Bombay High Court

THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA AND ORSversusKAUTIKRAO SHITARAM GAWANDE AND ORS

Disposal: DISPOSED OFF
Bench: S G CHAPALGAONKAR

Holding

The High Court upheld the compensation rate of Rs.14,688 per rupee for semi‑irrigated land and affirmed interest from the award date, dismissing the State’s appeal.

Summary

The State of Maharashtra acquired agricultural land in Jalna district for a public project and initially offered compensation of Rs.665 per rupee. The landowners filed a reference under Section 18 of the Land Acquisition Act, and the Reference Court enhanced compensation to Rs.14,688 per rupee for semi‑irrigated land and Rs.9,792 for dry land, also awarding interest. The State appealed, contending that the Reference Court relied on an outdated 10‑rupee sale exemplar and mis‑classified the land, and that interest should not be from the date of possession as per the Full Bench decision in State of Maharashtra v. Kailash Shiva Rangari. The High Court held that, despite the reliance on the old exemplar, the rate of Rs.14,688 per rupee for semi‑irrigated land was appropriate, following its earlier decision in First Appeal No.1844 of 2024, and that interest under Sections 28 and 34 should be payable from the award date of 20‑05‑2006. Consequently, the Court modified the award only to confirm the compensation rate and interest, and dismissed the State’s appeal.

Issues considered

Whether the Reference Court erred in relying on an outdated sale exemplar to determine compensation rates.
Whether the classification of the acquired land as semi‑irrigated is appropriate.
Whether interest on compensation should be awarded from the date of possession or from the date of the award under Sections 28 and 34 of the Land Acquisition Act.

Legislation cited

Land Acquisition Act — s. 11, 18, 28, 34, 4(1)

Subjects

land acquisition
compensation
interest
semi‑irrigated land
reference court
award modification

Judgment

2026:BHC-AUG:33257
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976-FA-2014-2024

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD

FIRST APPEAL NO.2014 OF 2024

THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA
AND OTHERS
Versus
KAUTIKRAO S/O SHITARAM GAWANDE AND OTHERS

......
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 of Maharashtra takes exception to

judgment and award dated 09.11.2021 passed by learned Civil Judge,

Senior Division, Jalna / Reference Court in L.A.R. No. 39 of 2018.

2. The appellants have acquired agricultural land of

respondents for construction of Pazar Talav at Mauje Takli, Tq.

Bhokardan, Dist Jalna. 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

Acquisition Act seeking enhanced compensation. The Reference Court, on
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976-FA-2014-2024

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 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/

claimants would submit that appellants had challenged award passed by
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976-FA-2014-2024

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

of 2024. The said reference pertains to selfsame acquisition 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, whole basis of challenge raised by

appellants in present appeal does not survive. Mr. Patil 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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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. In present case, acquired land has been classified into two

groups. The learned advocate appearing for respondents/claimants

concedes that, insofar as 43 R land from Gut No. 172 is concerned, it can

be considered as semi-irrigated land instead of irrigated land, for the very

same reasons as recorded by this Court in order dated 17.03.2026 passed

in First Appeal No.1844 of 2024. In this backdrop, award needs

modification in tune with the rate approved/determined by this Court for

43 R semi-irrigated land, i.e. Rs.14,688/- per R.

10. 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.

11. With aforesaid modification, award passed by Reference

Court deserves to be maintained.

12. The compensation amount deposited by appellants be
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disbursed in favour of claimants along with accrued interest, if any.

13. The rest of award shall remain unchanged and shall mutatis

mutandis apply to modified award passed by this Court.

14. First Appeal is accordingly disposed of.

(S. G. CHAPALGAONKAR)
JUDGE

Tandale

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