# 15 (ADDL.) S.C.R. 1 SHRI AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS & ORS v. THE STATE OF MAHARASHTRA

- **Citation:** [2011] 15 S.C.R. 1
- **Court:** Supreme Court of India
- **Decided:** 2011-09-12
- **Case number:** Civil Appeal No. 7784 of 2011
- **Bench:** R.V. Raveendran, H.L. Gokhale, Gyan Sudha Misra
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/15-addl-s-c-r-1-shri-ambya-kalya-mhatre-d-through-legal-heirs-ors-v-the-state-27592
- **Pages:** 33

## Headnote

A
B
Land Acquisition Act, 1894 - ss. 18 and 23 - Lands C
belonging to appellants acquired for New Bombay project -
Reference to civil Court uls. 18 - Right of the landowner to
amend the amount claimed in the reference application and
seek higher compensation - Limitation period for such
amendment - Held: As the Land Acquisition Act does not o
require the person aggrieved/landowner to specify the amount
of compensation sought, when objecting to the amount of
compensation and seeking a reference, mentioning of the
amount of compensation sought is optional - Since there -is
no obligation to specify the amount in the application for E
reference, it can be specified in the claim statement filed
before the Reference Court - The period of limitation in s. 18
has nothing to do with specifying the amount of compensation
claimed - Consequently if the reference is in regard to
objection to the amount of compensation, the Reference Court F
can permit amendment of the claim relating to compensation
- What is not permitted after the expiry of the period of
limitation specified in s. 18, is changing the nature of
objections from one category to another - If the reference had
been sought with reference to objection to amount of
compensation, the land owner cannot after the period of G
/imitation, seek amendment to change the claim as objection
to measurement or objection to apportionment - State of
Maharashtra has a special provision in the Bombay Court
1
H
2
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A Fees Act which requires every claimant who makes an
application to the Collector for reference to court uls. 18 to pay
one half the ad valorem fee on the difference between the
amount awarded by the Collector and the amount claimed by
the claimant -
Thus application uls. 18 objecting to the
B compensation by implication is required to disclose the
amount of compensation sought and pay court fee on the
increase sought - But this is only a requirement in regard to
the said Court Fees Act - This only means that if the claim
is amended later, additional court fee may have to be paid -
c This requirement under the said Court Fees Act cannot be
read as a requirement under the Land Acquisition Act - So
Jong as Land Acquisition Act is not amended to require the
person aggrieved to specify the amount of compensation
claimed by him in the reference application, the bar of
0
/imitation will not apply even if the amount is specified in the
application for reference and subsequently a higher amount
is sought by way of amendment - Time limit uls. 18 is only
for seeking the reference by raising the objection to the
amount of compensation or any of the other three objections
- The land owner or persons aggrieved will have to give only
E ·the nature of objection to the award, that is whether it is with
reference to measurement or compensation or person to
whom it is payable or apportionment, and briefly mention the
grounds in support of it - Though the land owner can give the
details of his claim and quantum, he is not bound to do so -
F When the reference is made, he can give the particulars of
the claim for compensation or additional particulars or even
increase the claim - Bombay Court Fees Act, 1959 -
Schedule I, Entry 15.
G
Land Acquisition Act, 1894 - ss. 18 and 23 - Reference
H
to civil Court uls. 18 - Where the landowner sought increase
in compensation for only the land, in application uls. 18,
whether he can seek increase in compensation for the trees
or structures also, before the Reference Court - Held: Wh_en
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
3
STATE OF MAHARASHTRA
the Act refers to acquisition of 'land', the reference is not only A
to land but also to land, building, trees and anything attached
to the earth - In the absence of any restriction in s. 18, and
the respective roles assigned by the Act to the Land
Acquisition Collector and the Reference Court in the context
of making a reference and determining the compensation, it B
is

## Text

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[2011] 15 (ADDL.) S.C.R. 1
SHRI AMBYA KALYA MHATRE (D) THROUGH LEGAL
HEIRS & ORS.
v.
THE STATE OF MAHARASHTRA
(Civil Appeal No. 7784 of 2011)
SEPTEMBER 12, 2011
[R.V. RAVEENDRAN, H.L. GOKHALE AND
GYAN SUDHA MISRA, JJ.]
