Bombay High Court
THE STATE OF MAH AND ORSversusDATTATRAYA NAGORAO SHELKE
- Disposal
- DISMISSED
Holding
The reference court's determination of market value and tree enhancement is upheld; the appeal is dismissed.
Summary
The State of Maharashtra appealed a reference court's award that increased compensation for 43 R of land acquired for a storage tank, raising the market value to Rs.3,250 per R based on pre‑notification sale instances and granting a 7% enhancement for acquired trees. The State contended that the reference court was not justified in enhancing compensation, arguing that the Special Land Acquisition Officer had already considered the relevant sales and that reliance on a private valuer’s report was improper. The court examined the sale instances (Rs.5,000 and Rs.2,500 per R) and found the reference court’s Rs.3,250 per R figure to be a reasonable middle ground, not arbitrary or excessive. It also held that no error was shown in the 7% tree enhancement. Accordingly, the appeal was dismissed, leaving the reference court’s judgment and award undisturbed.
Issues considered
- Whether the Reference Court erred in enhancing compensation beyond the amount determined by the Special Land Acquisition Officer
- Whether sale instances predating the Section 4 notification can be used to determine market value
- Whether reliance on a private valuer’s report is permissible for market value determination
- Whether the 7% enhancement for acquired trees is excessive
Legislation cited
- Land Acquisition Act, 1894 — s. 11, 18, 4
Subjects
- land acquisition
- compensation
- market value
- Section 18 reference
- tree enhancement
- appellate review
Judgment
2026:BHC-AUG:40633
32-FA-2150-2013.odt
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
32 FIRST APPEAL NO. 2150 OF 2013
The State Of Maharashtra And Others
VERSUS
Dattatraya Nagorao Shelke
……
Mr. S.N. Morampalle, AGP for Appellant-State
……
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 29 AUGUST, 2026
PER COURT :
1. Heard learned AGP for the appellant-State. None appears for the
respondent-claimant.
2. By this appeal, the appellant-State takes exception to the Judgment
and Award dated 30.09.2011 passed by the learned Civil Judge, Senior
Division, Ahmedpur, in Land Acquisition Reference No.384 of 2005. By the
said Judgment and Award, the learned Reference Court partly allowed the
reference under Section 18 of the Land Acquisition Act, 1894 and enhanced
the compensation by determining the market value of the acquired land at
Rs.1,30,000/- per Acre, i.e. Rs.3,250/- per R, along with the statutory
benefits. The learned Reference Court also granted 7% enhancement
towards the acquired trees.
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3. The respondent-claimant's land admeasuring 43 R from Survey
No.711, situated at village Khandli, Taluka Ahmedpur, District Latur, was
proposed to be acquired for the purpose of construction of Khandali Storage
Tank. The possession of the land was taken on 31.12.1998, whereas the
notification under Section 4 of the Land Acquisition Act, 1894 was published
subsequently on 04.02.1999. The Special Land Acquisition Officer thereafter
passed the Award under Section 11 of the Act and determined the
compensation at the rate of Rs.696.76 per R. Compensation was also
determined towards the acquired trees. Being dissatisfied with the
compensation so determined, the claimant accepted the amount under
protest and sought a reference under Section 18 of the Act for determination
of the market value.
4. Before the learned Reference Court, the claimant relied upon the sale
instances at Exhibits 17 and 18. The sale instance at Exhibit 17, dated
17.01.1997, was in respect of 6 R of land sold for Rs.30,000/-. The sale
instance at Exhibit 18, of the year 1998, was in respect of 20 R of land sold
for Rs.50,000/-. Both the sale instances were prior to the publication of the
Section 4 notification dated 04.02.1999. Upon consideration of the said sale
instances, the learned Reference Court determined the market value of the
acquired land at Rs.1,30,000/- per Acre, equivalent to Rs.3,250/- per R. The
learned Reference Court further granted 7% enhancement towards the
acquired trees. Aggrieved thereby, the State has preferred the present
appeal.
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5. Learned AGP for the appellant-State submits that the learned
Reference Court was not justified in enhancing the compensation. He
submits that the Special Land Acquisition Officer had already considered the
relevant sale instances while determining the compensation. According to
him, the sale instances at Exhibits 17 and 18 did not justify the
enhancement granted by the learned Reference Court. He further submits
that the learned Reference Court has also relied upon the report of a private
valuer, which could not form a proper basis for determination of the market
value. He, therefore, submits that the impugned Judgment and Award
deserves to be set aside.
6. I have considered the submissions of the learned AGP and perused
the Record and Proceedings and the impugned Judgment and Award.
7. It appears that claimant relied upon the sale instances at Exhibits 17
and 18. The sale instance at Exhibit 17, dated 17.01.1997, relates to 6 R of
land sold for Rs.30,000/-, reflecting a rate of Rs.5,000/- per R. The sale
instance at Exhibit 18, of the year 1998, relates to 20 R of land sold for
Rs.50,000/-, reflecting a rate of Rs.2,500/- per R. The learned Reference
Court, upon considering these sale instances, determined the market value
at Rs.3,250/- per R, i.e. Rs.1,30,000/- per Acre.
8. Both the sale instances relied upon by the claimant are prior to the
publication of the Section 4 notification dated 04.02.1999. The rates
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reflected in the said instances are Rs.5,000/- per R and Rs.2,500/- per R
respectively. The rate of Rs.3,250/- per R determined by the learned
Reference Court is between the rates reflected in the said two sale instances.
9. The learned AGP has not pointed out any specific material on record
to demonstrate that the sale instances at Exhibits 17 and 18 were wholly
irrelevant or that the rate determined by the learned Reference Court was
unsupported by the evidence. The mere fact that the Special Land
Acquisition Officer had determined a lower amount cannot, by itself, justify
interference with the determination made by the learned Reference Court
when the latter has considered the evidence available on record.
10. As regards the compensation towards trees, the learned Reference
Court, after considering the number of trees and the valuation determined
by the Special Land Acquisition Officer, granted 7% enhancement. The
learned AGP has not pointed out any specific error in such determination or
any material to demonstrate that the said enhancement is excessive.
11. In the present case, the learned Reference Court has considered the
sale instances produced by the claimant and has determined the market
value at Rs.3,250/- per R. The said determination cannot be said to be
arbitrary or excessive so as to warrant interference by this Court.
12. In view of the above discussion, I find no error in the approach
adopted by the learned Reference Court warranting interference by this
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Court. The impugned Judgment and Award, therefore, calls for no
interference. The appeal is devoid of merit and deserves to be dismissed.
13. The First Appeal is dismissed.
[ SIDDHESHWAR S. THOMBRE ]
JUDGE
S P Rane
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