Created by Fuzzy Cloud

Bombay High Court

THE EXECUTIVE ENGINEER, NANDUR MADHAMESHWAR OFFICE, VAIJAPUR, AURANGABADversusMACHHINDRA BABURAO GAIKWAD AND ANR

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The Court held that the sale deed with the higher consideration (Exhibit 16) must be used for enhancement, applying the statutory deduction to it.

Summary

The appellant, Machindra Baburao Gaikwad, challenged the compensation of Rs.1,339 per R awarded for land acquired for a canal project, seeking enhancement based on two sale deeds executed in May 2001. The lower Reference Court considered the later sale deed (Exhibit 17) and applied a 10% per annum deduction, but the appellant argued that the earlier sale deed (Exhibit 16) showing a higher consideration of Rs.14,250 per R should be used. The court examined whether post‑Section 4 notification sale deeds could be relied upon for enhancement and whether the higher‑valued deed should prevail. Relying on the principle that the deed with the higher consideration must be chosen, the court held that the earlier deed should be used, applying the statutory deduction to it. Consequently, the appeal was allowed, enhancing compensation to Rs.12,825 per R, directing the acquiring body to pay the amount with interest as per a prior Full Bench decision, and dismissing the acquiring body’s counter‑appeal.

Issues considered

  • When a landowner presents multiple sale deeds for compensation enhancement, which deed should be considered?
  • Can sale deeds executed after the Section 4 notification under the Land Acquisition Act, 1894 be used for enhancement?
  • Is the 10% per annum deduction from consideration appropriate in calculating enhanced compensation?

Legislation cited

Subjects

  • land acquisition
  • compensation enhancement
  • sale deed valuation
  • Section 4 notification
  • deduction percentage
  • interest
  • appellate jurisdiction

Judgment

2026:BHC-AUG:42193

                                                     1
                                                                      FA 1798 OF 2018

                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      BENCH AT AURANGABAD

                                      FIRST APPEAL NO. 1798 OF 2018

                                     MACHINDRA BABURAO GAIKWAD
                                                  VERSUS
                                  THE STATE OF MAHARASHTRA AND ORS
                                                   WITH
                                    CIVIL APPLICATION NO. 851 OF 2021
                                            IN FAST/13944/2020

                         THE EXECUTIVE ENGINEER, NANDUR MADHAMESHWAR
                                  OFFICE, VAIJAPUR, AURANGABAD
                                               VERSUS
                              MACHHINDRA BABURAO GAIKWAD AND ANR
                                                WITH
                                 CIVIL APPLICATION NO. 852 OF 2021
                                         IN FAST/13944/2020

                      THE EXECUTIVE ENGINEER, NANDUR MADHAMESHWAR
                                   OFFICE, VAIJAPUR, AURANGABAD
                                                VERSUS
                             MACHHINDRA BABURAO GAIKWAD AND ANR
                                                   …
                     Mr. A. D. Kasliwal, Advocate for Appellant/Claimant
                     Mr. B. V. Virdhe, AGP for Respondent No.1 – State
                     Mrs. Chaitali R. Kutti - Choudhary, Advocate for Respondent
                     No.2/Acquiring Body
                                                   …

                                             CORAM : AJIT B. KADETHANKAR, J.
                                             DATED : 8th September 2026

                     P.C. :-

                     .         Subject Matter :

                     a.        Feeling aggrieved by the judgment and award dated

                     03.02.2018 passed by the learned Civil Judge, Senior Division,
                                  2
                                                       FA 1798 OF 2018

Vaijapur in Land Acquisition Reference No.791 of 2010, the

appellant/claimant has filed this First Appeal.

b.    Considering the short controversy arising in the appeal,

the matter is taken up for final disposal at the stage of

admission by consent of the parties.

c.    The    appellant's   land       comprised   in   Gut    No.98,

admeasuring 0.18 R, situated at village Vaijapur Tq. Vaijapur

Dist. Aurangabad was acquired by the respondent-acquiring

body for the construction of Left Canal for Narangi Medium

Project. The land acquisition proceedings were completed and

the award came to be passed. The compensation awarded was

Rs.1,339/- per R. Feeling aggrieved thereby, the appellant

lodged a reference under Section 18 of the Land Acquisition

Act, 1894.

d.    During the trial, the claimant relied upon two sale

instances at Exhibit 16 and Exhibit 17. Suffice to note, the first

sale instance was dated 05.05.2001 and the second sale

instance was dated 17.05.2001. The first sale instance was in

respect of 0.20 Guntha land, whereas the second sale instance

was in respect of 0.23 R land. Placing reliance upon these two

sale instances, the claimant/appellant claimed compensation

at the rate of Rs.11,190/- per R.
                                   3
                                                      FA 1798 OF 2018

e.    The Reference Court heard the parties and accepted the

evidence tendered by the claimant. However, while accepting

the sale instances for enhancement, the Reference Court

considered the subsequent sale deed dated 17.05.2001,

wherein lesser consideration was shown.

