Bombay High Court
THE EXECUTIVE ENGINEER, MINOR IRRIGATION DIVISION, OSMANABAD AND ANRversusANKUSH DEORAO SHINDE AND ANR
- Disposal
- PARTLY ALLOWED AND PARTLY DISMISSED
Holding
The market value enhancement to Rs.60,000 per acre is upheld, but the direction on interest is modified to conform with State of Maharashtra v. Kailas Shiva Rangari.
Summary
The Executive Engineer, Minor Irrigation Division, Osmanabad sought to acquire lands in Raghuchiwadi village for a minor tank, issuing a Section 4 notification in 1994 and an award in 1997 that valued the land at Rs.220 per R. The claimants, dissatisfied, filed references under Section 18 for enhanced compensation. The Reference Court, relying on earlier Land Acquisition References (L.A.R. Nos.1400 and 1409 of 2002), raised the market value to Rs.60,000 per acre and granted statutory benefits. The acquiring body appealed, arguing that the earlier L.A.R. decisions were not binding and that there was no independent evidence for the enhancement. The High Court held that while earlier L.A.R. determinations are not binding precedent, they are relevant evidence for similar acquisitions and thus upheld the enhanced compensation, but modified the interest award in line with State of Maharashtra v. Kailas Shiva Rangari. Consequently, the appeals were partly allowed, maintaining the compensation but altering the interest provision.
Issues considered
- Whether earlier Land Acquisition Reference judgments can be treated as binding precedent for determining market value in subsequent acquisitions
- Whether the enhancement of compensation to Rs.60,000 per acre is justified in the absence of independent evidence
- Whether interest under Section 34 of the Land Acquisition Act should be payable from the date of the Section 4 notification to the date of the award
Legislation cited
- Land Acquisition Act, 1894 — s. 11, 18, 34, 4
Subjects
- land acquisition
- compensation enhancement
- Section 18
- market value determination
- interest under Section 34
- precedent
- reference court
Judgment
2026:BHC-AUG:43312
14-FA-2799-2017 (+1).odt
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
14 FIRST APPEAL NO. 2799 OF 2017
The Executive Engineer, Minor Irrigation Division, Osmanabad And Another
VERSUS
Ankush Deorao Shinde And Another
……
15 FIRST APPEAL NO. 2800 OF 2017
The Executive Engineer, Minor Irrigation Division, Osmanabad And Another
VERSUS
Harishchandra Sheku Deokate (Dead)
Through L.Rs. Mathurabai And Others
……
Mr. G.B. Rajale, Advocate for Appellant-Acquiring Body
Mr. S.N. Patne, Advocate for Respondents-Claimants
……
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 16 SEPTEMBER, 2026
PER COURT :
1. Heard the learned counsel Mr. G.B. Rajale, for the appellant-
Acquiring Body and the learned counsel Mr. S.N. Patne, for the respondent-
claimants.
2. The present appeals take exception to the common impugned
Judgment and Award dated 03.05.2013 passed by the learned 4th Joint Civil
Judge, Senior Division, Osmanabad, in Land Acquisition References Nos.760
of 2007 and 759 of 2007, whereby the learned Reference Court partly
allowed the references under Section 18 of the Land Acquisition Act, 1894
and enhanced the compensation payable to the respondent-claimants along
with statutory benefits.
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3. The lands belonging to the respondent-claimants, admeasuring 1
Hectare 51 R, 25 R, 1 Hectare 33 R, 3 R and 52 R and 1 Hectare 16 R from
Gat Nos.653, 437, 450, 644, 641 and 598, respectively, situated at village
Raghuchiwadi, Taluka and District Osmanabad, came to be acquired for the
purpose of Raghuchiwadi Minor Tank. The Notification under Section 4 of
the Land Acquisition Act, 1894 was published on 11.03.1994. Thereafter, the
Special Land Acquisition Officer passed an Award under Section 11 of the
Act on 01.08.1997, determining the market value of the acquired lands at
the rate of Rs.220/- per R. Being dissatisfied with the compensation so
determined, the claimants accepted the amount under protest and sought
references under Section 18 of the Act for enhancement of compensation.
4. Upon appreciation of the oral and documentary evidence adduced by
the parties and by relying upon the judgments passed in L.A.R. Nos.1400 of
2002 and 1409 of 2002, the learned Reference Court, by the impugned
Judgment and Award dated 03.05.2013, enhanced the market value of the
acquired lands to Rs.60,000/- per acre, along with all statutory benefits.