A
B
Land Acquisition Act, 1894 - ss. 18 and 23 - Lands C
belonging to appellants acquired for New Bombay project -
Reference to civil Court uls. 18 - Right of the landowner to
amend the amount claimed in the reference application and
seek higher compensation - Limitation period for such
amendment - Held: As the Land Acquisition Act does not o
require the person aggrieved/landowner to specify the amount
of compensation sought, when objecting to the amount of
compensation and seeking a reference, mentioning of the
amount of compensation sought is optional - Since there -is
no obligation to specify the amount in the application for E
reference, it can be specified in the claim statement filed
before the Reference Court - The period of limitation in s. 18
has nothing to do with specifying the amount of compensation
claimed - Consequently if the reference is in regard to
objection to the amount of compensation, the Reference Court F
can permit amendment of the claim relating to compensation
- What is not permitted after the expiry of the period of
limitation specified in s. 18, is changing the nature of
objections from one category to another - If the reference had
been sought with reference to objection to amount of
compensation, the land owner cannot after the period of G
/imitation, seek amendment to change the claim as objection
to measurement or objection to apportionment - State of
Maharashtra has a special provision in the Bombay Court
1
H
2
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A Fees Act which requires every claimant who makes an
application to the Collector for reference to court uls. 18 to pay
one half the ad valorem fee on the difference between the
amount awarded by the Collector and the amount claimed by
the claimant -
Thus application uls. 18 objecting to the
B compensation by implication is required to disclose the
amount of compensation sought and pay court fee on the
increase sought - But this is only a requirement in regard to
the said Court Fees Act - This only means that if the claim
is amended later, additional court fee may have to be paid -
c This requirement under the said Court Fees Act cannot be
read as a requirement under the Land Acquisition Act - So
Jong as Land Acquisition Act is not amended to require the
person aggrieved to specify the amount of compensation
claimed by him in the reference application, the bar of
0
/imitation will not apply even if the amount is specified in the
application for reference and subsequently a higher amount
is sought by way of amendment - Time limit uls. 18 is only
for seeking the reference by raising the objection to the
amount of compensation or any of the other three objections
- The land owner or persons aggrieved will have to give only
E ·the nature of objection to the award, that is whether it is with
reference to measurement or compensation or person to
whom it is payable or apportionment, and briefly mention the
grounds in support of it - Though the land owner can give the
details of his claim and quantum, he is not bound to do so -
F When the reference is made, he can give the particulars of
the claim for compensation or additional particulars or even
increase the claim - Bombay Court Fees Act, 1959 -
Schedule I, Entry 15.
G
Land Acquisition Act, 1894 - ss. 18 and 23 - Reference
H
to civil Court uls. 18 - Where the landowner sought increase
in compensation for only the land, in application uls. 18,
whether he can seek increase in compensation for the trees
or structures also, before the Reference Court - Held: Wh_en
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
3
STATE OF MAHARASHTRA
the Act refers to acquisition of 'land', the reference is not only A
to land but also to land, building, trees and anything attached
to the earth - In the absence of any restriction in s. 18, and
the respective roles assigned by the Act to the Land
Acquisition Collector and the Reference Court in the context
of making a reference and determining the compensation, it B
is clear that once the reference is made in regard to amount
of compensation, the Reference Court will have complete
jurisdiction to decide the compensation for the land, buildings
and trees and other appurtenances - The Reference Court
will also have the power to entertain any application for C
increasing the compensation under whatever head - The fact
that the landowner had sought increase only in regard to the
land in the application for reference, will not come in the way
of the landowner seeking increase even in regard to trees or
structures, before the Reference Court.
D
Land Acquisition Act, 1894 - s.23 - Where compensation
is awarded for the land, whether no compensation can be
awarded for trees or well separately - Held: If the land value
had been determined with reference to the sale statistics or
compensation awarded for a nearby vacant land, then E
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 F
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 the instant case, determination of market value was
not with reference to the yield - Nor was the determination of G
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.
H
4
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A
Land Acquisition Act, 1894 - s. 18(3) - Role of Land
'
Acquisition Collector - Held: The Land Acquisition Collector
is not a court - When he determines the compensation, he
does not adjudicate, but merely makes an offer for the
acquired land, on behalf of the government - If the land owner
B considers the amount offered by the Land Acquisition
Collector to be inadequate and makes a request within the
prescribed period, for reference to the civil court uls. 18, the
Land Acquisition Collector is bound to refer the matter to the
Civil Court for determination of the compensation - Neither
C the act of making an award offering compensation nor the act
of referring the matter to a civil court for determination of
compensation at the request of the land owner are judicial
functions, but are administrative functions - Sub-section (3)
of s.18 of the Act (added in Maharashtra) providing that the
0
Land Acq.uisition Collectorshall be deemed to be a court
subordinate to the High Court, is only for the limited purpose
of enabling a revision under s. 115 of CPC to be filed against
the order of the Collector u/s. 18, and not for any other
purpose.