2.    Submissions on behalf of the Appellant/Claimant :

a.    Mr.   A.   D.    Kasliwal,       learned   Advocate   for   the

appellant/claimant would submit that when two sale

instances were before the Reference Court, the Reference

Court ought to have considered the sale instance which was

for higher consideration.

b.    He would further submit that the sale deed which was

executed earlier ought to have been taken into consideration,

wherein the consideration was shown at Rs.14,250/- per R.

c.    Hence,     Mr.   Kasliwal,       learned   Advocate   for   the

appellant/claimant prays for allowing the First Appeal and for

escalation of the enhancement.

3.    Submissions on behalf of the Acquiring Body :

a.    Mrs. Chaitali R. Kutti – Choudhary, learned Advocate

for the acquiring body would strongly oppose the appeal.

b.    She would submit that evidently the sale instances

relied upon by the appellant/claimant are subsequent to the
                               4
                                                  FA 1798 OF 2018

notification under Section 4 of the Land Acquisition Act, 1894.

c.    Considering the area covered by the sale instances, the

Reference Court ought to have relied upon the said sale

instances. She would submit that the acquiring body has also

filed First Appeal, which is tagged together challenging the

enhancement on these two counts.

d.    Mrs. Kutti submits that, considering that the sale

instances were post Section 4 notification, it ought to be held

that there was nothing on record to seek enhancement in the

compensation.

e.    In view of this, the SLAO was justified in not granting

compensation on the formula which she produces before this

Court from the office record. She would submit that, hence,

the award at the rate of Rs.1,339/- per R stands justified.

f.    With this, Mrs. Kutti submits that the appeal filed by the

claimant be dismissed and the appeal filed by the acquiring

body be allowed.

4.    Consideration :

a.    I have heard both the learned Advocates for the parties

at length.

b.    True that the sale instances produced by the claimant in

support of his claim for enhancement were post the Section 4
                               5
                                                  FA 1798 OF 2018

notification. The Section 4 notification was published in the

Official Gazette on 09.11.2000 and, hardly within six months

therefrom, the sale transactions were executed.

c.    The Reference Court relied upon the judgment rendered

by this Court in Chandrashekhar Vs. Land Acquisition Officer,

reported in 2012(3) Mh.L.J. 8, and observed that reliance

could be placed upon such sale deeds by deducting 10% of the

consideration annually.

d.    Thus, the Reference Court considered the sale deed at

Exhibit 17 deducting 10% per annum from the rate of

consideration under the said sale deed. I do not find that the

analogy applied by the Reference Court warrants interference.

However, I have reservation about considering Exhibit 17

instead of Exhibit 16.

e.    This is a piece of beneficial legislation. When two sale

instances are before the Court, it is expected that the Court

should opt for the one which is executed for higher

consideration.

f.    In view of this, I accept the contention of Mr. Kasliwal,

learned Advocate     for the   appellant/claimant     that   the

escalation ought to have been done by taking the rate of

Rs.14,250/- per R.
                                 6
                                                        FA 1798 OF 2018

g.    Considering the sale instance at Exhibit 16 obviously,

the deduction applied by the Reference Court at the rate of

10% per annum would be applicable to the escalation placing

reliance upon Exhibit 16.

h.    In view of the above discussion, I find that First Appeal

No.1798 of 2018 filed by the claimant deserves to be allowed.

Hence I pass following order :

                            ORDER

     I.     The First Appeal is allowed.
     II.    The    claimant      shall   be     entitled    to
     compensation at the rate of Rs.12,825/- per R.
     III.   The acquiring body shall deposit the
     enhanced compensation before this Court within
     a period of six months from today, together with
     accrued interest thereon.
     IV.    The interest part shall be governed by the
     law laid down by the Full Bench judgment in the
     case of State of Maharashtra v. Kailash Shiva
     Rangari, reported in 2016 (4) ALL MR 513.
     V.     The    appellant/claimant         shall   not   be
     entitled to the interest and statutory benefits for
     the delayed period.
     VI.    The appellant/claimant shall be entitled
     to withdraw the amount deposited with interest,
     without making any separate application for
     withdrawal.
                              7
                                                FA 1798 OF 2018

      VII.   In view of allowing First Appeal No.1798
      of 2018 filed by the claimant, the First Appeal
      filed by the acquiring body which is tagged with
      the present appeal stands dismissed.
      VIII. While depositing the enhancement, any
      amount already deposited shall be adjusted.
      IX.    The appellant/claimant shall pay the
      requisite additional court fees on the enhanced
      compensation, if applicable.
      X.     Pending Civil Applications, if any, stand
      disposed of.



                                  ( AJIT B. KADETHANKAR, J. )

PRW


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.