Thanks to visit codestin.com
Credit goes to www.scribd.com

0% found this document useful (0 votes)
19 views44 pages

2025:BHC Nag:4066

The document is a legal judgment from the High Court of Judicature at Bombay regarding a land acquisition dispute involving the Vidarbha Irrigation Development Corporation and a landowner, Dnyaneshwar Sadashiv Nagpure. The case centers on the compensation awarded for 375 orange trees on the acquired land, with the landowner seeking an increase in compensation based on valuation evidence. The court ultimately considers previous judgments on similar cases and the valuation methods used, leading to a decision on the appropriate compensation for the trees and the land.

Uploaded by

ashishrautx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
19 views44 pages

2025:BHC Nag:4066

The document is a legal judgment from the High Court of Judicature at Bombay regarding a land acquisition dispute involving the Vidarbha Irrigation Development Corporation and a landowner, Dnyaneshwar Sadashiv Nagpure. The case centers on the compensation awarded for 375 orange trees on the acquired land, with the landowner seeking an increase in compensation based on valuation evidence. The court ultimately considers previous judgments on similar cases and the valuation methods used, leading to a decision on the appropriate compensation for the trees and the land.

Uploaded by

ashishrautx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 44

2025:BHC-NAG:4066

1/44 Judg.fa.285.2022 aw xob.19.2023.odt

IN THE HIGH COURT OF JUDICATURE AT BOMBAY


NAGPUR BENCH : NAGPUR

FIRST APPEAL NO. 285 OF 2022

Vidarbha Irrigation Development Corporation


Through its Executive Engineer, Lower Vena
Project Division, Wardha, District Wardha. ... APPELLANT

VERSUS

1. Dnyaneshwar Sadashiv Nagpure


Aged about 59 Years, Occu : Agriculturist;
R/o Ridhora, Tahsil and District Nagpur.

2. The Special Land Acquisition Officer,


Kanholi Nala Project, Nagpur, District … RESPONDENTS
Nagpur.

WITH
CROSS OBJECTION NO. 19 OF 2023

Dnyaneshwar Sadashiv Nagpure


Aged about 74 Years, Occu : Agriculturist;
R/o Ridhora (Satgaon), Tahsil Hingna,
District Nagpur. ... APPELLANT

VERSUS

1. Vidarbha Irrigation Development


Corporation, through its Executive Engineer,
Lower Vena Project Division, Wardha,
District Wardha.

2. The Special Land Acquisition Officer,


Kanholi Nala Project, Civil Lines, Nagpur,
District Nagpur. … RESPONDENTS
2/44 Judg.fa.285.2022 aw xob.19.2023.odt

Ms. Ashwini Athalye, Advocate for Appellant in First Appeal No. 285/2022
and for Respondent No.1 in Cross-Objection No. 19/2023.
Ms. Rajkumari Rai, Advocate a/w Mr. Sahil Kashyap, Advocate for Respondent
No.1 in First Appeal No. 285/2022 and for Cross-Objector/Appellant in Cross
Objection No. 19/2023.
Mr. M. A. Kadu, AGP for Respondent No.2/State in First Appeal No.285/2022
and Cross Objection No. 19/2023.

CORAM : ROHIT W. JOSHI, J.

DATE OF RESERVING JUDGMENT : FEBRUARY 04, 2025.


DATE OF PRONOUNCEMENT OF JUDGMENT : APRIL 21, 2025.

JUDGMENT

. The land of the Cross-objector bearing Gat No. 38 admeasuring

3.95 HR located at village Ridhora, Tahsil and District Nagpur came to be

acquired for Wadgaon Dam under Lower Vena Project. Notification under

Section 4 of the Land Acquisition Act, 1894 (for short, ‘the Act’) was published

in the Official Gazette on 27/4/1995, which is last date of publication. The

Land Acquisition Officer has passed Award dated 30/4/1997 under Section 11

of the Act. The Land Acquisition Officer has awarded compensation of

Rs.1,78,186/- for the land, Rs.47,985/- for pipe-line, Rs.6039/- for a structure

standing on the land and Rs. 4,86,316/- for the trees. It will be pertinent to

mention here that there were 375 orange trees in a portion admeasuring 1.22

HR land acquired from the Cross-objector.

2. As stated above, the Land Acquisition Officer passed Award dated


3/44 Judg.fa.285.2022 aw xob.19.2023.odt

30/4/1997. The Cross-objector made an application seeking reference under

Section 18 of the Act, since he was not satisfied with the amount of

compensation awarded by the Land Acquisition Officer. Accordingly, reference

was made to the Civil Court, which came to be registered as Land Acquisition

Case No. 154 of 2005.

3. The Cross-objector/land owner did not raise any dispute with

respect to rate of the land. The grievance was with respect to valuation of the

trees, principally, orange trees. It may be stated that the perusal of paragraph

12 of the reference application, wherein particulars of the claim are

mentioned indicates that the Cross-objector had sought enhancement of

compensation only for 375 orange trees, 3 Ajan trees and 15 Teak trees and in

addition, sought compensation for the electric motor-pump and pipe-line.

However, thereafter at the stage of final hearing, the Cross-objector filed a

pursis vide Exhibit-29 restricting the claim for enhancement in compensation

for orange trees only.

4. The Appellant/Acquiring Body filed its written statement and

justified the compensation awarded by the Land Acquisition Officer. Apart

from that, issues were raised with respect to limitation and acceptance of

amount of compensation without protest.


4/44 Judg.fa.285.2022 aw xob.19.2023.odt

5. Based on rival pleadings, the learned Reference Court framed

issues in the matter. The Cross-objector examined himself and one Dadan

Harbaji Borkar, Valuer, who has given valuation of fruit bearing trees standing

on the acquired land. The Appellant did not lead any evidence in the matter.

6. The Cross-objector has reiterated the facts stated in the reference

application in his evidence. However, since the dispute pertains to valuation of

orange trees, the evidence of Valuer is significant. Mr. Dadan Borkar, Valuer

has stated in the Valuation Report dated 20/10/1995 (Exhibit-14) that he had

visited the agricultural land of the Appellant on 15/10/1995. He states that

when he had visited the field, orange trees were bearing fruits. He has stated

that provision was made for irrigation by means of 3.5 HP electric

motor-pump for drawing water from Vena river and a pipe-line of 300 feet was

also laid. The orange trees are valued at Rs.5481.22/- per tree. The price of

oranges is taken at Rs.5.75/- per kilogram and average yield of each orange

tree is taken at 125 kilograms per year. He has stated that the age of orange

trees was around seven years. The height and girth of the trunk of tree is

recorded as 4.5 meters and 0.5 meters respectively. The Valuer has estimated

gross income of each tree at Rs.718.25/- per annum and has thereafter made

deduction of Rs. 25/- per tree for the cost of cultivation and further deduction

of Rs.71.90/- towards profit of cultivator. Accordingly, he has derived net


5/44 Judg.fa.285.2022 aw xob.19.2023.odt

income from each tree at Rs.621.85/-. Considering the future age of trees as

20 years, he has applied multiple of 8.804 towards ‘Years Purchase’ and thus,

arrived at capitalized value of each orange tree at Rs.5474.98/-. The fuel

value of tree is arrived at Rs.6.23/-, and accordingly, net compensation

payable for each tree is determined at Rs. 5481.22/-.

