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Bombay High Court

PRADEEP MOHINIRAJ PAWAR, DIED THR. L.RS. PRAMODINI AND ORSversusTHE STATE OF MAH AND ANR

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The court held that pre‑notification sale instances are admissible for market‑value determination, compensation must be based on the date of notification, and the rates should be adjusted accordingly with a 10% annual escalation.

Summary

The appellants challenged the compensation awarded for lands acquired for the Jayakwadi Project, arguing that the reference court wrongly discarded a pre‑notification sale deed and failed to consider post‑notification sales, and that compensation was calculated from the date of possession contrary to precedent. The court examined the relevance of sale instances before and after the Section 4 notification of the Land Acquisition Act, 1894, and held that the pre‑notification sale (Exh. 17) is a valid comparable for market value while the post‑notification sale (Exh. 18) is not. It further found that compensation must be based on the date of notification, not possession, as established in State of Maharashtra v. Kailas Shiva Rangari. Accordingly, the court modified the compensation rates, granting higher amounts for irrigated and seasonally irrigated lands and ordering a 10% annual escalation for one year, along with statutory benefits and interest. The appeals were partly allowed, modifying the reference court’s award.

Issues considered

  • Whether a sale deed executed before the Section 4 notification can be used as a comparable for determining market value of acquired land.
  • Whether sale deeds executed after the Section 4 notification may be considered for market value.
  • Whether compensation should be calculated from the date of possession or the date of notification under the Land Acquisition Act.
  • What are the appropriate compensation rates for different categories of land (dry, seasonally irrigated, irrigated, pot‑kharab) in the present case.
  • Whether a 10% per annum escalation of market value is applicable.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value
  • Section 4 notification
  • Section 6 declaration
  • escalation
  • irrigation categories
  • statutory benefits

Judgment

2026:BHC-AUG:31932

                                                                   FA 1783/12 & Ors.
                                                1

                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      BENCH AT AURANGABAD

                                15 FIRST APPEAL NO. 1783 OF 2012

                     ANUSAYABAI KASHINATH BHINGARDE THR LRS VIMAL AND ORS
                                             VERSUS
                                    THE STATE OF MAH AND ANR
                                                ...
                                              WITH
                                  FIRST APPEAL NO. 1785 OF 2012

                                SINDHUBAI BABANRAO ABUJ AND ORS
                                              VERSUS
                                     THE STATE OF MAH AND ANR
                                                 …
                                               WITH
                                   FIRST APPEAL NO. 1789 OF 2012
                                               WITH
                        CIVIL APPLICATION NO. 7784 OF 2026 IN FA/1789/2012

                                SANJAY SHRIDHAR KHARDE AND ORS
                                             VERSUS
                                    THE STATE OF MAH AND ANR
                                                …
                                              WITH
                                  FIRST APPEAL NO. 1786 OF 2012

                               RATANBAI NAMDEO ANBHULE AND ORS
                                             VERSUS
                                    THE STATE OF MAH AND ANR
                                                …
                                              WITH
                                  FIRST APPEAL NO. 1790 OF 2012

                PRADEEP MOHINIRAJ PAWAR, DIED THR. L.RS. PRAMODINI AND ORS
                                         VERSUS
                                THE STATE OF MAH AND ANR
                                            …
                                          WITH
                              FIRST APPEAL NO. 1788 OF 2012

               DAMODHAR GAJANAN KHARDE, DIED THR. L.RS. NANASAHEB AND ORS
                                         VERSUS
                                THE STATE OF MAH AND ANR
                                            …
                                          WITH
                              FIRST APPEAL NO. 1787 OF 2012
                                          WITH
                    CIVIL APPLICATION NO. 507 OF 2026 IN FA/1787/2012
                                                          FA 1783/12 & Ors.
                                        2

               KASHINATH@KANIFNATH SHRIDHAR JADHAV
                                   VERSUS
                       THE STATE OF MAH AND ANR
                                      …
     Advocate for Appellants in all matters : Mr. Shinde Chandrakant K.
         AGP for Respondent/State in all matters : Mr. D.R. Korde
        Advocate for Respondent 2 in all matters : Mr. B.R. Survase
                                      …

                    CORAM            : SIDDHESHWAR S. THOMBRE, J.
                    Dated            : July 27, 2026

PER COURT :-

1.    As the acquisition proceeding is of the year 1991, heard finally with

the consent of respective parties.



