Bombay High Court
THE STATE OF MAHARASHTRA AND ORSversusINTYAJABEE KHAIAKHA PATHAN (DIED) THR LRS CHANDKHA KHAJAKHA PATHAN
- Disposal
- PARTLY ALLOWED AND PARTLY DISMISSED
- Bench
- NEERAJ P DHOTE
Holding
The High Court held that the size deduction must be limited to 30%, the 10% topography deduction is to be set aside, and interest should be computed from the date of the award.
Summary
The State of Maharashtra acquired 40 Ares of land in Shiradhon village for a percolation tank. The Special Land Acquisition Officer fixed compensation at Rs.78,000 per hectare for 30 Ares and Rs.1,500 per hectare for 10 Ares, which the claimant challenged before a Reference Court. The Reference Court enhanced the compensation using two sale deeds, one from the same village (Shiradhon) and another from a different village (Nipani), and applied a 2/3 deduction for land size and a further 10% deduction for topography, also awarding interest from the date of notification. The State appealed, arguing that the SLAO’s award was proper, that the 2/3 deduction was excessive, that the topography deduction was unjust, and that interest should be computed from the date of award. The High Court partially allowed the appeal, reducing the size deduction to 30%, quashing the 10% topography deduction, and directing interest to be calculated from the date of award, while remitting the matter to the Reference Court for recomputation.
Issues considered
- When the sale deed from the same village as the acquired land is available, should the Reference Court consider it over a deed from another village?
- Is a 2/3 (approximately 66.7%) deduction for the extent of land appropriate, or should it be limited to 30% as per precedent?
- Is a 10% deduction for topographical differences between the acquired land and the sale‑deed land justified?
- From which date should interest on compensation be payable – the date of Section‑4 notification or the date of the award?
Legislation cited
- Land Acquisition Act, 1894 — s. 4
Subjects
- land acquisition
- compensation
- sale deed valuation
- deduction percentage
- interest on compensation
- Section 4 notification
- reference court
Judgment
2026:BHC-AUG:25955
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD.
907 FIRST APPEAL NO.2070 OF 2019
The State of Maharashtra and Ors ..Appellants
Versus
Intyajabee Khajakha Pathan (Died)
Thr LRs Chandkha Khajakha Pathan ..Respondent
(Orig. Claimant )
…..
Smt. B. B. Gunjal, AGP for the Appellant – State.
Shri. Vivekanand V. Ingale, Advocate for the Respondent
…..
WITH
X-OBJECTION NO.82 OF 2025
IN
FIRST APPEAL NO.2070 OF 2019
Ineyajabee Khajakha Pathan (died)
Thr Lrs Chandkhan Khajakhan Pathan .....Applicant
Versus
The State of Maharashtra and Ors ..Respondents
…..
Shri. Vivekanand V. Ingale, Advocate for the Applicant
Smt. B. B. Gunjal, AGP for the Respondent – State.
…..
CORAM : NEERAJ P. DHOTE, J.
Dated : JULY 02, 2026
FINAL ORDER :-
. The Appeal is by the State and Cross-objection by the Orig.
Claimant. Both the proceedings arise out of the Judgment and Award
dated 20.04.2015 delivered by the learned Jt. Civil Judge Senior
Division, Osmanabad, in Land Acquisition Reference No.851/2010
determining the compensation @ Rs.1,34,300/- per Acre i.e. Rs.3,358/-
per Are for the acquisition of 40 Ares from Gat No.216 situated at village
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Shiradhon, Tal. Kallam, Dist. Osmanabad for the Percolation Tank.
2. The above referred land of the Claimant came to be acquired for
the above referred purpose. Section - 4 Notification was published on
05.08.2004 and the Award was declared on 14.03.2006. The Special
Land Acquisition Officer (for short, ‘SLAO’) determined the
compensation @ Rs.78,000/- per Hectare for 30 Ares land and @
Rs.1500/- per Hectare for 10 Ares land. Being not satisfied with the
compensation determined by the SLAO, the Claimant preferred the
above referred Reference Application. The Claimant led the evidence in
support of her claim. No evidence was led by the State. Considering the
evidence on record, the learned Reference Court passed the above
referred Judgment and Award.
A) It is submitted by the learned AGP that, the learned Reference
Court has enhanced the compensation exorbitantly. The SLAO
determined the proper compensation. Two (2) sale-instances were
brought on record by the Claimant, out of which one was from different
village. The learned Reference Court ought to have maintained the
Award passed by the SLAO.