7. While considering the evidence of the Valuer, the learned

Reference Court has observed that the material, on the basis of which, the

Valuation Report was prepared, was not produced by the Appellant or the

Valuer for perusal of the Court and the authenticity and genuineness of the

material was also not proved. It is observed that the basis, on which the age

of all orange trees was determined at seven years, was also not clarified by the

Valuer in his report and also in his examination-in-chief. Likewise, it is also

observed that the basis for determining annual yield of each tree was also not

mentioned by the Valuer. In the light of above, the Reference Court has

deemed it appropriate to not accept the report of the Valuer/PW-2 Mr. Dadan

Borkar.

8. However, the learned Reference Court has considered Circular

dated 27/12/1990 and other guidelines issued by the Government for

valuation of fruit bearing trees. The learned Reference Court has also accepted

the version of the Cross-objector that there were 375 orange trees standing on
6/44 Judg.fa.285.2022 aw xob.19.2023.odt

the acquired land and the age of the said trees was seven years, since these

statements made in the examination-in-chief of the Appellant and the Valuer

were not challenged during the course of cross-examination.

9. The learned Reference Court determined the compensation for

each orange tree at Rs.3406/-, Rs.362/- for the first year and Rs. 3044/- for

the subsequent years after full growth. Accordingly, compensation for the

orange trees was fixed at Rs.12,77,250/- (3406 x 375). Accordingly, the

learned Reference Court passed Judgment and Award dated 30/3/2019

granting compensation of Rs.12,77,250/- for 375 orange trees.

10. The VIDC/Acquiring Body has filed the present Appeal

challenging the said Judgment and Award. At the outset it needs to be

mentioned that point of limitation and acceptance of compensation without

protest are not argued by the Appellant. Ms. Athalye, learned Counsel for the

Appellant has contended that the learned Reference Court has not applied the

parameters for valuation of orange trees properly. She also contends that the

deduction taken into consideration by the learned Reference Court for upkeep

and maintenance of the trees is very low.

11. She also contends that once the trees are valued by following

income capitalisation method, separate compensation cannot be awarded for


7/44 Judg.fa.285.2022 aw xob.19.2023.odt

the land. According to her, income capitalisation method gives market value

for the trees along with land. She argues that since the orchard is extending

over a portion of land admeasuring 1.22 HR, separate compensation cannot be

awarded for the said portion of land.

12. Per contra, Ms. Rai, learned Counsel for the Respondent

No.1/Cross-objector contends that the only evidence that is available on

record with respect to valuation of trees is of PW-2 Mr. Dadan Borkar, who is a

renowned Valuer. She states that the evidence of the Valuer examined by the

Cross-objector is relied upon by the learned Reference Courts and also by this

Court in serval cases. She contends that the Appellant has not led any

evidence to the contrary, and therefore, evidence of PW-2, the Valuer

examined by the Cross-objector should be accepted.

13. The learned Counsel for Cross-objector further contends that the

controversy in the matter pertaining to valuation of orange trees is already

covered by the three Judgments of this Court. She has placed reliance on the

Judgments in following Appeals, decided by this Court, determining

compensation for lands bearing fruit bearing orange trees in the same village

which were acquired under the same Land Acquisition Case, under which the

land in the present Appeal was acquired, wherein based on the Valuation

Report of Mr. Dadan Borkar, who is also examined as Valuer in the present
8/44 Judg.fa.285.2022 aw xob.19.2023.odt

case, compensation for each orange tree is granted at the rate of Rs.5000/- per

tree :

Sr. No. First Appeal No. Date of Judgment


1. 269/2010 05.06.2023
2. 419/2006 11.12.2023
3. 434/2004 11.12.2023

14. Apart from this, she has contended that compensation @

Rs.2,50,000/- should be awarded for the land since the land is perennially

irrigated land. She has referred to the judgments to demonstrate that

compensation at the said rate is awarded for perennially irrigated lands in the

same village which are acquired under the same notification.

15. Having heard the rival submissions following points arise for my

consideration:

(i) What should be the valuation of orange trees?

(ii) Should separate compensation be awarded for the land in view of

compensation awarded by adopting income capitalisation method? If

yes, at what rate ?

(iii) What should be the compensation awarded for the acquired land which

is not covered by orange orchard ?


9/44 Judg.fa.285.2022 aw xob.19.2023.odt

AS TO POINT NO. (i) :

16. The principal contention of the cross-objector with respect to

compensation for trees is based on the aforesaid judgments of this Court.

17. All these judgments are pertaining to acquisition of lands bearing

orange trees in the same village which were acquired under the same

notification issued under Section 4. In all these cases, Mr. Dadan Borkar is

examined as expert witness.

18. It is, therefore, necessary to consider the said judgments.

JUDGMENT DATED 5/6/2023 IN FIRST APPEAL NO. 269/2010 :

I. In this case, the Valuer had valued the orange trees at Rs.4110/-

per tree. A Division Bench Judgment in First Appeal No.699/2015 was cited in

this case. It was noticed that compensation in First Appeal No. 699/2015 was

awarded at the rate of Rs.5000/- per orange tree and the land acquired in the

said case was from the same village and was acquired under the same

Notification. In view of the above, a contention was raised that compensation

for orange trees should be awarded at the same rate i.e. Rs.5,000/- per tree.

However, having regard to the fact that the Valuer had valued orange trees at
10/44 Judg.fa.285.2022 aw xob.19.2023.odt

Rs.4110/- per tree, this Court granted compensation for each orange tree at

the rate of Rs.4110/-.

JUDGMENTS DATED 11/12/2023 IN FIRST APPEAL NOS. 419/2006 AND


434/2004 :

II. Both the Appeals are decided on 11.12.2023. In both these

Judgments reliance is placed on the Judgment in First Appeal No. 699/2015,

and applying the principle of parity, compensation for each orange tree was

fixed at Rs.5000/-. It will be pertinent to mention that the lands forming

subject matter of these Appeals were also from the same village and were

acquired under the same Notification.

JUDGMENT DATED 14/12/2020 IN FIRST APPEAL NO. 699/2015 :

III. This is a Division Bench Judgment pertaining to lands bearing

orange trees in the same village which were acquired under same Notification.

Compensation for each orange tree is awarded at the rate of Rs.5,000/- per

tree. The Judgment places reliance on another Judgment delivered in First

Appeal No. 676/2005, pertaining to compensation for orange trees in

adjoining village Isapur, wherein compensation was awarded at the rate of

Rs.5000/- per tree.