2.    In all these first appeals, the claimants/appellants are aggrieved by

the judgment and award dated 3.5.2012 passed in respective LAR Nos.

509, 497, 508, 498, 495, 503 and 438 of 2010, by which the reference

court has enhanced the compensation.



3.    The lands of the claimants were acquired as the lands were falling in

submergence of Jayakwadi Project from respective villages. Notification

under section 4 of the Land Acquisition Act came to be published on

14.11.1991. Declaration under section 6 was published in Gazette on

27.2.1992. Possession was taken over prior to section 4 notification.

Special Land Acquisition Officer (SLAO) has passed the final award on

15.5.1994. Considering the quality of the acquired lands, the SLAO has

divided the acquired lands into two groups and has granted compensation

at the rate of Rs.18,000/- per H. for group I Jirayat lands, Rs.21,000/- per

H. for group II Jirayat lands, one and half times of Jirayat lands for group I
                                                          FA 1783/12 & Ors.
                                     3

Bagayat lands and Rs.200/- per R. for Potkharab lands. Being aggrieved,

the claimants filed the above references under section 18 of the Act before

Collector for sending the same for determination of the market value and

the Collector forwarded the same to the concerned reference court. To

prove the case, the claimants have relied upon sale instances below Exhs.

17 and 18 which were discarded and the reference court has granted

compensation at the rate of Rs.36,000/- per H. for Jirayat land,

Rs.54,000/- per H. for Bagayat land and Rs.18,000/- per H. for Potkharab

land. Being aggrieved, the original claimants preferred the present

appeals.



4.    Mr. C.S. Shinde, learned counsel appearing for original claimants

submits that the reference court ought not to have discarded the sale

instances below Exh. 17, which was prior to section 4 notification. As far as

sale instance below Exh. 18 is concerned, he submits that it was executed

after section 4 notification. He submits that even sale instance after

section 4 notification can also be considered and there is no straight jacket

formula for determination of market value of the acquired land for not

considering the sale instance after section 4 notification and the same can

also be considered by making necessary deductions and the court has to

consider whether the sale instances were executed by recording higher

prices and those are excessive and that was not the case of sale instance,

Exh. 18. But the reference court not considered the same. He submits that

the acquired lands are seasonally irrigated lands in the present matters. As

regards sale instance, Exh. 17 is concerned, he submits that the same is

for Jirayat/dry land and as per Exh. 17, 30 R. land from Gat No. 115 of
                                                         FA 1783/12 & Ors.
                                     4

villageg Godhegaon was sold for Rs. 15,000/- i.e. Rs.500/- per R. i.e. Rs.

50,000/- per H. The said land was purchased by the adjacent land owner

of the acquired land and therefore, he submits that the reference court

ought not to have discarded the same. He submits that considering all

above, the appeals need to be allowed.



5.    Per contra, Mr. B.R. Survase, learned counsel for acquiring body and

the learned AGP for the State submit that the learned SLAO has rightly

categorized the acquired lands as dry, seasonally irrigated and irrigated

considering the quality of the lands and has rightly granted compensation.

They submit that the learned reference court has rightly discarded the sale

instances below Exhs. 17 and 18 and as far as sale instance below Exh. 17

is concerned, it was for small piece of land and only 31 R.land was sold for

Rs.15000/- i.e. R. 500/- per R. They further submit that the reference

court has committed error while granting compensation from the date of

possession which is contrary to 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. They therefore prays to dismiss the appeals.



