Bombay High Court
BUDHABAI HARI PAWARversusTHE STATE OF MAH AND ANR
- Disposal
- PARTLY ALLOWED AND PARTLY DISMISSED
Holding
The reference court erred; the higher pre‑notification sale of Rs.1,147 per R must be used, with a 10% escalation, resulting in compensation of Rs.1,261 per R.
Summary
The appellants' land was acquired in 1994 for a percolation tank and the Special Land Acquisition Officer awarded Rs.440 per R treating it as Jirayat. The appellants appealed under Section 18 of the Land Acquisition Act, and the reference court enhanced the compensation to Rs.775 per R based on a sale dated 26‑April‑1993, applying a 10% escalation. The appellants argued that a higher sale price of Rs.1,147 per R from a 17‑March‑1993 transaction, which occurred before the Section 4 notification, should be the benchmark. The High Court held that the reference court erred by not considering the earlier, higher sale and, applying the 10% escalation, set the compensation at Rs.1,261 per R. The appeal was partly allowed, the award was modified accordingly, and the appellants were entitled to all statutory benefits under the Land Acquisition Act, 1894.
Issues considered
- Whether the reference court was correct in relying on the sale dated 26‑April‑1993 and ignoring the earlier sale dated 17‑March‑1993 for determining market value.
- Whether a sale transaction occurring before the Section 4 notification can be used as a comparable sale for compensation under the Land Acquisition Act, 1894.
- Whether the 10% escalation under Section 4 is applicable to the higher sale price.
- Whether the appellants are entitled to enhanced compensation and consequential statutory benefits.
Legislation cited
- Land Acquisition Act, 1894 — s. 18, 4
Subjects
- land acquisition
- compensation
- market value
- escalation
- Section 18
- percolation tank
- reference court
- appellate review
Judgment
2026:BHC-AUG:41130
FA 2038/12 & Anr.
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
25 FIRST APPEAL NO. 2038 OF 2012
RUPA HARI PAWAR AND ANR
VERSUS
THE STATE OF MAH AND ANR
...
WITH
FIRST APPEAL NO. 2039 OF 2012
BUDHABAI HARI PAWAR
VERSUS
THE STATE OF MAH AND ANR
…
Advocate for Appellant : Mr. S.K. Adkine
AGP for Respondent/State : Mr. S.S. Dande
…
CORAM : SIDDHESHWAR S. THOMBRE, J.
Dated : August 31, 2026
PER COURT :-
1. As the present acquisition proceedings were initiated in the year
1994, heard finally with the consent of the learned counsel for the
respective parties.
2. By these appeals, the appellants/original claimants assail the
judgments and awards dated 2.3.2006 in LAR No. 37/1998 and 36/1998,
whereby the reference court has enhanced the compensation, but not
granted as claimed by the appellants.
3. The lands of the claimants admeasuring 90 R. from Gat No. 105 and
1 H. 10 R. from Gat No. 103 situated at village Umberkheda, Taluka Kannad
were acquired for the purpose of construction of a percolation tank in the
village. Notification under section 4 of the Land Acquisition Act was
published on 10.3.1994. The learned Special Land Acquisition Officer
(SLAO) has passed the award on 30.9.1996 and granted compensation at
FA 2038/12 & Anr.
2
the rate of Rs. 440/- per R. by treating the acquired lands as Jirayat. The
claimants received the amount under protest and being dissatisfied with the
award of the SLAO, the claimants filed an application before the Collector
for referring the matters under section 18 of the Act for proper
determination of the market value of the acquired lands. Before the
reference court the claimants relied upon two sale instances from the same
village and those were at Exhs. 14 and 22. The learned reference court after
going through the evidence and examining the record, enhanced the
compensation at the rate of Rs. 775/- per R. Being dissatisfied with the
same, the present appeals are filed by the original claimants for further
enhancement.
4. Mr. S.K. Adkine, learned counsel for appellants/original claimants
submits that the SLAO awarded meager compensation and therefore,
claimant preferred the above LARs. He submits that the learned reference
court has wrongly relied upon the sale instance dated 26.4.1993 and
determined the market value of the acquired land. He submits that when
there was another sale instance dated 17.3.1993, which was from the same
village and which was prior to section 4 notification by which land was sold
for Rs.1147/- per R., the reference court ought to have relied upon the
same as the acquisition proceedings being benefical legislation and by
granted escalation ought to have determined the compensation for acquired
land. The learned reference court has failed to assign cogent and
satisfactory reasons for not considering the sale instance dated 17.3.1993
and therefore, he prays to enhance the compensation as per the sale
instance dated 17.3.1993.
5. Per contra, Mr. S.S. Dande, learned AGP supports the impugned
FA 2038/12 & Anr.
3
judgment and award and submits that the learned reference court has
rightly relied upon sale instance dated 26.4.1993 and correctly determined
the market value of the acquired land. He therefore prays to dismiss the
appeal.
6. Having heard the learned counsel for the respective parties, with their
assistance I have gone through the record and proceedings, the impugned
judgments and awards of the reference court and the sale deeds Exhs. 14
and 22 and other record. The learned reference court has relied upon sale
instance dated 26.4.1993 by which 81 R. land from Gat No. 57 was sold at
the rate of Rs.705/- per R. As the notification under section 4 of the Act was
published on 10.3.1994, the reference court by granting escalation of 10%
determined the market value of the acquired lands at the rate of Rs.775/-
per R.
7. Infact the reference court out to have considered the sale instance
dated 17.3.1993, which was from the same village and which was prior to
section 4 notification dated 10.3.1994 and which was fetching higher price.
By the sale instance dated 17.3.1993, the land from the same village was
sold at the rate of Rs.1147/- per R. However, the learned reference court
has not relied upon the said sale instance. Considering that the land
acquisition proceedings are beneficial legislation, the reference court ought
to have considered whether the sale instance is genuine one or not and only
on the ground that the sale instance dated 17.3.1993 was executed prior to
one month of the sale instance dated 26.4.1993, which was relied upon by
the reference court, the sale instance dated 17.3.1993 ought not to have
discarded. Therefore, considering that the land acquisition proceedings are
beneficial legislation, I hold that the view taken by the reference court was
FA 2038/12 & Anr.
4
not proper and the reference court ought to have relied upon sale instance
dated 17.3.1993 and ought to have granted rate of Rs.1147/- per R. as the
same is comparable sale instance. As the sale instance dated 17.3.1993 was
executed prior to one year of the notification under section 4 of the Act, the
claimants are also entitled to escalation of 10% over Rs.1147/- and
thereafter the rate for acquired lands comes to Rs.1261/- per R. In view of
the discussion made above, I hold that the appeals of the claimants need to
be partly allowed and pass the following order.
ORDER
(I) The appeals are partly allowed.
(II) The appellants/claimants are entitled to receive compensation at the
rate of Rs.1261/- per R. for their acquired lands.
(III) The appellants/claimant shall be entitled to all consequential
statutory benefits under the provisions of the Land Acquisition Act, 1894 on
the enhanced compensation in view of the judgment of Full Bench of this
Court in the case of State of Maharashtra vs. Kailas Shiva Rangari, 2016 (4)
Mh.L.J. 457.
(IV) The impugned judgment and award of the reference court is modified
accordingly.
(V) The rest of the award shall remain unaltered.
(VI) Claimants to pay deficit court fees, if any, on enhanced
compensatoin.
(VII) Civil Application, if any, stands disposed of.
( SIDDHESHWAR S. THOMBRE, J. )
ssc/
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