TMI Blog2009 (6) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1996. Hence, these appeals are being decided by this common judgment. 2] Shri Daji Umbrajkar was the owner of agricultural land in Survey No. 464, which subsequently became a part of the Municipal limits of Solapur. The said land was granted by Shri Daji Umbrajkar to Shri Ganesh Mate in the year 1875, on the condition that he would construct a Shiva Temple and would pay rent equal to the land revenue. Shri Daji Umbrajkar died shortly after the permanent lease was made in favour of Shri Ganesh Mate and Daji's son Venkat Umbrajkar had filed a Civil Suit for taking over possession of the subject land as the main condition of construction of Shiva Temple was not fulfilled. In the suit proceedings, Mate family agreed to construct the Temple and the suit was compromised. The Temple was constructed in the year 1902-1903 and the land remained with Mate family and came to be known as Mate Baug . On the demise of Shri Ganesh Mate, the land came to be mutated in the name of his son Shri Ramchandra who begot three sons i.e. Mahadeo, Shankar and Vishnu. On the demise of Shri Ramchandra, the names of his legal representatives were entered vide Mutation Entry No. 1518 certified on 29/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Land Acquisition Officer for building/structure and trees etc. The claimants have been consistently claiming that they ought to have been given the market rate at ₹ 650/- per sq. mtr. They also claimed that the deduction of an area of 1789 sq. mtrs. was not just and proper and when the land was being sought for garden, there could not have been any deduction and they ought to have been paid compensation for the total area acquired i.e. 9409 sq. mtrs. plus remaining patch of 344 sq.mtrs. on account of severance. 4] On notice, the State Government appeared before the Reference Court and vide its say at Exh. 47 opposed the Reference for enhancement. It claimed that the compensation granted by the Land Acquisition Officer was just and proper and did not call for any upward revision. The Municipal Corporation, on the other hand, filed its say at Exh. 43 and opposed the claim. It challenged the ownership claim of the claimants and also stated that the remaining area of 344 sq. mtrs. was available for the claimants to utilise and the claim for severance for the said area was not maintainable. It also claimed that the claimants being only the grantees on consideration could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, submitted that the sale instances considered by the Land Acquisition Officer were just and proper and at any rate when the sale instance of 1986 from the neighbouring plot indicated the market rate at ₹ 100/- per sq.mtr., the Reference Court fell in error in discarding the said sale instances and relying upon the valuation report at Exh. 55 submitted by PW 2 and the ready reckoner (Exhs. 78 and 79). He also submitted that the G.R. Dated 31/10/1994 was not applicable and the Reference Court could not have placed reliance on the said resolution. As per Mr. Jamdar the financial condition of the Corporation is weak and it cannot bear the financial burden as imposed by the impugned award. In support of the challenge to the impugned award, Mr. Jamdar has placed reliance on the following decisions :- (a) ig Jawajee Nagnatham vs. Revenue Divisional Officer, Adilabad, A.P. And ors. [(1994) 4 SCC 595]. (b) Union of India vs. Pramod Gupta (dead) by Lrs. and ors. [(2005) SCC 1]. He also placed reliance on a Full Bench decision of this court in the case of State of Maharashtra vs. Prashram Jagannath Aute [ 2007 (5) Mh.L.J. 403]. Mr. Patil, the learned AGP, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remains for our consideration is, whether the market rate fixed at ₹ 600/- per sq.mtr. by the Reference Court calls for interference in these appeals. 8] The best evidence of the value of property are the sale transactions in respect of the acquired land or the neighbouring land; the time at which the property comes to be sold; the purpose for which it is sold; nature of the consideration; and the manner in which the transaction came to be brought out, are also relevant factors. In the absence of sale deed relating to the acquired land, the sale transactions relating to the neighbouring lands have to be taken into consideration. Undoubtedly, such transactions must be within a reasonable time of the date of the notification and preferably before such date, the transactions must be bona fide and it should be a sale of the land similar to the land acquired or land adjacent to the land acquired. In the instant case, it is not in dispute that the acquired land is located within a distance of k.m. from Bhagwat Theatre, it is surrounded by public road from three sides, it is in the neighbourhood of Ujwal Housing Society and beyond one of the roads there are bungalows. Thus, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arket rate was ₹ 378/- per sq.mtr. The Sathe Khat was signed on 27/4/1988 and this fact is supported in the valuation report at Exh. 91 and submitted by Shri Shiralkar - DW 1. From April 1988 to December, 1989, the time gap is about one and half years and even if we presume 10% increase every year in the land value, 15% increase as in December, 1989 can safely be claimed on the market rate of ₹ 378/- per sq.mtr. (rounded off at ₹ 380/-) and thus an increase of ₹ 57/- can be granted so as to make the market rate at ₹ 417/- per sq. mtr. as on 7/12/1989. This sale instance is