Bombay High Court

THE STATE OF MAHARASHTRA AND ORS.versusKRISHNA HASHA GOVARI AND ORS.

Decided: 1 October 2026
Disposal: Disposed Off

Holding

The court modified the compensation to Rs.25 per square meter, ordered the State to pay that rate and recover any excess, and disposed of both the appeal and the cross‑objection.

Summary

The State of Maharashtra appealed a land acquisition order where the Reference Court had fixed market value at Rs.27 per square meter for 1,730 sq. meters. The appeal had been dismissed for non‑prosecution, but the respondents sought restoration of the appeal and a reduction of the compensation rate to Rs.25 per square meter, which they had offered in Lok Adalat proceedings. The court considered the parties' agreement and the provisions of Section 23(1) governing market value and statutory benefits. It ordered that compensation be paid at Rs.25 per square meter, that the State be refunded any excess amount, and that the respondents receive statutory benefits calculated at the reduced rate. The appeal and the cross‑objection were both disposed of.

Issues considered

Can the market value fixed by the Reference Court be altered to a lower rate upon parties' agreement?
Is the State entitled to a refund of any excess compensation paid above the revised rate?
How should statutory benefits be calculated under Section 23(1) after the rate adjustment?
Should the appeal dismissed for non‑prosecution be restored?

Legislation cited

Land Acquisition Act, 1894 — s. 23(1)

Subjects

land acquisition
compensation
market value
appeal
cross‑objection
Lok Adalat
statutory benefits
Section 23(1)

Judgment

                                                       2-FA-2502-05.doc




      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
              CIVIL APPELLATE JURISDICTION

               FIRST APPEAL NO.2502 OF 2005

The State Of Maharashtra And Ors.     ...Appellants

        Vs.

Krishna Hasha Govari And Ors.         ...Respondents

                        WITH
          CROSS OBJECTION (ST) NO.8624 OF 2006
                          IN
             FIRST APPEAL NO.2502 OF 2005

The State Of Maharashtra And Ors.     ...Petitioners

        Vs.

Krishna Hasha Govari And Ors.         ...Respondents

                        WITH
       INTERIM APPLICATION (ST) NO.31615 OF 2025
                          IN
             FIRST APPEAL NO.2502 OF 2005

Krishna Hasha Govari And Ors.         ...Applicants

In the matter between:
The State Of Maharashtra And Ors.     ...Petitioners

        Vs.

Krishna Hasha Govari And Ors.         ...Respondents



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                                      *****
      Mr. A. R. Patil                 Addl. G. P. for the Appellant.
      Ms.Tanvi Pathak i/b Mr. Advocate for the Respondent.
      SachinHande

                                      *****

                      CORAM :           S. M. MODAK, J.

                      DATE        :     1st OCTOBER 2026

P. C. :-

INTERIM APPLICATION (ST) NO.31615 OF 2025

1.        Heard both the sides.

2.        Appeal was dismissed for non-prosecution as per the order dated

9th March 2006. Now it is the Respondents only who are praying to

restore the appeal. Application is allowed in terms of prayer clauses (a)

to (c).

FA NO.2502 OF 2005 AND CROSS -OBJECTION (ST) NO.8624

OF 2006

3.         Heard learned AGP and learned Advocate for the Respondents.

The enhancement done by the Reference Court as per the common

judgment dated 5 October 2004 is under challenge at the instance of

the State. In this Appeal we are concerned with LAR No.83/2002. The

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market value fixed by the Reference Court is at the rate of Rs.27/- and

the area acquired was 1730 square meters.

4.    Learned Advocate for the Respondent has placed on record, a

copy of order dated 9 September 2017 passed by LokAdalat wherein

the submission made by learned AGP that they are ready to offer

market value at the rate of Rs.25/- per square meter was recorded. The

matter could not be settled because the claimant sought time. Today on

the basis of instructions received the learned Advocate submitted that

they are ready to accept the rate of Rs.25/- per square meter. In view of

that, judgment needs to be modified for these LARs. Hence the order:

                                   ORDER

          i.       The State shall pay market value as per Section

          23(1) at the rate of Rs.25/- per square meter for 1730

          square meters.

          ii.      The Respondents are entitled to all statutory

          benefits calculated at the rate of Rs.25/- per square

          meter.

          iii.     The State is entitled for refund of the amount in

          excess of the rate of Rs.25/- per square meter.

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          iv.    The Reference Court to pay compensation

          calculated at the rate of Rs.25/- per square meter and

          other benefits.

          v.     If the claimants have withdrawn the amount at

          the rate of Rs.27/- per square meter, they are directed to

          re-deposit the amount after fixation is made at the rate

          of Rs.25/- per square meter along with the prevalent

          bank rate and that amount to be returned to State.

5.    Appeal is disposed of. Cross-Objection is also disposed of.



                                     [S. M. MODAK, J.]




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