Bombay High Court
BHIKA PUNJA MALI (DECD.) BY LRS.versusTHE STATE OF MAHARASHTRA
- Decided
- Disposal
- Disposed Off
Holding
Interest under Section 28 is to be calculated on the market value plus the interest awarded under Section 23(1A), and not on the interest itself.
Summary
The appellants, a group of landowners, appealed against the State of Maharashtra challenging the Reference Court's failure to direct interest under Section 28 of the Land Acquisition Act, 1894 on amounts awarded under Sections 23(1A) and 23(2). The High Court noted that while interest was directed under other provisions, no guidance was given for Section 28. It remanded the matter to the Reference Court to determine interest under Section 28, applying the Supreme Court’s decision in Sunder v. Union of India. The Court clarified that interest under Section 28 should be calculated on the sum of the market value and the interest awarded under Section 23(1A), and that interest cannot be compounded on the interest already awarded under Section 23(1A). The parties were ordered to appear before the Reference Court for a fresh determination, and the appeals were disposed.
Issues considered
- Whether interest under Section 28 of the Land Acquisition Act, 1894 is payable on amounts awarded under Sections 23(1A) and 23(2).
- How interest under Section 28 should be calculated in relation to interest already awarded under Section 23(1A).
Legislation cited
- Land Acquisition Act, 1894 — s. 23(1A), 23(2), 28
Subjects
- Land acquisition
- Interest calculation
- Section 28
- Section 23
- Remand
- Appellate jurisdiction
- Maharashtra
Judgment
ppn 1 903.fa-395.07.doc
Digitally signed IN THE HIGH COURT OF JUDICATURE AT BOMBAY
by PRACHI
PRACHI
PRANESH
PRANESH
NANDIWADEKAR
CIVIL APPELLATE JURISDICTION
NANDIWADEKAR
Date: 2026.08.06
16:16:42 +0530 FIRST APPEAL NO.395 OF 2007
Sonubai Rambhau Vidhate (since deceased)
through her LRs.
a) Shivaji Rambhau Vidhate & Ors. ….Appellants
V/s.
State of Maharashtra .…Respondent
WITH
FIRST APPEAL NO.394 OF 2007
Girijabai Walu Ranmali ….Appellant
V/s.
State of Maharashtra .…Respondent
WITH
FIRST APPEAL NO.393 OF 2007
Parvatabai Mahadu Vidhate (since deceased)
through her LRs.
a) Dinkar Punjaram Vidhate & Ors. ….Appellants
V/s.
State of Maharashtra .…Respondent
WITH
FIRST APPEAL NO.392 OF 2007
Bhika Punja Mali (since deceased)
through her LRs.
a) Shankar Bhikaji Lahitkar & Ors. ….Appellants
V/s.
State of Maharashtra .…Respondent
WITH
ppn 2 903.fa-395.07.doc
FIRST APPEAL NO.391 OF 2007
Waman Barku Mali & Ors. ….Appellants
V/s.
State of Maharashtra .…Respondent
----
Mr. Anil Ahuja a/w Mrs. Bhavana Khemani for the appellants in all matters.
Mr. A. R. Patil, Addl. G. P. for the respondents.
----
CORAM : JITENDRA JAIN, J.
DATED : 6 August 2026
P.C. :
1. All the aforesaid appeals were admitted on 13 February 2007.
2. The only grievance of the appellant is that the Reference Court
has not given any direction with respect to the interest on the amount
awarded under Sections Sections 23(1A) and 23(2) of the Land Acquisition
Act, 1894.
3. On a perusal of the Reference Court’s order, it appears that
though there were directions to grant interest under other sections but
there was no direction with respect to interest under Section 28 on the
amount awarded under Sections 23(1A) and 23(2). Therefore, the matter is
remanded back to the Reference Court for the limited purpose of
adjudicating on interest under Section 28 on the amount awarded under
Sections 23(1A) and 23(2) and also after considering the decision of the
Hon’ble Supreme Court in the case of Sunder vs. Union of India1.
4. It is clarified that interest under Section 28 will be calculated on
the figure arrived at by adding the market value and interest under Section
1 (2001) 7 SCC 211
ppn 3 903.fa-395.07.doc
23(1A). After calculating interest on this addition, the claimants would not
be entitled to claim interest again under Section 28 on the interest worked
out under Section 23 (1A).
5. The parties to appear before the Reference Court on 27 August
2026 at 11:00 a.m. alongwith the present order so that the Reference Court
can adjudicate the issue should and pass appropriate orders as
expeditiously as possible.
6. All the appeals are disposed of in above terms.
(JITENDRA JAIN, J.)
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