E
Land Acquisition Act, 1894 - s. 18 - Acquisition of land
- Court fee while seeking reference to civil court - In
Maharashtra and Gujarat, land losers required to pay half of
the ad valorem court fee - Suggestion made to the State
Government - State Government asked to consider giving
F appropriate relief to the land losers by providing for a nominal
fixed court fee, on the application for reference, instead of ad
valorem court fee - Court Fees -: Bombay Court Fees Act,
1959 - Schedule I Entry 15.
G
In the instant appeal, the following three questions
arose for consideration:
H
· (i) Whether in a reference made to the Reference
Court under section 18 of the Land Acquisition Act,
1894, the l"nd owner is barred from amending the
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
5
STATE OF MAHARASHTRA
amount claimed in the reference application and A
seeking higher compensation; and even if he could
seek amendment, whether such application should
be made within the period of limitation mentioned in
section 18 of the Act;
B
(ii) Where the landowner has sought increase in
compensation for only the land, in the application
under section 18 of the Act, whether he can seek
increase in compensation for the trees or structures
also, before the Reference Court and
(iii) Where compensation is awarded for the land,
whether no compensation can be awarded for trees
or well separately.
Allowing the appeal, the Court
HELD:
Re : Questions (i) and (ii)
c
D
1. An analysis of Section 18 of the Land Acquisition E
Act, 1894 (as amended in Maharashtra), which relates to
reference to court, would show that any person
interested who does not accept the award can, by written
application to the Land Acquisition Collector, require the
matter to be referred for determination of the court in
regard to any one of the following matters:(a) Objection
F
to the measurement of the land; (b) Objection to the
amount of compensation; (c) Objection as to the persons
to whom the compensation is payable; or (d) Objection
to the apportionment of the compensation among the
persons interested. [Para 11) [22-C-D] .
G
1.2. The Land Acquisition Collector is not a court.
When he determines the compensation, he does not
adjudicate, but merely makes an offer for the acquired
H
6
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A land, on behalf of the government. If the land owner
considers ·the amount offered by the Land Acquisition
Collector to be inadequate and makes a request within
the prescribed period, for reference to the civil court
under section 18 of the Act, the Land Acquisition
B Collector is bound to refer the matter to the Civil Court
for determination of the compensation. He has no choice
of refusing to make a reference, when the request is in
time. Neither the act of making an award offering
compensation nor the act of referring the matter to a civil
C court fo~· determination of compensation at the request
of the land owner are judicial functions, but are
administrative functions. Sub-section (3) of section 18 of
the Act (added in Maharashtra) providing that the Land
Acquisition Collector shall be deemed to be a court sub
- ordinate to the High Court, is only for the limited
D purpose of enabling a revision under section 115 of the
Code to be filed against the order of the Collector under
section 18 of the Act, and not for any other purpose.
[Para 12] [23-E-G; 24-F-G]
E
1.3. The assumption made by the High Court that
when a reference is sought objecting to the amount of
compensation, the claim for increase will have to be
frozen with reference to the amount claimed in the
application under section 18 of the Act and ther• fore the
F quantum of the claim cannot subsequently be revised or
increased is misconceived. Similarly, the assumption
that if the claim for increase in an application for
reference (relating to an acquisition involving a property
consisting of land, building and trees), was only in regard
G to the compensation for the land, the land owner cannot
thereafter make a grievance seeking increase in regard
to the building or trees in the pleadings before the
Reference Court and that in such a case, the Reference
Court gets the jurisdiction to determine only the market
H
f..MBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
7
STATE OF MAHARASHTRA
value in regard to the land and not in regard to the
A
building and trees, is also not correct. Section 18 does not
require a land owner objecting to the amount of
compensation, to make a claim for any specific amount
as compensation, nor does it require him to state whi>ther
the increase in compensation is sought only in regard to
B
the land, or land and building, or land, building and trees.
A land owner can seek reference to civil court, with
reference to any one or more of the four types of
objections permissible under section 18 of the Act, with
reference to the award. His objection can either be in
C
regard to the measurement of the acquired land or in
regard to the compensation offered by the Collector or in
regard to persons to whom it is shown as payable or the
apportionment of compensation among several claimants.
Once the land owner states that he has objection to the . 0
amount of compensation, and seeks reference to the civil
court, the entire issue of compensation is open before the
Reference Court. Once the claimant satisfies the
Reference Court that the compensation awarded by the
Land Acquisition Officer is inadequate, the Reference
Court proceeds to determine the compensation, with
E
reference to the principles in section 23 of the Act. As the
Act does not require the person aggrieved/landowner to
specify the amount of compensation sought, when
objecting to the amount of compensation and seeking a
reference, mentioning of the amount of compensation
F
sought is optional. As there is no obligation to specify the
amount in the application for reference, it can be specified
in the claim statement filed before the Reference Court.
