SHRI AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS & ORS.versusTHE STATE OF MAHARASHTRA

                                 ---
               [2011] 15 (ADDL.) S.C.R. 1


  SHRI AMBYA KALYA MHATRE (D) THROUGH LEGAL                 A
                 HEIRS & ORS.
                            v.
            THE STATE OF MAHARASHTRA
             (Civil Appeal No. 7784 of 2011)
                 SEPTEMBER 12, 2011                         B

       [R.V. RAVEENDRAN, H.L. GOKHALE AND
               GYAN SUDHA MISRA, JJ.]

      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
   /imitation will not apply even if the amount is specified in the
0
   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
    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
H
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
   Land Acq.uisition Collectorshall be deemed to be a court
0
   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:

        · (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
H
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
                                                           c
    (iii) Where compensation is awarded for the land,
    whether no compensation can be awarded for trees
    or well separately.

    Allowing the appeal, the Court
                                                           D
    HELD:
Re : Questions (i) and (ii)

     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
  erroneous low opinion about the market value of his land
0
  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 to specify the amount of
                                   1
  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
        4. The matter is remanded to the High Court for
    consideration of the appeal on merits. [Para 24) [33-E]

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AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.                   15
           STATE OF MAHARASHTRA
                       Case Law Reference:                            A
     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
                                                                      B
     1995 (1) SCR 408                Referred to        Para 21
     CIVIL APPELLATE JURISDICTION : Civil Appeal No.
7784 of 2011.

     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.                            E
      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/
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.
                                                                      G
     3. The special Land Acquisition Officer (for short 'the
Collector') awarded the following compensation by award dated
4.7.1986:

                                                                      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/-.

          (ii) As against the compensation of Rs. 83,629/- awarded
H
 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:

         (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
G
         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
H        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
         "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
H
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, .... Sub-
   clause (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 sub-
  section (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. However, the claimant once take
  objection to amount of compensation within a prescribed .
  period is at liberty to claim enhancement in the H
    22     SUPREME COURT REPORTS [2011) 15 (ADDL.) S.C.R.


A        compensation, thereafter."

                                                (emphasis supplied)

        The learned counsel for the respondent contended that the
  impugned judgment dated 11.11.2008 of the High Court lays
B down the correct legal position and that the reasoning in the
  full bench in Sitaram Narayan Patil is not sound.

         11. Section 18 of the Land Acquisition Act, 1894 (as
    amended in Maharashtra) relating to reference to court is
c   extracted below :

         "18. Reference to Court.-(1) Any person interested who
         has not accepted the award (or the amendment thereof)
         may, by written application to the Collector, require that the
         matter be referred by the Collector for the determination
D        of the Court, whether his objection be to the measurement
         of the land, the amount of the compensation, the persons
         to whom it is payable, or the apportionment of the
         compensation among the persons interested.

E        (2) The application shall state the grounds on which
         objection to the award (or the amendment) is taken:

         Provided that every such application shall be made,-

         (a) if the person making it was present or represented
F        before the Collector at the time when he made his award
         (or the amendment), within six weeks from the date of the
         Collector's award;
         {b) in other cases, within six weeks of the receipt of the
G        notice from the Collector under section 12, sub-section (2),
         or within six months from the date of the Collector's award
         (or the amendment), whichever period shall first expire.

         (3) Any order made by the Collector on an application under
         this section shall be subject to revision by the High Court,
H
AMBYA KALYA MHATRE {D) THROUGH LEGAL HEIRS v.                  23
  STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.]
     as if the Collector were a court sub-ordinate to the High       A
     Court, within the meaning of section 115 of the Code of
     Civil Procedure, 1908."

      An analysis of section 18 of the Act would show that any
person interested who does not accept the award can, by
                                                                     8
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 to the measurement of the land;
                                                                     c
      (b)   Objection to the amount of compensation;

      (c)   Objection as to the persons to whom the
            compensation is payable; or

      (d)   Objection to the cipportionment of the                   D
            compensation among the persons interested.

     12. 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 E
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 Collector
is bound to refer the matter to the Civil Court for determination
                                                                  F
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 court for determination of compensation at the
request of the land owner are judicial functions, bat are
administrative functions. The legal position of an award by the G
Land Acquisition Officer vis-a-vis the proceedings in a
reference to the civil court under section 18 of the Act is
explained thus by this Court in Chimanlal Hargovinddas vs.
Special Land Acquisition Officer, Poona - 1988 (3) SCC 751:-
                                                                  H
    24     SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.


