Gangaram Kalu Gavit And Anr vs The State Of Maharashtra on 22 April, 2025

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Bombay High Court

Gangaram Kalu Gavit And Anr vs The State Of Maharashtra on 22 April, 2025

2025:BHC-AS:17999

                                                                   First Appeal No. 722 of 1999 (final).doc


                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                               CIVIL APPELLATE JURISDICTION

                                          FIRST APPEAL NO. 722 OF 1999

               1.    Mr. Gangaram Kalu Gavit,                             ]
                     Adult                                                ]
               2.    Mr. Laxman Kalu Gavit,                       ]
                     Adult                                        ]
                     (No. 1 for self and head of joint family for ]
                     Applicant No. 2)                             ]
                     Both are residents of : Amdar, Taluka : ]
                     Kalwan, District : Nashik                    ] ...Appellants

                               Versus


               The State of Maharashtra                      ]
               through The Special Land Acquisition Officer, ]
               National Highway Project, Nashik              ] ...Respondent
                                                      ------------
                Mr. Anil J. Ahuja, Ms. Bhavana Khemani for the Appellant.
                Mr. A. R. Patil, AGP for Respondent-State.
                                                      ------------
                                                             Coram : Sharmila U. Deshmukh, J.

Reserved on : 28th March, 2025.

Pronounced on : 22nd April, 2025.

Judgment :

1. The First Appeal impugns the Judgment and Award dated 30 th

April, 1998 passed by Joint District Judge, Nashik in Land Acquisition

Reference No. 253 and 254 of 1990 dismissing both the land

references. The challenge in the present First Appeal is confined to

Land Acquisition Reference No. 253 of 1990.

2. The acquisition of the Appellant’s land i.e. Gat No 1 was from

Village – Amdar, Taluka – Kalwan, District – Nashik for construction of

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percolation tank. The subject land came to be acquired pursuant to

publication of Section 4 Notification Land Acquisition Act, 1894 [for

short, “L. A. Act“] which was lastly published on 7th February, 1986.

Section 6 declaration was published on 10th July, 1986 and the Award

under Section 11 was passed on 8th July, 1988.

3. Being aggrieved by the compensation, the Claimant sought

Reference under Section 18 of the L. A. Act seeking enhanced

compensation of Rs 20,000/- per hectare and Rs 2,000/- per hectare for

Pot-Kharab Land.

4. In support of the claim, C.W.-1 deposed that the acquired land

was paddy field and possession was taken prior to 20 years. He further

deposed that there were no sale instances in Village Amdar and that

Villages Wadala, Lingama, Deoli Karad are adjoining villages having the

same quality of lands. In the cross-examination, C.W.-1 deposed that

there are no sale instances in the adjoining villages. He has admitted

that his village is surrounded by mountains.

5. C.W.-2 corroborated the deposition of C.W.-1 that there were no

sale instances in Village – Amdar at the time of acquisition or in the

adjoining villages i.e. Villages Wadala, Yelli Karad, Kosurde, Desgaon,

Daregaon, Lingama. He had further deposed that Kanashi is adjacent to

village Kosurde and Desgaon. He has deposed that percolation tanks

were constructed at Village Chankapur and Karmale and he knows

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Chopade and Bhoi from village Karmale whose lands are located at

distance of 1 to 2 k.m. distance from the acquired land. He has further

deposed that some lands from village Abhona were acquired and

Kanashi and Karmale are nearer to their village than Abhona.

6. In the cross-examination, C.W.-2 was unable to tell the names of

Bhoi and Chopade or their Gat Numbers nor the crops raised in their

respective fields. C.W.-2 was unable to state how many villages were

situated between their village and village Karmale. He was unable to

give details of the acquired lands and date of acquisition. C.W.-2 was

unable to state the nature of produce in the lands of Village Karmale.

7. The Opponents did not file written statement and no evidence

was led.

8. The Reference Court framed the following issues :-

– Issues –

(1) Are the Claimants entitled to enhanced compensation? If
so, to what amount?

