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Bombay High Court

THE DIVISIONAL CONTROLLER, M S R T C DHULEversusSUNIL NAROTTAM PATIL and ORS.

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

Compensation for the acquired lands is to be fixed at Rs 75 per square metre, based on sale instance Exh 59 with a 50% deduction, and the award is modified accordingly.

Summary

The State acquired three parcels of land in Shahada for a bus stand and depot in 1992, awarding compensation of Rs 40‑50 per square metre. The claimants challenged the award under Section 18 of the Land Acquisition Act, arguing the compensation was inadequate and that the land, being within municipal limits, had non‑agricultural (N.A.) potential. The reference court enhanced the rate to Rs 55 per square metre based on a distant sale (Exh 93). The acquiring body appealed, and the claimants filed cross‑objections, contending that a nearer non‑agricultural sale (Exh 59) should be the benchmark. The High Court examined four sale instances, held that Exh 59 was the appropriate comparable, applied a 50% deduction to arrive at Rs 75 per square metre, and modified the award accordingly, granting statutory interest under Sections 28 and 34 but not for the period from the original award to the present.

Issues considered

  • What is the correct market value for compensation under the Land Acquisition Act for land within municipal limits having non‑agricultural potential?
  • Which sale instances are comparable for determining compensation?
  • Whether the reference court erred in relying on sale instance Exh 93?
  • Entitlement of claimants to interest under Sections 28 and 34 of the Act.
  • Whether the acquiring body’s appeal should be allowed.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value
  • non‑agricultural land
  • municipal limits
  • sale comparable
  • Section 18
  • Section 28
  • Section 34
  • appeal

Judgment

2026:BHC-AUG:43623
                                                              FA 1429/07 & Ors.
                                           1

                      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 BENCH AT AURANGABAD

                            5 FIRST APPEAL NO. 1429 OF 2007

                          THE DIVISIONAL CONT. M S R T C DHULE
                                         VERSUS
                             ANIL NAROTTAM PATEL AND ORS.
                                            ...
                                          WITH
                          X-OBJECTION (STAMP) NO. 6278 OF 2008
                                     IN FA/1260/2008

                          YASINJAMAL KHAWAJA MATINODDIN KAZI
                                         VERSUS
                         THE SPECIAL LAND ACQ. OFFICER AND ORS
                                            …
                                          WITH
                               X-OBJECTION NO. 134 OF 2025
                                     IN FA/1429/2007

                             ANIL NAROTTAM PATIL AND ORS.
                                         VERSUS
                     THE SPECIAL LAND ACQUISITION OFFICER AND ORS
                                            …
                                          WITH
                           CIVIL APPLICATION NO. 9135 OF 2022
                                  IN X-OBJST/6278/2008

            YASINJAMAL KHAWAJA MATINODDIN KAZI (DIED) THR LRS. SHAHIN MATIN
                                    KAZI AND OTHERS
                                         VERSUS
                THE SPECIAL LAND ACQUISITION OFFICER, DHULE AND OTHERS
                                            …
                                          WITH
                           CIVIL APPLICATION NO. 9136 OF 2022
                                  IN X-OBJST/6278/2008

            YASINJAMAL KHAWAJA MATINODDIN KAZI (DIED) THR LRS. SHAHIN MATIN
                                    KAZI AND OTHERS
                                         VERSUS
                THE SPECIAL LAND ACQUISITION OFFICER, DHULE AND OTHERS
                                            …
                                          WITH
                              FIRST APPEAL NO. 1340 OF 2008

                      THE DIVISIONAL CONTROLLER, M S R T C DHULE
                                        VERSUS
                            SUNIL NAROTTAM PATIL AND ORS.
                                           …
                                         WITH
                             FIRST APPEAL NO. 1260 OF 2008
                                                             FA 1429/07 & Ors.
                                       2


            THE DIVISIONAL CONTROLLER M S R T C DHULE
                              VERSUS
         MRS. YASINJAMAL KHAWAJA MATINODDIN KAZI ANDORS.
                                 …
                               WITH
                    X-OBJECTION NO. 132 OF 2025
                          IN FA/1340/2008

