1,75,000/- per hectare. The appeals preferred by the claimants are required to be partly allowed to the aforesaid extent.

Court's decision (1 = petition accepted / positive for appellant, 0 = rejected / negative): 1

Reasoning from the judgment:
1[ds]9. The High Court by the impugned judgment and order has mainly relied upon Ex. 41, the sale deed with respect to the land bearing Survey No. 20/2 of the very village Bhoyar dated 18.09.1992, by which one of the claimants – Satish Nimodiya purchased the said land at Rs. 91,736/p per hectare. The High Court has rounded off the same to Rs.1,00,000/- per hectare. Therefore, the High Court has considered the value of the land in 1992 at Rs. 1,00,000/- per hectare. Considering three years gap between the sale exemplar dated 18.09.1992 (Ex. 41) and the land acquired in the present case, the High Court has added 10% increase cumulatively for three years and has determined the fair market value of the acquired land at Rs. 1,30,000/- per hectare. That thereafter, considering the fact that the lands acquired have non-agricultural potentiality and are situated nearer to the industrial area, the High Court has further added 15% and has determined and awarded the compensation at the rate of Rs. 2,00,000/- per hectare for cultivable land. In some of the cases, the same is reduced to Rs.1,80,000/- per hectare or reduced to Rs.1,50,000/- per hectare (Civil Appeal Nos. 2733- 2734/2022), by considering the location of the lands acquired.10. Looking to the fact that the sale deed produced at Ex. 41 with respect to the land bearing Survey No. 20/2 was with respect to the very village Bhoyar which was the only sale exemplar of the same village and other sale exemplars/sale deeds were with respect to another village Lohara and also with respect to small pieces of land, we are of the considered view that theHigh Court has rightly relied uponand considered the sale exemplar at Ex. 41 while determining the compensation in the present cases with respect to the lands of very village Bhoyar.However, at the same time, bearing in mind the decision of this Court in the case of Pehlad Ram (supra), by which this Court has observed and held that a cumulative increase of 10 to 15% per year in the market value of the land may be accepted, in the facts and circumstances of the case, we are of the opinion that instead of 10% cumulative increase as adopted by the High Court, if 12% cumulative increase would have been adopted, it would have been just and proper and in the fitness of things.11. Now, so far as the submission on behalf of the claimants that the lands in question were acquired for the industrial corporation and were to be used for the industries/commercial purpose and accordingly the compensation should have been paid is concerned, what is required to be considered is that the lands in question were agricultural lands. Even for the purpose of industrial use and/or industries, the corporation is required to incur the expenditure towards its development and therefore the development charges would have to be deducted while determining the compensation. However, in the present case, the development charges are not deducted. Even otherwise, the future use of the acquired land cannot be the main criteria to determine the compensation for the lands acquired.12. In the case of Hookiyar Singh (supra), it is observed and held that while determining the compensation, the future use of the land is not the relevant consideration.12.1 In the case of Subh Ram (supra), it is observed and held that the purpose of acquisition is also a relevant factor. However, the said observation may not apply in all cases and all circumstances as the general rule is that the landowner is being compensated for what he has lost and not with reference to the purpose of acquisition. It is further observed and held that the purpose of acquisition can never be a factor to increase the market value of the acquired land.13. Now, so far as the compensation determined differently for different lands acquired with respect to the same village Bhoyar, ranging from Rs. 1,50,000/- per hectare to Rs. 2,00,000/- per hectare is concerned, different market value/compensation can be determined for different lands located differently in the same village or locality. In the case of Tarlochan Singh (supra), it is observed and held that it is common knowledge that all the lands in the same village may not possess the same quality and command a common market price.13.1 In the case of Basant Kumar (supra), it is observed and held that even in the same village, no two lands command same market value. The lands abutting the main road or national highway would command a higher market value and as the location of the land is interior, the market value of such land would be lesser despite the quality of land being similar to the land on the main road or highway.13.2 In the case of Kanwar Singh (supra), it is observed and held that generally there would be difference in the potentiality of lands situated in two different villages.14. In the present case, as such, there is already a sale exemplar at Ex. 41 with respect to very village Bhoyar which as observed hereinabove can be said to be the best exemplar while determining the compensation with respect to the lands acquired of the same village Bhoyar. TheHigh Court has rightly relied uponand considered the sale deed at Ex. 41 being land survey no. 20/2 and determined the market value at Rs.1,00,000/- per hectare in the year 1992 and has rightly determined the compensation relying upon the sale exemplar produced at Ex. 41.However, at the same time, as observed hereinabove, instead of 10% cumulative increase, the High Court ought to have added 12% increase cumulatively for about three years. To that extent, the impugned common judgment and order passed by the High Court is required to be modified and the appeals preferred by the original claimants are required to be partly allowed to the aforesaid extent. Thus, the market value of the acquired land would be Rs. 1,40,492/- per hectare and after rounding off, it will become Rs.1,50,000/- per hectare. Further adding 50% towards the non-agricultural potentiality, the fair market value for determining the compensation would be Rs. 2,25,000/- per hectare in the cases where the High Court has determined and awarded the compensation at Rs. 2,00,000/- per hectare. There shall be corresponding reduction in the compensation with respect to other lands as made by the High Court looking to the location of the lands. Thus, wherever the High Court has determined the compensation at Rs.1,80,000/- per hectare, it will come to Rs. 2,00,000/- per hectare and wherever the High Court has determined the compensation at Rs. 1,50,000/- per hectare, it will come to Rs. 1,75,000/- per hectare. The appeals preferred by the claimants are required to be partly allowed to the aforesaid extent.