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1999 DIGILAW 631 (BOM)

Special Land Acquisition Officer, Mumbai v. Bhavsar Construction Co. Pvt. Ltd. , Mumbai & another

1999-09-09

F.I.REBELLO

body1999
JUDGMENT - REBELLO F.I., J.:-By the present Notice of Motion the claimants have prayed that the Special Land Acquisition Officer be directed to deposit an amount of Rs. 1,70,77,760/- as per stamp duty valuation register as enumerated in Exhibit No. 1 to the affidavit in support of the Notice of Motion. 2. An Award in respect of the land was made on 5th November, 1998. In terms of the Award the Land Acquisition Officer has fixed the market value at Rs. 2,660/- per sq.ft. It is contended that the valuation for the purpose of stamp duty by the Government in the locality where the land is located is fixed at Rs. 5,320/- per sq.ft. Learned Counsel also draws my attention to the affidavit filed by Shri R.G. Jadhav, Special Land Acquisition Officer dated 26th August, 1999. In para 10 of the said affidavit, it is averred that the market value determined as per sale instances was the value fixed at Rs. 8,833/- per sq.ft. and the draft Award was sent to the Commissioner of Konkan Division, Navi Mumbai on 30th September, 1998 for approval. Learned Counsel also points out that in respect of the very same land section 4 notification was first issued on 20th February, 1992. The said proceedings were dropped. Fresh proceedings were initiated by section 4 Notification on 24th December, 1992. These proceedings in acquisition were also dropped and it is only thereafter pursuant to the third Notification issued under section 4 on 25th March, 1997 the acquisition finally culminated in the Award and that too after the petitioner had come, to this Court as the Land Acquisition Officer had failed to make the Award. Learned Counsel contends that there are obligations on them to put up construction on adjoining land and that can only be done if they receive the proper compensation including real market value for the present land. It is contended that the averment in para 10 of the affidavit where the Special Land Acquisition Officer had fixed the valuation at Rs. 8,833/- per sq.ft. would show that what has been awarded is not the real market value. The respondent should be therefore directed to deposit the compensation at that rate and at any rate based on the stamp duty valuation which is Rs. 5,600/- per sq.ft. 3. I have heard learned Counsel on the above contentions. 8,833/- per sq.ft. would show that what has been awarded is not the real market value. The respondent should be therefore directed to deposit the compensation at that rate and at any rate based on the stamp duty valuation which is Rs. 5,600/- per sq.ft. 3. I have heard learned Counsel on the above contentions. The Award having been made, possession has been taken and the claimants have been paid in terms of the Award. A party aggrieved by the Award of the Land Acquisition Officer if he is not satisfied with the valuation as done is entitled to apply for enhanced compensation by moving under section 18 of the Land Acquisition Act. This is because the Award is merely an offer. The claimants have applied and a reference has been made to this Court. 4. The question however is whether the State Government or its body or the authority for whom the land is required can be compelled to deposit compensation as prayed for in the Notice of Motion without the Reference Court arriving at a conclusion that the market value as fixed by the Land Acquisition Officer requires to be enhanced. It must also be borne in mind that in the event the Reference Court arrives at the conclusion that the market value has to be enhanced, the Act itself provides for payment of interest on the said enhanced compensation as well as Solatium at 30% on the market value as enhanced. Therefore, it is not as if a party is rendered remediless or would be denied the compensation or loose in terms of interest. 5. However, what is contended on behalf of the claimants is that they have reciprocal obligation to perform and without receiving enhanced compensation it will not be possible for them to perform their obligation. The instant case it is pointed out is a glaring case where the Special Land Acquisition Officer himself has fixed the market value in the draft Award at Rs. 8,833/- per sq.ft. which is much more than Rs. 5,600 per sq.ft. fixed by the Government for the purpose of stamp valuation. Considering these two figures the amount awarded is much less and the claimants as a matter of course would be entitled to at least Rs. 5,600/- per sq. ft. if not Rs. 8,833/- per sq.ft. 8,833/- per sq.ft. which is much more than Rs. 5,600 per sq.ft. fixed by the Government for the purpose of stamp valuation. Considering these two figures the amount awarded is much less and the claimants as a matter of course would be entitled to at least Rs. 5,600/- per sq. ft. if not Rs. 8,833/- per sq.ft. Under section 11 of the Land Acquisition Act before an Award is made the Collector under the first proviso to sub-section 11(1) of the Land Acquisition Act has to take the approval of the appropriate Government or such Officer as the Appropriate Government may