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Bombay High Court

HANMANT NARAYAN YAMGARversusSTATE OF MAHARASHTRA

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The appeal is partly allowed and the compensation rate is fixed at Rs 18,330 per acre.

Summary

The appellant’s 2 ha 38 R land at Yamgarwadi was acquired in 1987 for a percolation tank under the Land Acquisition Act, 1894. The Special Land Acquisition Officer awarded Rs 10,000 per hectare, which the claimant accepted under protest and then sought a higher market value under Section 18. The reference court fixed the market value at Rs 9,000 per acre, ignoring sale instances from the claimant’s village. The High Court held that a comparable sale from the same village dated 8 July 1985 should be considered, yielding a rate of Rs 16,666 per acre, and after a 10% escalation, set compensation at Rs 18,330 per acre. The appeal was partly allowed, the compensation was enhanced accordingly, and the claimant was granted statutory benefits but no interest for delay.

Issues considered

  • Whether the reference court erred in disregarding sale instances from the same village in determining market value under Section 18 of the Land Acquisition Act, 1894
  • Whether the comparable sale dated 8 July 1985 is admissible for valuation despite being prior to the Section 4 notification
  • Whether an escalation factor should be applied to the determined market value

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value determination
  • Section 18
  • escalation factor
  • statutory benefits
  • percolation tank

Judgment

2026:BHC-AUG:41158

                                                                            FA 1412/07
                                                 1

                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                                  54 FIRST APPEAL NO. 1412 OF 2007

                                   HANMANT NARAYAN YAMGAR
                                             VERSUS
                                     STATE OF MAHARASHTRA
                                                 ...
                       Advocate for Appellant : Mr. Rudresh Patil (appointed)
                         AGP for Respondent/State : Mr. S.N.Morampalle
                                                 …

                                        CORAM     : SIDDHESHWAR S. THOMBRE, J.
                                        Dated     : August 31, 2026


            PER COURT :-

            1.    As the present acquisition proceedings were initiated in the year

            1987, heard finally with the consent of the learned counsel for the

            respective parties.

            2.    By this appeal, the appellant/original claimant assails the judgment

            and award dated 13.2.1998 passed by the learned Joint Civil Judge, Senior

            Division, Osmanabad in LAR No. 484/1991, whereby the reference court has

            enhanced the compensation, but not as claimed by the claimants.

            3.    The land of the claimant admeasuring 2 H. 38 R. from Gat No. 131

            (old survey No. 58) situated at village at Yemgarwadi was acquired for the

            purpose of Percolation Tank of Yamgarwadi. Notification under section 4 of

            the Land Acquisition Act was published on 9.3.1987. Notification under

            section 6 was published on 22.4.1988. Possession was taken over on

            16.11.1986. The learned Special Land Acquisition Officer (SLAO) has passed

            the award and has granted compensation at the rate of Rs.10,000/- per H.

            for acquired lands. The claimant, after accepting the amount under protest

            and being dissatisfied with the award of the SLAO, filed an application
                                                                     FA 1412/07
                                          2

before the Collector for referring the matter under section 18 of the Act for

proper determination of the market value of the acquired land. The learned

reference court after going through the evidence and examining the record,

determined the market value of the acquired land at the rae of Rs.9000/-

per Acre for acquired land and Rs. 4000/- towards acquired bunds and

therefore, the present appeal is filed.

4.    Mr.   Rudresh     Patil,   learned      counsel   appointed   for   original

claimant/appellant submits that before the reference court the claimant

relied upon the sale instances below Exh. 31 and 32, which were in respect

of the lands from village Chincholi and Masala (Kh), however, the reference

court without considering those sale instances determined the market value

of the acquired land and discarded those sale instances wrongly.

5.    Per contra, Mr. S.N. Morampalle, learned AGP for State submits that

the learned reference court has rightly determined the compensation for

acquired land by relying upon the award of SLAO and by considering the

evidence available on record and prays to dismiss the appeal.

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

assistance I have gone through the record and proceedings and the

impugned judgment and award of the reference court. After going through

the same, I find that the learned reference court has accepted the award

passed by the SLAO in which the SLAO has mentioned that sale instance

from village Yamgarwadi was not available and therefore, SLAO has

considered the sale instance from village Masala (Kh). Once the reference

court has recorded that there were no sale instances from the same village

and when the SLAO has referred the sale instance from adjacent village, the

reference court ought to have granted compensation by relying upon the
                                                                    FA 1412/07
                                        3

said sale instance.

7.      In this case, possession was taken over on 16.11.1986 and

thereafter, section 4 notification came to be published on 9.3.1987 and

therefore, the sale instance from the same village needs to be considered

by applying certain deductions. As section 4 notification was published on

9.3.1986 and possession was taken over in October 1986 and as the sale

instance, Exh. 31, is dated 8.7.1985, the same can be considered as

comparable sale instance by which 24 R. land was sold for Rs.10,000/-. In

view of that, the rate of acquired land comes to Rs. 16,666/- per Acre and

therefore, by applying 10% escalation, the rate comes to Rs.18,330/- per

Acre. Therefore, the appellant/claimant is entitled to receive compensation

at the rate of Rs.18,330/- per Acre. Hence, I pass the following order.

                                   ORDER

(i)     The appeal is partly allowed.

(ii)    The appellant/claimant is entitled to receive compensation the rate of

Rs.18,330/- per Acre for his acquired land.

(iii)   The appellant/claimant shall be entitled to all consequential statutory

benefits under the provisions of the Land Acquisition Act, 1894 on the

enhanced compensation in view of the judgment of Full Bench of this Court

in the case of State of Maharashtra vs. Kailas Shiva Rangari, 2016 (4)

Mh.L.J. 457.

(iv)    The appellant/claimant shall not be entitled to receive interest for the

period of delay, if any.

(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.
                                                                FA 1412/07
                                        4

(vii)   Rest of the award shall remain unaltered.

(viii) High Court Legal Services Sub-Committee, Aurangabad shall pay fees

of Rs.6,000/- (Rupees six thousand only) to Mr. Rudresh Patil, learned

counsel appointed for appellant/original claimant.

(viii) Civil Application, if any, stands disposed of.



                                            ( SIDDHESHWAR S. THOMBRE, J. )
ssc/


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