11/44 Judg.fa.285.2022 aw xob.19.2023.odt

JUDGMENT DATED 15/1/2018 IN FIRST APPEAL NO. 676/2005 :

IV. This is the basic Judgment which is relied upon in First Appeal

No. 699/2015. Perusal of the said Judgment indicates that Section 4

Notification in the said case was issued on 29/3/1998. The Award was passed

by the Land Acquisition Officer on 26/12/2000. Mr. Dadan Borkar, who is

Valuer in the present case, as also in all the cases referred above, was

examined as expert Valuer in the said case. He had valued the orange trees at

Rs.6211/- per tree. The Reference Court has awarded compensation for each

orange tree at the rate of Rs.5000/-. The said rate was maintained in the

Appeal by this Court.

19. The three judgments relied upon by the learned Counsel for

Cross-objector/land owner are based on the Division Bench Judgment in First

Appeal No. 699/2015. Perusal of Division Bench Judgment in First Appeal No.

699/2015 will demonstrate that compensation at the rate of Rs.5000/- per

tree was awarded, placing reliance on the Judgment in First Appeal No.

676/2005.

20. However, it appears that inadvertently the fact that Judgment in

First Appeal No. 675/2005 is pertaining to land acquired in the year 1998 was

not brought to the notice and kind attention of the learned Division Bench. If
12/44 Judg.fa.285.2022 aw xob.19.2023.odt

compensation was to be awarded at the same rate despite a gap of three years

between the Section 4 Notifications in the two cases, the learned Division

Bench would have certainly recorded the reasons for the same. However,

perusal of the Judgment does not disclose any reason for awarding

compensation at the same rate despite a gap of three years in Section 4

Notification in the two cases. It can, therefore, be inferred that the learned

Division Bench has granted compensation at the same rate due to oversight.

21. The Judgment in First Appeal No. 976/2015 is delivered by a

Division Bench, which will normally have to be followed. It also needs to be

mentioned that the principle of parity should be followed while awarding

compensation in land acquisition cases.

22. Principle of parity is judicially recognised in land acquisition

cases. This principle of parity is followed for valuation of trees as well in the

case of D. Eswara Naidu V/s The Special Deputy Collector (Land Acquisition) 1.

A contention was raised before the Hon’ble Supreme Court that with respect to

lemon trees standing on acquired lands, compensation @ Rs.4000/- was

granted in a particular case, and therefore, the same rate should be applied for

lemon trees on lands acquired under the same Notification. In this context,

the Hon’ble Supreme Court has observed in paragraph 5 as under :

1 (2019) 13 SCC 785


13/44 Judg.fa.285.2022 aw xob.19.2023.odt

“5. Needless to say that in case, similarly situated persons covered


under the very same notification have been granted, compensation at
the rate of Rs.4000/- per Lemon tree, the petitioners herein may not be
discriminated on the ground of delay”

Therefore, there cannot be any dispute that principle of parity

needs to be followed for valuation of trees as well.

23. However, since the principle of parity is sought to be applied on

the basis of a judgment, it is necessary to consider judgments of the Hon’ble

Supreme Court in the matters of Ranbir Singh and others V/s Union of India2

and Babibai Babu Patil V/s State of Maharashtra and others 3, wherein it is

held that a Judgment in the earlier case pertaining to compensation awarded

is merely a piece of evidence and is required to be evaluated and examined as

such. It cannot be followed as a precedent.

24. In this regard, since reliance is placed on the Judgments of this

Court, which also have a precedential value, it will be appropriate to clarify

that the ratio flowing from the said Judgments will have to be followed as a

precedent, however, the factual aspect of the Judgments relating to valuation

will have to be appreciated as an evidence and not as binding precedents.

25. The principle of parity, which is the ratio of the Judgments relied
2 (2005) 12 SCC 59
3 2017 SCC OnLine SC 2130
14/44 Judg.fa.285.2022 aw xob.19.2023.odt

upon by the Cross-objector, will have to be accepted. However, parity can be

applied when all parameters are same or similar. Factual aspects of the matters

cannot be ignored while applying principle of parity, else it may result in

promoting disparity.

26. It needs to be reiterated that in the light of Judgments of the

Hon’ble Supreme Court in the matters of Ranbir Singh and Babibai Babu Patil

(supra), the said Judgment will have to be looked upon as a piece of

evidence, and therefore, unless factual aspects on the basis of which the rate is

determined in the said case come to the fore, it will not be safe to rely upon

the said Judgments in order to apply principle of parity.

27. As stated above that the Judgments granting rate of Rs.5000/- per

tree for the lands acquired in the year 1995 placing reliance on an earlier

Judgment where the rate of Rs.5000/- per tree is granted with respect to

acquisition of land in the year 1998. There is a gap of three years in between

the two acquisitions. In my considered opinion, it will, therefore, not be safe

to grant compensation at the rate of Rs.5000/- per tree, as has been granted

due to oversight in the earlier cases, relied upon by the learned Counsel for

the Cross-objectors.

28. Since the compensation cannot be awarded by following principle


15/44 Judg.fa.285.2022 aw xob.19.2023.odt

of parity in view of the reasons recorded above, it is necessary to evaluate the

evidence to determine compensation payable for the orange tree.

29. As noted above, the learned Reference Court has discarded the

Valuation Report. The learned Reference Court has recorded that the Valuer

has not produced the material on the basis of which valuation of trees is done.

It is also recorded that although the age of orange trees is mentioned seven

years, the method by which the age is determined is not mentioned. The

learned Reference Court also refers that the Valuer has not asserted to actual

annual yield of orange trees and has merely taken figures from textbooks.

Based on these observations, the learned Reference Court has recorded that

the Valuation Report relied upon by the Respondent/land owner is not based

on any scientific evidence and concrete material. The learned Reference Court

has, therefore, discarded the Valuation Report.

30. Before dealing with the Valuation Report, it is necessary to briefly

discuss the Judgments of the Hon’ble Supreme Court which prescribe as to

how evidence of an expert Valuer should be evaluated and appreciated.

31. The learned Counsel for Cross-objector contends that the evidence

of Valuer is relied upon by this Court in the four Judgments which are relied

upon by her. She also places reliance on the Judgment of this Court in the
16/44 Judg.fa.285.2022 aw xob.19.2023.odt

matter of VIDC V/s Champatrao4, wherein this Court has accepted evidence of

the Valuer, Mr. Dadan Borkar, observing that he was undisputedly an

Horticulture Expert, whose evidence is accepted by this Court in several

matters. She argues that it will not be proper to discard the evidence of the

Valuer in view of the fact that the Appellant has not brought any evidence on

record to the contrary.

32. As against this, the learned Counsel for Appellant places reliance

on paragraph Nos. 13 and 14 of the Judgment of the Hon’ble Supreme Court

in the matter of Executive Engineer, M.I.W., V/s Vitthal Damodhar Patil 5 to

contend that the evidence of Valuer will have to be assessed in every case

independently and only because the evidence of Valuer is accepted and relied

upon in one case would not mean that it should be accepted in each and every

case.

