Bombay High Court
THE STATE OF MAHARASHTRA AND ANRversusVIJAYKUMAR SHANKARRAO INGALE AND ANR
- Disposal
- DISMISSED
Holding
The Reference Court’s enhancement of compensation based on the adjacent land’s non‑agricultural potentiality is correct, and the appeal is dismissed.
Summary
The State of Maharashtra acquired land for rehabilitation of earthquake‑affected persons under a notification dated 08‑09‑1995 and paid compensation of Rs.340 per R as per the award of 11‑06‑1996. The claimants, dissatisfied with this amount, filed a reference case under Section 18 of the Land Acquisition Act, producing a 1992 sale deed of an adjacent parcel (Survey No. 138) and a non‑agricultural (N.A.) conversion order as evidence of market value. The Reference Court held that the adjacent land’s non‑agricultural potentiality justified enhancing compensation to Rs.3.17 per sq ft for the acquired land. The appellants appealed, arguing that the sale deed and N.A. order could not be the sole basis for valuation. The High Court affirmed that compensation may be based on the potentiality of the land, upheld the Reference Court’s valuation, and dismissed the appeal.
Issues considered
- Whether a sale deed of land adjoining the acquired property and a non‑agricultural conversion order can be relied upon to determine compensation under the Land Acquisition Act.
- Whether compensation for land not officially converted to non‑agricultural use may be fixed on a per‑square‑foot basis reflecting non‑agricultural potentiality.
- Whether the Reference Court erred in enhancing compensation based on the evidence produced.
Legislation cited
- Land Acquisition Act — s. 18, 4
Subjects
- land acquisition
- compensation
- valuation
- non‑agricultural potentiality
- Section 18
- sale deed
- reference court
- appeal
Judgment
2026:BHC-AUG:44192
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47 FA 340 OF 2018
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
47 FIRST APPEAL NO. 340 OF 2018
THE STATE OF MAHARASHTRA AND ANR
VERSUS
VIJAYKUMAR SHANKARRAO INGALE AND ANR
...
Mr. S. P. Sonpawale, Advocate for Appellants
Mr. Ajinkya S. Deshpande h/f. Mr. Amit S. Deshpande,
Advocate for Respondent Nos.1 and 2
…
CORAM : AJIT B. KADETHANKAR, J.
DATED : 28th September 2026
P.C. :-
. Feeling aggrieved by the judgment and award dated
06.01.2010 passed by the learned Civil Judge, Senior Division,
Nilanga in Land Acquisition Reference Case No.825 of 1998,
the appellants have presented this First Appeal.
2. At the instance of the parties, the appeal is taken up for
final disposal considering the very short controversy involved
in the matter.
3. The land of the respondents/claimants was acquired by
the appellants for rehabilitation of earthquake-affected
persons. Notification under Section 4 of the Land Acquisition
Act was published on 08.09.1995. Thereafter, pursuant to the
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subsequent procedure under the Act, an award came to be
passed on 11.06.1996. The Special Land Acquisition Officer
held the respondents/claimants entitled to compensation at
the rate of Rs.340/- per R.
4. Feeling dissatisfied with the inadequate compensation,
the respondents/claimants approached the learned Civil
Judge, Senior Division, Nilanga, District Latur under Land
Acquisition Reference Case No.825 of 1998 taking recourse to
Section 18 of the Act.
5. During the proceedings, the respondents/claimants
produced on record a sale deed dated 06.04.1992 at Exhibit
32 for the purpose of comparison and to ascertain the correct
valuation. The said sale deed pertained to the land adjacent to
the claimants' land situated in Survey No.138.
6. The Reference Court observed that the subject matter
property of the sale instance at Exhibit 32 could be referred to
for fixing the proper valuation of the acquired land. The
Reference Court further observed, upon perusal of Exhibit 32
as also Exhibit 51, which is the non-agricultural/residential
purpose usage order issued by the Additional Tahsildar (N.A.),
that the said sale instance was the best piece of evidence,
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being in respect of the land just adjacent to the acquired land
for determining the correct compensation.
7. In view of the above, the Reference Court held that the
subject matter land of the respondents/claimants had fetched
non-agricultural potentiality. Thus, the Reference Court
granted enhancement in compensation at the rate of Rs.3.17
per sq. ft. Feeling dissatisfied thereby, the appellants have
presented this appeal.
