Bombay High Court

THE EXECUTIVE ENGINEER MEDIUM PROJECT DIVISION OSMANABAD OSMANABADversusDATTU DATTA PARASNATH PAWAR (DIED) THR LRS. VISHRANTH PAWAR AND ORS

Disposal: PARTLY ALLOWED AND PARTLY DISMISSED
Bench: SHAILESH P BRAHME

Holding

Interest under Sections 28 and 34 of the Land Acquisition Act must be payable from the date of award, and interest under Section 23 is payable from the date of publication of the notification, as per Supreme Court authority.

Summary

The Executive Engineer (Medium Project), Osmanabad appealed against the Reference Court’s award of interest on compensation for land acquired under the Land Acquisition Act. The dispute centered on whether interest under Sections 23, 28 and 34 of the Act should be calculated from the date of the acquisition notification (8 March 2001) or from the date of the award (14 January 2008), as clarified by the Supreme Court in State of Maharashtra v. Kailash Shiva Rangari. The appellant argued that the Reference Court erred by fixing the interest period from the notification date, contrary to the precedent. The High Court held that interest under Sections 28 and 34 must be payable from the date of award, while interest under Section 23 is payable from the date of publication of the notification (15 December 2002). Accordingly, the operative part of the judgment was partially modified and the appeals were allowed in part, with the remaining award left unchanged and the due amount with corrected interest to be paid to the claimants.

Issues considered

Whether interest under Section 23 of the Land Acquisition Act is payable from the date of notification or from the date of publication of the notification in the official gazette
Whether interest under Sections 28 and 34 of the Land Acquisition Act should be calculated from the date of acquisition notification or from the date of the award
Whether the Reference Court erred in its jurisdiction by awarding interest contrary to Supreme Court precedent

Legislation cited

Land Acquisition Act, 1894 — s. 23, 28, 29, 34, 4(1)

Subjects

Land acquisition
Interest calculation
Section 23
Section 28
Section 34
Award date
Notification date
High Court of Bombay
Partial appeal
Modification of judgment

Judgment

2026:BHC-AUG:11124
13 FA 2238 24+.odt

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD

13 FIRST APPEAL NO. 2238 OF 2024
WITH
CIVIL APPLICATION NO. 11697/2023
IN FA 2238/2024

THE EXECUTIVE ENGINEER MEDIUM PROJECT OSAMNABAD
DISTRICT OSMANABAD
VERSUS
SUGRIV PARASNATH PAWAR AND ORS
...
Advocate for Appellant : Mr. Koralkar Arun Hanumant
Advocate for Respondent no. 1 : Mr. Pandurang Chokhat h/f Mr.Undre
Vikram Shivaji
…
WITH
FIRST APPEAL NO. 2239 OF 2024
WITH
CIVIL APPLICATION NO. 11699/2023
IN FA 2239/2024
...
WITH
FIRST APPEAL NO. 2240 OF 2024
WITH
CIVIL APPLICATION NO. 11710 OF 2023
IN FA/2240/2024
…
WITH
FIRST APPEAL NO. 2241 OF 2024
WITH
CIVIL APPLICATION NO. 11707 OF 2023
IN FA/2241/2024
…
WITH
FIRST APPEAL NO. 2242 OF 2024
WITH
CIVIL APPLICATION NO. 11705 OF 2023
IN FA/2242/2024
…
WITH
FIRST APPEAL NO. 2243 OF 2024

1/4
13 FA 2238 24+.odt

WITH
CIVIL APPLICATION NO. 11703 OF 2023
IN FA/2243/2024
...
WITH
FIRST APPEAL NO. 2244 OF 2024
WITH
CIVIL APPLICATION NO. 11701 OF 2023
IN FA/2244/2024

CORAM : SHAILESH P. BRAHME, J.

DATE : 09.03.2026

PER COURT :

Heard both sides finally. These appeals can be disposed of as the
limited issue is involved, as to whether the Reference Court is justified in
awarding the interest under Section 23, 28 and 29 of the Land Acquisition
Act in accordance with law.