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

assistance, I have also gone through record and proceeding. I have also

gone through the copy of the sale deed, Exhs. 17 and 18, dated

28.12.1990 and 9.3.1992, respectively. Sale deed, Exh. 18 is after section

4 notification by which the land admeasuring 81 R. from Gat No. 10/1 of

village Ghodhegaon was sold for Rs.1,04,000/- i.e. Rs. 1284/- per R. and

Rs. 1,28,400/- per H. and it was in respect of Bagayat land. Hence, the
                                                             FA 1783/12 & Ors.
                                        5

same cannot be considered in the present case.



7.     As regards sale deed, Exh. 17 is concerned, it was executed before

section 4 notification which was in respect of dry land admeasuring 30 R.

from land Gat No. 115 of village Godhegaon. As per Exh. 17 the above

land was sold for Rs.15,000/-. The said land was adjacent to the acquired

land. Therefore, in my view Exh. 17, can be considered as comparable sale

instance for determination of market value of acquired land as it was

executed before section 4 notification and the reference court ought to

have considered the same. As per Exh. 17, 30 R. dry land was sold for Rs.

50,000/- per H. In the present case, the reference court has granted rate

of Rs.36,000/- per H. for Jirayat land, Rs.54000/- per H. for Bagayat lands

and Rs. 18,000/- per H. for Potkharab lands. If rate of Rs.50,000/- per H.

is considered for dry land, naturally the claimants are entitled to get one

and half time more compensation for their seasonally irrigated land, and

double amount of Jirayat land for irrigated land. Therefore, the claimants

are entitled to receive compensation at the rate of Rs.50,000/- per H. for

dry   lands,   Rs.75,000/-   per   H.   for   seasonally   irrigated   land   and

Rs.1,00,000/- per H. for irrigated lands and Rs.25,000/- per H. for

Potkharab lands. The SLAO has treated lands of the claimants from First

Appeal No. 1785/2012 (LAR No. 497/2010) and First Appeal No.

1789/2012 (LAR No. 498/2010) as irrigated lands and therefore, they are

entitled to receive Rs. 1,00,000/- per H. for their acquired land and in the

rest of the land acquisition references the SLAO has treated lands of the

claimants as seasonally irrigated lands and therefore, the claimants from

other first appeals are entitled to receive compensation at the rate of
                                                         FA 1783/12 & Ors.
                                      6

Rs.75,000/- per H. for their seasonally irrigated lands. The claimants are

also entitled for 10% escalation per year on the market value determined

by this court for one year.



8.      As the reference court has granted compensation from the date of

possession of the acquired lands I hold that the same is contrary to 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. Hence, the

following order.

                                    ORDER

(I)     The appeals are partly allowed.

(II)    The appellants/claimants from First Appeal No. 1785/2012 (LAR No.

497/2010) and First Appeal No.1789/2012 (LAR No. 498/2010) are entitled

to receive compensation at the rate of Rs.1,00,000/- per H. for their

irrigated lands and Rs.25,000/- per H. for Pot Kharab lands. In rest of the

appeals the claimants are entitled to receive compensation at the rate of

Rs. 75,000/- per H. for their semi irrigated lands and Rs.25,000/- per H.

for their Pot Kharab lands.

(III)   The appellants/claimants are also entitled to 10% escalation per

year on the above market value of the acquired lands determined by this

Court for the period of one year.

(IV)    The appellants/claimant shall be entitled to all consequential

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

on the enhanced compensation.

(V)     The claimants shall be entitled to interest and other statutory

benefits strictly in accordance with the law laid down by the Full Bench of
                                                         FA 1783/12 & Ors.
                                       7

this Court in the case of State of Maharashtra vs. Kailas Shiva Rangari.

(VI)    The impugned judgment and order of the reference court is modified

to that extent.

(VII)   Rest of the award is maintained.

(VIII) Civil Applications, if any, stands disposed of.



                                           ( SIDDHESHWAR S. THOMBRE, J. )

ssc/


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