STATE OF MAHARASHTRA Vs. DIGAMBER BHIMASHANKAR TANDALE

JUDGEMENT

(1.) Delay condoned. Leave granted.

(2.) We have heard the Counsel on both sides. The notification under section 4(1) of the Land Acquisition Act was published in the State Gazette on 14-7-1977 acquiring 12.50 acres of land for extension of the Thermal Power Station at Parali Vaidyanath Municipality. The Land Acquisition Officer in his award dated 20-9-1978 determined the compensation at Rs. 3000 per acre, namely, 72.5 per acre. On reference, the Additional District Judge by his award and decree dated 27-4-1987 enhanced the compensation at Rs. 5 per square foot. On appeal, the High Court while confirming the said determination, reduced 1/3 of the amount towards development charges. Thus these appeals by special leave by the State as well as by the Electricity Board and also by the claimants against the deduction of 1/3rd amount. Thus these appeals are heard together.

(3.) The only question is : what will be the just and adequate compensation to which the lands are capable to fetch in open market It is settled law that the determination of compensation on square-foot basis is an illegal principle followed by the courts. The Reference Court on feats of imagination has done it. When 12.50 acres of land is sought to be acquired, no reasonable prudent purchaser would come forward to purchase the land on square-foot basis. It would be incredulous to believe such a purchase. Therefore, the premise on which the Reference Court and the High Court had proceeded to determine the compensation is obviously illegal. It is not in dispute that as on the date of the notification the lands were agricultural lands though situated within the Municipal limits. It is also in evidence that the lands were converted for non-agricultural purpose. But as on the date of notification, there was no development in that area. The oral evidence was adduced in which it was shown that up to a distance of 3/4th km to the lands there was development. Some illegal constructions were made on the lands. Under those circumstances, as on the date of the notification there was no potential value of the lands though converted into non-agricultural lands. The determination of the compensation on the basis of the potential value is also illegal.