The period of limitation in section 18 of the Act has
nothing to do with specifying the amount of compensation . G
claimed. It therefore follows that if the reference is in
regard to objection to the amount of compensation, the
Reference Court can permit any application for
H
8
SUPREME COURT REPORTS (2011) 15 (ADDL.) S.C.R.
A amendment of the claim relating to compensation. [Para
13] [24-H; 25-A-H; 26-A-B]
1.4. The High Court lost sight of the scheme of the
Act. When a land is acquired, the Land Acquisition Officer
B
mak~s an offer on behalf of the State government, in
regard to the compensation. The offer made by the Land
Acquisiti.on Officer is not an adjudication of the market
value or the compensation payable to the land owner.
When such offer is made, the land owner has the choice
of either accepting the compensation in full and final
C satisfaction or to seek a reference to the civil court for
determination of the amount of compensation. Where the
land owner does not seek a reference within the time
specified in section 18 of the Act, he is deemed to have
accepted the award and the award of the Land
D Acquisition Officer attains finality under section 12 of the
Act. Section 18 of the Act enables the land owner or
person interested to make a written application to the
Collector requiring his objection to the award, to be
referred for determination by the court. In the application,
E he has to state whether his objection is in regard to
measurement, quantum of compensation, persons
entitled to compensation, or apportionment. He is also
required to state the grounds on which the objection to
the award, is taken. But the section does not require the
F land owner while seeking a reference, to specify the
quantum of compensation demanded by him. Section 18
merely requires a land owner who has an objection to the
amount of compensation awarded by the Land
Acquisition Officer to require the matter to be referred to
G reference court for determination of compensation by
specifying the grounds of objections to the award. [Para
14] [26-C-G]
1.5. Section 19 of the Act provides that on receipt of
the application seeking reference made in accordance
H
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
9
STATE OF MAHARASHTRA
with section 18 of the Act, the Collector is required to
A
make the reference by forwarding the application for
reference (or a copy thereof) with his statement setting
out the grounds on which the amount of compensation
was determined by him. When the reference is received,
the court causes notice specifying the date of hearing for B
determining the objection of the land owner/person
aggrieved (section 20 of the Act). The Reference Court has
to call upon the claimants to file their statement of claim
and call upon the Collector to file his objections to the
claim statement and then proceed with the matter. Where c
the application under section 18 contains the necessary
particulars, the Reference Court may treat the application
for reference under section 18 and the Collector's
statement under section 19 of the Act as the pleadings.
The land owner is entitled to specify the amounts claimed
0
by him as compensation and the heads of compensation
for the first time in such claim statement before the
Reference Court. He can also file an application amending
the claim. What is not permitted after the expiry of the
period of limitation specified in section 18 of the Act, is
changing the nature of objections from one category to
E
another. If the reference had been sought with reference
to objection to amount of compensation, the land owner
cannot after the period of limitation, seek amendment to
change the claim as objection to measurement or
objection to apportionment. [Para 15] [26-H; 27-A, G-H;
F
28-A-C]
1.6. A land owner, particularly a rural agriculturist,
when he loses the land may not know the exact value of
his land as on the date of the notification under section G
4(1) of the Act. When he seeks reference he may be
dissatisfied with the quantum of compensation but may
not really know the actual market value. Many a time there
may not be comparable sales, and even the courts face
difficulty in assessing the compensation. There is no
H
10
SUPREME COURT REPORTS (2011] 15 (ADDL.) S.C.R.
A reason why a land owner who has lost his land, should
not get the real market value of the land and should be.·
restricted by technicalities to some provisional amount
he had indicated while seeking the reference. The Act
does not require him to specify the quantum and all that
B he is required to say is that he is not satisfied with the
compensation awarded and specify generally the
grounds of objection to the award. Under the scheme of
the Act, it is for the court to determine the market value.
