Bombay High Court
NARAYAN DAULATRAO MOREversusTHE STATE OF MAHARASHTRA AND ANOTHER
- Disposal
- DISMISSED
Holding
Both appeals are dismissed, upholding the original compensation award without enhancement.
Summary
The State acquired land in 1996 for extending the Gaothan of Bhopani village. The Land Acquisition Officer awarded compensation at Rs.4 per square foot, which the claimant, Narayan Daulatrao More, challenged, seeking a higher rate based on various sale transactions. The claimant argued that post‑notification sales and an agreement from 1994 justified a rate of Rs.25 per square foot, while the State contended that the reference court’s enhancement was excessive. The court held that the post‑notification sale instances were not comparable to the acquired land, noting that pre‑notification sales showed a highest rate of Rs.660 per R and that the claimant’s cited plots were small residential parcels far from the acquisition site. Consequently, the court dismissed both appeals, leaving the original compensation award unchanged.
Issues considered
- Whether post‑notification sale instances can be considered for determining compensation under the Land Acquisition Act
- Whether the reference court’s enhancement of compensation is justified or excessive
- Whether the deduction of one‑fourth of the area for development was proper
Legislation cited
- Land Acquisition Act — s. 18, 4, 6
Subjects
- land acquisition
- compensation
- reference court
- sale instances
- pre‑notification
- post‑notification
- enhancement
- Section 18
Judgment
2026:BHC-AUG:32147
1 of 7 927-FA.1924.2013
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
927 FIRST APPEAL NO. 1924 OF 2013
NARAYAN DAULATRAO MORE
VERSUS
THE STATE OF MAHARASHTRA AND ANOTHER
...
Mr. Ashwin Sakolkar h/f. Mr. Vijay G. Sakolkar, Advocate for Appellant.
Mr. A. D. Wange, AGP for Respondent-State.
...
AND
FIRST APPEAL NO. 1834 OF 2016
THE STATE OF MAHARASHTRA AND ANOTHER
VERSUS
NARAYAN DAULATRAO MORE
…
Mr. A. D. Wange, AGP for Respondents-State.
Mr. Ashwin Sakolkar h/f. Mr. Vijay G. Sakolkar, Advocate for
Respondent.
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 22nd JULY, 2026
P.C.:-
1. Since the acquisition proceedings pertain to the year 1996,
the appeals are heard finally with the consent of the learned Advocates
for the respective parties.
2. In both the present appeals, the State as well as the Claimant
are aggrieved by the judgment and award dated 10.01.2013 passed by
the learned Joint Civil Judge Senior Division, Udgir in LAR No.63/2010
(Old LAR No.442 of 1999), whereby the learned Reference Court has
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enhanced the compensation.
3. The land of the Claimant was acquired for the extension of
the Gaothan of village Bhopani, Taluka Udgir, District Latur. The
notification under Section 4 of the Land Acquisition Act came to be
published in the Government Gazette on 11.06.1996. The declaration
under Section 6 was published on 05.06.1997, and the Land
Acquisition Officer declared the award on 31.01.1998, awarding
compensation at the rate of Rs.451/- per R. Being aggrieved by the
meagre compensation awarded by the Land Acquisition Officer, the
Claimant sought a reference under Section 18 of the Land Acquisition
Act (for short, "the Act"). The acquired land is from Gat No.26. The
Claimant claimed compensation at the rate of Rs.30/- per square foot
and, in support thereof, relied upon the sale instances below Exhibits-
13, 14, 15, 22, 24, 31 and 33, as well as the agreements of sale below
Exhibits-18, 19 and 20. It was contended that, considering the
prevailing market rate, the Claimant was entitled to compensation at
the rate of Rs.25/- per square foot. However, the learned Reference
Court awarded compensation at the rate of Rs.4,306/- per R, i.e.,
approximately Rs.4/- per square foot.
4. Mr. Ashwin Sakolkar, learned Advocate for the Claimant,
invited my attention to the judgment and award as well as the sale
instances on record. He relied upon the agreement of sale below
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Exhibit-18, contending that an agreement of sale in respect of 1,600
square feet of land was executed on 24.01.1994 and the sale deed was
subsequently executed on 20.01.1995. Under the said transaction,
1,600 square feet of land was sold for a consideration of Rs.40,000/-,
which works out to Rs.25/- per square foot. He further relied upon the
sale deed below Exhibit-14 dated 28.01.1999 for the same
consideration. He pointed out that Exhibits-13, 14 and 15 are all dated
20.01.1995, relate to different Gat numbers, but the sale consideration
is identical. He also relied upon the sale instances below Exhibits-24
and 31, both dated 09.11.1984, wherein 420 square meter of land was
sold for a consideration of Rs.3,000/- each, which comes to
approximately Rs.7/- per square foot. He further relied upon the sale
instance below Exhibit-32 dated 03.12.1997, whereby 48.4 square
metres of house was sold for Rs.25,000/- and submitted that the rate
works out to about Rs.51.5 per square feet. He also relied upon
another sale instance dated 19.06.1998, whereby 1,176 square feet of
Gram panchayat house property was sold for Rs.71,000/-, which,
according to him, comes to about Rs.61/- per square foot.
