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Bombay High Court

THE STATE OF MAHARASHTRA AND ORSversusVIKAS RAMLING CHAVAN AND ANR

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

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

Summary

The State of Maharashtra appealed a judgment of the Reference Court that enhanced compensation for land acquired for the Surdi‑Begda Percolation Tank from Rs.80 per R to Rs.846 per R, relying on sale instances from an adjacent village. The State contended that the Special Land Acquisition Officer’s award was adequate and that the comparative sales were not comparable, while the claimants argued the award was grossly inadequate and that the comparative sales were appropriate. The Court examined whether the Reference Court erred in its valuation methodology and in granting statutory interest under Section 34 from the date of notification. It held that the Reference Court was justified in using comparable sales from the adjacent village and that no perversity existed in the enhanced compensation. However, the Court found that interest under Section 34 must be calculated from the date of award, following State of Maharashtra v. Kailash Shiva Rangari. Consequently, the appeal was partly allowed: the interest clause was modified, and the remainder of the award was left untouched.

Issues considered

  • Whether the Reference Court erred in enhancing compensation for the acquired land by relying on sale instances from an adjacent village.
  • Whether statutory interest under Section 34 of the Land Acquisition Act, 1894 should be calculated from the date of notification or from the date of award.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value
  • statutory interest
  • Section 34
  • reference court
  • percolation tank
  • rental compensation

Judgment

2026:BHC-AUG:26541
                                              1 of 5                    955-CA.9304.2017



                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                            955 CIVIL APPLICATION NO. 9304 OF 2017
                                       IN FAST/16628/2017

                               THE STATE OF MAHARASHTRA AND ORS
                                               VERSUS
                                  VIKAS RAMLING CHAVAN AND ANR
                                                  ...
                Mr. B. A. Shinde, AGP for Applicants-State.
                Ms. Rekha Mohale (Choudhary) h/f. Ms. S. S. Choudhary, Advocate for
                Respondent No.2.
                                                  ...

                                              AND
                               CIVIL APPLICATION NO. 9305 OF 2017
                                       IN FAST/16628/2017

                               THE STATE OF MAHARASHTRA AND ORS
                                               VERSUS
                                  VIKAS RAMLING CHAVAN AND ANR
                                                  …
                Mr. B. A. Shinde, AGP for Applicants-State.
                Ms. Rekha Mohale (Choudhary) h/f. Ms. S. S. Choudhary, Advocate for
                Respondent No.2.
                                                  …
                                                 AND
                              FIRST APPEAL (STAMP) NO.16628 OF 2017

                             THE STATE OF MAHARASHTRA AND ORS
                                           VERSUS
                               VIKAS RAMLING CHAVAN AND ANR

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

                P.C.:-

                CIVIL APPLICATION NO.9304 OF 2017:-

                1.       By this application, the Applicants are seeking condonation

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          of delay of 1164 days in filing first appeal.

          2.        Considering the averments made in the application, the

          application is allowed.

          FIRST APPEAL (STAMP) NO.16628 OF 2017:-

          3.        Heard learned Advocates for the respective parties. By

          consent of the parties, the matter is taken up for final hearing at the

          admission stage.

          4.        By the present appeal, the Appellant–State is aggrieved by

          the judgment and award dated 28.11.2013 passed by the learned Civil

          Judge, Senior Division, Osmanabad in L.A.R. No.574 of 1991, whereby

          the learned Reference Court enhanced the compensation.

          5.        Learned AGP for the Appellant–State submits that the Special

          Land Acquisition Officer (SLAO) awarded compensation at the rate of

          Rs.80/- per R. However, the learned Reference Court enhanced the

          market value to Rs.846/- per R. He submits that land bearing Gat

          No.118/2, admeasuring 2 Hectares and 44 R, situated at Begda,

          Osmanabad was acquired for the construction of the Surdi–Begda

          Percolation Tank and that the compensation awarded by the SLAO was

          just and adequate. He further submits that the sale instances below

          Exhibits-15 and 17 relied upon by the learned Reference Court pertain

          to a different village and that the quality and potential of the lands

          covered by those sale instances are not comparable with the acquired

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          land. Therefore, according to him, the learned Reference Court has

          awarded exorbitant compensation.

          6.        Per contra, Ms. S. S. Choudhary, learned Advocate for

          Respondent No.2–Claimant, supports the impugned judgment and

          award. She submits that the SLAO awarded grossly inadequate

          compensation. According to her, the sale instances Exhibits-15 and 17

          relied upon by the learned Reference Court relate to lands of similar

          quality situated in an adjacent village. Since the notification under

          Section 4 of the Land Acquisition Act, 1894 was published on

          02.06.1988 and the comparable sale instance of the adjacent village

          was of the year 1986, the learned Reference Court rightly relied upon

          the said sale instance while determining the market value.

          7.        Learned Advocate for the Respondents–Claimants further

          submits that possession of the acquired land was taken on 24.03.1987.

          However, despite being entitled to the rental compensation in

          accordance with law, the Claimants have not received the same.

          8.        I have heard the learned Advocates for the respective parties

          and perused the judgment and award passed by the learned Reference

          Court. It is an admitted position that the notification under Section 4 of

          the Land Acquisition Act, 1894 was published on 02.06.1988. The

          SLAO awarded compensation at the rate of only Rs.80/- per R. It is

          quite possible that, at the relevant time, no comparable sale instances


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          from the same village were available. In such circumstances, the SLAO

          was not precluded from considering comparable sale instances from an

          adjacent village. However, that exercise was not undertaken. The

          learned Reference Court has, therefore, rightly relied upon the sale

          instances at Exhibits-15 and 17 pertaining to the year 1986, which is

          prior to the issuance of the notification under Section 4 and relates to

          land of comparable nature. I, therefore, find no perversity or illegality

          in the impugned judgment and award with respect to compensation

          part. But, the learned Reference Court has granted interest under

          Section 34 from the date of notification under Section 4, which is

          contrary to the law laid down in State of Maharashtra v. Kailash Shiva

          Rangari, reported in 2016(3) Mh.L.J. 457 . Hence, to that extent,

          I am inclined to modify the impugned award.                Therefore, I

          proceed to pass following order:-

                                         ORDER

              (i)    The Appeal is partly allowed.

              (ii)   The statutory interest payable under Section 34 of the

                     Land Acquisition Act, 1894 shall be calculated from the

                     date of award in accordance with the law laid down by

                     the Full Bench of this Court in Kailash Shiva Rangari

                     (supra) and to that extent, clause (iv) of the

                     operative part of the award passed by the learned
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               Reference Court stands modified.

          (iii) Rest of the order passed by the learned Reference Court

               stands unaltered.

          (iv) The Respondents–Claimants are at liberty to file an

               appropriate application before the Collector, Dharashiv,

               seeking rental compensation payable to them. If such an

               application is filed, the Collector, Dharashiv shall

               consider and decide the same in accordance with the

               applicable Government policy within a period of ten

               weeks from the date of its receipt.

          (v) Pending civil applications, if any, also stand disposed of.



                                        (SIDDHESHWAR S. THOMBRE, J.)




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