A       "4. The following factors must be etched on the mental
    screen:

         (1) A reference under Section 18 of the Land Acquisition
         Act is not an appeal against the award and the court cannot
B        take into account the material relied upon by the Land
         Acquisition Officer in his award unless the same material
         is produced and proved before the court.

         (2) So also the award of the Land Acquisition Officer is
         not to be treated as a judgment of the trial court open or
c        exposed to challenge before the court hearing the
         reference. It is merely an offer made by the Land
         Acquisition Officer and the material ~utilized by tiim for
         making his valuation cannot be utilized by the court unless
         produced and proved before it. It is not the function of the
D        court to sit in appeal against the award, approve or
         disapprove its reasoning, or correct its error or affirm,
         modify or reverse the conclusion reached by the Land
         Acquisition Officer, as if it were an appellate court.

E        (3) The court has to treat the reference as an original
         proceeding before it and determine the market value
         afresh on the basis of the material produced before it."

         Sub-section (3) of section 18 of the Act (added in
         Maharashtra) providing that the Land Acquisition Collector
F        shall be deemed to be a court sub-ordinate to the High'
         Court, is therefore only for the limited 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.
G
       13. The assumption made by the High Court tl1at when a
  reference is sought objecting to the amount of co'1lpensation,
  the claim for increase will have to be frozen with reference to
  the amount claimed in the application under section 18 of the
H Act and therefore the quantum of the claim cannot subs~uently
  AMBYA KALYA MHATRE (0) THROUGH lEGAL HEIRS v.               25
    STATE OF MAHARASHTRA [RV. RAVEENDRAN, J.]

    be revised or increased is misconceived. Similarly, the A
    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 to
    the compensation for the land, the land owner cannot thereafter
    make a grievance seeking increase in regard to the building B
    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 value in regard to the land and not
    in regard to the building and trees, is also not correct. Section
    18 does not require a land owner objecting to the amount of    c
    compensation, to make a claim for any specific amount as
    compensation, nor does it require him to state whether the
    increase in compensation is sought only in regard to 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 0
    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 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 E
    apportionment of compensation among several claimants.
   Once the land owner states that he has objection to the 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 F
   inadequate, the Reference Court proceeds to determine the
   compensation, with 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 G
   reference, mentioning of the amount of compensation 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 H
    26      SUPREME COURT REPORTS [2011) 15 (ADDL.) S.C.R.


A specifying the amount of compensation 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 amendment of the claim relating to
  compensation.
B
        14. The High Court has lost sight of the scheme of the Act.
  When a land is acquired, the Land Acquisition Officer makes
  an offer on behalf of the state government, in regard to the
  compensation. The offer made by the Land Acquisition Officer
C 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 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
D in section 18 of the Act, he is deemed to have accepted the
  award and the award of the Land 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,
E to be referred for determination by the court. In the application,
  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
F the section does not require the 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.
       15. Section 19 of the Act provides that on receipt of the
  application seeking reference made in accordance with section
H 18 of the Act, the Collector is required to make the reference
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.                27
  STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.]

by forwarding the application for reference (or a copy thereof) A
with his statement setting out the grounds on which the amount
of compensation was determined by him. Section 19 is
extracted below :                                 ·

    "19. Collector's statement to the Court.-(1) In making the 8
    reference, the Collector shall state, for the information of
    the Court, in writing under his hand, -

    (a) the situation and extent of the land, with particulars of
    any trees, buildings or standing crops thereon;
                                                                    c
    (b) the names of the persons whom he has reason to think
    interested in such land;

    (c) the amount awarded for damages and paid or tendered
    under sections 5 and 17, or either of them, and the amount
                                                               0
    of compensation awarded under section 11;

    (cc) the amount paid or deposited under sub-section (3A)
    or section 17; and

    (d) if the objection be to the amount of the compensation, E
    the grounds on which the amount of compensation was
    determined.

    (2) To the said statement, shall be attached a Schedule
    giving the particulars of the notices served upon, and of
    the statements in writing made or delivered by, the parties F
    interested, respectively."

                                          (emphasis supplied)

     When the reference is received, the court causes notice G
specifying the date of hearing for 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 H
        28   SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.