33. She then places reliance on the Judgments in the matter of

Special Land Acquisition Officer V/s Sidappa6 and State of Himachal Pradesh

V/s Jailal7 to contend that unless Valuer satisfies that he has gathered relevant

factual data, the Valuation Report cannot be relied upon and that report of

Valuer is not binding on the court and is only a piece of evidence, which may

4 2020(4) Mh.L.J. 297


5 (2019) 7 SCC 225
6 1995 (Supp) 2 SCC 168
7 (1993) 7 SCC 280
17/44 Judg.fa.285.2022 aw xob.19.2023.odt

or may not be accepted. She then refers to the Judgment of this Court in the

matter of Narayanlal V/s State8 to contend that even in the absence of proper

cross-examination, Valuation Report in land acquisition cases cannot be

accepted mechanically.

34. The Hon’ble Supreme Court has held in the matter of Sidappa

(supra) that before placing reliance on the Valuation Report of his Valuer the

Court must satisfy itself that the opinion formed by the Valuer is on the basis

of relevant factual data or material. Such material is required to be produced

before the Court. The material must be proved to be genuine and reliable as

any other evidence. The Court must be satisfied with respect to authenticity

and reliability of the material on which the expert relies. It is held that the

Court must examine the data or the material, on the basis of which, the

Valuation Report is prepared before placing reliance on the Valuation Report.

Similar view is taken in the matter of Jailal (supra). It is held that an expert is

not a witness of facts and his evidence is only advisory in nature. The Court

may seek guidance from the opinion of the expert. However, the conclusions

drawn by the expert are not binding. The opinion must be based on relevant

material and it is open for the Court as to whether the opinion is given on the

basis of any relevant material to support the observation/findings/conclusions

arrived at by the expert.


8 2012 (1) Mh.L.J. 642
18/44 Judg.fa.285.2022 aw xob.19.2023.odt

35. In the matter of Narayanlal (supra) it is held that even in the

absence of proper cross-examination of an expert in land acquisition cases, the

Court must exercise due care and caution in placing reliance on the evidence

of expert. It is the duty of the Court to examine whether the opinion of expert

inspires confidence, having regard to the material, on which the opinion is

based and the principles of which opinion is formed. This Court has referred to

the Judgment of the Hon’ble Supreme Court in the matter of P. Ram Reddy

and Others V/s Land Acquisition Officer, Hyderabad Urban Development

Authority, Hyderabad and Others,9 wherein it is held that ineffective cross-

examination of the witness is a common feature in land acquisition cases.

Having regard to the manner, in which land acquisition cases are defended by

the State, it is held that the evidence of witnesses in land acquisition cases

cannot be accepted simply because there is no effective cross-examination or

evidence in rebuttal is not led by the State. The evidence of witnesses

examined by the land owners must be evaluated on broad probabilities. It is

held that it is the duty of the Court to prevent public money being fleeced only

because of failure on the part of State to contest land acquisition cases

properly.

36. In the light of above decisions, it has to be held that an expert is

not a witness of facts; his evidence is in the nature of an opinion; the opinion
9 (1995) 2 Supreme Court Cases 305
19/44 Judg.fa.285.2022 aw xob.19.2023.odt

is not binding on the Court and the Court has to independently examine and

assess the opinion. An expert, while he submits his report to the Court for

consideration, must place before the Court entire material on the basis of

which he arrives at the opinion given to the Court. It is the duty of the Court

to assess the opinion in the light of the material relied upon by the Valuer. The

Court may, as well, decide as to whether the opinion of Valuer is based on any

relevant material.

37. The contention of the learned Counsel for Appellant with respect

to the rates of oranges is liable to be rejected, since it is duly proved vide

document at Exhibit-20 and there is no evidence to the contrary brought on

record by the Appellant.

38. However, as regards the annual yield, the contention of the

learned Counsel for Appellant will have to be accepted. In this regard, it is

pertinent to mention that the Valuer has stated in the Valuation Report itself

that when he had visited the field on 15/10/1995, the orange trees were

bearing fruits. It was expected of the Valuer to make a fair and reasonable

assessment of the yield based on his physical inspection and verification.

However, he has refrained from doing so. The Valuer should also have asked

the Cross-objector/land owner to produce documents relating to sale of

oranges. The Valuer has also not done so. He has taken the annual yield of
20/44 Judg.fa.285.2022 aw xob.19.2023.odt

orange trees at 125 kgs per annum based on the text-book. It will be pertinent

to mention here that the reference books or extracts thereof are not placed on

record. The contents thereof are not proved. It is, therefore, difficult to place

reliance on the Valuation Report with respect to the alleged annual yield of

orange trees.

39. It will be pertinent to mention that in all connected matters i.e.

First Appeal Nos. 27/2016, 28/2016, 962/2022, 504/2023, 679/2023 and

302/2023, he has taken the annual yield of orange trees at 125 kgs per

annum. This uniformity indicates that he has not made actual assessment of

the yield, but has simply given report based on some text-book.

40. Apart from this, the Valuer has mentioned that the age of trees

was seven years. He has recorded that height of all trees was 4.5 meters and

their girth was 0.45 meters. It will be pertinent to mention here that in other

connected matters also the Valuer Mr. Dadan Borkar has mentioned the age of

trees as seven years and height and girth of all trees as 4.5 meters and 0.45

meters respectively. This uniformity in the age, height and girth cannot be a

mere co-incidence. The Valuer has recorded that the fruit bearing life of

orange trees is 25 years and probably, therefore, he has mentioned the age of

trees in all cases as seven years. It will be pertinent to mention that orange

trees start bearing fruits from the age of five to six years and the optimum
21/44 Judg.fa.285.2022 aw xob.19.2023.odt

yield is expected from seven years and onwards. It appears that in order to

compute maximum value in all the cases, he has mentioned the age of tree as

seven years. It will be pertinent to mention that he has not given any

explanation, on the basis of which, he has determined the age of the trees. It is

reiterated that the uniformity with respect to height and girth in all cases is

also surprising.

41. Having regard to the aforesaid, I am of the opinion that the

learned Counsel for Appellant/Acquiring Body is right in submitting that the

Valuation Report cannot be relied upon, in as much as, it is not worthy of any

credence. The learned Counsel for Appellant/Acquiring Body is justified in

placing reliance upon the Judgments as referred above.

42. The Valuer is obviously a remunerated witness. Although the

testimony of remunerated witness cannot be discarded, solely on the ground

that his services are engaged by one of the parties to the lis and he receives

fees for the opinion given, in the case at hand, there is sufficient material on

record to discredit the PW-2 Dadan Borkar, the Valuer. The report of Valuer

does not inspire confidence. There is good material to discredit the Valuer. His

intentions do not appear to be bona fide. It will not be safe to place reliance

on his report. In view of the above, the Valuation Report is liable to be

discarded.
22/44 Judg.fa.285.2022 aw xob.19.2023.odt

43. The Valuer has made deduction of Rs.25/- per year towards the

cost of cultivation. This deduction appears to be inadequate. He has also not

taken into account the deduction towards labour charges of plucking and

packing fruits, packing material, transportation charges and brokerage. It

needs to be mentioned that around 20% of gross annual income is generally

deducted against the above heads in order to arrive net annual income from

each orange tree.