                    SUNIL NAROTTAM PATIL AND ANR
                                VERSUS
               THE SPECIAL LAND ACQ. OFFICER AND ORS
                                    …
    Advocate for the X-objector/original claimants : Ms. Aishwarya C.
                   Deshpande h/f. Mr. C.R. Deshpande
             AGP for Respondent/State : Mr. S.N. Morampalle
Advocate for Respondent/acquiring body : Mr. Manoj D. Shinde h/f. Mr. D.S.
                                  Bagul
                                    …
                   CORAM        : SIDDHESHWAR S. THOMBRE, J.
                    Dated           : September 22, 2026
PER COURT :-

1.    As the acquisition proceedings are of the year 1992 heard finally with

the consent of learned counsel for the respective parties.

2.    In all these appeals, the acquiring body assails the judgment and

award dated 23.3.2001 passed by the learned Civil Judge Senior Division,

Shahada in LAR Nos. 41, 37 and 36 of 1998, whereby the learned reference

court enhanced the compensation in favour of the respondents/original

claimants.   Original   claimants    also   seek   further   enhancement    of

compensation for their acquired lands by filing cross objections.

3.    The details of the lands of the claimants are as follows :-

Sr. FA No.      LAR No. X-Obj.        Area and Guat No.      SLAO   awarded
No.                     No.                                  amount
1    1429/200 41/98       134/25      13500 Sq. Mtrs. Rs.45/- per Sq.
     7                                from Gat No. 181/2 Mtr.
2.   1340/200 37/98       132/25      13300      Sq.Mtrs. Rs.50/- per Sq.
     8                                from Gat No. 182/2 Mtr.
3.   1260/200 36/98       St.         10000      Sq.Mtrs. Rs.40/- per Sq.
     8                    6278/08     from Gat No. 181/2 Mtr.
                                                            FA 1429/07 & Ors.
                                      3

The above lands of the claimants were acquired for construction of S.T. Bus

Stand and Depot at Shahada, District Dhule. Notification under section 4 of

the Land Acquisition Act came to be published on 3.12.1992 and the award

under section 11 of the Act came to be declared on 17.10.1994. The SLAO

has granted compensation at the rate of Rs.40/- to 50/- per Sq. Mtr. as

mentioned above. After receipt of the amount under protest the claimants

filed references under section 18 of the Act by contending that the SLAO

has granted very inadequate compensation and claimed for enhancement.

Before the reference court, the claimants relied upon the four sale

instances, Exhs. 59, 60, 91 and 93. The reference court, relying upon the

sale instance Exh. 93 determined the compensation at the rate of Rs.55/-

per Sq. Mtr. and therefore, acquiring body assails the said order by filing

present first appeals.

4.    The original claimants have also filed cross objections by contending

that the acquired lands were having N.A. potential and more particularly,

the acquired lands were already included in municipal limits of Shahada and

therefore, the claimants are entitled to receive rate for non agricultural land

and not for agricultural land. They contended that the reference court has

observed that the acquired lands were within municipal limits of Shahada

and were also having N.A. potential. Still the reference court has considered

the sale instance, Exh. 93 and determined the rate. Hence, they filed the

cross objections.

5.    Mr. Manoj Shinde, learned counsel for acquiring body submits that the

reference court ought not to have relied upon the sale instance below Exh.

93 as the acquired lands and the land involved in sale instance, Exh. 93 are

situated far away from each other, more particularly, the father of the
                                                              FA 1429/07 & Ors.
                                         4

claimants in one appeal has purchased the said land and therefore, it is

unsafe to rely upon the sale instance, Exh. 93. He submits that as per sale

instance, Exh. 93, one Acre land was sold for Rs.2,11,000/- in the year

1992 and therefore, as per that sale instance, the learned reference court

ought to have granted compensation at the rate of Rs. 52.5 per sq. mtr.,

however,   despite   of   that   the   learned   reference   court   has   granted

compensation at the rate of Rs.55/- per sq. mtr. and therefore, he prays to

allow the appeal.

