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Bombay High Court

THE STATE OF MAHARASHTRA AND ORSversusARJUN BHANUDAS KHUNE (DIED) THR LRS. MACHINDRA ARJUN KHUNE AND ORS

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The Court held that claimants are entitled to interest and statutory benefits as prescribed by the Full Bench decision, and that the four‑fold compensation enhancement falls within the State's policy and therefore is not to be challenged, leading to modification of clause (4) of the award.

Summary

The State of Maharashtra appealed a 2015 award in a land acquisition case concerning the heirs of the deceased Arjun Bhanudas Khune, challenging the reference court's enhancement of compensation and the grant of interest and statutory benefits. The State argued that the compensation enhancement, limited to four times the Land Acquisition Officer's award, fell within a government policy resolution and therefore should not be contested. It also contended that the reference court erred by awarding interest from the date of possession, contrary to the Full Bench judgment in State of Maharashtra v. Kailas Shiva Rangari. The High Court examined whether the policy barred challenge to the four‑fold enhancement and whether the interest award conflicted with the Full Bench precedent. The Court partially allowed the appeal, directing that claimants receive interest and statutory benefits in line with the Full Bench decision and modifying clause (4) of the award accordingly. The remainder of the award was left unchanged and any deposited amounts could be withdrawn by the claimants.

Issues considered

  • Whether the reference court's enhancement of compensation up to four times the Land Acquisition Officer's award can be challenged by the State under the Government Resolution.
  • Whether interest and other statutory benefits may be granted from the date of possession contrary to the Full Bench judgment in State of Maharashtra v. Kailas Shiva Rangari.

Subjects

  • land acquisition
  • compensation enhancement
  • interest
  • statutory benefits
  • reference court
  • Full Bench precedent
  • appeal

Judgment

2026:BHC-AUG:31464

                                                                             FA 2808/17
                                                   1

                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      BENCH AT AURANGABAD

                                   39 FIRST APPEAL NO. 2808 OF 2017

                              THE STATE OF MAHARASHTRA AND ORS
                                             VERSUS
               ARJUN BHANUDAS KHUNE (DIED) THR LRS. MACHINDRA ARJUN KHUNE
                                            AND ORS
                                                ...
                             AGP for Appellant/State : Mr. B.A. Shinde
               Advocate for Respondents 1A to 1C : Mr. D.A. Mane h/f. Mr. P.A. Bharat
                                                ...

                                   CORAM        : SIDDHESHWAR S. THOMBRE, J.
                                   Dated        : July 27, 2026

              PER COURT :-

              1.     Heard the learned AGP for appellant and the counsel for respondent

              Nos. 1A to 1C.

              2.      By this appeal, the appellant/State assails the Judgment and award

              dated 13.10.2015 passed by the learned Civil Judge, Senior Division,

              Paranda in L.A.R. No. 602/2011.

              3.      Both the learned advocate submit that the compensation enhanced

              by the learned Reference Court does not exceed four times the amount

              awarded by the Land Acquisition Officer.

              4.      In view of the aforesaid submissions and having regard to the

              policy decision of the State Government contained in Government

              Resolution No.Sankirna-2014/Prak.Kra.4/Bham-1/A-4 dated 03.11.2016

              with   Corrigendum    dated   23.02.2017   and   13.08.2018   to   the   said

              Government Resolution, took a decision not to challenge the reference, if

              compensation is enhanced only upto four times.

              5.      The learned AGP for the State further submits that the reference

              court has granted interest and other statutory benefits from the date of
                                                                FA 2808/17
                                         2

taking the possession of the acquired land and the same is contrary in view

of the judgment of Full Bench of this Court in the case of State of

Maharashtra vs. Kailas Shiva Rangari, 2016 (4) Mh.L.J. 457.

6.      Considering the above, I pass the following order.

                                    ORDER

(I)     The appeal is partly allowed.

(II)    The claimants shall be entitled to interest and other statutory

benefits strictly in accordance with the law laid down by the Full Bench of

this Court in the case of State of Maharashtra vs. Kailas Shiva Rangari.

(III)   Claimants are permitted to withdraw the amount, if any, deposited in

the court.

(IV)    Clause (4) of the impugned award of reference court is modified

accordingly and rest of the award is maintained.

(V)     Award is modified accordingly.

(VI)    Civil Applications, if any, stand disposed of.




                                             ( SIDDHESHWAR S. THOMBRE, J. )

ssc/


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