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Bombay High Court

JANARDHAN MAHADU SURASE AND ORS.versusTHE EX. ENGINEER, MINOR IRRIGATION DIV. NO. 1 AURANGABAD AND ANR.

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

The Court held that the applicants may withdraw the balance amount deposited by the acquiring body, subject to an undertaking, and ordered the acquiring body to deposit the remaining 25% of the award with interest and costs within six weeks.

Summary

The applicants' land was compulsorily acquired and a reference court enhanced the compensation award in 2018, which the acquiring body failed to pay. After an amicable settlement in a Lok Adalat in 2019 also went unfulfilled, the High Court ordered the acquiring body to deposit the full amount, a deadline it missed, leading to contempt proceedings. The acquiring body then filed a first appeal challenging the earlier judgments while the applicants sought to withdraw the balance amount already deposited, with interest. The Court partially allowed the civil application, permitting the applicants to withdraw the deposited balance upon furnishing an undertaking and directing the acquiring body to deposit the remaining 25% of the award with interest and costs within six weeks. The Court also scheduled the first appeal for further consideration.

Issues considered

  • Whether the applicants are entitled to withdraw the balance compensation amount already deposited by the acquiring body, with interest.
  • Whether the acquiring body must deposit the remaining 25% of the award amount, together with interest and costs, within a specified period.
  • Whether the pending first appeal affects the orders regarding withdrawal and deposit of compensation.

Subjects

  • Land acquisition
  • Compensation enhancement
  • Lok Adalat settlement
  • Contempt proceedings
  • Civil application
  • Withdrawal of compensation
  • Interest on compensation
  • First appeal

Judgment

2026:BHC-AUG:41269


                                                      1
                                                                    937-ca-10132-2026

                          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                     BENCH AT AURANGABAD

                                   CIVIL APPLICATION NO. 10132 OF 2026
                                              IN FA/3577/2022

                                  Janardhan Mahadu Surase And Ors.
                                                VERSUS
                     The Ex. Engineer, Minor Irrigation Div. No. 1 Aurangabad And
                                                  Anr.
                                                   ...
                     Mr. N. J. Pahune Patil, Advocate for Applicants
                     Mr. S. N. Kendre, AGP for Respondent-State
                     Mr. S. G. Bhalerao, Advocate for Respondent no.1
                                                  …..
                                          CORAM : AJIT B. KADETHANKAR, J.
                                            DATED : 04TH SEPTEMBER, 2026

                     P.C. :-

                     .         It is not disputed fact that the applicants’ land was

                     acquired under the compulsory land acquisition by the

                     respondent Acquiring Body. An award was passed and

                     reference proceedings bearing Land Acquisition Reference

                     Number 557 of 2009 was filed by the claimants seeking

                     enhancement of compensation before the reference court. By

                     judgment and award dated 22.02.2018, the reference court

                     granted escalation. The said order was not challenged by the

                     Acquiring Body.

                     2.        Since there was no compliance of the enhancement

                     granted by the Reference Court, the applicants-claimants were
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                                               937-ca-10132-2026

constrained to set in motion Darkhast proceedings bearing

L.R.D. No.122 of 2019. In the execution proceedings, the

parties arrived at an amicable settlement before the Lok

Adalat held on 13.07.2019, whereby the Acquiring Body

agreed entire amount as per the settlement within a period of

six weeks. However within such period, the said amount was

not deposited nor any extension was sought by the Acquiring

Body.

3.      This constrained the applicant to approach this court by

filing Writ Petition No.7158 of 2021. This court by order

dated 02.07.2021 and 13.07.2021 directed the Acquiring

Body to deposit entire compensation amount within a period

of four months from the order. However, acquiring body failed

to comply the instructions. Hence the applicants moved

contempt proceedings bearing Contempt Petition No.199 of

2022.

4.      Mr. N. J. Pahune Patil, learned Advocate for the

applicants was at pains to submit that it is only after the

initiation of Contempt Proceedings, the First Appeal is

preferred by the Acquiring Body to challenge all the orders

passed by this Court, the Reference Court and the Lok Adalat.
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                                              937-ca-10132-2026

He would submit that pursuant to the orders passed by this

Court, the Acquiring Body has deposited 75% of the award

amount. He submits that a portion of that is already

withdrawn by the applicants. Vide prayer clause “B” of the

application, a prayer is sought to allow the applicants to

withdraw the balance amount of compensation with interest.

5.    So far as the sequence of facts is concerned, Mr. S. G.

Bhalerao, learned Advocate for the Acquiring Body would

fairly concedes the same. He would further submits that the

Acquiring Body still has a case on merits to demonstrate that

the impugned judgment and award passed by the Reference

Court was amenable to challenge in the present First Appeal.

6.    May it be, considering the facts quoted above, I deem it

appropriate to allow the present application partly. Hence, I

pass following order:

                           ORDER

     a.     Civil Application stands partly allowed.
     b.    The applicants are permitted to withdraw
     the balance amount pending in this Court
     deposited by the Acquiring Body on furnishing
     usual undertaking to the satisfaction of the
     learned Registrar (Judicial) of this Court.
     c.     Needless to mention, the withdrawal shall
     carry interest accrued thereon.
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                                                  937-ca-10132-2026

        d.    The appellant/Acquiring Body shall deposit
        the balance 25% award amount in this Court
        together with interest accrued thereon and costs
        within six weeks from today.
        e.     The prayer clause “B” of the application
        shall be considered on further occasion.
        f.    Place the First Appeal            for   further
        consideration on 05.10.2026.
        g.       Call Record and Proceedings.



                                      ( AJIT B. KADETHANKAR, J. )

Rushikesh/2026


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