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Bombay High Court

VISHNU PRABHU KADAMversusTHE STATE OF MAHARASHTRA AND ANOTHERS

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The appeals are partly allowed and the compensation awards are modified to reflect the higher sale exemplar rates with appropriate adjustments.

Summary

The appellants challenged the compensation awarded for their lands acquired for a percolation tank in Beed district, arguing that the Reference Court failed to apply the highest comparable sale exemplar. The lands included irrigated and non‑irrigated parcels, as well as potkharaba (barren) land. The court examined the sale exemplars, particularly Exh.21 (11 Are at Rs.1,818 per Are) and applied a 35% deduction due to size and contiguous ownership, then added cumulative escalation for the three‑year period before acquisition. It concluded that the appellants were entitled to Rs.3,386 per Are for irrigated land and Rs.1,693 per Are for non‑irrigated land, with Rs.846 per Are for potkharaba land, along with statutory interest and solatium. Accordingly, the appeals were partly allowed and the compensation awards were modified to reflect these enhanced amounts.

Issues considered

  • Whether the Reference Court erred by not considering the highest comparable sale exemplar for determining compensation
  • Whether the appropriate compensation rates for irrigated, non‑irrigated, and potkharaba land were applied
  • Whether adjustments such as size‑based deduction and cumulative escalation are warranted

Legislation cited

Subjects

  • land acquisition
  • compensation
  • sale exemplar
  • percolation tank
  • irrigated land
  • potkharaba land
  • interest
  • solatium

Judgment

2026:BHC-AUG:8054


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                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                               908 FIRST APPEAL NO. 3319 OF 2011

                                      Shahadeo Kisan Waghmare
                    (Died through L.Rs. Kamalbai Shahadeo Waghmare and another)
                                               VERSUS
                                 The State of Maharashtra and another
                                                  …..
                                                 AND
                                   FIRST APPEAL NO. 3320 OF 2011

                                         Babu Dagadu Mote
                                              VERSUS
                                The State of Maharashtra and another
                                                …..
                                                AND
                                 FIRST APPEAL NO. 3321 OF 2011

                                       Babita Dharmraj Kadam
                                              VERSUS
                                The State of Maharashtra and another
                                                …..
                                                AND
                                 FIRST APPEAL NO. 3322 OF 2011

                                       Vishnu Prabhu Kadam
                                              VERSUS
                              The State of Maharashtra and another
                                                  …..
                Advocate for Appellant : Mr. Vilas M. Humbe
                AGP for Respondent No.1: Mr. S. B. Jadhav
                Advocate for Respondent No.2 : Ms. Vanita H. Sangole
                                                  …..

                                     CORAM : SANJAY A. DESHMUKH, J.
                                     DATED : 20th FEBRUARY, 2026

                PER COURT :-


                1.      All these appeals are preferred against the judgments and

                awards passed by the learned Reference Court at Beed, as shown in
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the following chart:-



Sr. No. L.A.R. No.           F.A. No.            Date of judgment
1        46 of 2006          3319 of 2011        25.04.2006
2        49 of 2006          3320 of 2011        25.04.2006
3        176 of 2006         3321 of 2011        26.04.2006
4        113 of 2006         3322 of 2011        26.04.2006




2.    Learned advocate for the appellants submitted that the

appellants’ lands were acquired for the purpose of construction of

percolation tank at Shindewari, under village Ranjani, Tq. Georai

district Beed, by issuing notification under Section 4 of the Land

Acquisition Act, 1894 (for short “L.A. Act”) on 05.08.1997. The final

award was passed by the Land Acquisition Officer (for short “L.A.O.”)

on 31.01.1999.



3.    Learned advocate for the appellants pointed out pleadings,

evidence, grounds of objection of appeals and the reasons and

findings of the learned Reference Court. He further pointed out that

the lands of the appellants in appeal No. 3319 of 2011 is admittedly

irrigated land and having water facility through well, situated in block

No. 436. He further submitted that the learned Reference court has

not considered the basic principle of awarding compensation that the

highest value of sale exemplar is to be relied upon. However, the
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learned Reference Court relied upon sale exemplar at Exh.18 for

deciding the L.A.R. No. 46 of 2006.        There are five sale exemplars

out of which sale exemplar at Exh.21 is bonafide and comparable

sale exemplar, which can be safely relied upon. However, it was not

properly considered.      He submitted that at the most the some

percentage of amount can be reduced for small size of land in the

sale exemplar Exh.21 and also the purchaser is adjacent i.e. abutting

land owner of the land in that sale exemplar. He submitted to allow

the appeals.



