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TMI Blog2012 (7) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act for determination of compensation by the Court, but after amendment of the Act with effect from 24.9.1984 and disposal of the references made at the instance of other landowners, they filed an application under Section 28A(1) for redetermination of market value of the acquired land. The Special Land Acquisition Officer held that the landowners are entitled to compensation at the rate of Rs. 1.20 per square meter to Rs. 2/- per square meter. The appellants then filed an application under Section 28A(3) for award of compensation at the rate of Rs. 100/- per square meter. They pleaded that the acquired land was very close to Sion-Panvel Highway and had tremendous non-agricultural potential, nearby area had been industrialized and District Judge, Raigad-Alibag had awarded higher compensation to other landowners whose lands situated at Village Ambetarkhar (Roadpali), Taluka Panvel had been acquired for the New Bombay Project. The Special Land Acquisition Officer controverted the claim of the appellants and pleaded that on the date of Section 4(1) notification, i.e., 3.2.1970, the appellants' land was undeveloped and was being used only for the purpose of agriculture, which depende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were ready-made for N.A. use and only obstacle was absence of conversion. Therefore, though the lands under reference were under paddy cultivation it's non-agricultural potentiality cannot be disputed and the lands will have to be assessed as nonagricultural land. While dealing with the land Reference Appeal No. 92 and 94 of 1985 in respect of the lands situated at Panvel acquired on 3.2.1970 the Hon'ble High Court Bombay has taken judicial note about non-agricultural potentiality of the nearby area of Bombay city. In the case of Shashikant Krishanji (kandpile) Mali V/s. SLAO Panvel, Raigad, reported in 1993 B.C.J. 27 it is observed by the Hon'ble Division Bench of Bombay High Court that- "the aforementioned towns, are, what they are because of their closeness to the Metropolitan centre of Bombay. It is also evident that the scope for growth in the direction of Pune and Nashik has been virtually exhausted, and that, growth now lies in the direction of the districts of Raigad and Ratnagir. Judicial notice has to be taken of the fact that almost all the areas in the proximity of Bombay have been growing at a phenomenal rate and that Panvel is no exception to this feature of rapid g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence Court then noticed the judgments of the High Court in Shashikant Krishanji v. Special Land Acquisition Officer, Panvel, Raigad (1993) BCJ 27, Nama Padu Huddar v. State of Maharashtra (1994) BCJ 316 and observed: "The certified copy of the judgment in First Appeal No. 544/90 Chandrakant Gaikwad V/s. S.L.A.O. Panvel is at Exh. 29. After its perusal it transpires that the Hon'ble High Court Bombay granted compensation @ Rs. 25/- per sq. mtr. to the land situated at village Taloja acquired vide notification dt. 3.2.1970. It seems from the certified copy of the judgment in First Appeal No. 423/96 Chandrakant Bhiva Patil Vs. S.L.A.O. Panvel Exh. 30 that the Hon'ble High Court Bombay awarded compensation @ Rs. 25/- per sq. mtr. To the land situated at village Nawada acquired on 3.2.1970. Certified copy of the judgment in First Appeal No. 1074/89 state of Maharashtra Vs. Laxman Bhiva Patil Exh. 31 shows that the Hon'ble High Court Bombay granted compensation @ Rs. 25/- per sq. mtr. To the land of Village Pendhar, Taluka Panvel, acquired vide notification dt. 3.2.1970. Thus, from the judgments on record it is quite obvious that the Hon'ble High Court Bombay has awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation of the amount of compensation. The appellants also filed F.A. No.1118/2005 and prayed that the amount of compensation be enhanced keeping in view the judgment in LAR Nos. 168/86 and 172/86. They pleaded that the Reference Court had not paid adequate attention to the fact that the acquired land was in the vicinity of the industrial estates developed at Taloja and Panvel and a number of highways. 9. The Division Bench of the High Court took cognizance of the earlier judgments in which the compensation was determined keeping in view the distance of the acquired land from Bombay-Pune Highway and held that the appellants are not entitled to compensation in excess of what was awarded to the other landowners. The Division Bench accepted the State's plea for reduction in the amount of compensation and also held that 15% of market value is liable to be deducted towards development charges. 10. The review petition filed by the appellants was partly allowed by the High Court vide order dated 7.6.2007 and it was held that those having land upto a distance of 500 meters from Bombay-Pune Highway shall be entitled to compensation at the rate of Rs. 20/- per square meter and those having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and argued that the High Court did not commit any error by determining the amount of compensation keeping in view the distance criteria, which was applied in all other cases for fixing market value of the land acquired for the New Bombay Project. Learned counsel also submitted that the judgment of the Division Bench in FA Nos. 219-220 of 1989 and FA Nos. 568- 569 of 1989 cannot be relied upon for awarding higher compensation to the appellants because in respect of the land situated in Village Ambetarkhar, Taluka Panvel, District Raigad, this Court had issued direction in the earlier round of litigation that the compensation be determined on the basis of market value prevailing on 1.1.1977. 