6.    Per contra, Ms. Aishwarya Deshpande h/f. Mr. C.R. Deshpande learned

counsel for original claimants submits that before the reference court the

claimants relied upon four sale instances, Exhs. 59, 60, 91 and 93. She

submits that the learned reference court ought to rely upon sale instance

below Exh. 60 by which highest sale consideration was paid and the land

involved in Exh. 60 is adjacent to the acquired lands, but the learned

reference court has wrongly relied upon sale instance Exh. 93 and

determined the market value of the acquired lands and therefore, she

claimed that claimants are entitled to receive compensation as per the sale

instance, Exh. 60.

7.    Having heard the learned counsel for the respective parties, with their

able assistance I have gone through the record and proceedings, impugned

judgment and award, the sale instances below Exh. 59, 60, 91 and 93. As

regards sale instance, Exh. 59 is concerned, land admeasuring 336.5 sq.

mtrs. was sold for Rs.50,500/- and the said plot was already converted into

non agricultural plot. As regards sale instance, Exh. 60 is concerned, the

N.A. plot admeasuring 322 sq. mtrs. was sold for Rs.1,32,000/-. As regard

sale instance, Exh. 91 is concerned, 81 R. land was sold for Rs.1,01,000/-.
                                                            FA 1429/07 & Ors.
                                      5

As regards sale instance, Exh. 93 is concerned, the sale consideration is of

Rs.2,11,000/- for the land admeasuring 1 Acre. The learned reference court

relying upon the sale instance, Exh. 93 determined the compensation, but

infact there were other sale instances and those needs to be considered

while determining the correct market value of the acquired lands.

8.    As regards sale instance Exh. 60 is concerned, it is dated 12.5.1992

by which 322 sq. mtrs. land was sold for Rs.1,32,000/-. The said land is one

and half k.m. away from the acquired lands and therefore, in my view, the

same can be considered as comparable sale instance. As regards the land

involved in sale instance, Exh. 91 is concerned, it was 3 k.m. away from the

acquired lands and as regards land involved in sale instance, Exh. 93 is

concerned, that was at the distance of 800 ft. from the acquired lands on

which the learned reference court placed reliance. But the fact remains that

the acquired lands were already within municipal limits of Shahada

Municipal Council. Therefore, the acquired lands were having N.A. potential

and therefore, this court is of the opinion that the sale instance, Exh. 59 can

be considered as comparable sale instance to determine the correct market

value of the acquired land. As per that sale instance, Exh. 59, 336.5 sq.

mtrs. land was sold for Rs.50,500/- and the rate comes to Rs.150/- per sq.

mtr. The said plot was non agricultural land and therefore, it can safely be

presumed that the acquired lands were also having N.A. potential as the

same is acquired for construction of Bus stand and Depot. Therefore, the

sale instance below Exh. 59, can be considered as comparable sale instance

for determining the correct market value, but by applying certain

deductions. Therefore, by applying 50% deductions the rate comes to

Rs.75/- per sq. mtr. and therefore, the appeals filed by the acquiring body
                                                                FA 1429/07 & Ors.
                                       6

needs to be dismissed. Hence, the following order :-

                                   ORDER

(i)     The appeals filed by the acquiring body and the cross objections filed

by the claimants are partly allowed.

(ii)    The claimants are entitled to receive compensation at the rate of

Rs.75/- per sq. mtr. for their acquired lands.

(iii)   The claimants are also entitled to all statutory benefits including

interest under section 28 and 34 of the Act in accordance with the law laid

down by the Full Bench of this Court in the case of State of Maharashtra vs.

Kailas Shiva Rangari, 2016 (4) Mh.L.J. 457.

(iv)    The claimants shall not be entitled to receive interest and other

statutory benefits for the delayed period, if any, i.e. from the date of award

till today.

(v)     The claimants to pay deficit court fees, if any, on enhanced amount.

(vi)    The impugned judgment and award of the reference court is modified

accordingly.

(vii)   Rest of the award shall remain unaltered.

(viii) Pending civil application, if any, stands disposed of.

(ix)    Claimants and/or legal heirs of the claimants are permitted to

withdraw the amount deposited by the acquiring body along with the

interest accrued thereon. At the time of payment, Registrar Judicial shall

verify all the requisite documents along with heirship certificate, if any.



                                            ( SIDDHESHWAR S. THOMBRE, J. )

ssc/


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