very much comparable because it is from the neighbouring land i.e. CTS No. 8458 and was prior to the date of notification. The Reference Court has not accepted the same and has instead supported its award mainly on two grounds. The valuation report of PW 2 which indicated the average market value at ₹ 650/- per sq. mtr. And the ready reckoner valuation as fixed by the State Government at ₹ 650/-. However, the Reference Court fixed the market rate at ₹ 600/- per sq. mtr. No reasons have been set out as to why the market rate was fixed at ₹ 600/- per sq. mtr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing upon the GR dated 31/10/1994. We do not find any force in these submissions. If the Government of Maharashtra in its wisdom has laid down a policy for offering compensation to the owners of the land which has been acquired for public purposes, it would be proper for the Reference Court to rely upon such a policy as well. The said GR clearly states that the compensation for the acquired land is to be granted on the basis of the valuation of the land by way of sale-purchase transaction method and the valuation as per ready reckoner, whichever is higher. On the date of the publication of the notification under Section 4 of the Land Acquisition Act, 1894, the rate prescribed in the ready reckoner by the Government is found to be higher than the market rate as reflected in the sale transactions, it would be necessary that the Reference Court grants market rate on the basis of the valuation as appearing in the ready reckoner. The Government Resolution clearly speaks of the State's intention to offer a better/higher price of land which is acquired for public purposes. It would be, therefore, appropriate that the market rate in the instant case is fixed by following the GR dated 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of right or settlement, has not been truly set forth in the instrument, he may refuse registering such instrument and refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon. On receipt of such opinion, he may call upon the vendor as per the rules prescribed, to pay the additional duty thereon. If the vendor is dissatisfied, he has been given the right to file an appeal and further getting reference made to the High Court for decision in that behalf. Section 47-A would thus clearly show that the exercise of the power thereunder is with reference to a particular land covered by the instrument brought for registration. When he has reasons to believe it to be undervalued, he should get verified whether the market value was truly reflected in the instrument for the purpose of stamp duty; the Collector on reference could determine the same on the basis of the prevailing market value. Section 47-A conferred no express power to the Government to determine the market value of the lands prevailing in a particular area, village, block, district or the region and to maintain Basic Valuation Register for levy of stamp duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o reiterated that the Basic Valuation Register maintained by the registering authority has no statutory foundation to determine the market value and cannot form the base under Section 23(1) to determine the market value. This Court in Gulzara Singh v. State of Punjab (1993) 4 SCC, 245, held that mutation entries of the land transactions in the revenue records are not evidence unless the parties to the transactions have been examined in proof of documents. In Director of Survey-cum-LAO v. Mohd. Ghouse (1985) 1 MLJ, 116, relied on by Mr Ganguli, the Division Bench of Madras High Court, relying upon the instructions issued by the Government to determine the market value for the purpose of registration of the instrument under Section 47-A, held that it would form basis to determine the market value under Section 23 in an appropriate case, subject to proof of the market value. What were the instructions issued by the Government and whether they had any statutory foundation, have not been stated by the Division Bench. If the broad proposition of law that under Section 47-A of Stamp Act such instructions could be issued, as contended for the appellant herein, as appears to be the view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e offer in the policy with a mere determination of the price of the acquired land on the basis of the ready reckoner. Mr.Jamdar did not dispute the fact that unless challenged and set aside, the policy must be given effect to. He however submitted that that can be done only by the concerned parties/the owner by filing a Writ Petition and not under the provisions of the Land Acquisition Act. We are unable to agree. We do not find anything in the Land Acquisition Act which prohibits the reference court or the SLAO from implementing this policy. This is despite the fact that the policy cannot bind a stranger thereto including the owner. 15] Exhibits 78 and 79 which are the extracts of ready reckoner have been perused by us. The Reference Court has relied upon the ready reckoner at Exh. 79 which does give the market rate at ₹ 650/- per sq. mtr. but that rate is applicable for the year 1992 (T.P. Scheme No. 4, Final Plot Nos. 159, 160 and 157, 164, 165 in the neighbourhood of Laxmi Vishnu Mill Chawl). It was necessary for the Reference Court to decide the market rate as in December, 1989 and not in the year 1992. Exh. 78 has set out the ready reckoner market rate as applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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