Bombay High Court
BALU MARTAND CHAUDHARI AND OTHERSversusTHE SPECIAL LAND ACQUISITION OFFICER SUB DIVISIONAL OFFICER JALGAON AND ANOTHER
- Disposal
- PARTLY ALLOWED AND PARTLY DISMISSED
- Bench
- NEERAJ P DHOTE
Holding
The court held that the claimants are entitled to compensation at Rs 15 per square foot, with interest from the date of award, thereby partially allowing the appeals.
Summary
The appellants, heirs of several deceased landowners, challenged the compensation awarded for land acquired for the extension of a Gavthan in Anjale village, Jalgaon. The Special Land Acquisition Officer had fixed compensation at Rs 80,000 per hectare, which the reference court enhanced to Rs 4,00,000 per hectare, but the appellants sought a further increase based on prior sale transactions in the same village. The court examined whether sale instances predating the Section 4 notification could be used to determine market value and held that the failure to apply for conversion to non‑agricultural land did not preclude a higher award. Relying on a sale at Rs 150 per square meter (Rs 15 per square foot), the court modified the compensation to Rs 15 per square foot with statutory benefits and ordered interest from the date of award under Section 11 of the Land Acquisition Act. The appeals were partly allowed, directing the State to pay the enhanced amount within six months.
Issues considered
- The relevance of pre‑notification sale instances in fixing market value for compensation under the Land Acquisition Act.
- Whether the lack of an application for conversion to non‑agricultural land bars an enhanced compensation award.
- Whether interest under Section 11 of the Land Acquisition Act is payable from the date of the award.
Legislation cited
- Land Acquisition Act, 1894 — s. 11, 4
Subjects
- land acquisition
- compensation
- market value
- non‑agricultural conversion
- interest
- Section 11
- sale comparables
Judgment
2026:BHC-AUG:34512
C-FAs1848&1849-19
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
912 FIRST APPEAL NO. 1848 OF 2019
1. Balu Martand Chaudhari, Died
Through L.Rs.
1/A Yashwant Balu Chaudhari
2. Tushar Krushna Chaudhari
3. Chaya Krushna Chaudhari
4. Jitendra Bhagwat Chaudhari,
5. Manisha Bhagwat Chaudhari
6. Swati Bhagwat Chaudhari
7. Jaishree Bhagwat Chaudhari
8. Sanjay Tulshiram Chaudhari
9. Nitin Tulshiram Chaudhari
10. Vijay Tulshiram Chaudhari
11. Sumanbai Tulshiram Chaudhari ... Appellants
All R/o Yawal Tq. Yawal Dsit. Jalgaon
VERSUS
1. The Special Land Acquisition Officer,
Sub Divisional Officer, Jalgaon.
2. The Executive Engineer, ... Respondents
Sub Divisional Officer, Jalgaon
WITH
FIRST APPEAL NO. 1849 OF 2019
1. Jagannath Vithu Patil, Died
Through Appellans 2, 3 and 4
2. Dnyaneshwar Jayram Patil
3. Hari Jayram Patil
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3. Pundlik Jayram Patil ... Appellants
All R/o Anjale Tq. Yawal Dsit. Jalgaon
VERSUS
1. The Special Land Acquisition Officer,
Sub Divisional Officer, Jalgaon.
2. The Executive Engineer, ... Respondents
Sub Divisional Officer, Jalgaon
Mr. Ajeet B. Kale Ajeet B., Advocate for the Appellants
Mrs. Bharti B. Gunjal, AGP for the Respondents-State
CORAM : NEERAJ P. DHOTE, J.
Dated : 6th August, 2026
PER COURT :-
1. These are the First Appeals by the original Claimants arising
out of Land Acquisition Reference Nos. 457 of 2004 and 458 of 2004
which came to be decided by the learned Joint Civil Judge, Senior
Division, Jalgaon by different Judgments dated 06.04.2009 granting
enhanced compensation at the rate of Rs.4,00,000/- per Hectare for
the acquired lands. Since the evidence led by the Claimants in both the
References is common and common submissions are made, they are
decided by this common order. The parties are referred as per their
nomenclature before the learned Reference Court.
2. The lands of the Claimants came to be acquired for the
purpose of extension of Gavthan at village Anjale Tq. Yawal District
Jalgaon. The land admeasuring 0.23 Gunthas from Gat No. 747 in L.