44. As stated above, in the present case, the material on the basis of

which opinion regarding valuation is made, is not produced on record. He has

not made independent assessment of annual yield on inspection of the orchard

or even on the basis of documentary evidence relating to sale of oranges by

the Cross-objector. The opinion with respect to annual yield is based on the

certain text books, which are not filed on record. Likewise, the expenses

towards several factors are not taken into consideration at all and even

deduction for cost of cultivation appears to be grossly inadequate.

45. The learned Reference Court, having discarded the Valuation

Report, has proceeded to value the trees in view of the guidelines issued by

the State Government. The learned Reference Court was justified in placing

reliance upon the Circular dated 27/12/1990. The said Circular is relied upon

in several land acquisition appeals by this Court for the purpose of


23/44 Judg.fa.285.2022 aw xob.19.2023.odt

determination of annual yield of orange trees. The Circular dated 27/12/1990

states that annual yield of fully grown orange trees is between 40 kg. to 90 kg.

The learned Reference Court has taken average of the annual income. The

average annual yield should be 65 kg. (40+90 = 130/2= 65). However, the

learned Reference Court has taken average yield as 75 kg. It will be pertinent

to mention that the annual yield of 75 kg. is not taken into consideration on

conscious application of mind. It is an inadvertent mistake. The learned

Reference Court has recorded that it will be proper to take average of the

annual yield as mentioned in the Circular dated 27/12/1990, however, while

making the calculations, instead of 65 kg. yield, 75 kg is erroneously

considered. Therefore, calculations must be made taking into account annual

yield as 65 kg. instead of 75 kg. In view of the above, gross income from each

orange tree as per the above Circular will be Rs. 375.75/- (Rs.5.75/- x 65 kgs).

46. In order to arrive at net annual income, deductions will have to

be considered. The learned Reference Court has made 20% deduction towards

expenses for upkeep and maintenance, manual, fertilizers, pesticides, labour

charges, brokers commission etc. The said deduction of 20% is upheld in the

following cases, and therefore, no fault can be found with the deductions

made by the learned Reference Court on account of expenses:

(i) Chindha Fakira Patil V/s S.L.A.O. (2011) 10 SCC 787;


24/44 Judg.fa.285.2022 aw xob.19.2023.odt

(ii) Narayan Kapase V/s State of Maharashtra, 2020 (5) Mh.L.J. 391; and

(iii) The Judgment dated 26/10/2015 passed by this Court in First Appeal

No. 2356/2016.

47. In view of 20% deduction, the net annual income of each tree will

be at Rs.299/- (gross income of Rs.373.75/- minus 20% deduction i.e.

Rs.74.75/-).

48. In order to arrive at the amount of compensation by income

capitalization method appropriate multiplier of ‘years purchase’ will have to be

considered. Normally, multiplier between eight to ten years is considered as an

appropriate multiplier by the Hon’ble Supreme Court as also by this Court. In

the present case, the Valuer has adopted the multiplier of 8.804. It will,

therefore, safe to adopt multiplier of 9 which is the average of eight to ten

years, which is generally considered by the Courts and also in close proximity

with the multiplier adopted by the Valuer. In the light of above, the

compensation of each tree is calculated as under :

(i) Gross income : Rs.5.75/- x 65 kg = Rs.373.75

(ii) Expenses (20% of gross income) : Rs.74.75/-

(iii) Net annual income : Rs.299/-

(iv) Value by income capitalization : Net Annual Income Rs. 299/- x years
purchase of 9 years = Rs.2691/-.
25/44 Judg.fa.285.2022 aw xob.19.2023.odt

(v) Add wood value : Rs.6.236/-

(vi) Total value : Rs. 2697.236


(Rounded of to Rs.2700/-)

(vii) Value of 375 trees : Rs. 10,12,500/-

49. There is no dispute with respect to value of other trees and cost of

electric pump and PVC pipeline as determined by the Land Acquisition Officer.

It will be pertinent to mention here that claim for enhancement with respect

to valuation of other trees and pipeline was given up vide pursis at Exhibit-29

filed before the learned Reference Court. Likewise, no arguments were

canvassed for enhancement of compensation for other trees and pipeline

during the course of hearing of the present Appeal. Therefore, value of other

trees, pump and pipeline as determined by the Land Acquisition Officer will

have to be accepted.

AS TO POINT NO. (ii) :

50. The question that now arises is whether the compensation

payable for an orchard determined by adopting income capitalization method

is for the value of trees alone or for value of the land along with the trees.

51. Ms. Rai, the learned Counsel for Respondent No.1/Cross-objector

has raised a contention that the learned Reference Court has granted
26/44 Judg.fa.285.2022 aw xob.19.2023.odt

compensation only for trees standing on the land bearing Survey No. 221. She

contends that apart from the compensation for trees, the learned Reference

Court ought to have awarded compensation for land. She contends that the

land owner cannot be deprived of his land without making payment of

compensation for the same. In support of his contention that separate

compensation should be paid for the land and the trees, he places reliance on

Section 23(1) of the Land Acquisition Act as also on the Judgments of the

Hon’ble Supreme Court in the matter of Ambya Kalya Mhatre (Dead) through

LRs. and Others V/s State of Maharashtra10 and Bhupendra Ramdhan Pawar

V/s VIDC11. She states that when valuation of an orchard is made on the basis

of comparable sale instance of a land not bearing fruit bearing trees,

compensation has to be awarded firstly for the land and thereafter separate

compensation is required to be paid for the fruit bearing trees on the land. She

states that as regards the land bearing Survey No. 221, the learned Reference

Court ought to have awarded compensation for the land treating it to be a dry

crop land and thereafter the compensation should have been awarded for the

trees as well. The sum and substance of the contention is that value of the

trees and land will have to be added to the value of land in order to compute

compensation payable for Survey No. 221, which is an orchard.

10 (2011) 9 SCC 325


11 (2021) 12 SCC 58
27/44 Judg.fa.285.2022 aw xob.19.2023.odt

52. In the matter of State of Haryana V/s Gurcharan Singh and

Another12, the Hon’ble Supreme Court has held as under:

“3. It is settled law that the Collector or the court who determines the
compensation for the land as well as fruit bearing trees cannot
determine them separately. The compensation is to the value of the
acquired land. The market value is determined on the basis of the
yield. Then necessarily applying suitable multiplier, the compensation
need to be awarded. Under no circumstances the court should allow
the compensation on the basis of the nature of the land as well as fruit
bearing trees. In other words, market value of the land is determined
twice over and one on the basis of the value of the land and again on
the basis of the yield got from the fruit bearing trees. The definition of
the land includes the benefits to arise from the land as defined in
Section 3(a) of the Act. After compensation is determined on the basis
of the value of the land from the income applying suitable multiplier,
then the trees would be valued only as fire-wood and necessary
compensation would be given.”

