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Bombay High Court

BHIMRAO GURAPPA ARALEversusTHE STATE OF MAHARASHTRA AND ANR

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The court held that the appropriate compensation for the acquired irrigated land is Rs 36,000 per acre, derived from the comparable sale of Rs 40,000 per acre with a 10% deduction.

Summary

The appellant's land of approximately 3.71 acres was acquired in 1989 for the Palas‑Nilegaon Minor Irrigation Tank. The Special Land Acquisition Officer awarded Rs 20,000 per acre, which the claimant accepted under protest and then sought a higher market value under Section 18 of the Land Acquisition Act, 1894. The reference court, after examining sale deeds, fixed compensation at Rs 30,000 per acre, rejecting the claimant's claim of Rs 60,000. On appeal, the High Court held that a sale deed of one acre for Rs 40,000 (including a half‑share in a well) was a comparable transaction for irrigated land and, after a 10% deduction, set the appropriate compensation at Rs 36,000 per acre, granting statutory benefits and interest except for the period between the original award and the filing of the appeal. The appeal was partly allowed and the reference court's award was modified accordingly.

Issues considered

  • Whether the sale deed of 8‑Feb‑1989 can be treated as a comparable sale for determining market value of irrigated land.
  • What is the correct compensation rate per acre under the Land Acquisition Act, 1894 for the acquired irrigated land.
  • Whether the appellant is entitled to interest and other statutory benefits on the enhanced compensation.
  • Effect of the period between the original award and the filing of the present appeal on entitlement to interest.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value
  • irrigated land
  • interest
  • statutory benefits
  • Section 18
  • comparable sale

Judgment

2026:BHC-AUG:41160

                                                                             FA 656/08
                                                1

                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                                  56 FIRST APPEAL NO. 656 OF 2008

                                    BHIMRAO GURAPPA ARALE
                                              VERSUS
                             THE STATE OF MAHARASHTRA AND ANR
                                                 ...
                     Advocate for Appellant : Ms. Prerna M. Kharat (appointed)
                               AGP for Respondents: Mr. D.R. Korde
                                                 ...

                                       CORAM      : SIDDHESHWAR S. THOMBRE, J.
                                       Dated      : August 31, 2026

            PER COURT :-

            1.    As the present acquisition proceedings were initiated in the year

            1989, heard finally with the consent of the learned counsel for the

            respective parties.

            2.    By this appeal, the appellant/original claimant assails the judgment

            and award dated 9.8.2007 passed by the learned Jt. Civil Judge, Senior

            Division, Osmanabad in LAR No. 197/1996, whereby the reference court has

            enhanced the compensation, but not granted as prayed by the claimant.

            3.    The land of the claimant admeasuring 1 H. 25 R. from Gat No.

            497/KH and 2 H. 46 R. from Gat No. 484/B situated at village at Andoor

            (Dhangarwadi), Tq. Tuljapur, District Osmanabad were acquired for the

            purpose of Palas-Nilegaon Minor Irrigation Tank. Notification under section

            4 of the Land Acquisition Act was published on 20.7.1989 and it was also

            published in Government Gazette on 1.8.1991. The learned Special Land

            Acquisition Officer (SLAO) passed the award on 4.9.1993 and granted

            compensation at the rate of Rs.20,000/- per Acre for acquired lands. The

            claimant received the said amount under protest and being dissatisfied with
                                                                   FA 656/08
                                       2

the award of the SLAO, the claimant filed an application before the Collector

for referring the matter under section 18 of the Act for proper determination

of the market value of the acquired lands. The learned reference court after

going through the evidence and examining the record and relying upon the

sale instances below Exh. 31 recorded finding that rate comes to

Rs.40,000/-   per   Acre.   However,   the   reference   court   has   granted

compensation at the rate of Rs.30,000/- per Acre without any reason,

though claimant has claimed compensation at the rate of Rs.60,000/- per

Acre. Hence, the present appeal is filed.

4.    Ms. Prerna M. Kharat, learned counsel appointed for appellant

submits that the reference court has not considered the evidence available

on record, especially, the sale instances below Exhs. 31 and 32 in it’s proper

perspective and has granted meager compensation for the irrigated lands.

She therefore prays to enhance the compensation.

5.    Per contra, Mr. D.R. Korde, learned AGP supports the order passed by

the reference court and submits that the reference court has rightly

considered evidence on record and granted proper compensation. He

therefore, prays to dismiss the appeal filed by the claimant.

6.    Having heard the learned counsel for the respective parties, with their

assistance I have gone through the record and proceedings, the impugned

judgment and award of the reference court as well as SLAO, 7/12 extracts

and the sale deeds etc. Here in the present case, there is no dispute about

the fact that the lands of the claimant were acquired for Palas-Nilegaon

Minor Irrigation Project. Section 4 notification was published on 20.7.1989

and it was also published in Government Gazette on 1.8.1991. Before the

reference court, the claimant has relied upon two sale deeds below Exh. 26
                                                                   FA 656/08
                                         3

and 31. As regards sale deed, Exh. 26, dated 18.6.1990 is concerned, that

was after section 4 notification and therefore, that cannot be considered as

comparable sale instance. As regards sale deed Exh. 31, dated 8.2.1989 is

concerned, that was for one Acre land, which was sold for Rs.40,000/- along

with 1/2 share in the well. Here in this case the acquired lands were

irrigated lands and even the reference court has recorded finding that there

was one well as per the evidence of Jr. Engineer and the claimant was

cultivating the acquired land through the source of water and taking crops

like sugarcane, wheat, sunflower and groundnut etc. and therefore, it can

be safely gathered that acquired lands are irrigated lands. Therefore, the

sale deed, Exh. 31 can be considered as comparable sale instance. By

applying 10% deduction the rate comes to Rs.36000/- per Acre. Hence, I

pass the following order.

                                    ORDER

(i)     The appeal is partly allowed.

(ii)    The appellant/claimant is entitled to receive compensation at the rate

of Rs.36,000/- per Acre for their acquired lands.

(iii)   The appellants/claimants shall be entitled to all consequential

statutory benefits including interest under the provisions of the Land

Acquisition Act, 1894 on the enhanced compensation in view of the

judgment of Full Bench of this Court in the case of State of Maharashtra vs.

Kailas Shiva Rangari, 2016 (4) Mh.L.J. 457.

(iv)    The claimant shall not be entitled to receive interest and other

statutory benefits for the delayed period, if any, i.e. from the date of award

till the filing of the present appeal.

(v)     The claimant to pay deficit court fees, if any, on enhanced amount.
                                                                 FA 656/08
                                        4

(vi)    The impugned judgment and award of the reference court is modified

accordingly.

(vii)   Rest of the award shall remain unaltered.

(viii) Civil Application, if any, stands disposed of.

(ix)     High Court Legal Services Sub-Committee, Aurangabad shall pay

fees of Rs.6,000/- (Rupees six thousand only) to Ms. Prerna M. Kharat,

learned counsel appointed for appellant.



                                            ( SIDDHESHWAR S. THOMBRE, J. )

ssc/


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