The compensation depends upon the market value
c established by evidence and does not depend upon what
the land owner thinks is the value of his land. If he has
an exaggerated notion of the value of the land, he is not
going to get such amount, but is going to get the actual
market value. Similarly if the land owner is under an
0 erroneous low opinion about the market value of his land
and out of ignorance claims lesser amount, that can not
be held against him to award an amount which is lesser
than the market value. When the Act does not require the
land owner to specify the amount of compensation, but
he
voluntarily mentions
some
amounts,
and
E subsequently, if the market value is found to be more than
what was claimed, the land owner should get the actual
market value. One fails to see why the land owner should
get an amount less than the market value, as
compensation. Consequently, it follows that if the land
F owner seeks amendment of his claim, he should be
permitted to amend the claim as and when he comes to
know about the true market value. When the Act is silent
in regard to these matters, to impose any condition to the
detriment of an innocent and ignorant land owner who
G has lost his land, would be wholly unjust. [Para 16] [28·
D-H; 29-A-C]
1.7. The Collector making the offer of compensation
on behalf of the State is expected to b~ fair and
H reasonable. He is required to offer compensation based
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
11
STATE OF MAHARASHTRA
on the market value. Unfortunately Collectors invariably
A
offer an amount far less than the real market value, by
erring on the safer side, thereby driving the land owner
first to seek a reference and prove the market value
before the reference court and then approach the High
Court and many a time this Court, if he does not get B
adequate compensation. In most land acquisitions, the
land acquired is the only source of his livelihood of the
land owner. If the compensation as offered by the
Collector is very low, he cannot buy any alternative land.
By the time he fights and gets the full market value, most C
of the amount would have been spent in litigation and
living expenses and the price of lands would have
appreciated enormously, making it impossible to buy an
alternative land. As a result, the land owner seldom has
a chance of acquiring a similar land or an equal area of 0
sim.ilar land. It would be adding insult to injury, if the land
owner should be tied down to a lesser value claimed by
him in the reference application, even though he was not
required by law to mention the amount of compensation
when seeking reference. The Act contemplates the land
owner getting the market value as compensation and no
E
technicalities should come in the way of the land owner
getting such market value as compensation. [Para 17]
[29-D-H; 30-A]
1.8. Section 3(a) of the Act prqvides that the
F
expression "land" includes benefits to arise out of land,
and things attached to the earth or permanently fastened
to anything attached to the earth. Jherefore when the Act
refers to acquisition of 'land', the reference is not only to
land but also to land, building, trees and anything G
attached to the earth. In the absence of any restriction in
section 18 of the Act, and the respective roles assigned
by the Act to the Land Acquisition Collector and the
Reference Court in the context of making a reference and
determining the compensation, it is clear that once the
H
12
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A · reference is made in regard to amount of compensation,
the Reference Court will have complete jurisdiction to
decide the compensation for the land, buildings and
trees and other appurtenances. The Reference Court will
also have the power to entertain any application for
B increasing the compensation under whatever head. The
fact that the landowner had sought increase only in
regard to the land in the application for reference, will not
come in the way of the landowner seeking increase even
in regard to trees or structures, before the Reference
c Court. [Para 18) [30-B-E]
1.9. The State of Maharashtra has a special provision
in the Bombay Court Fees Act, 1959 (Entry 15 in Schedule
I) which requires every claimant who makes an
application to the Collector for a reference to court under
D section 18 of the Act to pay one half the ad valorem fee
on the difference between the amount awarded by the
Collector and the amount claimed by the claimant. Thus
the application under section 18 objecting to the
compensation by implication is required to disclose the
E amount of compensation sought and pay court fee on the
increase sought. But this is only a requirement in regard
to the Court Fees Act. This only means that if the claim
is amended later, additional court fee may have to be
paid. This requirement under the Court Fees Act cannot
F be read as a requirement under the Land Acquisition Act.
So long as Land Acquisition Act is not amended to
require the person ,aggrieved
1to specify the amount of
compensation claimed by him in the reference
application, the bar of limitation will not apply even if the
G amount is specified in the application for reference and
subsequently a higher amount is sought by way of
amendment. [Para 19) [30-F-H; 31-A-B]
, "
I
1.10. The time limit under section 18 of the Act is only
for seeking the reference by raising the objection to the
H
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
13
STATE OF MAHARASHTRA
amount of compensation or any of the other three A
objections. The land owner or persons aggrieved will
have to give only the nature of objection to the award,
that is whether it is with reference to measurement or
compensation or person to whom it is payable or
apportionment, and briefly mention the grounds in B
support of it. Though the land owner can give the details
of his claim and quantum, he is not bound to do so.
When the referenc~ is made, he can give the particulars
of the claim for compensation or additional particulars or
even increase the claim. [Para 20] [30-C-E]
c
Chimanla/ Hargovinddas vs. Special Land Acquisition
Officer, Poona 1988 (3) SCC 751 : 1988 (1) Suppl. SCR
531 - relied on.
State of Maharashtra v. Sitaram Narayan Patil 2010 (2)
D
Mh.L.J. 387; State of Maharashtra vs. Ambya Ka/ya Mhatre
2009 (1) Mh.LJ 781 - referred to.
