Bombay High Court
THE STATE OF MAHARASHTRA AND ANRversusSITARAM NARAYAN AGRAWAL DECEASED VISHWANATH SITARAM AGRAWAL
- Disposal
- DISMISSED
Holding
The Court held that the Rs.15 per square foot rate is reasonable and not excessive, and therefore upheld the reference court’s compensation determination.
Summary
The State of Maharashtra appealed against two judgments of the Joint Civil Judge, Senior Division, Amalner, which had partially allowed Section 18 references under the Land Acquisition Act, 1894 and fixed compensation for land acquired for the Shirpur‑Raver Road at Rs.15 per square foot. The claimant had relied on two prior sale transactions from 1976, one yielding a rate of approximately Rs.24.15 per sq ft and the other about Rs.10.10 per sq ft. The State argued that the first sale involved a small parcel and should be reduced, contending the Rs.15 rate was excessive. The Court examined the calculations, noting that even after a 30% deduction the first sale would imply Rs.16.90 per sq ft, higher than the Court’s Rs.15 rate, and that the second sale supported a lower valuation. Concluding that the reference court’s determination was reasonable, the Court dismissed both appeals, affirming the compensation awarded.
Issues considered
- Whether the market value of the acquired land fixed at Rs.15 per square foot is excessive or unsupported by evidence.
- Whether a deduction should be made from the sale price of a small parcel of land used as a comparable for valuation.
Legislation cited
- Land Acquisition Act, 1894 — s. 18
Subjects
- Land acquisition
- Compensation
- Market value
- Section 18
- Reference court
- Valuation
- Appellate review
Judgment
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
7 FIRST APPEAL NO. 3993 OF 2017
The State Of Maharashtra And Another
VERSUS
Sitaram Narayan Agrawal Deceased Vishwanath Sitaram Agrawal
AND
FIRST APPEAL NO. 3990 OF 2017
The State Of Maharashtra And Another
VERSUS
Sitaram Narayan Agrawal Deceased Vishwanath Sitaram Agrawal
……
Mr. S.S. Dande, AGP for Appellant-State
Mr. V.R. Dhorde, Advocate for the Respondent-Claimant in both FAs
……
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 04 SEPTEMBER, 2026
PER COURT :
1. Heard learned AGP appearing for the appellant-State and learned
counsel appearing for the respondent-claimant.
2. These appeals take exception to the Judgment and Award dated
16.02.2012 passed by the learned Joint Civil Judge, Senior Division,
Amalner, in Land Acquisition Reference No.672 of 1993 and the Judgment
and Award dated 27.01.2012 passed in Land Acquisition Reference No.671
of 1993, whereby the learned Reference Court partly allowed the references
under Section 18 of the Land Acquisition Act, 1894 and enhanced the
compensation by determining the market value of the acquired lands at the
rate of Rs.15/- per sq. ft., along with the statutory benefits.
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3. The lands of the respondent-claimant admeasuring 7 R and 46 R
from Gat Nos.1149 and 1148 respectively, situated at Mouje Chopda, Taluka
Chopda, District Jalgaon, were acquired for construction of Shirpur-Raver
Road. The Land Acquisition Officer passed the award and determined
compensation at Rs.2,262.40/- for the land from Gat No.1149 and
Rs.14,867/- for the land from Gat No.1148. Being dissatisfied with the
compensation so determined, the respondent-claimant accepted the amount
under protest and sought references under Section 18 of the Land
Acquisition Act, 1894.
4. Before the learned Reference Court, the claimant relied upon two
sale instances. The first sale instance was dated 31.03.1976, whereby land
admeasuring 57.7 sq. mtrs. situated at Chopda was sold for consideration of
Rs.15,000/-. The second sale instance was dated 30.06.1976, whereby land
admeasuring about 36.8 sq. mtrs. situated within the Chopda Municipal
town area was sold for consideration of Rs.4,000/-. The learned Reference
Court relied upon the first sale instance and determined the market value of
the acquired land at the rate of Rs.15/- per sq. ft. Being aggrieved by the
same, the present appeals are filed by the Appellant-State.
