Bombay High Court
GANPAT JALBAJI KALEversusSTATE OF MAHA and ORS
- Disposal
- Admitted/Allowed/Granted/Rule Absolute
- Bench
- SANJAY A DESHMUKH
Holding
The appeals are allowed and compensation is fixed at Rs.75,600 per acre with statutory benefits.
Summary
The appellants (Balaji, Gyanoba, Osmankhan and Ganpat) challenged the compensation awarded for their agricultural lands acquired under Section 4 of the Land Acquisition Act, 1894. They contended that the Land Reference Court had not properly considered sale exemplars, particularly Exhibit‑33, and that a higher compensation was warranted. The respondents argued that the Court’s award reflected the market rate at the time of acquisition and that the exemplars were irrelevant. The High Court held that the 1982 sale exemplar, after a 20% size adjustment and a cumulative 10% annual escalation, justified a compensation of Rs.75,600 per acre and allowed the appeals, partially setting aside the earlier awards. The Court also directed payment of statutory benefits, interest and solatium, subject to condonation of delay.
Issues considered
- Whether the sale exemplars presented are relevant and admissible for determining the fair market value of the acquired agricultural lands.
- Whether the compensation awarded by the Land Reference Court should be enhanced based on the 1982 sale exemplar after adjusting for size and inflation.
- Whether the provisions of Section 4 of the Land Acquisition Act, 1894, govern the determination of compensation in this case.
- Whether statutory benefits such as interest and solatium are payable in addition to the enhanced compensation.
Legislation cited
- Land Acquisition Act, 1894 — s. 4
Subjects
- land acquisition
- compensation
- sale exemplars
- escalation
- statutory benefits
- interest
- solatium
- Section 4
- High Court of Bombay
Judgment
2026:BHC-AUG:9895
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902-904 First Appeal 832 of 2004 ors.odt
THE HIGH COURT OF JUDICATURE AT BOMBAY,
BENCH AT AURANGABAD.
FIRST APPEAL NO. 832 OF 2004
1. Balaji s/o Shankar Kale
Age: 38 years, Occu. Agril.,
R/o. Vasarni Tq. & Dist. Nanded.
2. Gyanoba s/o Shankar Kale,
Age: 35 years, Occu. Agril.
R/o. Vasarni Tq. & Dist. Nanded. ... Appellants
(Ori. Claimants)
Versus
1. The State of Maharashtra
Through Collector, Nanded.
2. The Special Land Acquisition Officer
Upper Penganga Project,
No.1, Janta Market First Floor,
College Road, Nanded.
3. City and Industrial Development
Corporation of Maharashtra
per its Administrator, Nanded. ... Respondents
…
Mr. A. R. Deshmukh, h/f Mr. B. G. Deshmukh, Advocate for Appellants.
Mr. S. B. Jadhav, AGP for Respondent Nos.1 & 2 / State.
Mr. Shambhuraje V. Deshmukh, Advocate for Respondent No.3.
…
AND
FIRST APPEAL NO. 833 OF 2004
Osmankhan S/o Imamkhan
Age-59 years, Occu: Agri
R/o Vasarni Tq. and Dist. Nanded. ... Appellant
(Ori. Claimant)
2
902-904 First Appeal 832 of 2004 ors.odt
Versus
1. The State of Maharashtra
Through Collector, Nanded.
2. The Special Land Acquisition Officer,
Upper Penganga Project
No.1 Janta Market First Floor
College Road, Nanded.
3. City & Industrial Development
Corporation of Maharashtra,
Nanded per its Administrator
R/o Nanded. ... Respondents
…
Mr. A. R. Deshmukh, h/f Mr. B. G. Deshmukh, Advocate for Appellant.
Mr. Virendra V. Jahagirdar, AGP for Respondent Nos.1 & 2 / State.
Mr. Shambhuraje V. Deshmukh, Advocate for Respondent No.3.
…
AND
FIRST APPEAL NO. 834 OF 2004
Ganpat s/o Jalbaji Kale
Age: 50 years, Occu. Agril.,
R/o. Vasarni Tq. & Dist. Nanded. ... Appellant
(Ori. Claimant)
Versus
1. The State of Maharashtra
Through Collector, Nanded.
2. The Special Land Acquisition Officer
Upper Penganga Project,
No.1, Janta Market First Floor,
College Road, Nanded.