Re : Question (iii)
2. If the land value had been determined with
E
reference to the sale statistics or compensation 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
F
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 G
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
H
14
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R
A reference to vacant agricultural land. In the
circumstances, the value of the trees could be added to
the value of the land. [Para 22) [32-D-F]
State of Haryana vs. Gurcharan Singh 1995 Supp (2)
B SCC 637 : 1995 (1) SCR 408 - referred to.
A suggestion to the State Government
3. Only in Maharashtra and Gujarat, the land losers
are required to pay half of the ad va/orem court - fee
:
while see!<ing reference to the civil court. In all other
States, ad valorem court - fee is payable only when an
appeal is filed against the award of the Reference Court,
seeking higher compensation and not in regard to
applications for reference under section 18 of the Act.
D Most of the land - losers are agriculturists. For many of
them, the only source of livelihood is taken away by
acquisition of their lands. Though, the Collector is
expected to award compensation based on the market
value, quite often, it is seen that in actual practice, the
E compensation offered by the Collector is far less than the
actual market value, thereby forcing the land - losers to
seek references to civil court. In such cases, the amount
awarded by the Collector being comparatively small, the
requirement to pay ad - valorem court - fee on the
F application for reference causes irreparable hardship,
forcing the land loser to seek a lesser increase than what
is warranted. The State Government may therefore
consider giving appropriate relief to the land losers by
providing for a nominal fixed court - fee, on the
application for reference, instead of ad valorem court fee.
~
"
[Para 23] [32-H; 33-A-D]
t
H
4. The matter is remanded to the High Court for
consideration of the appeal on merits. [Para 24) [33-E]
AMBYA KAL YA MHATRE (D) THROUGH LEGAL HEIRS v.
15
STATE OF MAHARASHTRA
Case Law Reference:
2010 (2) Mh.L.J. 387
Referred to
Para 10
2009 (1) Mh.LJ 781
Referred to
Para 10
1988 (1) Suppl. SCR 531 Relied on
Para 12
1995 (1) SCR 408
Referred to
Para 21
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
7784 of 2011.
A
B
From the Judgment & Order 11.11.2008 of the High Court
C
of Judicature at Bombay in F.A. No. 226 of 1994.
A. Mariamputham, Shivaji M. Jadhav, Brij Kishor for the
Appellants.
D
Arun R. Pedneker, Sanjay V. Kharde, Asha, Gopalan Nair
for the Respondent.
The Judgment of the Court was delivered by
R.V. RAVEENDRAN, J. 1. Leave granted.
2. Lands belonging to Ambya Kalya Mhatre ('A.K.Mhatre'
for short, now represented by his LRs.) situated at Dapoli village,
Panvel taluk, Raigad district, bearing Sy. Nos.89/1, 85/1, 27/
E
1, 41/1B, 41/1A, 152/3, 155/7, 18/7, 89/3, 23/2 and 99/1 in all
measuring 1.73.6 Hectares (17360 sq.m.) with a large number
F
of fruit bearing trees and a well therein, were acquired for New
Bombay project in pursuance of preliminary notification dated
3.2.1970 (read with corrigendum dated 5.9.1970) and final
notification dated 29.7.1979.
3. The special Land Acquisition Officer (for short 'the
Collector') awarded the following compensation by award dated
4.7.1986:
G
H
16
SUPREME COURT REPORTS (2011) 15 (ADDL.) S.C.R.
A s. Des er
Market
Solatium
Additional
Total
~o. lption
value
(30%)
amount
@12% per
annum
1. Land Rs. 24,898.32
Rs. 7469.49
Rs. 49,049.69 Rs. 81,417.50
B 2. Trees Rs. 83,629.00 Rs. 25,088.70 Rs. 1,65,586.40 Rs. 2,74,303.10
3. Well
Rs. 500.00
Rs. 150.00
Rs. 990.00
Rs. 1,640.00
Possession of the land was taken on 9.9.1986. Not being
C satisfied with the compensation awarded, A.K.Mhatre made an
application dated 10.11.1986 under section 18 of the Land
Acquisition Act, 1894 ('Act' for short) to the Special Land
Acquisition Officer (also referred as 'Collector' or 'LAO')
seeking a reference to a District Court for enhancement of
D compensation by Rs. 90,273/- in regard to the acquired lands
and paid a court fee of Rs. 1610/- in regard to the increase
demanded. In pursuance of the said request, a reference was
made to the Civil Court by the LAO on 25.11.1986. During the
pendency of the reference before the reference court, A.K.
