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Bombay High Court

THE STATE OF MAH.versusBABRUWAHAN SHRIHARI KHESE

Disposal
DISMISSED

Holding

The appeal is dismissed; the judgment and award enhancing compensation are upheld.

Summary

The State of Maharashtra appealed against a 1996 judgment that enhanced compensation for land acquired for a percolation tank at Matephal, Latur. The original award by the Land Acquisition Officer in 1991 fixed compensation at Rs.120 per R, but the claimants, invoking Section 18 of the Land Acquisition Act, obtained a higher rate of Rs.28,000 per acre from the Reference Court, based on a 1982 sale instance with a 10% annual escalation. The State argued that the original award reflected true market value and that the Reference Court’s increase was unjustified. The Court examined the Reference Court’s methodology, noting that the sale instance was appropriately adjusted for inflation and the land’s dry character. Concluding that the Reference Court had correctly determined market value and did not award an exorbitant amount, the Court dismissed the appeal and upheld the earlier judgment.

Issues considered

  • Whether the Reference Court erred in enhancing compensation beyond the award of the Land Acquisition Officer.
  • Whether a sale instance from 1982, adjusted by a 10% annual escalation, can be validly used to determine market value for land acquired in 1988.
  • Whether the enhanced compensation awarded to the claimants is excessive or unjustified.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • reference court
  • Section 18
  • market value
  • percolation tank
  • escalation
  • dry land

Judgment

2026:BHC-AUG:38298
                                                   1 of 3                    05-FA.2627.2008



                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      BENCH AT AURANGABAD

                                    5 FIRST APPEAL NO. 2627 OF 2008

                                  THE STATE OF MAHARASHTRA
                                              VERSUS
                             BABRUWAHAN SHRIHARI KHESE & ANR.
                                                 ...
               Mr. S. S. Dande, AGP for Appellant-State.
               Mr. Nitin Jagadale h/f. Mr. Vasant Digambarrao Salunke, Advocate for
               Respondent Nos.1 and 2.
                                                 ...

                                           CORAM :          SIDDHESHWAR S. THOMBRE, J.
                                           DATE     :       19th AUGUST, 2026

               P.C.:-

               1.           Since the acquisition proceedings pertain to the year 1988,

               the appeal is heard finally with the consent of the learned Advocates

               for the respective parties.

               2.           By the present appeal, the Appellant-State is aggrieved by the

               judgment and award dated 17.01.1996 passed by the learned Joint

               Civil Judge Senior Division at Latur in LAR No.112/1992, whereby the

               learned Reference Court enhanced the compensation.

               3.           Brief facts of the present case are as under:-

               (i)      The land was acquired for construction of a percolation tank at

                        Matephal, Taluka and District Latur.


               (ii)     The Notification under Section 4 of the Land Acquisition Act,

                        1894, was published on 25.02.1988.
                                 2 of 3                05-FA.2627.2008



(iii) The Land Acquisition Officer (for short, “LAO”) passed an award

       on 08.02.1991. The LAO granted compensation at the rate of

       Rs.120/- per R.


(iv)   Being aggrieved by the same, the Claimants filed a reference

       under Section 18 of the Act. Before the learned Reference Court,

       the Claimants relied upon the sale instance dated 03.04.1982,

       and on the basis thereof, the learned Reference Court determined

       the compensation at the rate of Rs.28,000/- per Acre.


4.        Mr. S. S. Dande, AGP for Appellant-State submits that the

award passed by the SLAO reflects true and correct market value. The

SLAO granted just and proper compensation after considering the

comparable sale instances and the nature of acquired land. He further

submits that the learned Reference Court granted exorbitant

compensation without proper justification. The learned Reference

Court erroneously relied upon sale instance at Exhibit-12. Therefore,

he prays to allow the appeal.


5.        Mr. Nitin Jagadale h/f. Mr. Vasant Digambarrao Salunke,

Advocate for Respondent Nos.1 and 2 supports the order passed by the

learned Reference Court.


6.        Having heard the learned Advocates for the respective parties

and with their assistance, I have gone through the copy of the record
                                            3 of 3                 05-FA.2627.2008



          and proceedings. The learned Reference Court has relied upon the sale

          instance below Exhibit-12, which was dated 03.04.1982. As per the

          sale instance, the rate comes to Rs.35,000/- per Acre for bagayat land,

          though the sale instance was executed on 03.04.1982 and the

          notification was published under Section 4 on 25.02.1988, the learned

          Reference Court granted 10% escalation per year. The learned

          Reference Court considered the lands of the Claimants were dry lands

          and on the basis thereof, the learned Reference Court has determined

          the rate. Therefore, I find that the learned Reference Court has rightly

          considered the sale instance and determined the market value. I find

          that the learned Reference Court has not granted any exorbitant

          amount in favour of the Claimants.


          7.        Therefore, I do not find any reason to interfere with the

          judgment and award dated 17.01.1996 passed by the learned Joint

          Civil Judge, Senior Division, Latur, in LAR No.112/1992.


          8.        Hence, the present appeal is dismissed. No order as to costs.


          9.        Pending civil applications, if any, are also disposed of.



                                              (SIDDHESHWAR S. THOMBRE, J.)

Tauseef


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