(2) What order?

9. During arguments, the Learned AGP raised the issue of limitation

which was opposed by the Advocate for the Claimants in the absence

of any specific issue framed and without granting opportunity to lead

evidence. The Reference Court opined that Issue No. (1) was wide

enough to consider issue of limitation and as documents were filed by

Claimants on date of evidence, they had adequate opportunity to

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answer the issue of limitation.

10. The Reference Court noted the provisions of Section 18(2)(b) of

L.A. Act and held that Reference should have been filed within six

months form date of award and rejected the contention that limitation

would begin from date of payment. The Reference Court noted that

Section 12(2) notices under L.A. Act were served twice to receive

payment, i.e. on 18th October, 1988 and on 16th December, 1988 and the

case of the Claimant was that they had applied for certified copy of the

award on 16th October, 1988 but till 27th July, 1989, the same was not

received and the files were inspected and Reference came to be filed

on 28th July, 1989 is not supported by certified copy of Application. It

further held that no office bearer was examined on the point to show

that the said office did not provide copies on or before 27th July, 1989.

11. Despite holding that the References were time-barred, the

Reference Court examined the claim on merits. The Reference Court

held that there is no evidence produced to show absence of sale

instances in the adjoining villages. The Reference Court did not accept

the judgment in Reference proceedings in respect of lands at Village

Karmale in absence of any map produced to show proximity of location.

12. Mr. Ahuja, Learned Counsel for Appellants submits that there

was no Written Statement filed and no issue of limitation was framed.

He submits that it is undisputed that Section 12(2) notice issued on 4 th

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October, 1988 was served on 15 th October, 1988 and second notice

issued on 9th December, 1988 was served on 16th December, 1988 and

the copy of the Award was not annexed to the notices. He submits that

though the notices called upon the Claimants to accept compensation,

the date of actual payment is admittedly on 21 st June, 1989 and

reference filed within four weeks is within limitation. He relies upon

the decision of Vijay Mahadeorao Kubade vs. State of Maharashtra

through Collector1 to contend that certified copy of Award was

essential for effective exercise of right to seek Reference under

Section 18 of L.A. Act. He would further point out the decision in the

case of Raja Harish Chandra Raj Singh vs. Deputy Land Acquisition

Officer2 and would submit that what is required is actual or

constructive knowledge of passing of the Award.

13. On the merits, he would submit that the relevant date for the

purpose of determination of market value is date of publication of

Section 4 Notification on 7th February, 1986. He draws attention of map

produced with compilation of documents to demonstrate that village

Amdar is near to Villages Kanashi and Karmale. He submits that it is a

specific deposition of C.W.-2 that village Karmale is at the distance of

one to two kilometre. He would submit that there was evidence on

record to enable application of the same rates of compensation to the
1 (2018) 8 SCC 266.

2 1961 SCC OnLine SC 140.

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acquired lands as that of Village Karmale. He submits that the Award

passed by the Special Land Acquisition Officer shows that proximity of

the acquired lands to the Taluka headquarter. He submits that L. A. Act

being social welfare legislation, even in absence of cogent evidence, it

needs to be considered that in respect of village Karmale, the rate

awarded was Rs. 31,000/- per hectare whereas the Claimants have got

about Rs. 4,312/- per hectare.

14. Per contra, Mr. Patil, learned AGP submits that the second part of

the proviso (b) of sub-section (2) of Section 18 of the L. A. Act is applied

in the present case which requires reference to be filed within a period

of six months from the date of Award. He submits that stand of

Claimants was that they were called upon to take the payment on 16 th

December, 1988 and they were paid only on 21 st June, 1989. He

submits therefore, on 16th December, 1988, the Claimants had

constructive knowledge of the Award. He draws attention of this Court

to the decision in the case of Raja Harish Chandra Raj Singh vs.

Deputy Land Acquisition Officer (supra), Bhagwan Das vs. State of

Uttar Pradesh3, and State of Punjab vs. Qaisar Jehan Begum 4,to

contend that even constructive knowledge is sufficient to commence

period of limitation.

