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Bombay High Court

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABADversusMUKTESHWAR DHONDIBA SHETE AND ORS

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The judgment and award are modified only with respect to interest; the compensation awarded remains unchanged.

Summary

The Executive Engineer (acquiring body) appealed the judgment and award dated 24 September 2013 of the 4th Joint Civil Judge, Senior Division, Osmanabad, which had enhanced compensation for several land acquisition cases. The appellant argued that the enhanced compensation exceeded four times the amount awarded by the Land Acquisition Officer, but the State Government’s policy (Resolution Sankirna‑2014) indicated it would not challenge awards not exceeding that multiple. The court found no merit to alter the compensation quantum, accepting the State’s policy position. However, the court held that the reference court’s direction to pay interest from the date of publication of the notification under Section 4 of the Land Acquisition Act, 1894, conflicted with the Full Bench decision in State of Maharashtra v. Kailas Shiva Rangari. Consequently, the court partially allowed the appeals, modifying the award only with respect to interest, directing that interest be calculated under Sections 28 and 34 of the Land Acquisition Act in line with the cited precedent, while leaving the compensation unchanged.

Issues considered

  • Whether the compensation awarded by the reference court, which exceeds four times the amount awarded by the Land Acquisition Officer, should be altered in view of the State Government's policy.
  • Whether the direction to pay interest from the date of publication of the notification under Section 4 of the Land Acquisition Act, 1894, is legally valid.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • interest
  • reference court award
  • government policy
  • modification of judgment
  • Sections 28 and 34
  • Full Bench precedent

Judgment

2026:BHC-AUG:41795

                                                              FA 4029/17 & Ors.
                                          1

                      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 BENCH AT AURANGABAD

                            5 FIRST APPEAL NO. 4029 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
             RANGNATH NARSOBA MULE DIED THR LRS DAGDU RANGNATH MULE AND
                                           ORS
                                            …
                                           WITH
                             FIRST APPEAL NO. 4039 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                            SAJABAI YASHWANT SHETE AND ORS
                                            …
                                           WITH
                              FIRST APPEAL NO. 4037 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                           BHAGWAT DHONDIBA SHETE AND ORS
                                            …
                                           WITH
                             FIRST APPEAL NO. 4028 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                               MUNIR ISAK SINDH AND ORS
                                            …
                                           WITH
                             FIRST APPEAL NO. 4031 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                          PARMESHWAR BHAGWAT SHETE AND ORS
                                            …
                                           WITH
                             FIRST APPEAL NO. 4030 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                              RAM LAXMAN JADHAV AND ORS
                                            …
                                           WITH
                             FIRST APPEAL NO. 4032 OF 2017

            THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                                         VERSUS
                           SUKUMARBAI GOROBA SHETE AND ORS
                                                 FA 4029/17 & Ors.
                              2

                               …
                             WITH
                 FIRST APPEAL NO. 4034 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
              RAMESHWAR DHONDIBA SHETE AND ORS
                                …
                               WITH
                 FIRST APPEAL NO. 4026 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
                DAGDU BHAGWAT SHETE AND ORS
                                …
                               WITH
                 FIRST APPEAL NO. 4024 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
                   MITHU ISAK SINDH AND ORS
                                …
                               WITH
                 FIRST APPEAL NO. 4036 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
             MUKTESHWAR DHONDIBA SHETE AND ORS
                                …
                               WITH
                 FIRST APPEAL NO. 4035 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
                KASHIBAI LAXMAN JADHAV AND ORS
                                …
                               WITH
                  FIRST APPEAL NO. 4033 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                             VERSUS
                NAGNATH BASLING SHETE AND ORS
                                …
                               WITH
                 FIRST APPEAL NO. 4023 OF 2017

THE EXECUTIVE ENGINEER, M.I.D. OSMANABAD THR GMIDC AURANGABAD
                               VERSUS
              RAMESHWAR DHONDIBA SHETE AND ORS
                                  …
           Advocate for Appellants : Mr. Bhalerao Sudhir G.
                                                          FA 4029/17 & Ors.
                                     3

                  AGP for Respondents: Mr. A.D. Wange
          Advocate for Respondents/claimants : Mr. V.S. Tanwade
                                   ...

                          CORAM            : SIDDHESHWAR S. THOMBRE, J.
                          Dated            : September 07, 2026

PER COURT :-

1.    Heard the learned counsel for the respective parties.



2.    By these appeals, the appellant/acquiring body challenges the

judgment and award dated 24.09.2013 passed by the learned 4 th Jt. Civil

Judge, Senior Division, Osmanabad, in LAR Nos. 26, 22, 25, 27, 30, 94, 34,

32, 31, 20, 24, 18, 21 of 2009 and 462 of 2010.



3.    Learned counsel for the appellant submits that the compensation

enhanced by the learned Reference Court exceed slightly above four times

the amount awarded by the Land Acquisition Officer. The learned AGP

appearing for the respondent-State fairly concedes the aforesaid position.



4.    It is submitted that, 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, as subsequently clarified by the

Corrigenda dated 23.02.2017 and 13.08.2018, the State Government has

taken a decision not to challenge an award of the Reference Court where

the compensation enhanced does not exceed four times the amount

awarded by the Land Acquisition Officer.



5.    In view of the aforesaid submissions and the policy decision of the
                                                            FA 4029/17 & Ors.
                                       4

State Government along with other merits of matter, I do not find any

reason to interfere with the Judgment and Award insofar as the quantum of

compensation is concerned. However, as regards the award of interest, the

learned Reference Court has directed payment of interest from the date of

publication of the notification under Section 4 of the Land Acquisition Act,

1894. Such direction is contrary to the law laid down by the Full Bench of

this Court in State of Maharashtra v. Kailas Shiva Rangari, reported in 2016

(3) Mh.L.J. 457. To that limited extent, the impugned Judgment and Award

requires modification. Hence, the following order is passed:

                                    ORDER

(i)     The First Appeals are partly allowed.

(ii)    The judgment and award dated 24.09.2013 passed by the learned 4 th

Jt. Civil Judge, Senior Division, Osmanabad, in LAR Nos. 26, 22, 25, 27, 30,

94, 34, 32, 31, 20, 24, 18, 21 of 2009 and 462 of 2010, is modified to the

aforesaid extent.

(iii)   The claimant shall be entitled to interest under Sections 28 and 34 of

the Land Acquisition Act, 1894, strictly in accordance with the principles laid

down by the Full Bench of this Court in State of Maharashtra v. Kailas Shiva

Rangari, reported in 2016 (3) Mh.L.J. 457.

(iv)    Save and except the aforesaid modification in respect of interest, the

judgment and award dated 24.09.2013 passed by the learned 4 th Jt. Civil

Judge, Senior Division, Osmanabad, in LAR Nos. 26, 22, 25, 27, 30, 94, 34,

32, 31, 20, 24, 18, 21 of 2009 and 462 of 2010 shall remain unaltered.

(v)     The claimants are at liberty to withdraw the amount deposited by the

acquiring body in this Court, together with the accrued interest thereon,

subject to adjustment of the amount of interest, if any, payable under
                                                            FA 4029/17 & Ors.
                                       5

Sections 28 and 34 of the Land Acquisition Act, 1894, as determined in

accordance with law. After such adjustment, the claimant shall be entitled

to withdraw the balance amount, and any amount remaining thereafter shall

be at liberty to be retained by the acquiring body.

(vi)   Pending Civil Applications, if any, stand disposed of.



                                           ( SIDDHESHWAR S. THOMBRE, J. )

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