Created by Fuzzy Cloud

Bombay High Court

THE STATE OF MAHARASHTRAversusPOPAT NANABHAU UGHADE AND ORS

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

The appeal is partly allowed; the enhancement of compensation stands, but interest under Section 34 must be calculated from the date of the award as per the Full Bench precedent.

Summary

The State of Maharashtra appealed a 2011 award of compensation in a land acquisition case involving Popat Nanabhau Ughade and others, challenging the enhancement of compensation and certain statutory benefits. The State argued that the Reference Court had erred in raising the market value and in granting solatium, additional components, and interest, particularly under Section 34 of the Land Acquisition Act. The court examined the evidence, noting that the Reference Court had followed established principles, including a Supreme Court precedent allowing reasonable market value estimation. It held that the enhancement of compensation was lawful, but the calculation of interest under Section 34 was inconsistent with a prior Full Bench decision. Consequently, the appeal was partly allowed: the compensation award remains unchanged, while interest is to be calculated from the date of the award as directed by the precedent. The condonation applications for delay were also allowed, and pending civil applications were disposed.

Issues considered

  • Whether the enhancement of compensation granted by the Reference Court is liable to be quashed.
  • Whether the statutory benefits, including solatium, additional component, and interest under the Land Acquisition Act, were awarded in accordance with law, particularly the computation of interest under Section 34.

Legislation cited

Subjects

  • land acquisition
  • compensation enhancement
  • solatium
  • interest calculation
  • Section 34
  • condonation of delay
  • appellate review

Judgment

2026:BHC-AUG:26692
                                            1 of 6                    933-CA.8561.2017



                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   BENCH AT AURANGABAD

                            933 CIVIL APPLICATION NO. 8561 OF 2017
                                       IN FAST/5067/2015

                                   THE STATE OF MAHARASHTRA
                                               VERSUS
                   POPAT NANABHAU UGHADE DIED THR HIS LRS LATA AND ORS
                                                  ...
                Mr. B. A. Shinde, AGP for the Appellant-State.
                                                  ...

                                             AND
                             CIVIL APPLICATION NO. 5235 OF 2015
                                      IN FAST/5067/2015

                                   THE STATE OF MAHARASHTRA
                                               VERSUS
                                POPAT NANABHAU UGHADE AND ORS
                                                  …
                Mr. B. A. Shinde, AGP for the Appellant-State.

                                             AND
                             CIVIL APPLICATION NO. 5237 OF 2015
                                      IN FAST/5067/2015

                                   THE STATE OF MAHARASHTRA
                                               VERSUS
                                POPAT NANABHAU UGHADE AND ORS
                                                  …
                Mr. B. A. Shinde, AGP for the Appellant-State.
                                                  …
                                                 AND
                              FIRST APPEAL (STAMP) NO.5067 OF 2015

                                THE STATE OF MAHARASHTRA
                                          VERSUS
                             POPAT NANABHAU UGHADE AND ORS

                                     CORAM :         SIDDHESHWAR S. THOMBRE, J.
                                     DATE    :       2nd JULY, 2026


      Tauseef
                                            2 of 6               933-CA.8561.2017



          P.C.:-

          CIVIL APPLICATION NO.8561 OF 2017:-

          1.        By this application, the Applicants are seeking condonation

          of delay of 2844 days in bringing the legal heirs of Respondent No.1-

          Popat Nanabhau Ughade on record.

          2.        Considering the averments made in the application, the

          application is allowed. Amendment be carried out forthwith.

          CIVIL APPLICATION NO.5235 OF 2015:-

          3.        By this application, the Applicants are seeking condonation

          of delay of 1095 days in filing first appeal.

          4.        Considering the averments made in the application, the

          application is allowed.

          FIRST APPEAL (STAMP) NO.5067 OF 2015:-

          5.        Heard learned counsel for the respective parties.

          6.        By the present Appeal, the Appellants/State assails the

          judgment and award dated 30.08.2011 passed by learned Reference

          Court in LAR No.208 of 1993, whereby the compensation granted by

          the SLAO came to be enhanced.


