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M/S. AHAD BROTHERS versus STATE OF M.P. AND ANR.

Citation: [2004] SUPP. 6 S.C.R. 191 · Decided: 19-11-2004 · Supreme Court of India · Bench: SHIVARAJ V. PATIL · Disposal: Disposed off

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Judgment (excerpt)

T 
Β·~ 
MIS. AHAD BROTHERS 
v. 
STATE OF M.P. AND ANR. 
NOVEMBER 19, 2004 
[SHIVARAJ V. PATIL AND B.N. SRIKRISHNA, JJ.] 
Land Acquisition Act. 1894: 
Section 18-Acquired /and-Question of title-Jurisdiction of Reference 
Court to determine-Land Acquisition Officer considered the person whose 
land was acquired as the owner of the acquired land and passed an award 
A 
B 
c 
of compensation-Reference Court concluded that the State failed to 
establish that the owner was a lessee/licensee-However, High Court 
reversed the finding of the Reference Court without dislodging the reasons 
recorded by it in support of its conclusion and held that the owner was D 
entitled only to the extent of leasehold interest in the acquired land-
Correctness of -Held: Question of title could not be decided under S. 18-
High Court erred in reversing the finding of the Reference Court-Hence, 
High Court's judgment cannot be sustained 
Section 3(b)-"Person interested"-Held: State is not a "person E 
interested" in agitating any claim under S. 18 or S. 30. 
Sectior.s 4 & 6-Land owned by State-Acquisition of-Held: There 
is no question of State acquiring its own land: 
F 
Section 23-Compensation-Developmental charges-Deduction of-
Reference Court awarded compensation at a certain rate after due 
consideration of oral and documentary evidence but did not deduct 
developmental charges-However, High Court without considering the 
material on record and the reasons recorded by the Reference Court reduced 
the rate-Correctness of-Held: High Court erred in interfering with the G 
Reference Court's determination-Reference Court also erred in not 
deducting the developmental charges-Considering the location and 
surroundings of the acquired land it would b? just and appropriate to deduct 
30% towards developmental charges out of the compensation payable to 
the owner. 
H 
191 
192 
SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R. 
A 
Code of Civil Procedure. l 908: 
Order 8 Rule 9-Written statement-Amendment of-Not cha/Jenged-
Effect of-Defendant filed an application to amend its written statement 
that the plaintiff was not the owner of the land but only a licensee/lessee-
B High Court allowed the application-Plaintiff did not challenge this order-
Held: Merely because permission was granted to amend the written 
statement did not mean that the plaintiff could not resist the claim of the 
defendant as regards its right as the owner of the acquired land. 
c 
Words & Phrases: 
"Person interested"-Meaning of-Jn the context ofS. 3(b) of the Land 
Acquisition Act, 1894. 
The Land Acquisition Officer, pursuant to the notification issued 
D under Section 4(1) of the Land Acquisition Act, 1894, acquired the 
appellant's land considering him as the owner of the said land and after 
fixing the market value of the land acquired, awarded a certain amount 
as compensation. Not being satisfied with the amount of compensation_, 
the appellant sought for reference under Section 18 of the Act. TliΒ’ 
Reference Court rejected the said reference. Aggrieved by the order of 
E the Reference Court, the appellant filed an appeal before the High 
Court. The High Court allowed the appeal, set aside the order of the 
Reference Court and remanded the matter to it to decide th~ reference 
afresh. 
F 
The Reference Court enhanced the compensation. The respondent-
State filed an appeal before the High Court challenging the said 
enhancement. During the pendency of the appeal, the State Government 
made an application for amendment in the written statement to the 
effect that the appellant was not the owner of the land and was a licensee 
or a lessee. The State Government also made an application seeking 
G permission to file additional evidence. The High Court, after allowing 
the applications set aside the Award made by the Reference Court and 
remitted the matter again to it for determining the rights of the appellant 
in the land and to determine the market value of those rights on the date 
of the notification. On the basis of the material available on record the 
H Reference Court held that the appellant was having ownership rights 
AHAD BROTHERS v. STA TE 
193 
in the acquired land and further enhanced the compensation. 
The State Government for the second time filed an appeal in the 
High Court questioning the validity and corre.::tness of the order made 
by the Reference Court. The appellant also filed cross objections claiming 
enhancement of the compensation for the land acquir

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