E Mhatre died and his legal representatives came on record on
30.9.1988.
4. The appellants made an application on 13.9.1990
before the Reference Court seeking following amendments to
F the application for reference :
(i) As against the compensation of Rs. 24,898.32 for the
entire land (at the rate Rs. 6500, Rs. 7000 and Rs. 7500 per
acre for different kinds of land) awarded by the LAO, and the
compensation claimed at the rate of Rs. 50,000/- per acre in
G regard to some of the lands, in the application seeking
reference, the appellants sought compensation of Rs. 3,47,2001-
- for the acquired lands measuring 17360 sq.m. (at the rate of
Rs.20 per sq.m.) that is an increase of Rs. 3,22,302/-.
H
(ii) As against the compensation of Rs. 83,629/- awarded
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
17
STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.]
for the trees, the appellants sought Rs. 10,48,400/-, that is an
A
increase of Rs. 9,64,771/-. (The appellant had not sought any
increase in regard to trees in the application for reference).
(iii) As against the compensation of Rs. 500/- awarded for
the well, the appellants sought Rs. 50,000/-, that is an increase a
of Rs. 49,500/- (Note: The appellant had not sought any
increase in regard to the well in the application seeking
reference).
The appellants thus sought in all Rs. 43,83,959/- towards
additional compensation with solatium and additional amount.
C
The appellants also paid the additional court fee for the increase ·
in the claim. The reason given in the application for amendment
seeking increase was that A.K. Mhatre was not then in a
position to pay the court fee on a higher claim, and had
therefore restricted the claim for a lesser amount in the
D
application for refere.nce.
5. The said application for amendment was allowed by the
Reference Court on 19.9.1990 and the claims in the reference
application were modified as per the amendment application.
E
After evidence, the Reference Court by award dated 2.5.1991,
determined the compensation as Rs. 1,21,520/- (at l;{s. 7/- per
sq.m.) for the land, Rs. 4,46,600/- for the trees and Rs. 2,000/
- for the well, with statutory benefits. This works out to an
,
increase of '96,631/- for the land, Rs. 3,62,971/- for the trees
F
and Rs. 1500/- for the well. Both sides were aggrieved by the
judgment and award of the Reference Court. The appellants
filed Ap. No.104/1992 seeking further increase and the LAO
filed FA No.226/1994 challenging the increase. The appeals
came up for hearing on different dates before the High Court
G
of Bombay.
6. The appeal filed by the appellants· came up for hearing
first. On 4.3.2003, the said appeal was allowed in part and the
compensation in regard to the land was increased to Rs. 10
per sq. m., by following its earlier decision in State of H
18
SUPREME COURT REPORTS (2011] 15 (ADDL) S.C.R.
A Maharashtra vs. Tulsiram Krishna Mungaj (FA No.462of1990
decided on 18.7.2001). The claim for increase in regard to the
trees and well was rejected.
7. Subsequently the State's appeal came up for hearing
B before another Bench of the High Court and was allowed by
the impugned judgment dated 11.11.2008. The High Court held
that the claim of appellants for enhanced compensation in
regard to the trees and well, made by amending the application
for reference under section 18 of the Act was barred by
c limitation prescribed under section 18 of the Act, as A.K.Mhatre
had sought in the application for reference, only increase in
regard to the land and not in regard to the trees and well. The
High Court also held that once compensation was awarded for
the land, no separate compensation could be awarded for the
0 trees. However, the High Court did not disturb the
compensation that had been awarded by the LAO for the trees
and the well, apparently in view of section 25 of the Act which
provides that the amount awarded by the Collector as
compensation cannot be reduced by the reference court. The
E High Court therefore set aside the award of additional
compensation of Rs. 3,62,971/- towards the trees and Rs.
1500/- towards the well awarded by the Reference Court. The
said judgment is challenged in this appeal J:>y special leave.
8. On the contentions raised, the following questions arise
F for our consideration:
G
H
(i) Whether in a reference made to the Reference Court
under section 18 of the Act, the land owner is barred from
amending the amount claimed in the reference application
and seeking higher compensation; and even if he could
seek amendment, whether such application should be
made within the period of limitation mentioned in section
18 of the Act?
(ii) Where the landoNner has sought increase in
compensation for only the land, in the application under
AMBYA KALYA MHATRE (0) THROUGH LEGAL HEIRS v.
19
STATE OF MAHARASHTRA [RV. RAVEENDRAN, J.]
section 18 of the Act, whether he can seek increase in
A
compensation for the trees or structures also, before the
Reference Court?