5. Learned AGP for the appellant-State submits that the learned
Reference Court has erred in placing reliance upon the sale instance dated
31.03.1976 without making any appropriate deduction. According to him,
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the sale instance relates to a very small piece of land and, therefore, the rate
reflected therein could not have been adopted for acquisition of a
substantially larger tract of land. He further submits that the acquired land
was required for construction of Shirpur-Raver Road and, therefore, the sale
transaction could not be treated as a comparable instance without
appropriate adjustment. He also points out that the second sale instance
dated 30.06.1976 relates to land admeasuring about 36.8 sq. mtrs. sold for
Rs.4,000/-, which works out to approximately Rs.10.10 per sq. ft. He,
therefore, submits that the market value fixed at Rs.15/- per sq. ft. is on the
higher side and deserves to be reduced.
6. Per contra, learned counsel for the respondent-claimant submits that
both the sale instances are of lands situated at Chopda and relate to a period
prior to the acquisition. He submits that the acquired lands were non-
agricultural lands situated at Chopda and that the location of the land,
particularly its proximity to Shirpur-Raver Road and the surrounding
development, justified a higher valuation. He further submits that the
learned Reference Court has, in fact, not adopted the rate reflected in the
first sale instance but has determined the market value at a substantially
lower rate of Rs.15/- per sq. ft. He submits that the said determination is
reasonable and calls for no interference.
7. I have considered the rival submissions and perused the impugned
Judgments and Awards and the material placed on record.
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8. There is no dispute that the acquired lands are situated at Chopda
and that the sale instances relied upon by the claimant also relate to lands
situated at Chopda. The first sale instance dated 31.03.1976 is prior to the
acquisition and relates to non-agricultural land situated in the same town.
Thus, it cannot be said that the sale instance has no bearing upon the
valuation of the acquired lands.
9. The principal objection raised by the learned AGP is that the sale
instance relates to a small piece of land and, therefore, deduction ought to
have been made. The submission, in principle, deserves consideration.
However, the question before this Court is whether the ultimate rate of
Rs.15/- per sq. ft. determined by the learned Reference Court is excessive or
otherwise unsupported by the evidence.
10. The relevant calculations arising from the sale instances may be
noticed. The sale instance dated 31.03.1976 concerns land admeasuring
57.7 sq. mtrs. sold for Rs.15,000/-. Since one square metre comprises
approximately 10.764 sq. ft., the said area works out to approximately
620.83 sq. ft. Thus, the rate reflected by the said sale instance comes to
approximately Rs.24.15/- per sq. ft. Even if 30% deduction, as suggested by
the learned AGP, is applied to the said rate, the resultant rate would be
approximately Rs.16.90/- per sq. ft. The learned Reference Court, however,
has determined the market value at Rs.15/- per sq. ft. Thus, the rate
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determined by the learned Reference Court is already lower than the rate
which would result even after applying the proposed 30% deduction.
11. The above calculation itself demonstrates that the rate of Rs.15/- per
sq. ft. determined by the learned Reference Court is lower than the rate that
would result even after applying the 30% deduction suggested by the
learned AGP to the first sale instance. Further, the second sale instance
reflects a rate of approximately Rs.10.10/- per sq. ft. Thus, the rate of
Rs.15/- per sq. ft. falls between the two sale instances and cannot, in the
circumstances of the case, be said to be arbitrary or excessive.
12. The learned Reference Court has also taken into consideration the
location of the acquired land and the fact that the claimant's land was non-
agricultural in nature. The claimant's evidence further indicates the location
of the land in relation to Shirpur-Raver Road and the surrounding area. At
the same time, the Reference Court has not adopted the entire rate reflected
in the first sale instance, but has moderated the same while determining the
market value at Rs.15/- per sq. ft.
13. Merely because the sale instance relied upon relates to a smaller
area, a further deduction is not warranted in the facts of the present case
when the rate ultimately fixed by the Reference Court is already below the
rate which would emerge after the 30% deduction suggested by the State.
The second sale instance also lends support to the conclusion that the rate of
Rs.15/- per sq. ft. is not excessive.
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14. In this view of the matter, the findings recorded by the learned
Reference Court do not suffer from any perversity, illegality or material
irregularity warranting interference in appellate jurisdiction. The
compensation determined at the rate of Rs.15/- per sq. ft. appears to be just
and reasonable. Consequently, both the appeals, being devoid of merit, are
liable to be dismissed.
15. Both the First Appeas are dismissed.
16. The respondent-claimant shall be entitled to withdraw the amount, if
any, deposited by the State/Acquiring Body in terms of the impugned
Judgments and Awards, along with the interest accrued thereon, in
accordance with law.
17. Pending Civil Applications, if any, stand disposed of.
18 The Record and Proceedings, if received, be sent back to the
concerned Court.
[ SIDDHESHWAR S. THOMBRE ]
JUDGE
S P Rane
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