Being aggrieved thereby, the appellant-Acquiring Body has preferred the
present appeals.
5. Learned counsel Mr. Rajale, appearing for the appellant-Acquiring
Body, submitted that the learned Reference Court committed an error in
enhancing the compensation by relying upon the judgments passed in
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earlier L.A.R. Nos.1400 of 2002 and 1409 of 2002, without there being any
independent evidence on record to justify such enhancement. It is submitted
that the judgments passed in the earlier L.A.Rs. could not have been treated
as binding for determining the market value of the acquired lands and that
the learned Reference Court has awarded excessive compensation without
any independent legal basis. It is, therefore, submitted that the impugned
Judgment and Award deserves to be set aside.
6. Per contra, learned counsel for the respondent-claimants supported
the impugned Judgment and Award. He submitted that the learned
Reference Court has rightly relied upon the judgments passed in the earlier
L.A.R. Nos.1400 of 2002 and 1409 of 2002, wherein the lands were
acquired for the same project and from the same village and the acquisition
arose out of the same Award. He further submitted that, after making
appropriate deductions while determining the market value, the learned
Reference Court has awarded just and reasonable compensation. Therefore,
no interference is warranted with the impugned Judgment and Award.
7. I have considered the submissions advanced by the learned counsel
for the appellant-Acquiring Body as well as the learned counsel for the
respondent-claimants and, with their able assistance, I have carefully
perused the impugned Judgment and Award as well as the material
available on record.
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8. The record reveals that the learned Reference Court has relied upon
the judgments passed in earlier L.A.R. Nos.1400 of 2002 and 1409 of 2002,
wherein the market value of the lands acquired for the same project was
determined at the rate of Rs.60,000/- per acre. Though the determination of
market value in an earlier L.A.R. cannot, by itself, be treated as a binding
precedent for determining the market value in every subsequent case, where
the lands are acquired for the same project and are similarly situated, such
earlier determination can certainly be taken into consideration as a relevant
piece of evidence and as a guiding principle for determining the market
value of the acquired lands. It is also brought to my notice that the
judgments and awards passed in the said earlier L.A.Rs., on which the
present references came to be decided, have not been assailed. In the facts
and circumstances of the present case, therefore, I find no reason to take a
different view from the determination made by the learned Reference Court
on the basis of the aforesaid judgments.
9. However, as regards the grant of interest is concerned, it is noticed
that the learned Reference Court has directed payment of interest from the
date of Section 4 notification till the date of the Award. Such direction is
contrary to the law laid down by the Full Bench of this Court in State of
Maharashtra v. Kailas Shiva Rangari, 2016 (3) Mh.L.J. 457 . Therefore, to
that extent, the impugned Judgment and Award requires modification.
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10. In view of the aforesaid discussion, the market value determined by
the learned Reference Court at the rate of Rs.60,000/- per acre does not call
for interference. However, the direction regarding payment of interest
requires modification in view of the law laid down by the Full Bench. Hence,
the following order:
ORDER
(i) The First Appeals are partly allowed.
(ii) The common Judgment and Award dated 03.05.2013 passed by the
learned 4th Joint Civil Judge, Senior Division, Osmanabad, in Land
Acquisition References Nos.760 of 2007 and 759 of 2007, is modified to the
extent of interest under Section 34 of the Land Acquisition Act, 1894.
(iii) The enhancement of compensation granted by the learned Reference
Court at the rate of Rs.60,000/- per acre is maintained.
(iv) The respondent-claimants shall be entitled to all consequential
statutory benefits on the enhanced compensation in accordance with the
provisions of the Land Acquisition Act, 1894.
(v) The respondent-claimants shall be entitled to interest under Section
34 of the Act strictly in accordance with the law laid down by the Full Bench
of this Court in State of Maharashtra v. Kailas Shiva Rangari, (supra).
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(vi) Save and except the modification made hereinabove, the common
Judgment and Award dated 03.05.2013 passed by the learned 4th Joint Civil
Judge, Senior Division, Osmanabad, in L.A.R. Nos.760 of 2007 and 759 of
2007, shall remain unaltered.
(vii) The modified Award be drawn accordingly.
(viii) The respondent-claimants are permitted to withdraw the amount
deposited by the appellant-Acquiring Body in this Court, along with accrued
interest thereon, subject to adjustment, if any, necessitated on account of the
modification of interest under Section 34 of the Act.
(ix) Pending Civil Applications, if any, stand disposed of.
[ SIDDHESHWAR S. THOMBRE ]
JUDGE
S P Rane
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