3. City and Industrial Development
Corporation of Maharashtra
per its Administrator, Nanded. ... Respondents
3
902-904 First Appeal 832 of 2004 ors.odt
…
Mr. A. R. Deshmukh, h/f Mr. B. G. Deshmukh, Advocate for Appellant.
Mr. S. G. Joshi, AGP for Respondent Nos.1 & 2 / State.
Mr. Shambhuraje V. Deshmukh, Advocate for Respondent No.3.
…
CORAM : SANJAY A. DESHMUKH, J.
DATE : 28th January, 2026.
ORAL JUDGMENT:
1 These appeals are preferred by the claimants / appellants
against the separate judgments and awards dated 20th January, 2004
passed by the learned Land Reference Court, District Nanded, in
Land Acquisition References, as per the following chart:-
Sr. No. Appeal No. LAR No. Land Survey / Block No.
1 F.A. No.832 / 2004 LAR No.111 / 1988 53/B
2 F.A. No.833 / 2004 LAR No.54 / 1989 38/B/1
3 F.A. No.834 / 2004 LAR No. 90 / 1988 42/B/2
2 The learned Advocate for the appellants pointed out the
pleadings, the evidence, the impugned judgments and awards, and
the grounds of objections of the appeals. He submitted that there are
six sale exemplars at Exhibits – 33, 39, 40, 42, 43 and 54. The
highest sale exemplar at Exhibit – 39 is of Rs.77,000/- per Acre, dated
11th October, 1985, of the agricultural land was purchased for running
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902-904 First Appeal 832 of 2004 ors.odt
a petrol pump. He further pointed out a sale exemplar at Exhibit – 33,
which was executed on 7th May, 1982, for a consideration of
Rs.71,000/-, for 40 R land. He also pointed out the judgment and
award dated 14th August, 1992, passed by the learned Reference
Court in LAR No.95 of 1988, in which an amount of compensation @
Rs.72,248/- per Acre was awarded. He pointed out the reasons and
findings of the learned Reference Court and submitted that the
reasons given by the learned Reference Court are not convincing and
acceptable, either on facts or law. He submitted that the sale
exemplars were not properly appreciated. He pointed out that in LAR
No.111 of 1988 and LAR No.90 of 1988, the learned Reference Court
awarded compensation for the agricultural lands @ Rs.25,000/- per
Acre, however, in LAR No.54 of 1989, the amount of compensation for
the acquired land is awarded @ Rs.35,000/- per Acre. Why there is
discrimination, is not clarified by the learned Reference Court in the
reasons of the impugned judgments. He submitted that the sale
exemplar at Exhibit – 33 discloses that it was the land purchased for
the plotting or construction of houses of the Cooperative Society and it
has to be relied upon. He submitted to set aside the impugned
judgments and awards and allow these appeals by enhancing the
amount of compensation of the acquired lands of the appellants.
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902-904 First Appeal 832 of 2004 ors.odt
3 The learned AGP for respondent Nos.1 and 2 strongly
opposed these appeals and submitted that the reasons and findings
of the learned Reference Court are legal and correct and no
interference is warranted. He further pointed out that the reasons and
findings are as per the prevailing market rate at the time of notification
under Section 4 of the Land Acquisition Act, 1894. He submitted to
dismiss these appeals, as there is no substance in the grounds of
objections of it.
4 The learned Advocate for respondent No.3 also strongly
opposed these appeals and submitted that sale exemplar at Exhibit –
39, for consideration of Rs.77,000/- per Acre dated 11th October, 1985,
cannot be relied upon, as the said property was purchased for the
commercial purpose of running a petrol pump. He submitted that the
learned Reference Court has rightly appreciated the matter before it.
The claimants have not adduced the evidence to establish the
relevancy, applicability and that the sale transactions were bona-fide.
The claimants have not adduced evidence of location, advantages
and disadvantages of both the properties showing similarity or
distinction. He submitted that sale exemplar at Exhibit – 33 cannot be
relied upon because it is not adjacent property to the acquired lands
of the claimants. The claimants' properties are situated in an interior
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902-904 First Appeal 832 of 2004 ors.odt
part of rural area. The sale exemplar at Exhibit – 33 is of a small size
of one Acre land only and it was purchased by the Cooperative
Housing Society, as the said land was adjacent to that society.