53. In the matter of Ambya Kalya Mhatre (supra) a contention was

raised before the Hon’ble Supreme Court that once compensation is awarded

for an orchard, additional or separate compensation cannot be awarded for

the trees standing on the land. The contention was raised placing reliance

upon the Judgment of the Hon’ble Supreme Court in the matter of Gurcharan

Singh (supra). The Hon’ble Supreme Court, after considering the said

Judgment, has held as under:

“35. We are afraid that the High Court has misread the said decision
in regard of valuing the land and trees separately. If the land value had
been determined with reference to the sale statistics or compensation
12 1995 (Supp) 2 SCC 637
28/44 Judg.fa.285.2022 aw xob.19.2023.odt

awarded for a nearby vacant land, then necessarily, the trees will have
to be valued separately. But if the value of the land has been
determined on the basis of the sale statistics or compensation awarded
for an orchard, that is land with fruit-bearing trees, then there is no
question of again adding the value of the trees. Further, if the market
value has been determined by capitalizing the income with reference
to yield, then also the question of making any addition either for the
land or for the trees separately does not arise. In this case, the
determination of market value was not with reference to the yield. Nor
was the determination of market value in regard to the land with
reference to the value of any orchard but was with reference to vacant
agricultural land. In the circumstances, the value of the trees could be
added to the value of the land.”

54. Perusal of the aforesaid quotation will indicate that the Hon’ble

Supreme Court has expressed that when the value of land is determined with

reference to the sale statistics or compensation awarded for a vacant land,

then the trees are required to be valued separately and additional

compensation is required to be paid for the trees. This is required to be done

in case where the comparable sale instance pertains to the vacant land.

However, if the comparable sale instance is with respect to orchard having

fruit bearing trees, then the value of trees cannot be added separately. Most

importantly, the Hon’ble Supreme Court has held that in cases where the

market value is determined by the income capitalization method on the basis

of yield, in that case also making addition either for the land or for the trees

separately will not arise. In the matter before the Hon’ble Supreme Court, the
29/44 Judg.fa.285.2022 aw xob.19.2023.odt

market value was not determined by the income capitalization method i.e.

with reference to yield of the orchard. Likewise, the market value was also not

determined on the basis of a comparable sale instance of an orchard. In such

circumstances, the Hon’ble Supreme Court has held that value of the trees can

be added to the value of the land. The Hon’ble Supreme Court has, however,

categorically stated that when determination of market value is done by the

income capitalization method, separate valuation for land and trees is not

permissible.

55. The ratio of Award in the matter of Ambya Kalya Mhatre (supra)

is that if the market value of land comprising of orchard is done by following

sale exemplar method by referring to sale instance pertaining to vacant land,

then the trees will have to be valued separately and compensation for the trees

will have to be added to the market value of the land in order to determine

the total amount of compensation payable. However, the said Judgment does

not state that in the cases where market value is of an orchard, is determined

by following income capitalization method, separate compensation should be

awarded for the land on which the trees are standing. The Judgment rather

prohibits it.

56. It will be pertinent to mention that in view of the aforesaid

Judgments of the Hon’ble Supreme Court, if compensation for land is


30/44 Judg.fa.285.2022 aw xob.19.2023.odt

computed on the basis of income capitalization method, separate

compensation cannot be awarded for the land. The income capitalization

method gives market value of the land with the trees standing on it. However,

if the land having fruit bearing trees is valued by following comparable sales

method, relying upon sale instances of open land, then the trees can be valued

separately. However, in view of clear exposition in the matter of Ambya Kalya

Mhatre (supra), the trees will have to be valued only as fire-wood or timber

and in no case the valuation of trees can be made by yield/income

capitalization method. The Hon’ble Supreme Court has held that if the

compensation is awarded for the land based on sale instance method and

thereafter the trees standing thereon are valued by income capitalization

method, then the land owner will get benefit of valuation of the land twice

over, which is impermissible in law.

57. The principle that land cannot be valued twice over is also

categorically laid down by the Hon’ble Supreme Court in the matter of

Koyappathodi M. Ayisha Umma V/s State of Kerala 13, wherein in paragraph

No. 6 of the Judgment, it is held as under:

“6. It is thus settled law that in evaluating the market value of the
acquired property, namely, land and the building or the lands with fruit
bearing trees standing thereon, value of both would not constitute one
unit; but separate units; it would be open to the land acquisition

13 (1991) 4 SCC 8
31/44 Judg.fa.285.2022 aw xob.19.2023.odt

officer or the court either to assess the lands with all its advantages as
potential value and fix the market value thereof or where there is
reliable and acceptable evidence available on record of the annual
income of the fruit bearing trees the annual net income multiplied by
appropriate capitalisation of 15 years would be the proper and fair
method to determine the market value but not both. In the former case
the trees are to be separately valued as timber and to deduct salvage
expenses to cut and remove the trees from the land. In this case the
award of compensation was based on both the value of the land and
trees. Accordingly the determination of the compensation of the land
as well as the trees is illegal. The High Court laid the law correctly.”

58. Perusal of the above Judgment will indicate that the Hon’ble

Supreme Court has accepted that when valuation of orchard is required to be

done, the land and trees can be treated as separate units. In such cases, the

Land Acquisition Officer can assess the land with all its advantages and fix the

market value having regard to the potential of land. Alternatively, in cases

where the credible evidence with respect to net annual income of fruit bearing

trees is available, market value of orchard can be determined by applying

appropriate multiplier of capitalization to the net income. It is however,

emphasized that both methods cannot be adopted. It is held that when the

trees are to be valued separately, then they must be valued as wood/timber.

This judgment again clarifies the legal position that when separate value is to

be awarded for land and fruit bearing trees, the valuation can either be by

income capitalization method or by following comparable sale instance

method and not both and further even if trees are required to be valued
32/44 Judg.fa.285.2022 aw xob.19.2023.odt

separately, only timber value of tree i.e. wood value of tree can be taken into

consideration.

59. It will be pertinent to mention here that the said Judgment states

that appropriate multiplier for income capitalization should be 15, however in

subsequent Judgments the appropriate multiplier is reduced between 8 to 10.

It is now well settled that in no case the multiplier can be more than ten years.

60. A Division Bench of this Court in its Judgment dated 15/12/2009

in First Appeal No. 700/1993 and other connected matters has examined this

aspect in great detail, by taking into consideration almost all the judgments of

the Hon’ble Supreme Court on the point and has reaffirmed the legal principle

that when the market value of land having fruit bearing trees is determined by

income capitalization method, the land owner is not entitled to receive

separate compensation for the land, since the same will tantamount in valuing

the land twice over and awarding the compensation twice by income

capitalization method and also by sale exemption method. The same legal

principle is reiterated by another Division Bench in the matter of Naresh

Samirmal Kotecha V/s State of Maharashtra14 and State of Maharashtra V/s

Damu Gorade15. Similar view is taken by the learned Single Judge in the case

14 2021(1) AIR Bom.R.622


15 2009 SCC OnLine Bom.1296
33/44 Judg.fa.285.2022 aw xob.19.2023.odt

of State of Maharashtra V/s Dharma Kana Katekar in First Appeal No.

414/2005 decided on 3/5/2016.