A matter. Where the application under section 18. ctmtains 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 by him
B 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
c 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 limitation, seek amendment
  to change the claim as objection to measurement or objection
  to apportionment.
    -                  \

D        16. 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 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
·E value. Many a time there may not be comparable sales, and
   even the courts face difficulty in assessing the compensation.
   There is no 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
 F indicated while seeking the reference. As noticed above, the
   Act does not require him to specify the quantum and all that 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
 G the court to determine the market value. The compensation
   depends upon the market value 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
 H the actual market value. Similarly if the land owner is under an
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v. 29
  STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.)

erroneous low opinion about the market value of his land and A
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 speciry
the amount of compensation, but he voluntarily mentions some
amounts, and subsequently, if the market value is found to be B
more than what was claimed, the land owner should get the
actual market value. We fail to see why the land owner should
get an amount less than the market value, as compensation.
Consequently, it follows that if the land owner seeks amendment
of his claim, he should be permitted to amend the claim as and c
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
has lost his land, would be wholly unjust.
       17. The Collector making the offer of compensation on D
behalf of the state is expected to be fair and reasonable. He is
 required to offer compensation based on the market value.
 Unfortunately Collectors invariably 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 E
value before the reference court and then approach the High
Court and many a time this Court, if he does not 9et 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 F ·
buy any alternative land. By the time he fights and gets the full
market value, most 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 G
chance of acquiring a similar land or an equal area of similar
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 H
    30     SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.


A   contemplates the land owner getting the market value as
    compensation and no technicalities should come in the way of
    the land owner getting such market value as compensation.

         18. It is relevant to notice the definition of land in section
8   3(a) of the Act. It provides that the expression "land" includes
    benefits to arise out of land, and things attached to the earth
    or permanently fastened to anything attached to the earth.
    Therefore when the Act refers to acquisition of 'land', the
    reference is not only to land but also to land, building, trees and
C   anything 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, we are of the view that once the reference is
    made in regard to amount of compensation, the Reference
D   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 increasing the compensation
    under whatever head. The fact that the landowner had sought
E   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.

F      19. We are conscious of the fact that 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 section 18 of the Act to pay one half the ad valorem
G 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 amount of compensation
  sought and pay court fee on the increase sought. But this is only
H a requirement in regard to the Court Fees Act. This only means
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.                31
  STAYE OF MAHARASHTRA [R.V. RAVEENDRAN, J.)
that if the claim is amended later, additional court fee may have A
to be paid. This requirement under the Court Fees Act cannot
be read as a requirement under the·Land Acquisition Act. So
long 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 limitation B
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.

      20. We therefore hold that the time limit under section 18
of the Act is only for seeking the reference by raising the C
objection to the amount of compensation or any of the other
three 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 D
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.
When the reference is made, he can give the particulars of the
claim for compensation or additional particulars or even
increase the claim.                                                E

Re : Question (iii)

    21. The High Court has also held that once the
compensation is awarded for the land, there cannot be
additional or separate compensation for the trees. For this       F
purpose, the High Court has relied upon the following
observations of this Court in State of Haryana vs. Gurcharan
Singh - 1995 Supp (2) sec 637 :
    "It is settled law that the Collector or the court who G
    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 H
    32     SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.


A        needs 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; once
         on the basis of the value of the land and again on the basis
B        of the yield got from the fruit-bearing trees. The definition
         of land includes the benefits which accrue 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 as
         distinct from the income applying suitable multiplier, then
c        the trees would be valued only as firewood and necessary
         compensation would be given."

        22. 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
D 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 with fruit-bearing trees, then there is no question of
E 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
F 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.

G A suggestion to the State Government
         23. 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 LA Act. Only in
H

                                    •.
AMBYA KALYA MHATRE (D) THROUGH LEGAL HEIRS v.                  33
  STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.)

Maharashtra and Gujarat, the land losers are required to pay         A
half of the ad valorem court-fee while seeking reference to the
civil court. 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,           B
it is seen that in actual practice, the 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-        c
fee on the 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,     0
instead of ad valorem court fee.

     24. We therefore allow this appeal, set aside the judgment
dated 11.11.2008 of the High Court, and remand the matter to
the High Court for consideration of the appeal on merits. As
the matter relates to a 1970 acquisition and the appeal was of       E
the year 1994, we request the High Court to dispose of the
appeal expeditiously.

B.B.B.                                          Appeal allowed.