Bombay High Court
THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA AND ORSversusMOTIRAM DAGADU GAWANDE DIED THROUGH LEGAL HEIRS GAJANAN GAWANDE AND ORS
- Disposal
- DISPOSED OFF
- Bench
- S G CHAPALGAONKAR
Holding
The court upheld the compensation rate of Rs.14,688 per R for semi‑irrigated land and affirmed interest under Sections 28 and 34 from the date of the award, modifying but maintaining the Reference Court's award.
Summary
The State of Maharashtra acquired agricultural land for a percolation tank, issuing a notification under Section 4(1) of the Land Acquisition Act in 2005 and awarding Rs.665 per R in 2006. The respondents filed a reference under Section 18 seeking enhanced compensation, and the Reference Court awarded Rs.14,688 per R for semi‑irrigated land and Rs.9,792 per R for dry land, with interest under Sections 28 and 34. The State appealed, arguing that the Reference Court relied on an outdated 2000 sale exemplar and mis‑classified the land, and that interest should not be awarded from the date of possession. The respondents contended that a prior appeal had already upheld the higher rates and that interest could be adjusted per the Full Bench decision in State of Maharashtra v. Kailash Shiva Rangari. The High Court held that, despite the improper reliance on the old exemplar, the rate of Rs.14,688 per R for semi‑irrigated land was appropriate and that interest under Sections 28 and 34 should be awarded from the date of the award, thereby modifying but maintaining the Reference Court’s award.
Issues considered
- Whether the Reference Court erred in using a 2000 sale exemplar to assess compensation for land acquired under a 2005 notification.
- Whether the land should be classified as semi‑irrigated for compensation purposes.
- Whether interest on compensation should be awarded from the date of possession or from the date of the award under Sections 28 and 34, in light of the Full Bench precedent.
- Whether the enhanced compensation award should be upheld.
Legislation cited
- Land Acquisition Act — s. 11, 18, 28, 34, 4(1)
Subjects
- land acquisition
- compensation
- reference court
- interest
- semi‑irrigated land
- percolation tank
- Section 18 reference
- Full Bench precedent
Judgment
2026:BHC-AUG:33130
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976-FA-2747-2024
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
FIRST APPEAL NO.2747 OF 2024
THE STATE OF MAHARASHTRA THROUGH THE COLLECTOR JALNA
AND OTHERS
Versus
MOTIRAM S/O DAGADU GAWANDE, DIED THROUGH L.R'S
GAJANAN S/O MOTIRAM GAWANDE AND OTHERS
......
AGP for Appellant : Mr. K. S. Hoke Patil
Advocate for Respondents : Mr. D. M. Pingale
...…
CORAM : S. G. CHAPALGAONKAR, J.
DATED : 31st JULY, 2026
PER COURT :
1. The appellant-State Government takes exception to
judgment and award dated 12.05.2022 passed by learned Civil Judge,
Senior Division, Jalna / Reference Court in L.A.R. No. 40 of 2018.
2. The appellants have acquired agricultural land of
respondents for the purpose of construction of percolation tank – 2 in File
No. JA.KRA-06/LAQ/GA/CR-36/2003. The notification under Section
4(1) of Land Acquisition Act was issued on 05.05.2005. The Land
Acquisition Officer passed an award dated 20.05.2006 under Section 11
of Land Acquisition Act and offered compensation for the acquired land
@ Rs.665/- per R.
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976-FA-2747-2024
3. The respondents made Reference under Section 18 of Land
Acquisition Act seeking enhanced compensation. The Reference Court, on
evaluation of evidence, determined compensation @ Rs. 14,688/- per R
for semi-irrigated land and Rs. 9,792/- per R for dry land. Accordingly,
impugned award has been passed by Reference Court along with interest
and statutory benefits as per Land Acquisition Act.
4. Aggrieved by judgment and award passed by Reference
Court, State has filed present appeal.
5. Mr. Hoke Patil, learned AGP appearing for appellant - State
submits that Reference Court has relied upon sale exemplar dated
26.05.2000, which was for small piece of 10 R land. Secondly,
classification of acquired land as irrigated or semi-irrigated is not made
appropriate to evidence tendered into service on behalf of
respondents/original claimants. Mr. Hoke Patil would further submit that
Reference Court has granted enhanced compensation along with interest
from the date of possession under Section 28 of Land Acquisition Act,
which is contrary to law laid down by Full Bench of this Court in case of
State of Maharashtra v. Kailash Shiva Rangari reported in 2016 (4) ALL
MR 513.
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976-FA-2747-2024
6. Per contra, learned Advocate appearing for respondents/
claimants would submit that appellants had challenged award passed by
Reference Court in L.A.R. No. 149 of 2018 by filing First Appeal No.1844
of 2024. The said reference pertains to selfsame notification and award
which is subject matter in present appeal. This Court rejected contentions
of appellant while upholding rate of semi-irrigated land @ Rs. 14,688/-
per R. Therefore, the whole basis of challenge by appellants in present
appeal does not survive. He fairly conceded that interest awarded under
Sections 28 and 34 can be corrected in tune with law laid down by Full
Bench of this Court in case of Kailash Shiva Rangari (supra).
7. Having considered submissions advanced by learned
Advocates appearing for respective parties, this Court finds that
Reference Court relied upon sale exemplar of 10 R land while making
assessment of compensation for acquired land. However, the sale
exemplar was dated 26.05.2000, whereas notification under Section 4
was issued on 05.05.2005.
8. Looking to time gap, this Court while deciding First Appeal
No.1844 of 2024 considered escalation @ 10% per annum and deducted
10% amount having regard to proximity and potentiality of land. Further
deduction of 10% was considered on account of smallness of land.
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976-FA-2747-2024
Finally, this Court concluded that the rate of acquired land can be
assessed @ Rs.14,688/- per R classifying same to be semi-irrigated land.
In light of view taken by this Court while deciding First Appeal No.1844
of 2024, submissions advanced on behalf of appellants do not survive.
9. Insofar as aspect of interest on compensation amount, the
law is settled by Full Bench of this Court in case of Kailash Shiva Rangari
(Supra). Therefore, claimants would be entitled for interest under
Sections 28 and 34 of Land Acquisition Act as granted by Reference Court
from the date of award i.e. 20.05.2006.
10. With aforesaid modification, award passed by Reference
Court deserves to be maintained.
11. First Appeal is accordingly disposed of.
(S. G. CHAPALGAONKAR)
JUDGE
Tandale
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