61. As regards the Judgment in the matter of Bhupendra Ramdhan

Pawar (supra) relied upon by the Cross-objector, the said Judgment also refers

to the Judgments in the matter of Gurcharan Singh and Ambya Kalya Mhatre

(supra). The Judgment does not deviate from the legal principle laid down in

the said cases. It will be pertinent to mention that in the said case,

compensation was determined by the sale instance method. The comparable

sale instances relied upon were pertaining to open agricultural lands.

Therefore, value of trees was directed to be paid separately in addition. The

said Judgment is distinguishable, because the Hon’ble Supreme Court has not

directed the payment of compensation of land in addition to compensation

computed by following income capitalization method. The said judgement

does not lay down a legal principle or ratio that when valuation of an orchard

is done by income capitalisation method, separate compensation needs to be

awarded for the land. The ratio of Gurcharan Singh and Ambya Kalya Mhatre

(supra) that orchard land cannot be valued twice over is not disturbed by this

Judgement. The Hon’ble Supreme Court does not hold that the land should be

valued twice over.

62. In this context it will be profitable to quote the paragraph 14 of


34/44 Judg.fa.285.2022 aw xob.19.2023.odt

the judgment as under :

“14. Admittedly, for 2 hectares of land, compensation has not been


awarded and it is not disputed that the land value has been
determined with reference to sales statistics and this Court in
Ambya Kalya Mhatre held that in a case where the land value has
been determined with respect to the sales statistics, the trees will
have to be valued separately.”

63. The Judgment in the matter of Bhupendra Ramdhan Pawar V/s

VIDC16, therefore, is not an authority for the proposition that even when

compensation for an orchard is awarded by following income capitalization

method, separate compensation should be awarded for the land. Bhupendra’s

case (supra) does not alter the legal position set out in the matter of Ambya

Kalya Mhatre, wherein in paragraph 35 it is held as under:

“Further, if the market value has been determined by capitalising


the income with reference to yield, then also the question of
making any addition either for the land or for the trees separately
does not arise.”

At this juncture, it needs to be reiterated that in the present case

the learned Reference Court has computed market value of orchard by

following income capitalisation method.

64. It will be appropriate to refer to the Judgment of the Hon’ble


16 (2021) 12 SCC 58
35/44 Judg.fa.285.2022 aw xob.19.2023.odt

Supreme Court in the matter of Bhavnagar University V/s Palitana Sugar Mill

Pvt. Ltd., and Others17, wherein it is held as under :

“A decision, as is well-known, is an authority for which it is decided


and not what can logically be deduced therefrom. It is also well settled
that a little difference in facts or additional facts may make a lot of
difference in the precedential value of a decision.”

65. Thus, Bhupendra’s case cannot be considered to be a precedent

for the proposition canvassed by the cross objector that separate compensation

should be awarded for land and trees even when compensation for orchard is

determined by income capitalization method.

66. As regards interpretation of 2nd clause of Section 23, which states

that compensation is also payable for trees in addition to the land, it needs to

be mentioned that the provision will apply where the compensation is

determined by sale exemplars method of an open land. In cases where

compensation is determined for an orchard by adopting income capitalization

method, there cannot be any doubt in the light of the above judgments of the

Hon’ble Supreme Court that the compensation determined includes

compensation for both land and trees. Therefore, question of granting

separate compensation for land or trees will not arise, when compensation is

17 (2003) 2 SCC 111


36/44 Judg.fa.285.2022 aw xob.19.2023.odt

determined by income capitalization method. The submission of the learned

Counsel is, therefore, liable to be rejected.

67. Ms. Rai, the learned Counsel for Respondent No.1/Cross-objector

has placed reliance on a Single Bench Judgment of this Court in the matter of

Pramilabai V/s State of Maharashtra18. In the said case, the market value of

irrigated land having fruit bearing trees was determined by following sale

instance method, placing reliance on the sale exemplar with respect to dry

crop land. In this backdrop, this Court has held that the land owner was

entitled to receive separate compensation for the land and the fruit bearing

trees. The ratio of the said Judgment cannot be interpreted to mean that

when compensation for orchard is awarded by income capitalization method,

separate compensation should be paid for the land.

68. The learned Counsel for Cross-objector has placed reliance on

another Division Bench Judgment of this Court in the matter of Ratnamalabai

Madhukar Daulat V/s State of Maharashtra19, wherein separate compensation

is held to be payable for the land and trees, since the market value of land was

determined by relying upon sale instance of dry crop land not having fruit

bearing trees. However, this Judgment does not disturb the legal position as

settled by the Hon’ble Supreme Court.


18 2018(3) Mh.L.J. 787
19 2020 D.G.L.S. (Bombay) 667
37/44 Judg.fa.285.2022 aw xob.19.2023.odt

69. Both these judgments do not disturb the legal position as settled

by the Hon’ble Supreme Court. They do not lay down that market value can be

determined twice over by income capitalization method as also by sale

instance method.

70. It will be pertinent to mention here that although separate

compensation for fruit bearing trees is awarded in the Judgment dated

22/2/2019 in First Appeal No. 418/2016 passed by this Court, the number of

trees in the said case was very less, and therefore, the land could not be

classified as orchard. Since the land was not an orchard, separate

compensation was awarded for the trees.

71. While appreciating the ratio of above Judgments, it is necessary

to bear in mind the legal principle with respect to interpretation of the

Judgment laid down in the matter of Dalbir Singh V/s State of Punjab20,

wherein it is held as under :

“22. …........... According to the well settled theory of precedents every


decision contains three basic ingredients:
“(i) findings of material facts, direct and inferential. An
inferential finding of facts is the inference which the Judge draws
from the direct or perceptible facts;
(ii) statements of the principles of law applicable to the legal
problems disclosed by the facts; and
20 (1979) 3 SCC 745
38/44 Judg.fa.285.2022 aw xob.19.2023.odt

(iii) judgment based on the combined effect of (i) and (ii)


above.”

For the purposes of the parties themselves and their privies,


ingredient (iii) is the material element in the decision for it determines
finally their rights and liabilities in relation to the subject-matter of the
action. It is the judgment that estops the parties from reopening the
dispute. However, for the purpose of the doctrine of precedents, ingredient
(ii) is the vital element in the decision. This indeed is the ratio decidendi.
(R.J. Walker & M.G. Walker : The English Legal System. Bultterworths,
1972, 3rd Edn., pp. 123-24.]. It is not everything said by a Judge when
giving judgment that constitutes a precedent. The only thing a Judge’s
decision binding a party is the principle upon which the case is decided
and for this reason it is important to analyse a decision and isolate from it
the ratio decidendi. Int he leading case of Qualcast (Wolverhamption) Ltd.
Vs. Haynes, it was laid down that the ratio decidendi may be defined as a
statement of law applied to the legal problems raised by the facts as found,
upon which the decision is based. The other two elements in the decision
are not precedents. The judgment is not binding (except directly on the
parties themselves), nor are the findings of facts. This means that even
where the direct facts of an earlier case appear to be identical to those of
the case before the court, the Judge is not bound to draw the same
inference as drawn in the earlier case.”

