Bombay High Court

G MADHUSUDAN REDDY GANGA REDDY L.RS. GEDDAM DHARMENDRA L.RS GADDAM NARENDRA and ORSversusTHE STATE OF MAH and ORS

Disposal: PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The court modified the award, granting compensation at Rs 1.50 per sq ft with statutory benefits and interest, and prohibited any deduction for development cost.

Summary

The appellants, Balaji Vaijanathrao Damkondwar and others, appealed against a judgment and award dated 10 February 2006 by the Civil Judge, Senior Division, Ahmedpur, which refused to enhance compensation for land acquired in 1977. They argued that the compensation should be increased and that no deduction should be made for development costs, invoking benefits under the Land Acquisition Act. The High Court noted a prior decision in First Appeal No. 541 of 2006 (dated 17 March 2022) arising from the same acquisition proceedings and chose to follow that precedent. Accordingly, the court partly allowed the appeals, modifying the award to grant compensation at Rs 1.50 per square foot with statutory benefits and interest, and expressly disallowed any deduction for development cost. The remainder of the original award was confirmed, and the case was remitted to the reference court for implementation.

Issues considered

What is the appropriate rate of compensation for land acquired under the 1977 acquisition proceedings?
Should statutory benefits and interest under the Land Acquisition Act be awarded to the claimants?
Is a deduction for development cost permissible in the compensation award?
Should the earlier judgment be modified in light of the precedent set in First Appeal No. 541 of 2006?

Legislation cited

Land Acquisition Act

Subjects

land acquisition
compensation
statutory benefits
interest
development cost
judgment modification
precedent

Judgment

2026:BHC-AUG:38281
                                                1 of 3                  904-FA.711.2006



                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                                 904 FIRST APPEAL NO.711 OF 2006

                               BALAJI VAIJANATHRAO DAMKONDWAR
                                              VERSUS
                              THE STATE OF MAHARASHTRA AND ORS
                                                 ...
               Mr. S. S. Halkude, Advocate for Appellant.
               Mr. D. R. Korde, AGP for Respondent-State.
               Mr. R. D. Reddy, Advocate for Respondent No.4.
                                                 ...
                                                WITH
                                   FIRST APPEAL NO.712 OF 2006

                      G. MADHUSUDAN REDDY GANGA REDDY L.RS. GEDDAM
                         DHARMENDRA L.RS GADDAM NARENDRA AND ORS
                                              VERSUS
                              THE STATE OF MAHARASHTRA AND ORS
                                                 …
               Mr. S. S. Halkude, Advocate for Appellants.
               Mr. D. R. Korde, AGP for Respondent-State.
               Mr. R. D. Reddy, Advocate for Respondent No.4.
                                                 ...
                                         CORAM :         SIDDHESHWAR S. THOMBRE, J.
                                         DATE    :       19th AUGUST, 2026

               P.C.:-

               1.        Since the acquisition proceedings pertain to the year 1977,

               the appeals are heard finally with the consent of the learned Advocates

               for the respective parties.

               2.        By the present appeals, the Appellants/Claimants are

               challenging the judgment and award dated 10.02.2006 passed by the

               learned Civil Judge Senior Division, Ahmedpur in LAR Nos.08/2001

               (Old No.245/1980) and 06/2001 (Old No.244/1980), whereby the
                                   2 of 3                   904-FA.711.2006



learned Reference Court refused to enhance the compensation to the

extent claimed by the Appellants/Claimants.

3.          Learned Advocate for the Appellants/Claimants submits that

this Court has taken a view in First Appeal No.541 of 2006 decided on

17.03.2022 arising out of same acquisition proceeding.

4.          Upon perusal of order passed by this Court in First Appeal

No.541 of 2006, I am inclined to adopt the same view in the present

appeals.     Therefore, present appeals are disposed of accordingly.

Hence, I proceed to pass the following order:-

                                 ORDER


     (i)    The first appeals stand partly allowed.

     (ii)   The impugned judgment and award passed in L.A.R.
            Nos.08 and 06 of 2001 by the Civil Judge, Senior
            Division, Ahmedpur/reference Court dated 10.02.2006
            is modified to the extent of deduction.

     (iii) The rest of judgment and award passed by the
            reference Court is hereby confirmed.

     (iv)   The    appellants/claimants     are     entitled     to    get
            compensation in respect of their acquired land at the
            rate of Rs.1.50 paise per sq. ft. along with statutory
            benefits   and   interest   available   under      the    Land
            Acquisition   Act.   However,     without    making        any
            deduction under the head of development cost.

     (v)    Award be modified accordingly.
                                        3 of 3               904-FA.711.2006



          (vi)   No order as to the costs.

          (vii) R & P be sent back to the reference Court.


                                          (SIDDHESHWAR S. THOMBRE, J.)

Tauseef

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