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A.R. No. 457 of 2004 and the land admeausring 0.52 Gunthas and 0.04
Gunthas from Gat Nos. 747 in L.A.R. No. 458/2004 came to be
acquired for the said purpose. The Section 4 Notification under the
Land Acquisition Act was issued on 29.01.1998 and the Award came to
be declared on 02.07.2001. The Special Land Acquisition Officer ( the
S.L.A.O. for short) determined the compensation at the rate of
Rs.80,000/- per Hectare for the dry land. Being not satisfied with the
compensation awarded by the S.L.A.O., the Appellants preferred the
above Reference Applications for enhanced compensation. The
Claimants relied on the sale instances Exhibits 15 and 16 dated
03.06.1997 and 15.04.1997 from the same village, wherein the land
admeasuring 42 ½ Gunthas and 139.5 Square Meters were sold at the
rate of Rs.3,80,952/- per Hectare and Rs.150/- per Square meter,
respectively. The learned Reference Court, by appreciating the evidence
on record, enhanced the compensation at Rs.4,00,000/- per hectare.
3. Heard the learned Advocate for the Claimants and the learned
AGP for the Respondents State, finally. With their assistance, perused
the papers on record.
4. It is submitted by the learned Advocate for the Claimants that,
the sale instances relied upon by the Claimants were from the very
same village and they were prior to the Section 4 Notification. The
learned Reference Court, though observed that, the acquired lands
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were having Non-Agriculture (N.A.) potentiality, discarded the said sale
instances for the reason that, no application was filed by the Claimants
for converting the acqured land to N. A. The observation in the
judgment of the learned Reference Court shows that, the Government
had auctioned certain lands situated in the same village in the year
2002, which indicates that, the prices of land in the said area were
increasing every year. As per the settled position in law, the highest
sale instance is required to be considered. He submitted that, the
Appeals be allowed and the compensation be enhanced on the basis of
the sale instances, particularly, the sale instance at Exh. 16.
5. It is submitted by the learned AGP for the Respondents that,
the acquired land was not converted to the N. A. land. The observation
in the judgment passed by the learned Reference Court goes to show
that, the land was 6 kms. away from Bhusawal town and 12 kms. away
from Yawal town. She submitted that, since the Claimants had asked
for the enhancement at the rate of Rs.6 lacks per Hectare or Rs.15 per
square feet, which was on the higher side, the learned Reference
Court appropriately granted the enhancement and the Appeals be
dismissed.
6. There is no dispute in respect of the extent of the land
acquired and the purpose for which it is acquired. The Claimants’ land
were acquired for the extension of Gavthan. The learned Reference
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Court observed that, perusal of the Award goes to show that, the
acquired land was suitable for extension of Gavthan and the said
village Anjale was at the distance of 6 kms. and 12 kms. form Bhusawal
and Yawal respectively. Merely because the Claimants had not made
the application to the concerned authority for converting the acquired
land to N.A. land will not be sufficient to deny the compensation as
established through the evidence on record.
7. The Claimants relied on the sale instances from the same
village, which were prior to the Section 4 Notification date. Out of
the said two (2) sale instances, the sale instance below Exh. 16 was
eight (8) months prior to the Section 4 Notification. The learned
Reference Court found the said sale instance as comparable one in
respect of the time and location. However, by observing that, the price
of the sale deed cannot be applied as it is, and plus minus factors are
required to be taken into consideration, the learned Reference Court
did not enhance the rate by considering the sale instances. There is no
contrary evidence by the State. It is nobody’s case that, said sale
instances were not genuine. As compared to the area under the sale
instances, the acquired land is small in size.
8. The learned reference Court, despite the clear evidence on
record in the nature of aforesaid sale instances, did not enhance the
compensation on the basis of the evidence on record. Considering the
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evidence on record and the observations by the learned Reference
Court in the judgments, the Claimants are entitled for the enhanced
rate of compensation as per the sale instances below Exh. 16, wherein,
the sale transaction was at the rate of Rs.150 per square meter i.e.
Rs.15 per square feet. The operative order of the judgment passed by
the learned Reference Court shows that, the interest is granted from
from the date of possession. The interest will have to be computed as
per the decision of the Full Bench of this Court in State of Maharashtra
Vs. Kailash Shiva Rangari, 2016 (3) Mh.L.J.457. Hence, the following
order:
ORDER
(1) The First Appeals are partly allowed.
(2) The judgments and awards dated 06.04.2009 passed by
learned Joint Civil Judge, Senior Division, Jalgaon in Land
Acquisition Reference Nos. 457 of 2004 and 458 of 2004
stand modified as under:-
(a) The Claimants shall be entitled for compensation at
the rate of Rs.15/- (Rupees Fifteen only) per Square
foot for the acquired land along-with statutory benefits.
(b) The interest shall be calculated from the date of Award
under Section 11 of the Land Acquisition Act.
(3) The State and the Acquiring Body are expected to deposit the
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amount within a period of six months. Thereafter, the Claimants
shall be at liberty to withdraw the same in accordance with due
procedure.
(4) The Claimants shall pay the deficit Court fees.
(5) The pending Civil Applications, if any, stand disposed of.
(6) Record and Proceedings be sent back to the learned Reference
Court.
(NEERAJ P. DHOTE, J.)
JPChavan
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