72. It will be pertinent to mention here that above view is delivered in

the dissenting Judgment. However, the legal principle above is not the dissent.

The same view is quoted with approval by the Hon’ble Supreme Court in the

matter of Jayant Verma Vs. Union of India21.

73. In all the Judgments quoted above, the ratio laid down in the

matter of Gurcharan Singh and Ambya Kalya Mhatre (supra) that the land

21 (2018) 4 SCC 743


39/44 Judg.fa.285.2022 aw xob.19.2023.odt

cannot be valued twice over, is not doubted. None of the Judgements hold that

even if an orchard is valued by following income capitalisation method,

separate compensation should be awarded for the land.

74. In view of the above legal position, I am of the considered opinion

that the Cross-objector is not entitled to receive separate compensation for the

land by sale instance method. Since the compensation is computed by the

learned Reference Court by income capitalization method, the compensation

includes compensation for both, the land and the trees. Compensation

computed by income capitalization method will not be the compensation for

trees alone, it will be composite compensation for both, the trees and for the

land.

75. It is true that if compensation for an orchard is determined by

following sale exemplars method and the sale exemplars are with respect to

open agricultural lands, separate compensation needs to be awarded for the

trees. However, separate compensation for the trees cannot be computed by

following income capitalization method. If compensation for trees is computed

by following income capitalization method then the compensation so

determined will be compensation for the orchard i.e. land along with the

trees. In the present case, while awarding compensation for the trees, the

learned Reference Court has computed the same by following income


40/44 Judg.fa.285.2022 aw xob.19.2023.odt

capitalization method. In this backdrop, reference needs to be made to

paragraph 35 of the Judgment of the Hon’ble Supreme Court in the matter of

Ambya Kalya Mhatre (supra), wherein it is held as under :

“Further, if the market value has been determined by capitalizing the


income with reference to yield, then also the question of making any
addition either for the land or for the trees separately does not arise.”

76. In the light of above, it is held that the Cross-objector/land owner

is not entitled for separate compensation of land for the 1.22 HR land, which

is an orchard. The compensation derived by income capitalization method will

include compensation for trees as well as the land. In the light of computation

of value by income capitalization method as aforesaid, the total compensation

payable for 1.22 HR land will be Rs.10,12,500/- + value of other trees as

determined by the Land Acquisition Officer.

AS TO POINT NO. (iii) :

77. The total area of acquired land is 3.95 HR. As noted above, the

1.22 HR land is covered under orchard. The remaining land is 2.73 HR. As

mentioned above, the claim before the learned Reference Court was restricted

only to valuation of orange trees. The Cross-objector/land owner did not seek

any enhancement in the amount of compensation awarded for the land.


41/44 Judg.fa.285.2022 aw xob.19.2023.odt

Having given up the claim, now the Cross-objector/land owner have claimed

compensation for the land at the rate of Rs.2,50,000/- per hector. The Cross-

objectors have placed reliance on the Judgment dated 22/2/2019 passed by

this Court in the matter of S.L.A.O. V/s Suryabhan Bandu Nagpure in First

Appeal No.418/2006. The said judgment pertains to the lands at same village,

acquired for the same project under the same Notification. In the said

Judgment, compensation for an irrigated land is awarded at Rs.2,50,000/- per

hectare. Now it is well settled that market value of perennially irrigated land is

generally considered to be twice the market value of dry crop land and market

value of seasonally irrigated land is considered to be one and half times the

market value of dry crop land. Thus, the market value of dry crop land, as per

aforesaid Judgment, will be Rs.1,25,000/- per hectare.

78. The 7/12 extract filed on record indicates that there is an entry

regarding water being drawn for the acquired land from river. Compensation

is also awarded for pipeline, which indicates that the irrigation facility was

available. However, there is no evidence to suggest that the river has water all

throughout the year. Likewise, the 7/12 extract demonstrates only one crop

was being taken in Kharip Season. The Cross-objector/land owner has not

brought on record any evidence to demonstrate cultivation of land in Rabi

season. In the light of above, the land needs to be treated as seasonally


42/44 Judg.fa.285.2022 aw xob.19.2023.odt

irrigated land.

79. In view of the aforesaid Judgment dated 22/2/2019 delivered in

First Appeal No. 418/2006, the compensation for acquired land needs to be

awarded at the rate of Rs.1,87,500/- per hectare. The area of acquired land

excluding the orchard is 2.73 HR. Therefore, compensation of Rs.5,11,875/- is

payable for the said land.

80. It will also be pertinent to mention that, although the Cross-

objector/land owner did not seek enhancement of compensation for the land

before the Reference Court, it is now well settled that a land owner is only

required to raise a grievance in the reference stating that he is not satisfied

with the amount of compensation. The land owner is not required to quantify

the claim. Likewise, it is also well settled that it is the duty of the Reference

Court as also the Court entertaining Appeal under Section 54 of the Land

Acquisition Act, 1894 to award adequate compensation. In view of the legal

position as aforesaid, although the land owner did not seek any additional

compensation for the land and had restricted the claim only for orange trees,

appropriate compensation will have to be awarded for the acquired land.

81. In view of the above, the Appeal and Cross Objection are disposed

of in the following terms :


43/44 Judg.fa.285.2022 aw xob.19.2023.odt

ORDER

(1) First Appeal No. 285/2022 is dismissed. The Cross Objection

No.19/2023 is partly allowed.

(2) The Cross-objector/land owner will be entitled to sum of Rs.10,12,500/-

towards total compensation for 1.22 HR land in Gat No. 38 of village

Ridhora, Tahsil and District Nagpur. This amount will include the

compensation for the trees and land. Separate compensation will not be

payable for 1.22 HR land.

(3) The total compensation payable for 2.73 HR land in Gat No. 38 of

village Ridhora, Tahsil and District Nagpur is determined at Rs.

5,11,875/-.

(4) The Cross-objector will not be entitled to receive interest on the amount

of Rs.5,11,875/- for the period of 122 days i.e. period of delay in filing

Cross Objection in view of the order dated 10/3/2023 passed on the

application for condonation of delay in filing Cross Objection.

(5) In addition to this, separate compensation will be payable for the

electric water pump, pipe-line, structure and trees, both fruit bearing

trees and forest trees except orange trees at the rate determined by the
44/44 Judg.fa.285.2022 aw xob.19.2023.odt

Land Acquisition Officer in the Award dated 30/4/1997 passed under

Section 11 of the Act of 1894.

(6) The operative order in the Judgment and Award dated 30/3/2019

passed by the learned 14th Joint Civil Judge, Senior Division, Nagpur in

Land Acquisition Case No. 154/2005 is modified in aforesaid terms.

(7) Parties to bear their own costs.

(8) The office is directed to prepare Decree/Award accordingly.

(ROHIT W. JOSHI, J.)

vijaya

Signed by: Mrs. V.G. Yadav


Designation: PA To Honourable Judge
Date: 22/04/2025 10:35:31

You might also like