Further, the said land and the cooperative society were adjacent to
the Gavthan area of village Vasarni. Therefore, it must have fetched
the higher value. He lastly submitted to dismiss these appeals, as
there is no substance in the grounds of objections of it.
5 Perused the impugned judgments, the evidence, the
pleadings, the grounds of objections of the appeals and the reasons
and findings in the impugned judgment.
6 The undisputed facts are that by notification published
under Section 4 of the Land Acquisition Act, 1894 (for short, “the said
Act”) dated 21st March, 1985, the lands of the claimants were
acquired. Thereafter, possession of the acquired lands was taken on
15th May, 1985 and final award was passed on 27th February, 1985 by
the Land Acquisition Officer (for short “the LAO”) by awarding the
compensation @ Rs.12,000/- per Acre. The learned Reference Court
awarded Rs.25,000/- per Acre in LAR Nos.111 and 90 of 1988, and
Rs.35,000/- per Acre in LAR No.54 of 1989.
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902-904 First Appeal 832 of 2004 ors.odt
7 On perusal of all the six sale exemplars alongwith the
judgment dated 14th August, 1992 passed by the learned Reference
Court in LAR No.95 of 1988, this Court is of the view that sale
exemplar at Exhibit – 39, which was relied upon by that Court in LAR
No.95 of 1988, was for the commercial purpose i.e. for running a
petrol pump and therefore, highest consideration must have been paid
by the purchaser for that. The sale exemplar at Exhibit – 43, dated
21st June, 1985, is executed after the process of acquisition was
completed in respect of appellants’ lands. Therefore, these two sale
exemplars i.e. Exhibits – 39 and 43 cannot be relied upon.
8 The sale exemplar at Exhibit – 33 was executed on 7 th
May, 1982, for a consideration of Rs.71,000/-, for 40 R land i.e. one
Acre. The said land is situated adjacent to village Vasarni purchased
by co-operative housing society having small size of 40 R, as
compared to the area of acquired lands of the claimants admeasuring
1 H 92 R, 1 H 21 R and 2 H 42 R. Further, the lands of the claimants
are not adjacent to the road or highway etc. In these circumstances, it
would be proper to deduct 20% of the amount for big size of lands of
the claimants. If 20% amount of Rs.14200/- per Acre is deducted
from Rs.71,000/-, then it comes to Rs.56,800/-.
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902-904 First Appeal 832 of 2004 ors.odt
9 The sale example at Execution – 33 was executed on 7 th
May, 1982, and the lands of the claimants were acquired on 21st
March, 1985. As per the settled law, the claimants are entitled to an
cumulative increase of 10% on account of escalation of prices on the
said amount of Rs.56,800/-. If the said amount of Rs.56,800/- is
increased by 10% with cumulative effect of three years, then it comes
to Rs.75,600/- per Acre, for which the claimants are entitled for
compensation for their acquired lands as on the date of notification
under Section 4 of the Land Acquisition Act dated 21 st March, 1985.
Therefore, these appeals deserve to be allowed. The impugned
judgments and awards deserve to be partly set aside. Hence, the
following order:-
ORDER
I. The first appeals are allowed.
II. The impugned judgments and awards are partly set
aside and modified as under:-
a) The claimants are entitled for the
compensation @ Rs.75,600/- per Acre for
their acquired lands, including the earlier
amount of compensation awarded and
received by the claimants.
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902-904 First Appeal 832 of 2004 ors.odt
b) The claimants are also entitled for additional
statutory benefits i.e. component, interest
and solatium as per the provisions of the
Land Acquisition Act, 1894.
c) Rest of the judgments and awards are
confirmed.
d) Award be drawn up as per the above
modification.
III. If delay caused in filing the first appeals at the
instance of the claimants has been condoned, the
claimants shall not be entitled to interest and other
statutory benefits for the said period of delay.
IV. Respondent No.3 is directed to deposit the
enhanced amount of compensation alongwith
statutory benefits, in this Court within a period of six
months from today.
V. If the court fees is not paid, on payment of court
fees, the enhanced amount of compensation be
paid to the claimants / appellants.
VI. Pending civil applications, if any, is disposed of.
VII. Record and proceedings be sent back.
[ SANJAY A. DESHMUKH, J. ]
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