5. He, therefore, submitted that the above sale instances clearly
establish that the Claimant is entitled to compensation at the rate of
Rs.25/- per square foot. However, according to him, the learned
Reference Court enhanced the compensation merely on guesswork. He
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further submitted that the total acquired area was 1,19,790 square
feet, out of which the learned Reference Court deducted one-fourth of
the area towards development, reducing the area to 89,842 square
feet. According to him, such deduction was erroneous. He further
submitted that, in view of the law laid down by the Hon'ble Apex Court
in Chimanlal Hargovinddas Vs. Special Land Acquisition Officer (AIR
1988 SC 1652), the appeal filed by the Claimant deserves to be
allowed.
6. He further submitted that the acquiring body did not lead
any evidence to rebut or discard the sale instances produced by the
Claimant. Therefore, according to him, the appeal preferred by the
State deserves to be dismissed, while the appeal filed by the Claimant
deserves to be allowed by enhancing the compensation.
7. Per contra, Mr. A. D. Wange, learned AGP for the State,
submitted that the awards below Exhibits-16 and 17 were duly
exhibited. He submitted that the Land Acquisition Officer had
considered as many as eleven sale instances referred to in Index No.2.
According to the sale instance dated 31.12.1993 pertaining to
adjoining Gat numbers, land admeasuring 4 Hectares and 50 R was
sold, and the rate worked out to Rs.660/- per R. However, the learned
Reference Court enhanced the compensation almost tenfold and
awarded compensation at the rate of Rs.4/- per square foot, i.e.,
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Rs.4,306/- per R. He, therefore, submitted that the appeal filed by the
State deserves to be allowed by setting aside the enhancement granted
by the Reference Court and dismissing the appeal filed by the Claimant.
8. I have considered the submissions advanced by the learned
Advocates for the respective parties. With their assistance, I have gone
through the record and proceedings, including the map below Exhibit-
46. There is no dispute that the land acquired from Gat No.26 was
acquired for the extension of the Gaothan. As regards the sale instances
below Exhibits-24 and 25 relied upon by the Claimant, those
transactions relate to house plots meant for construction of residential
houses. Therefore, the learned Reference Court has rightly discarded
the said sale instances.
9. Mr. Sakolkar placed heavy reliance upon the post-notification
sale instances below Exhibits-13 to 15 and Exhibits-32 and 33. Insofar
as Exhibit-13 is concerned, he submitted that reliance can also be
placed upon the agreement of sale dated 24.01.1994 below Exhibit-18,
whereby 1,600 square feet of land was agreed to be sold for a
consideration of Rs.40,000/-, which works out to Rs.25/- per square
foot.
10. He further relied upon Exhibits-32 and 33, which are sale
instances dated 03.12.1997 and 19.06.1998, respectively. According to
him, there cannot be any straight-jacket formula prohibiting
6 of 7 927-FA.1924.2013
consideration of post-notification sale instances. In the present case,
the notification under Section 4 was published in the Government
Gazette on 11.06.1996 and published in the village on 15.04.1996.
Therefore, according to him, though the aforesaid sale instances are
post-notification transactions, they deserve to be taken into
consideration, which the learned Reference Court has failed to do.
11. In this regard, it is necessary to note that although the
agreement of sale is of the year 1994, post-notification sale instances
can be taken into consideration only where no comparable pre-
notification sale instances are available. The learned AGP has referred
a chart Index-II of sale instances, the said chart of Index-II itself
discloses the availability of several pre-notification sale instances,
which were duly considered by the Land Acquisition Officer. Upon
perusal of those sale instances, it is evident that the highest market rate
worked out to Rs.660/- per R.
12. Moreover, upon perusal of the map below Exhibit-46, it is
clear that the sale instances relied upon by the Claimant do not pertain
to lands adjacent to the acquired land. They relate to small plots
situated away from the acquired land. In the present case, the acquired
land admeasures 110 R, i.e., about 1,10,000 square feet. Therefore, the
sale instances relied upon by the Claimant relate to small residential
plots situated at a considerable distance from the acquired land, as
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reflected in Exhibit-46. Hence, I am not inclined to grant enhancement
to the Claimant as the sale instance relied upon by them are in respect
of very small residential plots, whereas the acquired land is
substantially larger in area. No case is made out for enhancement in
favour of the Claimant.
13. I find that the learned Reference Court has considered all the
relevant aspects of the matter while enhancing the compensation. The
learned AGP has failed to demonstrate that the enhancement granted
by the Reference Court is excessive or exorbitant.
14. Hence, both the appeals stand dismissed. No order as to
costs.
15. Pending civil applications, if any, are also disposed of.
(SIDDHESHWAR S. THOMBRE, J.)
Tauseef
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