15. On merits, Learned AGP submits that this is case of ‘no evidence’.
3 (2010) 3 SCC 545.

4 AIR 1963 SC 1604.

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Pointing out to the deposition of C.W.-1, he submits that the

deposition that there were no sale instances in the adjoining village

has not been substantiated by producing any certificate, which was in

fact produced in respect of village Amdar. He submits that Exhibit-3e

which judgment is in the case of acquisition from village Karmale and

Kanashi cannot be considered for the purpose of determining the

market value of village Amdar as it is not shown that the lands were

identically situated.

16. In rejoinder, Mr. Ahuja would rely on Premji Nathu vs. State of

Gujarat5, to contend that mere knowledge of passing of Award will not

imply knowledge of relevant particulars of Award. He would further

submit that in the case of Parsottambhai Maganbhai Patel vs. State

of Gujarat6, the Hon’ble Apex Court has held that limitation prescribed

under the latter part of Section 18 (2) (b) is to be computed having

regard to the date when the knowledge has been acquired. He would

submit that there was no valid notice and the same was not

accompanied by the Award. He would further submit that in the case of

New Okhla Industrial Development Authority vs. Harnand Singh

(deceased) through LRs7, the Hon’ble Apex Court has applied the

principle of guesstimation and therefore, the same principle should

5 (2012) 5 SCC 250.

6 (2005) 7 SCC 431.

7 2024 SCC OnLine SC 1691.

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apply in the present case and the meagre compensation should be

enhanced.

17. The facts of the case would give rise to the following points for

determination:

(i) Whether the Reference Court was justified in holding that the

Reference was barred by limitation without framing a specific issue of

limitation and without granting an opportunity to lead evidence on the

said issue?

(ii) Whether the Reference in question was barred by limitation?

(iii) Whether the Claimants have proved that compensation awarded by

Special Land Acquisition Officer is inadequate and is required to be

enhanced?

18. Dealing first with the aspect of limitation, the admitted position

is that no written statement was filed and it was during final

arguments that the Learned AGP raised the issue of limitation. Section

18 of L.A. Act provides for Reference to the Court and the proviso to

sub-section (2) of Section 18 prescribe different period of limitation

depending on whether the person seeking Reference was present or

represented at the time of the making of Award, in which case it is six

weeks. In the other case within six weeks of receipt of notice from

Collector under Section 12(2) or within six months from date of

Collector’s Award, whichever period shall first expire.

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19. The above provision sets out (a) limitation of six weeks from

date of award if the person was present/represented at time of making

of award and (b) in other cases, limitation of six weeks from Section

12(2) notice or six months from date of Collectors’ Award, whichever

expires earlier.

20. In the present case, we are concerned with clause (b) to the

proviso. The Reference Application pleads that Section 12(2) notice is

received on 15th October, 1988, however notice did not contain

particulars of contents of the Award. It was argued that date of

payment of compensation is 21st June, 1989 which has not been shown

to be disputed. As held by the Hon’ble Apex Court in case of Vijay

Kubade vs. State of Maharashtra (supra) that as the notice was not

accompanied with the Award, there could not have been a valid notice

of the Award under Section 12(2) until the Appellant received certified

copy of the Award.

21. In State of Punjab vs Qaisar Jehan Begum (supra), the Hon’ble

Apex Court while interpreting clause (b) of the proviso to sub-section

(2) of Section 18 held that the knowledge of award must mean

knowledge of essential contents of the Award in paragraph 5 as under:

“5. As to the second part of cl. (b) of the proviso, the true
scope and effect thereof was considered by this court in
Harish Chandra‘s Case, 1962-1 SCR 676: (AIR 1961 SC 1500)
(supra). It was there observed that a literal and mechanical
construction of the words “six months from the date of the
Collector’s award” occurring in the second part of cl. (b) of the

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proviso would not be appropriate and “the knowledge of the
party affected by the award, either actual or constructive,
being an essential requirement of fair play and natural justice,
the expression used in the proviso must mean the date when
the award is either communicated to the party or is known by
him either actually or constructively.” Admittedly the award
was never communicated to the respondents. Therefore the
question before us boils down to this. When did the
respondents know the award either actually or constructively?