B) It is submitted by the learned Advocate for the Claimant that,
the learned Reference Court did not consider the sale-deed from
adjoining village and considered the sale instance of village where the
acquired land was situated. It is further submitted that, the deduction
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made by the learned Reference Court in respect of size of the land was
around 70% and further deducted 10% towards the location of the land.
He submits that, he restricts the Appeal to the said aspect of deduction.
He referred to the decisions in State of Maharashtra Vs. Santaram
Mahadu Pingle & Ors, 2008 (3) Bom.C.R. 715, and Chimanlal
Hargovinddas v. Special Land Acquisition Officer, Poona and Another
(1988) Vol. 3 SCC 751.
3. The aforesaid decision in Chimanlal Hargovinddas (supra) has
been considered by the learned Reference Court as is clear from the
Judgment. The papers show that, the Claimant relied on two (2) sale
instances in support of her claim for enhanced compensation. One sale
instance is below Exh.13 dated 17.08.1995 from the village Nipani for
20 Ares land wherein the transaction was entered into for Rs.1,00,000/-
at the rate of Rs.2,00,000/- per Acre. The another sale instance
which is brought on record was below Exh.14 dated 22.07.2005 from
village Shiradhon for 7 Ares land, wherein the transaction was for
Rs.87,000/- at the rate of Rs.4,97,150/- per Acre. Undisputedly, the
acquired land is from the village Shiradhon. As per the settled decision
under the law, when the sale instance from the self-same village is
available, the same is to be considered. The other sale instance is from
another village Nipani. Therefore, the learned Reference Court has
rightly considered the sale instance from the village Shiradhon.
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Undisputedly, the said sale instance below Exh.14 from the village
Shiradhon was post Section 4 Notification. Considering this aspect of the
matter, the learned Reference Court considered the deduction of 10%
per year. Considering the date of Section – 4 Notification and the date
of the said sale-instance, no fault can be found with the 10% deduction
in the market rate as can be seen from the paragraph no.15 of the
Judgment.
4. Undisputedly, the land which was the subject matter of the sale-
instance (Exh.14) was 7 Ares and was used for digging Well.
Considering the extent of the acquired land which was 40 Ares, the
learned Reference Court deducted 2/3rd amount from the amount of the
sale-instance. In Santaram Mahadu Pingle (supra), the deduction
towards the extent of land was 30%. Considering the extent of the
acquired land and the extent of the land which was the subject matter of
sale-instance, 2/3rd deduction appears to be on much higher side.
Thus, the same is to be considered 30%.
5. The learned Reference Court further deducted 10% by considering
the topography of the acquired land and the land which was the subject
matter of the sale-instance (Exh.14). The learned Reference Court
observed that, to bring the acquired land at par with the land of the sale
instance, said 10% deduction is proper as the land under the
sale-instance had the frontage of the government road and was adjacent
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to the original land of its purchaser. Considering the above referred
deduction on the aspect of size of the land and undisputed aspect that
the land under the sale-instance (Exh.14) and the acquired land were
from the same village, the further deduction towards 10% as can be
seen from the paragraph 18 of the Judgment appears to be unjust and
excessive and the same needs to be set aside.
6. The learned Reference Court awarded the interest from the date
of Notification, which is contrary to the decision of the Full Bench of this
Court in the case of The State of Maharashtra vs. Kailas Shiva Rangari,
2016 (4) ALL MR 513 and the same needs to be corrected.
7. In view of the above, the following order is passed.
ORDER
i) The First Appeal No.2070 of 2019 filed by the State is partly
allowed.
ii) The X-Objection No.82 of 2025 is partly allowed.
iii) There shall be 30% deduction towards the size of the land instead
of 2/3rd. The same be calculated on the amount of
Rs.4,47,450/- (Rs.Four Lakh Fourty Seven Thousand Four
Hundred Fifty) per Acre computed by the learned Reference
Court.
iv) 10% deduction by the learned Reference Court towards
topography of the land is quashed and set aside.
v) The compensation for the acquired land be accordingly computed
with the statutory benefits.
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vi) The interest on the amount be computed from the date of Award
as per the judgment in the State of Maharashtra vs. Kailas Shiva
Rangari (supra).
vii) The Claimant shall pay deficit court fees, if any.
viii) Record and Proceedings be sent back to the learned Reference
Court.
( NEERAJ P. DHOTE, J. )
GGP
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