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Bombay High Court

THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA AND ORSversusKUNDLIK DASHRATH BARKALE AND ORS

Disposal
DISPOSED OFF

Holding

The compensation rate of Rs.14,688 per R for semi‑irrigated land is upheld, and interest must be awarded from the date of the award as mandated by the Full Bench decision in State of Maharashtra v. Kailash Shiva Rangari.

Summary

The State of Maharashtra acquired agricultural land from the respondents to construct a percolation tank, issuing a notification under Section 4(1) of the Land Acquisition Act in 2005 and awarding compensation of Rs.665 per R under Section 11 in 2006. The respondents filed a reference under Section 18 seeking enhanced compensation, and the Reference Court fixed rates of Rs.14,688 per R for semi‑irrigated land and Rs.9,792 per R for dry land, including interest and statutory benefits. The State appealed, contending that the Reference Court relied on an outdated 2000 sale exemplar and mis‑classified the land, and that interest should not accrue from the date of possession contrary to the Full Bench decision in State of Maharashtra v. Kailash Shiva Rangari. The respondents argued that a prior appeal had already upheld the same rates and that only the interest component might need correction. The High Court held that, despite the reliance on the old exemplar, the rate of Rs.14,688 per R for semi‑irrigated land is appropriate, and affirmed that interest under Sections 28 and 34 must be awarded from the date of the award (20 May 2006) as per the Kailash Shiva Rangari precedent. Consequently, the award was maintained with the modification regarding interest, and the appeal was dismissed.

Issues considered

  • Whether the Reference Court erred by using a sale exemplar dated before the acquisition notification to assess compensation.
  • Whether the acquired land should be classified as semi‑irrigated for the purpose of compensation.
  • From which date interest under Sections 28 and 34 of the Land Acquisition Act should be payable – date of possession or date of award.

Legislation cited

Subjects

  • land acquisition
  • compensation assessment
  • interest under Sections 28 and 34
  • semi‑irrigated land
  • percolation tank
  • reference court
  • appellate jurisdiction

Judgment

2026:BHC-AUG:33129
                                                    -1-
                                                                              976-FA-1863-2024

                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   BENCH AT AURANGABAD

                                   FIRST APPEAL NO.1863 OF 2024

                THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA
                                     AND OTHERS
                                       VERSUS
                      KUNDLIK S/O DASHRATH BARKALE AND ANOTHER

                                                 ......
              AGP for Appellant : Mr. K. S. Hoke Patil
              Advocate for Respondents : Mr. D. M. Pingale
                                                ...…
                                               CORAM : S. G. CHAPALGAONKAR, J.
                                               DATED : 31st JULY, 2026
              PER COURT :

              1.          The     appellant-State      Government     takes    exception    to

              judgment and award dated 10.05.2022 passed by learned Civil Judge,

              Senior Division, Jalna / Reference Court in L.A.R. No. 150 of 2018.



              2.          The     appellants    have      acquired   agricultural    land   of

              respondents for the purpose of construction of percolation tank – 2 in File

              No. JA.KRA-06/LAQ/GA/CR-36/2003. The notification under Section

              4(1) of Land Acquisition Act was issued on 05.05.2005. The Land

              Acquisition Officer passed an award dated 20.05.2006 under Section 11

              of Land Acquisition Act and offered compensation for the acquired land

              @ Rs.665/- per R.



              3.          The respondents made Reference under Section 18 of Land
                                    -2-
                                                           976-FA-1863-2024

Acquisition Act seeking enhanced compensation. The Reference Court, on

evaluation of evidence, determined compensation @ Rs. 14,688/- per R

for semi-irrigated land and Rs. 9,792/- per R for dry land. Accordingly,

impugned award has been passed by Reference Court along with interest

and statutory benefits as per Land Acquisition Act.



4.            Aggrieved by judgment and award passed by Reference

Court, State has filed present appeal.



5.            Mr. Hoke Patil, learned AGP appearing for appellant - State

submits that Reference Court has relied upon sale exemplar dated

26.05.2000, which was for small piece of 10 R land. Secondly,

classification of acquired land as irrigated or semi-irrigated is not made

appropriate    to   evidence   tendered   into   service   on   behalf   of

respondents/original claimants. Mr. Hoke Patil would further submit that

Reference Court has granted enhanced compensation along with interest

from the date of possession under Section 28 of Land Acquisition Act,

which is contrary to law laid down by Full Bench of this Court in case of

State of Maharashtra v. Kailash Shiva Rangari reported in 2016 (4) ALL

MR 513.



6.            Per contra, learned Advocate appearing for respondents/
                                    -3-
                                                          976-FA-1863-2024

claimants would submit that appellants had challenged award passed by

Reference Court in L.A.R. No. 149 of 2018 by filing First Appeal No.1844

of 2024. The said reference pertains to selfsame notification and award

which is subject matter in present appeal. This Court rejected contentions

of appellant while upholding rate of semi-irrigated land @ Rs. 14,688/-

per R. Therefore, the whole basis of challenge by appellants in present

appeal does not survive. He fairly conceded that interest awarded under

Sections 28 and 34 can be corrected in tune with law laid down by Full

Bench of this Court in case of Kailash Shiva Rangari (supra).



7.          Having    considered   submissions    advanced      by   learned

Advocates appearing for respective parties, this Court finds that

Reference Court relied upon sale exemplar of 10 R land while making

assessment of compensation for acquired land. However, the sale

exemplar was dated 26.05.2000, whereas notification under Section 4

was issued on 05.05.2005.



8.          Looking to time gap, this Court while deciding First Appeal

No.1844 of 2024 considered escalation @ 10% per annum and deducted

10% amount having regard to proximity and potentiality of land. Further

deduction of 10% was considered on account of smallness of land.

Finally, this Court concluded that the rate of acquired land can be
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                                                          976-FA-1863-2024

assessed @ Rs.14,688/- per R classifying same to be semi-irrigated land.

In light of view taken by this Court while deciding First Appeal No.1844

of 2024, submissions advanced on behalf of appellants do not survive.



9.          Insofar as aspect of interest on compensation amount, the

law is settled by Full Bench of this Court in case of Kailash Shiva Rangari

(Supra). Therefore, claimants would be entitled for interest under

Sections 28 and 34 of Land Acquisition Act as granted by Reference Court

from the date of award i.e. 20.05.2006.



10.         With aforesaid modification, award passed by Reference

Court deserves to be maintained.



11.         First Appeal is accordingly disposed of.




                                           (S. G. CHAPALGAONKAR)
                                                    JUDGE




Tandale


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