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 The remainder of the award was left unchanged and any deposited amounts could be withdrawn by the claimants.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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