Learned counsel for the appellant has placed very strong
reliance on the petition which the respondents made for
interim payment of compensation on December 24, 1954. He
has pointed out that the learned Subordinate Judge relied on
this petition as showing the respondents date of knowledge
and there are no reasons why we should take a different view.
It seems clear to us that the ratio of the decision in Harish
Chandra
‘s case, 1962-1 SCR 676: (AIR 1961 SC 1500) (supra) is
that the party affected by the award must know it, actually or
constructively, and the period of six months will run from the
date of that knowledge. Now, knowledge of the award does
not mean a mere knowledge of the fact that an award has
been made. The knowledge must relate to the essential
contents of the award. These contents may be known either
actually or constructively. If the award is communicated to a
party under S. 12 (2) of the Act, the party must be obviously
fixed with knowledge of the contents of the award whether
he reads it or not. Similarly when a party is present in court
either personally or through his representative when the
award is made by the Collector, it must be presumed that he
knows the contents of the award. Having regard to the
scheme of the Act we think that knowledge of the award must
mean knowledge of the essential contents of the award.
Looked at from that point of view, we do not think that it can
be inferred from the petition dated December 24, 1954 that
the respondents had knowledge of the award one of the
respondents gave evidence before the learned Subordinate
Judge and she said :

“The application marked as Ex. D-1 was given by me but the
amount of compensation was not known to me, nor did I know
about acquisition of the land. Chaudhari Mohd. Sadiq, my
karinda had told me on the day I filed the said application that
the land had been acquired by the Government.”

This evidence was not seriously contradicted on behalf of the
appellant and the learned Subordinate Judge did not reject it.
It is worthy of the note that before the Collector also the
appellant did not seriously challenge the statement of the
respondents that they came to know of the award on July 22,
1955 the date on which the compensation was paid. On the
reply which the appellant filed before the learned Subordinate

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judge there was no contradiction of the averment that the
respondents had come to know of the award on July 22, 1955.
That being the position we have come to the conclusion that
the date of knowledge in this case was July 22, 1955. The
application for a reference was clearly made within six months
from that date and was not therefore barred by time within
the meaning of the second part of cl. (b) of the proviso to S. 18
of the Act.”

22. In Bhagwan Das vs. State of Uttar Pradesh (supra), the Hon’ble

Apex Court has held in paragraph 30 and 31 as under:

“30. When a person interested makes an application for
reference seeking the benefit of six months’ period from the
date of knowledge, the initial onus is on him to prove that he
(or his representative) was not present when the award was
made, that he did not receive any notice under Section 12(2)
of the Act, and that he did not have the knowledge of the
contents of the award during a period of six months prior to
the filing the application for reference. This onus is discharged
by asserting these facts on oath. He is not expected to prove
the negative. Once the initial onus is discharged by the
claimant/person interested, it is for the Land Acquisition
Collector to establish that the person interested was present
either in person or through his representative when the award
was made, or that he had received a notice under Section
12(2)
of the Act, or that he had knowledge of the contents of
the award.

31. Actual or constructive knowledge of the contents of the
award can be established by the Collector by proving that the
person interested had received or drawn the compensation
amount for the acquired land, or had attested the
mahazar/panchnama/proceedings delivering possession of the
acquired land in pursuance of the acquisition, or had filed a
case challenging the award or had acknowledged the making
of the award in any document or in statement on oath or
evidence. The person interested, not being in possession of
the acquired land and the name of the State or its transferee
being entered in the revenue municipal records coupled with
delay, can also lead to an inference of constructive knowledge.
In the absence of any such evidence by the Collector, the claim
of the person interested that he did not have knowledge
earlier will be accepted, unless there are compelling
circumstances not to do so.”

