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Bombay High Court

THE STATE OF MAHARASHTRAversusAMINABIBI M. MULLA AND ORS.

Decided
Disposal
Disposed Off

Holding

The appellate court fixed the compensation rate at Rs.25 per square metre, overturning the higher rate awarded by the reference court and directing a fresh calculation of all related amounts.

Summary

The State of Maharashtra appealed against judgments awarding compensation of Rs.90 per square metre for land in Roadpali, Raigad, contending that the Supreme Court in Sabhia Mohammed Yusuf Abdul Hamid Mulla (D) & Ors. v. Special Land Acquisition Officer & Ors. fixed the rate at Rs.25 per square metre. The appellate court examined the Supreme Court precedent and the relevant 1970 notification and held that the lower rate must apply. It modified the earlier judgment, directing the compensation to be calculated at Rs.25 per square metre and ordering the reference court to recompute solatium, additional benefits and interest. The court also directed the return of any excess amount received and stipulated that bank guarantees remain unliquidated until the compensation is redetermined. Both parties were instructed to appear before the reference court on a specified date to submit their calculations, and the appeals were disposed accordingly.

Issues considered

  • What is the correct compensation rate per square metre for land acquired in Roadpali, Raigad, in light of the Supreme Court decision?
  • Whether the reference court's higher rate of Rs.90 per square metre should be revised to the Supreme Court‑mandated rate of Rs.25 per square metre?
  • How should the pending bank guarantees be treated pending redetermination of compensation?

Subjects

  • land acquisition
  • compensation rate
  • Supreme Court precedent
  • bank guarantee
  • solatium
  • interest
  • reference court
  • redetermination

Judgment

HMK                                          25. FA-169-2003 & Ors.doc


      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
              CIVIL APPELLATE JURISDICTION

              FIRST APPEAL NO. 169 OF 2003
                         WITH
             FIRST APPEAL NO. 1465 OF 2003
                         WITH
             FIRST APPEAL NO. 1463 OF 2003
                         WITH
             FIRST APPEAL NO. 1462 OF 2003
                         WITH
             FIRST APPEAL NO. 1461 OF 2003
                         WITH
             FIRST APPEAL NO. 1459 OF 2003
                         WITH
             FIRST APPEAL NO. 1458 OF 2003
                         WITH
              FIRST APPEAL NO. 326 OF 2003
                         WITH
              FIRST APPEAL NO. 255 OF 2003
                         WITH
              FIRST APPEAL NO. 254 OF 2003
                         WITH
              FIRST APPEAL NO. 252 OF 2003
                         WITH
              FIRST APPEAL NO. 158 OF 2003


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HMK                                                         25. FA-169-2003 & Ors.doc


The State of Maharashtra,
Through The Special Land Acquisition Officer           ...Appellant

               Versus
Aminabibi Mainuddin Mulla (Deceased),
Through Legal Heirs,
A. Asif Moinuddin Mulla (Son) & Ors.                   ...Respondents
__________________________________________________________________

Mr. A. R. Patil, Additional G.P. for the Appellant-State.
Mr. Sanket Thakur for Respondent in Appeal and for Applicant in all
Applications.
__________________________________________________________________

                                  CORAM : S. M. MODAK, J.

                                  DATED : 24th SEPTEMBER 2026

P. C. :

1.        Time to carryout amendment permitted on the last date is
extended by a period of two weeks.

2.        Today the Appeals are fixed for hearing the learned Advocate for
the Respondents on the point of furnishing bank guarantee.

3.        Today the learned Advocate for the Respondent has produced
copies of various bank guarantees issued by the Union Bank of India
addressed to Civil Judge Senior Judge (CJSD), Alibag. They are 12 in
number. They are for different amounts. LAR Numbers are also
mentioned in those bank guarantees. Even the learned Advocate for the
Respondent has produced a chart giving the relevant details is taken on
record and marked as annexure “X”.

                                    2 of 4
HMK                                                            25. FA-169-2003 & Ors.doc


4.       It is true that, the Reference Court has enhanced the compensation
to Rs. 90/sq. mtr. However, the Hon’ble Supreme Court in the case of
Sabhia Mohammed Yusuf Abdul Hamid Mulla (D) by L.Rs. & Ors. vs.
Special Land Acquisition Officer & Ors. 1 has fixed the rate Rs. 25/sq.
mtr. in respect of the land situated at Roadpali, District Raigad. The
concerned Notification is dated 03rd February, 1970. In all these Appeals
filed by the State, the same Notification is involved and all the lands are
from Village Roadpali, District Raigad.

5.       Learned Advocate for the Respondent submitted that same rate be
considered in all these Appeals. This is acceptable to the learned
Additional Government Pleader (AGP).

6.       In view of that, all the Appeals can be disposed of by passing
following directions :-

                                   ORDER

         a) The Judgment dated 16th April, 2001 passed by the
             Court of Joint Civil Judge, Senior Division, Alibag in
             LAR No. 1344 of 2000 is modified as follows :-

         b) The opponent is directed to pay compensation @
             Rs.25/sq. mtr. to the Claimants.

         c) The Reference Court is directed to redetermine amount
             of solatium, additional benefits and interest as per law.


1    (2012) 7 SCC 595

                                      3 of 4
HMK                                                      25. FA-169-2003 & Ors.doc


      d) Both parties are directed to appear before the Reference
         Court on 19th October, 2026 and submit their
         calculations.

      e) Considering the rate fixed above, the following
         directions are issued :-

          i) The amount in excess of Rs. 25/sq. mtr. has to be
             returned by the Respondents and have to be
             deposited with the Reference Court along with
             interest to be decided by the Reference Court.

      f) If the Respondents have not withdrawn the amount,
         then the Reference Court is directed to pay the amount
         @ Rs. 25/sq. mtr. to the concerned Respondents.

      g) The Reference Court is at liberty to pass appropriate
         directions for liquidating the bank guarantees, and if
         required, is at liberty to give directions to the Bank to
         deposit the amount in the Court and then pass
         necessary orders.

      h) It is made clear that the bank guarantees not to be
         liquidated unless and until the amount of compensation
         is redetermined and adjustment is made.

7.    Appeals are disposed of in above terms.



                                                [ S. M. MODAK, J. ]
                                    4 of 4


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