(iii) Where compensation is awarded for the land, whether
no compensation can be awarded for trees or well
8
separately?
Re : Questions (i) and (ii)
9. The High Court held that the amendment was barred by
limitation on the following reasoning :
c
"The Award of the Collector was made on 4th July, 1986.
The possession of the acquired lands was taken on 9th
September, 1986 and the payment of compensation was
made on 29th September, 1986. The reference came to
be filed within the prescribed period of limitation. However,
D
about four years thereafter, i.e. on 19th September, 1990
the reference was amended for enhancing the claim of
compensation for trees and well situate on the land. If the
date of amendment of the reference i.e. 19th September,
1990 is to be taken into consideration, the claim for further
E
enhancement made by way of amendment is clearly barred
by limitation. Even the respondents do not dispute that if
the date of amendment of reference is to be taken into
consideration, the claim for enhanced compensation in
respect of the trees and well would be barred by limitation.
F
x x x x Ordinarily, amendment of pleadings relates back
to the date of filing of the proceedings. However, the
proposition cannot be extended to the question of
limitation, because despite grant of leave to amend
proceedings, the court is duty bound to consider whether G
the claim is within the prescribed period of limitation, just
as the original claim. Therefore, we find no substance in
the submission that the appellant ought to have challenged
the order of amendment of the reference to enable it to
contend that the claim for enhanced compensation is
H
20
SUPREME COURT REPORTS (2011] 15 (ADDL.) S.C.R.
A
barred by limitation. Since the amendment of the reference
for claiming enhanced compensation fort he trees and the
well situate on the land does not relate back to the date of
filing of the reference, for the purpose of limitation, it must
be held that the claim made on 19th September, 1990 is
B
barred by limitation provided under Section 18 of the Land
Acquisition Act."
10. During the pendency of the special leave petition, the
issue whether the reference court can permit a claimant to
C amend his claim so as to increase the compensation claimed,
came up for consideration before a Full Court of the Bombay
High Court in State of Maharashtra v. Sitaram Narayan Patil
(2010 (2) Mh.L.J. 387). The Full Court overruled the impugned
judgment dated 11.11.2008 (which is reported in State of
Maharashtra vs. Ambya Katya Mhatre- 2009 (1) Mh.LJ 781)
D and held that a claimant whose land is acquired, can be allowed
to amend his claim application so as to enhance the
compensation claimed in an application for reference under
section 18 of the Act and that the "amendment to increase the
compensation claimed in the application for reference under
E section 18 of the Act can be allowed before the Reference
Court as well as at the stage of an Appeal in the High Court
arising out of the decision of the Reference Court." The Full
Court further held that while granting an amendment so as to
enhance the claim for compensation, the general p mciples for
F considering an application for amendment made under Order
6 Rule 17 of the Code of Civil Procedure, 1908 would be
applicable. The Full Bench arrived at the said findings on the
following reasoning :
G
H
"Section 18 can be invoked by any person interested who
has not accepted the award. He may by written application
to the Collector require that the matter be referred by
Collector for determination of the Court and his objections
are of the nature specified in section 18(1 ). Sub-section
2 of section 18 states that the application which is to be
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.
21
STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.]
made in writing shall state the grounds on which the
A
objections to the Award is raised. On receipt of this
application, under section 19, while making a reference,
the Collector shall state for the opinion of the Court in
writing under his hand, the particulars of the case, .... Subclause ( d) of section 19( 1) states that if the objection be a
to the amount of compensation, the grounds on which the
amount of compensation is determined. Thus, the
Collector in his statement to the Court gives an opinion in
writing under his hand about the grounds on which the
amount of compensation was determined by him......
C
Under the scheme of section 18 of the Act, the reference
is required to be filed within a period of limitation. The
period of limitation depending upon the facts of a given
case would be six weeks to six months. Six months being
outer limit, in either of the events, when the applicant was
D
present before the Collector at the time when the award
was made or when he was served with notice under subsection (2) of section 12 of the Act. It is now fairly a settled
law that this specific period of limitation is mandatory and
is not flexible. As stated above, in order to refer the matter E
before the Collector for determination to the Court, the
claimant is required to raise objections regarding the
amount of compensation. He is not under an obligation
to specify the amount of compensation. Once his
objection as to the amount of compensation is filed within
F
a prescribed period under sub-section (2) of section 18
of the said Act, before the Collector, then the Collector
is duty bound to refer the matter to the Court along with
his statement as contemplated under section 19 of the
said Act. The claimant thereafter, cannot introduce any
G
other objections as contemplated under section 18 of the
Act either before the Court or in an appeal under section
54 of the said Act.