          7.        Mr. B. A. Shinde, leaned AGP for the Appellant/State submits

          that the Reference Court committed apparent error in enhancing the

          compensation which was not supported by adequate material. The

Tauseef
                                             3 of 6                    933-CA.8561.2017



          SLAO had undertaken due procedure of law and appropriate inspection

          along with joint measurement was carried out before arriving at

          market value. The comparable sale instances relied upon by the

          Respondents/Claimants are incompatible. He further submits that

          considering the location and potential of land under acquisition, the

          Reference Court has grossly erred in enhancing the compensation. The

          Reference Court further committed error in granting statutory benefit

          of solatium, additional component and interest. Such enhancement has

          caused illegal burden on the public exchequer. Therefore, he prays that

          the impugned award be set aside.


          8.          None appears for the Respondents/Claimants, though served.


          9.          Upon considering the rival submissions, the following points

          for determination arose for reaching the conclusion:

                I.    Whether the enhancement granted by the Reference

                      Court is liable to be quashed?

                II.   Whether    the   statutory      benefits   extended   by    the

                      Reference Court are in accordance with law?

          10.         The record reveals that the Respondents/Claimants have

          adduced oral as well as documentary evidence whereas the

          Appellant/State has not adduced either oral or documentary evidence.

          As to point No.I :-

          11.           The Respondents/Claimants have produced certificate

Tauseef
                                           4 of 6                933-CA.8561.2017



          copies of evidence in LAR Nos.364/1993, 136/1992 and 234/1992,

          238/1992 along with certified copy of judgment delivered therein to

          contend that the market value for their acquired land be calculated on

          the basis of compensation granted in those references. The learned

          Reference Court has taken into consideration the fertility, potentiality

          and quality of the land acquired. It has further recorded finding upon

          consideration of record before it that the land acquired was Jirayat

          land and, therefore, it deducted 50% amount from the market value

          assigned to the land in the above said references. Upon calculation,

          the learned Reference Court reached to the conclusion that the market

          value of the land acquired would be Rs.45,000/- per Hector.


          12.          The Hon’ble Apex Court in Trishala Jain Vs. State of

          Uttaranchal (AIR 2011 SC 2458) has held that it is permissible to guess

          fixation of probable market value, which has been rightly followed by

          the Reference Court. The Appellant/State has failed to make out any

          case for interference in fixing rate which is reasonable and akin to the

          market value at the relevant time.


          13.          Based on the above discussion I do not find any illegality

          in the enhancement of compensation by the Reference Court. Hence, I

          answer Point No.I in negative.

          As to Point No.II:-

          14.          The claimants have been granted statutory benefit such as

Tauseef
                                              5 of 6               933-CA.8561.2017



          30% solatium under Section 23(2), 12% increase under Section 23(1-

          A), interest under Section 28 of the Land Acquisition Act, 1894 at the

          appropriate rate. The issue regarding grant of interest under Section 34

          is no more a res integra and is already covered the law laid down by

          Full Bench of this Court in State of Maharashtra Vs. Kailash Shiva

          Rangari (2016(3) Mh.L.J. 457). The learned Reference Court has

          granted interest under Section 34 from the date of taking possession

          i.e. 16.07.1986 which is not in accordance with the above said ruling.

          Hence, no case is made out by the Appellant to show any fault or

          illegality in awarding statutory benefits except with respect to the

          interest part under Section 34. Hence, I answer Point No.II partly in

          affirmative.

          15.     For the reasons stated above, I am inclined to modify the

          impugned judgment and award. Hence, I pass the following order:-

                                            ORDER

                (i)    First Appeal is partly allowed.

                (ii)   The amount of compensation receivable under Section

                       34 of the Land Acquisition Act be calculated from the

                       date of award passed by Land Acquisition Officer as

                       enunciated by Full Bench of this Court in Kailash Shiva

                       Rangari (supra) and to that extent Clause (3)(ii) of the

                       operative part of order of learned Reference Court

                       stands modified.

Tauseef
                                      6 of 6                 933-CA.8561.2017



          (iii) Rest of the order of the learned Reference Court stands

               unaltered.

          (iv) Pending Civil Applications, if any, stand disposed of.


                                        (SIDDHESHWAR S. THOMBRE, J.)




Tauseef


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.