RAMRAO SHANKAR TAPASE versus MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPN. AND OTHERS

Citation: [2022] 19 S.C.R. 149 · Decided: 19-04-2022 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Case Partly allowed

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Judgment (excerpt)

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149
[2022] 19 S.C.R. 149
149
RAMRAO SHANKAR TAPASE
v.
MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPN.
AND OTHERS
(Civil Appeal Nos. 2732 of 2022)
April 19, 2022
[M. R. SHAH AND B. V. NAGARATHNA, JJ.]
Land Acquisition Act, 1894: s.23 – Land acquisition
proceedings undertaken by the State Government for the
Maharashtra Industrial Development Corporation for extension of
Industrial estate in Village Bhoyar – Special Land Acquisition officer
declared awards and determined the quantum of compensation
payable to the original claimants – Reference Court enhanced the
amount of compensation – Both original claimants as well as the
acquiring body preferred appeals against the award passed by the
Reference court – High Court disposed of all the appeals and cross
objections by the impugned common judgment and order while partly
allowing the appeal preferred by the Acquiring body and reducing
the compensation amount awarded by the Reference Court – Held:
High Court rightly relied upon and considered the only sale exemplar
of the same village while determining compensation and discarded
sale exemplars with respect to another village Lohara which were
either of the period subsequent to the land acquired in the present
case and/or the same were with respect to small areas of land –
However, impugned amount of compensation modified – Instead of
10% cumulative increase as adopted by the High Court, 12%
cumulative increase would be just and proper and in the fitness of
things – So far as submission on behalf of the claimants that the
lands in question were acquired for the industrial corporation and
were to be used for the industries/commercial purpose and
accordingly the compensation should have been paid is concerned,
what is required to be considered is that the lands in question were
agricultural lands – Even for the purpose of industrial use and/or
industries, the corporation is required to incur the expenditure
towards its development and therefore the development charges
would have to be deducted while determining the compensation –
However, in the present case, development charges not deducted –
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150
SUPREME COURT REPORTS
[2022] 19 S.C.R.
Even otherwise, the future use of the acquired land cannot be the
main criteria to determine the compensation for the lands acquired.
Partly allowing the appeals, the Court
HELD: 1.1 Before the Reference Court and even the High
Court, the original claimants relied upon Ex. 41, 42, 43 and 44
and other sale deeds/sale instances with respect to the land of
village Lohara. However, the sale deeds with respect to the lands
of village Lohara were either of the period subsequent to the
land acquired in the present case and/or the same were with
respect to small areas of land. The High Court has rightly
discarded the same. [Para 7][163-A-B]
1.2 The sale deed produced at Ex. 41 with respect to the
land bearing Survey No. 20/2 was with respect to the very village
Bhoyar which was the only sale exemplar of the same village and
other sale exemplars/sale deeds were with respect to another
village Lohara and also with respect to small pieces of land. The
High Court has rightly relied upon and considered the sale
exemplar at Ex. 41 while determining the compensation in the
present cases with respect to the lands of very village Bhoyar. In
the facts and circumstances of the case, it would have been just
and proper and in the fitness of things, that instead of 10%
cumulative increase as adopted by the High Court, if 12 %
cumulative increase would have been adopted. [Para 10][163-G-
H; 164-A-B]
1.3 The submission on behalf of the claimants was that the
lands in question were acquired for the industrial corporation
and were to be used for the industries/commercial purpose and
accordingly the compensation should have been paid is concerned.
The lands in question were agricultural lands. Even for the
purpose of industrial use and/or industries, the corporation is
required to incur the expenditure towards its development and
therefore the development charges would have to be deducted
while determining the compensation. However, in the present
case, the development charges are not deducted. Even otherwise,
the future use of the acquired land cannot be the main criteria to
determine the compensation for the lands acquired. [Para 11][164-
C-D]
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1.4 Now, so far as the compensation determined differently
for different lands acquired with respect to the same village Bhoyar,
ran

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