authorise in this behalf. This is to enable the Government to arrive at the conclusion whether in fact the land should be acquired at the price at which the Land Acquisition Officer has arrived at and also to find out if the real market value has been properly worked. It does not mean that the Government is bound to accept the report as submitted by the Land Acquisition Officer before the Award is made. This is more so the Award is only an offer. In these circumstances merely because the Land Acquisition Officer has fixed a higher figure and the final Award has been passed at a much lower figure, by itself, at this prima facie stage cannot be the basis to hold that the claimants would be entitled to higher market value. That would be the subject matter of evidence to be led and appreciated. That aspect therefore by itself cannot be a consideration. Secondly, insofar as stamp valuation is concerned that may be a circumstance for taking into consideration for fixing the market value. However, the Land Acquisition Officer while passing the Award has to take into consideration what a willing buyer would agree to pay for the land. Various factors like location, nature of the land, facilities available, the zoning of the area i.e. whether it can be used for commercial or residential etc. have to be borne in mind. This again will require evidence to be recorded and considered. 6. Another important aspect that has to be considered is what is the legal right of the claimants at this stage of the proceedings. The relief as prayed for is in the nature of the mandatory injunction or direction to deposit an amount which is yet to be ascertained. This again will require evidence to be recorded and considered. 6. Another important aspect that has to be considered is what is the legal right of the claimants at this stage of the proceedings. The relief as prayed for is in the nature of the mandatory injunction or direction to deposit an amount which is yet to be ascertained. During the pendency of the proceedings and considering section 53 of the Land Acquisition Act the provisions of the Code of Civil Procedure to the extent that they are not inconsistent will apply. Order XXXIX is a power conferred on the Court to grant injunction to protect the subject-matter during the pendency of the proceedings. Assuming that mandatory injunction of the type asked for can be granted under Order XXXIX or for that matter by invoking inherent jurisdiction of the Court under section 151 of the Code of Civil Procedure the claimants must still make out a legal right in themselves based on which the Court can issue directions. In the instant case the only right which the claimants have is to apply for reference under section 18 on an Award being made if not satisfied with the offer made in the Award. This has been done. The corresponding duty under the Act is on the Collector to make a reference to the Court. This also has been done. The matter is now before the Court for considering the claim of the claimants. Once possession of the property is taken, the property vests in the Government and/or local authority, etc. free from all encumbrances. The claimants, then will have no longer any interest in the property. Their interest is restricted to receiving market value for the land and the added benefit in terms of the Land Acquisition Act. The compensation as ascertained as to be paid before the possession is taken. Therefore, the claimants have no longer any interest in the land. Their only claim can be if they are able to satisfy the Court, for enhancement of market value. That amount has yet to be ascertained. At this stage, therefore, there is no legal right in the claimant. Therefore, the claimants have no longer any interest in the land. Their only claim can be if they are able to satisfy the Court, for enhancement of market value. That amount has yet to be ascertained. At this stage, therefore, there is no legal right in the claimant. Therefore, no legal injury would be caused to them if the relief is not granted as yet there is no legal right crystallised in them, namely, that they are entitled to enhancement of compensation than the one offered to by the Award of the Collector. This to my mind would be an additional reason to reject the relief as prayed for by the claimants. 7. Considering the above aspects, the Reference Court cannot proceed on the footing at the prima facie stage that the reference is bound to be allowed and higher market value is bound to be fixed. Under the Land Acquisition Act all that the Government is bound to do is to deposit and/or pay before taking possession under section 12 the compensation determined in terms of the Award. This has been done. I am clearly therefore of the opinion that the Notion of Motion calling on the Applicants/Acquiring Body to deposit compensation at an enhanced rate before actual determination is not possible. In the light of that the Notice of Motion is rejected. 8. Considering the contention on behalf of the claimants that they have reciprocal obligation to develop other land and that they require the compensation if awarded for the purpose of meeting the obligation, the reference is expedited. Order accordingly. -----