4.    Learned A.G.P. for the respondent State and learned advocate

for respondent No.2 acquiring body strongly opposed the appeals

and submitted that the sale exemplars at Exh. 21 and 23 cannot be

relied upon. The sale exemplar Exh.21 is of a small portion of land of

11 Are.    The acquired lands of the claimants are more than 3

Hectares. The sale exemplar Exh.23 also cannot be relied upon

because it is a sale exemplar of 54 Are land, which is seasonal

irrigated land. It is therefore submitted that the impugned judgment

of the learned Reference Court is legal and correct and no

interference is warranted in it.



5.    Perused     the   record     and    proceedings,   particularly   the

pleadings, evidence, grounds of objections and the reasons and
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findings in the impugned judgment and award. The Learned

Reference Court has relied upon the decision of the Land Reference

No. 42 of 2006 which is comparable sale exemplar on record. The

Reference Court has to rely upon the highest sale consideration. In

the case in hand, the sale exemplar at Exh.21 dated 26.04.1994 for

dry land admeasuring 11 Are for Rs.20,000/- i.e. Rs.1818/- per Are,

sold three years prior to the said acquisition proceeding.        It is

bonafide and comparable sale exemplar. However, considering the

small size of the 11 Are land and the fact that one of the boundaries

in the sale exemplar at Exh.21 shows that the purchaser is the

contiguous owner of the said land, he must have paid the higher

amount for it. Therefore, 35% amount can be deducted on these two

counts. If 35% amount is deducted, it comes to Rs.1182/- per Are.

The sale exemplar Exh.21 is dated 26.4.1994 and the claimants land

was acquired by notification dated 05.08.1997. Thus, for three years

the claimant is entitled for cumulative escalation of the properties of

the appellants.   If it is added then the claimant is entitled for

Rs.1693/- per Are for non-irrigated land and Rs.3386/- per Are for

irrigated land.



6.    However, the claimants in appeal No. 3319 of 2011 have

established that there is well situated in block No. 309/436 for which

the claimants have got their E-statement, which is a part and parcel
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of the award passed by the L.A.O. Therefore, the claimants in first

appeal No. 3319 of 2011 are entitled for compensation of Rs.3386/-

per Are.     The claimants in first appeal No. 3319 of 2011, for

Potkharaba/barren      land,    admeasuring     04    Are,   entitled    for

compensation of Rs.846/- per Are.



7.    In view of above, the learned Reference court erred in

awarding     the   inadequate    amount    of      compensation     without

considering comparable sale exemplar on record.              The appeals

therefore, deserve to be allowed.        The impugned judgment and

award deserve to be partly set aside. Hence, the following order:-

                                    ORDER


I.         The first appeals are partly allowed.

II.        The impugned common judgments and awards are partly
           set aside and modified as under:-

           a) The appellants in first appeal No. 3319 of 2011 are
           entitled to enhanced compensation @ Rs.3386/- per Are
           for 46 Are and Rs.846/- per Are for 04 Are land which is
           Potkharaba land, including amount of compensation which
           was awarded and received by the appellant, with all other
           statutory benefits like additional component, interest and
           solatium as per provisions of Land Acquisition Act, 1894.


           b) The appellants in first appeal Nos. 3320 of 2011, 3321
           of 2011 and 3322 of 2011 are entitled to enhanced
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       compensation @ Rs.1693/- per Are for non irrigated lands
       except the Potkharaba/barren land admeasuring 25 Are in
       first appeal No. 3322 of 2011, for which the appellants in
       the said appeal are entitled to Rs.846/- per Are, including
       amount of compensation which was awarded and received
       by the appellants, with all other statutory benefits like
       additional component, interest and solatium as per
       provisions of Land Acquisition Act, 1894.

III)   The enhanced amount of compensation with interest and
       other statutory benefits shall be deposited in this court
       within a period of six months from today and on payment
       of deficit Court fee, if any, it be paid to the appellants.


IV)    It is made clear that the appellants shall not be entitled for
       interest amount for the period of delay, (if any) which was
       condoned by this Court while admitting the appeal.


V)      The award be drawn up accordingly.

VI)    The record and proceedings be sent back.



                                (SANJAY A. DESHMUKH, J.)

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