2. Learned counsel for the appellant Mr. Koralkar submits that the
Acquiring Body is aggrieved by the operative part pertaining to payment of
interest which is directed to be from the date of publication of notification
under Section 4(1) of the Land Acquisition Act instead of date of Award as
per judgment rendered by this Court in the matter of State of Maharashtra
Vs. Kailash Shiva Rangari [2016 AIR (Bom.)141]. It is further submitted that
the payment of interest under Section 23 has been awarded illegally.

3. Learned counsel for the respondents/claimants submits that the
submissions of the appellants have no merits. The Reference Court has
rightly appreciated the material on record and justified in awarding interest
under Section 23, 28 and 29 of the L.A.Act. He would submit that the
appeals are liable to be dismissed.

4. Following are the material particulars:

2/4
13 FA 2238 24+.odt

FA LAR No. House Total Acquired area in Notification Award u/s. SLAO rate as Reference
No. no. sq.mt. u/s.4 11 date per award Court
enhanced rate
2238/ 502/2012 44/14 19.50-Total built up 08.03.2001 14.01.2008 Rs.63,250/- Rs.
2024 3/2 20.10 total open space 1,35,700/-
2240/ 430/2012 55/2 40 – 16.15 built up & 08.03.2001 14.01.2008 Rs.39,728/- Rs. 82,500/-
2024 23.85 open space
2239/ 496/2012 149/2 20.90 – 14.40 built up 08.03.2001 14.01.2008 Rs. 16,552/- Rs. 32,600/-
2024 & 6.50 open space
2244/ 497/2012 149/1 19.45- 12.95 built up & 08.03.2001 14.01.2008 Rs. 20,235/- Rs. 49,000/-
2024 6.50 open space
2243/ 498/2012 149/3 19.45- 12.95 built up & 08.03.2001 14.01.2008 Rs. 14,892/- Rs.29,000/-
2024 6.50 open space
2242/ 500/2012 44/3 20.80 total built up 08.03.2001 14.01.2008 Rs. 65,907/- Rs.1,29,900/-
2024
2241/ 501/2012 44/2 16.10 total built up 08.03.2001 14.01.2008 Rs.44,621/- Rs. 81,000/-
2024

5. The house properties of the respondents have been acquired for Lower
Khairi Brahat Minor Percolation Tank vide notification issued under Section
4 of the L.A. Act on 08.03.2001. Award was passed on 14.01.2008. The
appellants are challenging the rate or the quantum arrived at by the
Reference Court in the impugned judgment. Operative part of the Reference
Court judgment, which is under question discloses that instead of awarding
interest under Section 28 and 34 of the L.A. Act from the date of award, it
has been awarded from the date of notification under Section 4 of the L.A.
Act. I find substance in the submissions of the learned counsel Mr. Koralkar
that reference court committed error of jurisdiction while awarding interest
under Section 28 and 29, which needs to be corrected.

6. It also reveals that the interest under Section 23 is payable from the
date of notification under Section 4(1) in the official gazette as per law laid
down by Supreme Court in Kolkata Metropolitan Development Authority
(supra).

7. Learned counsel for the appellants submits that interest under Section
23 is payable from the date of publication, which comes to 15.12.2002 but
the Reference Court awarded it from the date of 08.03.2001. The
submission cannot be countenanced as it counter to the law laid down by
the Supreme Court. I, therefore, pass following order.
3/4
13 FA 2238 24+.odt

ORDER

(I) First Appeals are allowed partly.

(II) Paragraph no. 4 of the operative part of the judgment and award shall
be modified to the extent that the interest under Section 28 and 34 of the
L.A.Act shall be payable from the date of award as laid down in the matter
of State of Maharashtra Vs. Kailash Shiva Rangari [2016 AIR (Bom.)141].

(III) Save and except the impugned judgment and award shall remained
unaltered.

(IV) The amount with interest if any remained to be disbursed shall be
disbursed to the respondents/claimants.

(V) Award be drawn accordingly.

(VI) Pending Civil Applications are disposed of.

( SHAILESH P. BRAHME, J.)

mkd/-

4/4

Continue reading with your account

Checking your session…