Bombay High Court
VENKAT BAGWANRAO MUSANEversusTHE STATE OF MAHARASHTRA AND ORS
- Disposal
- DISMISSED
Holding
The reference court correctly determined the market value of the acquired land and no further enhancement of compensation is warranted.
Summary
The appellant's 137‑R parcel of land in Jaibhachiwadi was acquired in 1987 for a percolation tank, and the State initially paid Rs 250 per R. Under Section 18 of the Land Acquisition Act the appellant obtained a reference court award of Rs 1,000 per R, but appealed for further enhancement, arguing that a similar award in LAR No. 777/1995 and a 10% yearly escalation should apply. The State contended that the earlier award was not binding and that the sale instances used by the reference court were not comparable, and that escalation is not a matter of right. The High Court examined the dates of possession, the relevance of the sale instances, and the principle that escalation must be determined on evidence, concluding that the earlier LAR could not be applied and that the reference court had correctly fixed compensation. Consequently, the appeal was dismissed as devoid of merit.
Issues considered
- Whether the reference court erred in fixing compensation at Rs 1,000 per R.
- Whether the appellant is entitled to cumulative 10% yearly escalation based on a later award in LAR No. 777/1995.
- Whether sale instances from villages other than the acquired land are comparable for determining market value.
Legislation cited
- Land Acquisition Act, 1894 — s. 18, 4
Subjects
- land acquisition
- compensation
- market value
- escalation
- Section 18
- reference court
- appeal dismissed
Judgment
2026:BHC-AUG:38173
FA No. 614/09
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
50 FIRST APPEAL NO. 614 OF 2009
VENKAT BAGWANRAO MUSANE
VERSUS
THE STATE OF MAHARASHTRA AND ORS
...
Advocate for Appellant : Mr. S S Halkude
AGP for Respondent/State : Mr. S.S. Dande
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
Dated : August 17, 2026
PER COURT :-
1. As the acquisition proceedings were initiated in the year 1994, heard
finally with the consent of learned counsel for respective parties.
2. By this appeal, the appellant/original claimant assails the judgment
and award dated 23.9.2008 passed by the learned Civil Judge, Senior
Division, Ahmedpur Camp at Udgir in LAR No. 3004/2001, for further
enhancement of compensation.
3. The land of the claimant admeasuring 137 R. from Gat No. 86
situated at village Jaibhachiwadi, Tal. Udgir, District Latur was acquired for
construction of percolation tank at village Jaibhachiwadi. The possession of
the land was taken over in the year 1987 and to that effect the reference
court has recorded finding that the possession of the acquired land was
taken on 15.5.1987 and the land to the extent of 137 R. from Gat No. 86 of
the present appellant was acquired. The SLAO has awarded compensation
at the rate of Rs.10000/- per Acre i.e. Rs.250/- per R. Being dissatisfied
with the meager compensation granted by the SLAO, the claimant filed
above reference under section 18 of the Act. The reference court has
FA No. 614/09
2
enhanced the compensation at the the rate of Rs.1000/- per R. Being
aggrieved, the present appeal is filed.
4. Mr. S.S. Halkude, learned counsel for claimant submits that after
considering the sale instance below Exh. 16 and the order passed in LAR
No. 777/1995, Exh. 19, the reference court has wrongly determined the
compensation at the rate of Rs.1000/- per R. Therefore, Mr. S.S. Halkude,
learned counsel for original claimants submits that as the lands involved in
LAR No. 777/1995 is from the same notification and for the same project
and from the same Gat number, the reference court ought to have
determined the compensation in view of the order in LAR No. 777/1995. He
further submits that as this order is passed on 18.2.1998, the claimants are
entitled to receive escalation of 10% for every year. In support of his
contention, he relied upon the judgments and orders of Hon’ble Supreme
Court in Civil Appeal No. 5311/2012 (arising out of SLP © No. 34284/2011)
in the case of Ahsanul Hoda Vs. State of Bihar dated 1.7.2013, Civil Appeal
Nos. 4028-4029/2007 in the case of Sardar Jogendra Singh (D) by LRs. Vs.
State of UP & Anr. dated 28.8.2008 and General Manager, Oil and Natural
Gas Corporation Ltd. Vs. Rameshbhai Jivanbhai Patel and Anr. Reported in
(2008) 14 SCC 745 and contended that the claimants are entitled to receive
the cumulative escalation for every year. In the present case section 4
notification was published on 4.8.1994. The order passed in LAR No. 777/95
is dated 18.2.1998 and in that LAR section 4 notification was published on
24.5.1990. He submits that considering the above as in the present case
notification under section 4 was published in the year 1994, the claimants
are entitled to receive cumulative escalation for four years on the basis of
above LAR. He therefore prays to allow the appeal.
FA No. 614/09
3
5. Per contra, Mr. S.S. Dande, learned AGP for State submits that as
regards the order in LAR No. 777/1995 is concerned, even though that is
from the same village, that cannot be considered as binding precedent as
the claimant has to prove his own case by leading evidence. He has invited
my attention to that LAR wherein the reference court relied upon the sale
instance from village Loni which is 2 k.m. away from the present land which
was acquired from village Jaibhachiwadi and therefore, only because the
reference court has decided the reference from the same village, that
cannot be considered as comparable sale instance while determining the
market value of acquired land. He further submits that as regards
cumulative escalation is concerned that cannot be by way of right and the
same has to be determined by the concerned court by considering the
evidence led by the claimant. In support of his contentions, he placed
reliance on the judgment of Hon’ble Supreme Court in the case of Central
Warehousing Corporation Vs. Thakur Dwara Kalan Ul-Maruf Baraglan Wala
(Dead) and Ors., reported in (2024) 13 SCC 805 and Manik Panjabrao
Kalmegh Vs. Executive Engineer, Bembla Project Division Yavatmal and Ors.,
reported in 2024 SCC OnLine SC 3185.
6. Having heard the learned counsel for respective parties, with their
assistance, I have gone through the record and proceedings and judgment
and award of the reference court. After going through the record and
proceeding, I find that the contention of the claimant cannot be accepted for
the reasons that in earlier round i.e. in LAR No. 777/1995 the lands were
acquired on 24.5.1990 and here in the present case possession was taken
over in the year 1987. It further revealed that even the sale instance on
which the reference court relied in LAR No. 777/1995 was of the year 1990
FA No. 614/09
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and that was of the village Loni and therefore, in this case, though the
possession was taken in the year 1987, the sale instance used in LAR No.
777/1995 cannot be considered as comparable sale instance while
determining the market value.
7. Even in the present case also the reference court has considered the
sale instance, Exh. 16, which is from village Shelgaon, which is near to
Udgir and not from village Jaibhachiwadi. Therefore, considering the above,
the reference court has rightly determined the market value of the acquired
land and therefore, I hold that no case is made out by the claimant for
further enhancement. Hence, the appeal is devoid of merits and same is
dismissed.
( SIDDHESHWAR S. THOMBRE, J. )
ssc/
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