8. Mr. S. P. Sonpawale, learned Assistant Government
Pleader, would strongly submit that the Reference Court has
drawn an incorrect inference. He would submit that the sale
instance and the N.A. order at Exhibit 51 cannot be relied
solely on the basis for assessing the compensation at a per
sq.ft. rate. Mr. Sonpawale concludes his submissions with a
contention that the appeal be allowed and the judgment and
award under challenge be quashed and set aside.
9. Mr. Ajinkya Deshpande h/f. Mr. Amit Deshpande,
learned Advocate for the claimants/respondents would
advocate the findings rendered by the Reference Court. He
would submit that the best evidence was produced by the
claimants before the Reference Court which is rightly accepted
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and relied upon for granting just and proper compensation.
With this, Mr. Deshpande prays for dismissal of the appeal.
10. With the able assistance of the learned Advocates for
the respective parties, I have gone through the case papers.
11. No doubt, the subject matter land of this appeal was not
officially or formally converted for non-agricultural use.
However, the Reference Court accepted the evidence i.e. the
sale instance which was in respect of a piece of land just
adjacent to the subject matter land. The said piece of land
which was cited by the claimants during the trial, was
converted by the competent authority for
non-agricultural/residential usage. To that extent, there is no
dispute.
12. Compensation under the Land Acquisition Act is a
matter of beneficial legislation. What is necessary is the
potentiality of the land for fixing appropriate compensation.
Although the subject matter land was not classified as non-
agricultural land, the compensation which would depend
upon the potentiality of such land, is rightly granted by the
Reference Court in comparison with the adjacent piece of
land.
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47 FA 340 OF 2018
13. What is material is the correct valuation. The Reference
Court has rightly observed that although the Special Land
Acquisition Officer had fixed the compensation on the basis of
per R for the purpose of granting appropriate enhancement,
the claimants were entitled to compensation at the rate per sq.
ft. Obviously, these observations are in the light of the
evidence at Exhibits 32 and 51.
14. For the sake of convenience, paragraph No.11 of the
impugned judgment and award is reproduced as follows :
“11. Now, we have to consider, which sale instance
brought on record by claimants and State is
reliable. On perusal of the evidence led by
claimants, it appears to me that the sale instance in
respect of land survey No. 138 below Exh. 32 is
adjoining to the acquired lands, which is executed
on 06.04.1992 for the consideration of Rs. 6,000/-
in respect of area 86 ft. X 22 ft. Therefore, sale
instance of adjoining to acquire land is most
important document for determination of market
price of acquired lands and thus, I have no reason
to discard said sale instance, merely because land
in sale instance Exh. 32 is executed and purchased
on footage basis and thus, I discard remaining sale
instances brought by claimants as well as State-
respondents on the record and adopted sale
instance below Exh. 32. On perusal of the sale-deed
Exh. 32, it appears to me that the land in sale
instance bearing land survey No. 138 is converted
to N. A. By revenue case No. 37/89 dated
18.01.1989. On perusal of Exh. 51 brought by
claimants on record, it appears to me that
Additional Tahsildar (N. A.), Latur has converted
land survey No. 138 of village Sarwadi for
residential purpose, determining N. A. Assessment
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47 FA 340 OF 2018
Rs. 230/-. On perusal of the sale instance Exh. 32
and N. A. Order below Exh. 51, it appears to me
that the land in sale instance being adjoining to the
land survey No. 139 is having N. A. Potentiality.”
15. For the reasons recorded above, there is no illegality or
infirmity in the findings recorded by the Reference Court. In
view of this, I find that no case is made out to call for
interference with the impugned judgment and award rendered
by the Reference Court.
16. Hence, I pass the following order :
ORDER
I. The First Appeal stands dismissed.
II. The claimants/respondents are permitted
to withdraw the balance compensation amount
along with interest accrued thereon, deposited
by the acquiring body in this Court, if not
withdrawn earlier.
III. The Record and Proceedings be sent back
to the learned Reference Court.
IV. The earlier security offered, if any, stands
discharged.
( AJIT B. KADETHANKAR, J. )
PRW
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