SUMESHCHANDRA KAILASHCHANDRA AND CO Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) This is an appeal from the decree passed by the learned Civil Judge (Senior Division), Nanded in Land Acquisition Reference No. 42 of 1971. The Appellant is a firm and had preferred a claim by an application made under section 18 of the Land Acquisition Act of 1894, which was referred to the Civil Court by the Land Acquisition Officer. By the aforesaid decree, the Civil Court not only dismissed the claim of the appellant but also passed a decree against the appellant though the appellant was in the character of a plaintiff before it. The latter part of the decree is wholly wrong and will have to be set aside for reasons which we proceed to give in this judgment. But, we must now narrate the facts first. They are unusual facts.

(2.) Land Survey No. 11 measuring 33 acres and 3 gunthas located at Jangamwadi, a village on the periphery of the Municipal town of Nanded, originally belonged to one Kadar Ali Kasam Ali. From what has been stated in the record of this case, it is seen that the said Kadar Ali Kasam Ali died several years ago leaving behind him three sons. These three sons represented themselves to be the owners of the land and as such executed an agreement of sale on 25th of March, 1964 in favour of the appellant. The total consideration of the land was Rs. 35,000 of which Rs. 2,000 were paid as earnest money. The agreement stipulated that the balance of the amount was to be paid at the time of the sale deed. Before the time for the execution of the sale deed arrival, certain developments took place.

(3.) On the date of the agreement of sale itself, the land was the subject-matter of a notification issued under section 3 of the Hyderabad Land Acquisition Act. However, that notification was withdrawn on 5th of August, 1965. Subsequently, on 2nd of September, 1965 a notification under section 4 of the Land Acquisition Act, 1894, was issued declaring the intention of the Government to acquire land Survey No. 11 along with several other lands for the public purpose of an agricultural school. The efficacy of notification issued under section 3 of the Hyderabad Land Acquisition Act had, therefore, been exhausted. Proceedings pursuant to the notification under section 4 of the Land Acquisition Act were taken up and in due course the notification under section 6 was also issued. In the claim proceedings the appellants asked for a sum of Rs. 14,40,747 as compensation for itself plus interest and solatium on the same. The three brothers who had agreed to sell the land to the appellant putforth a claim before the Land Acquisition Officer for a sum of Rs. 35,000, which was, according to them, the market value of the land. The Land Acquisition Officer by this award dated 10th of August, 1970 fixed the total value of the land at Rs. 1,24,687 of which Rs. 35,000 was held to the payable to the vendors, while the sum of Rs. 87,724 was held to be payable to the appellant. There was between the vendors and the appellant a dispute about the apportionment of compensation.