13. We have considered the respective arguments and carefully perused the record. It is settled law that while fixing market value of the acquired land, the Land Acquisition Collector is required to keep in mind the following factors: (i) Existing geographical situation of the land. (ii) Existing use of the land. (iii) Already available advantages, like proximity to National or State High Way or road and/or developed area. (iv) Market value of other land situated in the same locality/v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchaser (vii) special value for an owner of an adjoining property to whom it may have some very special advantage Whereas a smaller plot may be within the reach of many, a large block of land will have to be developed preparing a layout plan, carving out roads, leaving open spaces, plotting out smaller plots, waiting for purchasers and the hazards of an entrepreneur. Such development charges may range between 20% and 50% of the total price." 15. In Atma Singh v. State of Haryana (2008) 2 SCC 568, the Court held: "In order to determine the compensation which the tenure-holders are entitled to get for their land which has been acquired, the main question to be considered is what is the market value of the land. Section 23(1) of the Act lays down what the court has to take into consideration while Section 24 lays down what the court shall not take into consideration and have to be neglected. The main object of the enquiry before the court is to determine the market value of the land acquired. The expression "market value" has been the subject-matter of consideration by this Court in several cases. The market value is the price that a willing purchaser wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixing market value of the acquired land, which is undeveloped or under-developed, the Courts have generally approved deduction of 1/3rd of the market value towards development cost except when no development is required to be made for implementation of the public purpose for which land is acquired. In Kasturi v. State of Haryana (2003) 1 SCC 354, the Court held: "............It is well settled that in respect of agricultural land or undeveloped land which has potential value for housing or commercial purposes, normally 1/3rd amount of compensation has to be deducted out of the amount of compensation payable on the acquired land subject to certain variations depending on its nature, location, extent of expenditure involved for development and the area required for roads and other civic amenities to develop the land so as to make the plots for residential or commercial purposes. A land may be plain or uneven, the soil of the land may be soft or hard bearing on the foundation for the purpose of making construction; may be the land is situated in the midst of a developed area all around but that land may have a hillock or may be low-lying or may be having deep ditches. So the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for development' consists of two components. The first is with reference to the area required to be utilised for developmental works and the second is the cost of the development works. ... Therefore the deduction for the 'development factor' to be made with reference to the price of a small plot in a developed layout, to arrive at the cost of undeveloped land, will be for more than the deduction with reference to the price of a small plot in an unauthorised private layout or an industrial layout. It is also well known that the development cost incurred by statutory agencies is much higher than the cost incurred by private developers, having regard to higher overheads and expenditure." 18. In A.P. Housing Board v. K. Manohar Reddy (2010) 12 SCC 707, the rule of 1/3rd deduction towards development cost was invoked while determining market value of the acquired land. In Subh Ram v. State of Haryana (2010) 1 SCC 444, this Court held as under: "Deduction of "development cost" is the concept used to derive the "wholesale price" of a large undeveloped land with reference to the "retail price" of a small developed plot. The difference between the value of a small developed plot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the acquired land was in the proximity of National Highway No.4, Panvel-Sion Highway and the construction of Thane Creek Bridge which brought various villages including village Roadpali (Kolhekhar) close to Bombay. The Reference Court also noted that civic amenities were available to Panvel town prior to 1970 and industrial estates had been developed at Taloja and Panvel and concluded that the acquired land was available for non-agricultural use and the only obstruction was the absence of conversion. The High Court did not advert to the factors noted by the Reference Court and reduced the amount of compensation by mechanically applying the distance criteria, i.e., distance of the acquired land from Bombay- Pune Highway adopted in the earlier judgments. Therefore, the impugned judgment and order cannot be sustained. 21. Although, the appeals filed by the State Government and the landowner against the judgment of District Judge, Raigad in LAR No.172/86 were decided after six months of the impugned judgment, we find that compensation for the land situated at Village Ambetarkhar had been awarded at the rate of Rs. 60/- per square meter primarily on the ground that in th ..... 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