23. It was argued on behalf of Claimants that they had applied for

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certified copy of the Award which was not received and the file was

inspected and reference filed. The Reference Court rejected the

contention by holding that no officer was examined to corroborate the

said contention. The Reference Court clearly fell in error by failing to

appreciate that as no specific issue of limitation was framed, there was

no occasion for the Claimants to lead evidence. The case of the

Claimant was that of absence of actual or constructive knowledge of

the contents of the Award. The issue therefore revolved upon the date

of acquisition of knowledge of the essentials elements of Award

sufficient to enable the Claimants to challenge the same. The issue of

limitation was thus mixed question of fact and law mandating framing

of specific issue and requiring evidence to be led. It is only if the

question of limitation is pure question of law that the same could have

been argued, say, for example where the notice under Section 12(2) of

the Land Acquisition Act, 1894 was accompanied with a copy of Award

and the Reference was not filed within the period of six weeks of

receipt of notice under Section 12(2). In such case, it could be argued

that the limitation did not require any evidence to be led and is pure

question of law, which can be raised at the time of final argument. As

what is sought to be emphasized is constructive knowledge on part of

the Claimants, which in turn is dependent on the issue as to whether

the Claimants had attended the office for the purpose of collecting the

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payment and could thus be said to amount to acquisition of

constructive knowledge of the same, evidence was required to be led.

There is specific pleading in the application that the notice under

Section 12(2) did not contain particulars or essential elements of

Award which could have been tested in evidence upon specific issue

being framed.

24. As the issue of limitation was mixed question of law and fact

without evidence being led, there cannot be inference of actual or

constructive knowledge of Claimant for deciding the said issue. In usual

course, the matter would have been remanded for consideration afresh

for framing necessary issue of limitation and permitting evidence to

be led. However, the Reference Court has not only rejected the

Reference on ground of limitation but also on merits, which will have

to be tested.

25. Coming to the merits of the claim, it is well-settled that the

burden is upon the Claimants to prove that the compensation awarded

is inadequate. The burden is sought to be discharged by the Claimants

by examining two witnesses. Both the witnesses deposed about

absence of any sale instance of Village Amdar or of adjoining villages

which were described by C.W.-1 as Villages Wadala, Lingama, Divali

Karad and supplemented by C.W.-2 with Villages Kosurde and Dasgaon.

CW-2 has deposed that Village Kanashi is adjacent to Villages Kosurde

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and Desgaon. The Claimants seek to place reliance on the

compensation awarded to the acquired lands from Village Karmale.

There is no evidence to show that the Claimant’s land the acquired

lands from Village Karmale are identical lands. On the contrary, C.W.-2

has admitted in cross examination that he is unaware of the number of

villages located between Village Amdar and Village Karmale. To

establish parity in compensation, not only proximity of location but

similarities of characteristics, potentiality, advantages, etc. is also

required to be proved, which is not established in the present case.

26. Exhibits 32 and 33 which are the judgments in the Land

References arising out of acquisition of lands of villages Kanashi and

Karmale respectively were sought to be relied upon by the Claimants.

CW-2’s deposition that village Karmale was only at the distance of one

to two kilometre has been demolished in the cross-examination.

Though before this Court, a map has been produced to show the

proximity of Village Amdar to Village Karmale, perusal of the original

R& P does not indicate that the said map was produced before the

Reference Court. Before the Reference Court, the map of Village

Amdar was produced which was not sufficient to establish the

proximity in location with the acquired lands under Exhibit 32 and

Exhibit 33. Leaving that aside, even if the map produced before this

Court is perused, it shows that Village Amdar is separated from the

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Village Karmale by various villages and it cannot be said that the

villages are located at distance of one to two kilometre from the

village Amdar. Thus, the Reference Court has rightly held that the

judgment in the case of acquisition from villages Karmale and Kanashi

cannot be taken into consideration for the purpose of determination of

market value in instant case.

