Bombay High Court
THE EXECUTIVE ENGINEER, MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPORATION DIV. 1versusHARIBHAU CHANDRABHAN SATHE AND OTHERS
- Disposal
- DISMISSED
Holding
The reference court’s determination of Rs 1,20,000 per hectare is justified and not excessive; the appeal is dismissed.
Summary
The Executive Engineer of MIDC appealed against a reference court’s award that increased compensation for two hectares of land acquired for a water‑supply scheme to Rs 1,20,000 per hectare. The original award, based on a market value of Rs 58,700 per hectare, was challenged under Section 18 of the Land Acquisition Act, 1894. The reference court relied on a sale transaction (Exhibit 34) dated 17 Oct 1996, eight months after the acquisition notification, applying a 10% annual increase to arrive at the higher value. The appellant argued that the post‑notification sale could not be used and that the increase was unsupported, while the respondents contended the sale was comparable and genuine. The High Court held that a post‑notification sale, if proximate and comparable, may be considered, found no evidence of impropriety, and concluded the Rs 1,20,000 per hectare figure was not excessive. Consequently, the appeal was dismissed.
Issues considered
- Whether the reference court was justified in using a post‑notification sale (Exhibit 34) to determine market value for compensation.
- Whether the application of a 10% per annum increase to reach Rs 1,20,000 per hectare is supported by evidence and not excessive.
- Whether the award is arbitrary, illegal, or perverse warranting appellate interference.
Legislation cited
- Land Acquisition Act, 1894 — s. 18
- Maharashtra Industrial Development Act, 1961 — s. 32(2)
Subjects
- land acquisition
- compensation
- market value determination
- post‑notification sale
- Maharashtra Industrial Development Act
- Land Acquisition Act
- appellate review
Judgment
2026:BHC-AUG:38530
13-FA-2352-2013.odt
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
13 FIRST APPEAL NO. 2352 OF 2013
The Executive Engineer, Maharashtra Industrial Development Corporation
Division 1, Through Area Manager, Ahmednagar
VERSUS
Haribhau Chandrabhan Sathe And Others
......
Mr. S.S. Dande, Advocate for Appellant-State
Mr. P.A. Kulkarni, Advocate for Respondents No.1 and 2
Mr. A.M. Phule, AGP for Respondent No.3-State
......
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 21 AUGUST, 2026
PER COURT :
1. Heard the learned counsel for the respective parties.
2. This Appeal is directed against the Judgment and Award dated
19.04.2012 passed by the learned 2nd Joint Civil Judge, Senior Division,
Ahmednagar in Land Acquisition Reference No.13 of 2001, whereby the
learned Reference Court enhanced the compensation payable to the
claimants to the rate of Rs.1,20,000/- per Hectare, along with consequential
statutory benefits.
3. The lands belonging to the respondents-claimants, admeasuring 2
Hectares 38 R, situated at village Gujale, Taluka Rahuri, District
Ahmednagar, were acquired for the Water Supply Scheme, M.I.D.C.
Ghodegaon, Taluka Newasa, District Ahmednagar, under the provisions of
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the Maharashtra Industrial Development Act, 1961. The notification under
Section 32(2) of the said Act was published on 19.02.1996. The Special
Land Acquisition Officer thereafter passed the award on 07.11.2000 and
determined the market value at Rs.58,700/- per Hectare. Being dissatisfied,
the claimants accepted the compensation under protest and sought
reference under Section 18 of the Land Acquisition Act, 1894.
4. Before the Reference Court, the claimants relied upon sale instances
at Exhibits 33 and 34. The Reference Court, however, relied upon the sale
instance at Exhibit 34, which is dated 17.10.1996 and relates to 40 R of land
sold for Rs.40,000/-. On consideration of the said sale instance, the
Reference Court applied an increase of 10% per year and determined the
market value of the acquired land at Rs.1,20,000/- per Hectare. The
acquiring body has challenged the said enhancement.
5. Learned counsel for the appellant submits that Exhibit 34 is a post-
notification sale transaction and, therefore, could not have been relied upon
for determining the market value as on 19.02.1996. He further submits that
the Reference Court has not properly explained the basis for arriving at
Rs.1,20,000/- per Hectare by applying 10% increase per year. According to
him, the enhancement is excessive and unsupported by sufficient evidence.
6. Learned counsel for the respondents-claimants supports the
impugned Judgment and Award. He submits that Exhibit 34 relates to land
situated in the same village and is proximate in point of time to the relevant
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date. He further submits that the Reference Court, after considering the said
sale instance, applied an increase of 10% per year and determined a
reasonable market value. He, therefore, submits that no interference is
warranted.
7. I have considered the submissions advanced by the learned counsel
for the respective parties and, with their able assistance, have gone through
the Record and Proceedings and the impugned Judgment and Award.
8. The principal question is whether the Reference Court was justified
in determining the market value at Rs.1,20,000/- per Hectare on the basis of
Exhibit 34.
9. Exhibit 34 is dated 17.10.1996, whereas the notification under
Section 32(2) was published on 19.02.1996. Thus, the said sale transaction
is subsequent to the relevant date. However, a subsequent sale transaction, if
proximate in time and otherwise shown to be genuine and comparable,
cannot be discarded merely on the ground that it is subsequent to the
notification.
10. In the present case, Exhibit 34 relates to 40 R of land situated in the
same village and is within about eight months of the notification. The
appellant has not brought on record any material to show that the
transaction was not genuine or that the land covered by the sale instance
possessed materially superior advantages over the acquired land.
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11. The rate reflected by Exhibit 34 works out to Rs.1,00,000/- per
Hectare. The Reference Court, considering the said sale instance, applied an
increase of 10% per year and determined the market value at Rs.1,20,000/-
per Hectare. Though the precise mathematical basis for the ultimate figure is
not elaborately set out, the appellant has not produced any better or more
comparable sale instance to demonstrate that the market value determined
by the Reference Court is excessive.
12. On an overall consideration of the evidence, I find that the rate of
Rs.1,20,000/- per Hectare cannot be said to be so excessive, arbitrary or
unsupported by the material on record as would warrant interference in
appellate jurisdiction. The impugned Judgment and Award does not suffer
from any perversity, illegality or material irregularity. Consequently, the
Appeal being devoid of merits deserves to be dismissed.
13. The First Appeal is dismissed.
14. Pending Civil Applications, if any, stand disposed of.
[ SIDDHESHWAR S. THOMBRE ]
JUDGE
S P Rane
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