27. In the Award passed under Section 11 of the Land Acquisition

Act, 1894, the situation and description of the acquired land is stated in

clause 3 (c) as under:-

(c) … Situation and description

The village Amdar is situated at the western side of the Taluka
Head Quarter Kalwan at a distance of 1 K.M.s. The nearest
weekly bazar place is communication are S.T. bused playing up
to Abhona. There is no S.T. Bus stop at the village. There is no
S. T. Bus stop at the village. There are no industrial or
Development or Non Agricultural activities the village. The
nearest village are Abhona at a distance of 15 K.M. The lands
under acquisition are located to the Eastern side distance of 1
K.ms. from the village gaothan. The lands have no N.A.
potentiality. There is no Railway station. The main crops grown
at the village are paddy, nagli, Dadar, groundnut etc. Kharif
crops. The Rabi Crops viz. wheat, gram, Onions, chillis etc.
bagait crops are grown on well water in the village. The total
cultivable area of the village is 127-57. Hecters out of which
68-00 is Jirait and 10.90 is bagait. The village is in Survey group
No. 4 and the maximum rate of assessment is Rs. 2.47 Per
Hectare. There is no canal irrigation at the village. There are
no buildings, cartracks, telegraph and transmission lines etc. in
the land acquisition. The lands under acquisition. The lands
under acquisition are mainly jirait lands.

In order to arrive at reasonable valuation of the lands under
acquisition, it will be proper to from groups of lands on
assessment basis. The maximum rate of assessment of the
village is Rs. (2.47) Per Hectare. The lands can be divided in
groups as under:-

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              Group       Range of Asset
              I           Rs. 0.01 to Rs. 1.25
              II          Rs. 1.26 to Rs. 2.50

The lands under acquisition fall under the following groups.

             Groups              Gat No.
               I                 1p., 4Ap, 4 Cp, 2p.
               II                B p.

28. From the description in the Award, it is clear that there is no N.A.

potentiality, the lands do not have the advantage of rail and bus

connectivity, there is no industrial development or development of

non-agricultural activities in the village and the nearest village is

Abhona which is at the distance of 15 kilometres. The proximity to the

Taluka headquarters when viewed with the above characteristics would

not enhance the market value of the acquired lands.

29. The Reference Court had noted that Exhibit-32 which was in

respect of acquired land from village Abhona had good N.A.

potentiality, which is not so in case of Village Amdar. The evidence

does not prove any similarities between the acquired lands and the

lands from Villages Karmale or Kanashi and therefore, no reliance can

be placed on Exhibit-33 judgment. The Claimants have not produced

any evidence to substantiate their claim for enhanced compensation.

As Mr. Patil, learned AGP rightly pointed out this is a case of “no

evidence”.

30. It is sought to be contended by Mr. Ahuja that the lands at

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villages Karmale and Kanashi were granted compensation of Rs.

31,000/- per hectare whereas the acquired land from the village Amdar

was granted only Rs. 4,312/- per hectare and by applying the principle

of Guesstimation, the compensation is required to be enhanced. Firstly,

it needs to be noted that in the case of New Okhla Industrial

Development Authority vs. Harnand Singh (supra), the Hon’ble Apex

Court had held that while the Court can use the principle of

guesstimation in reasonably estimating the value of land in absence of

direct evidence, the exercise ought not to be purely hypothetical. In

the present case, the enhancement of compensation would be purely

hypothetical as there is absolutely no evidence which is brought on

record on the basis of which there could be enhancement of

compensation. There is no deposition as regards the potentiality or

characteristics or advantages based on which the claim could be

considered. All that is relied upon are the two judgments below

Exhibits 32 and 33 which are not shown to be identical to the

Claimant’s land. This being a case of ‘no evidence’, there cannot be any

applicability of principles of Guesstimation.

31. In light of above discussion, the First Appeal fails and stands

dismissed.

32. In view of dismissal of First Appeal, nothing survives for

consideration in pending Interim/Civil Applications, if any and the same

stand disposed of.


                                              [Sharmila U. Deshmukh, J.]


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