Bombay High Court
ASSISTANT ENGINEER (C) MSEB (NOW MSEDCL) CIVIL CONSTRUCTION SUB DIVN BEHIND USHA KIRAN TALKIES LATUversusNANDKUMAR DNYANOBA DARPHALKAR AND ANR
- Disposal
- DISMISSED
Holding
The appeal is dismissed; the Reference Court’s award of enhanced compensation for the whole acquired land is upheld.
Summary
The appellant, an acquiring body, challenged a 2008 award that enhanced compensation for land acquired in 1991 for a 33 kV sub‑station. The claimants had originally sought Rs 15 per sq ft but were awarded Rs 10 per sq ft, which the Reference Court later enhanced to Rs 6 per sq ft. The appellant argued that the court wrongly relied on sale instances of house properties and should have deducted 20 % of the land area for development expenses as claimed by the petitioners. The respondents contended that the 20 % deduction was not a consent and that the enhanced award for the whole land was proper, relying on the Supreme Court’s decision in Bhagwathula Samanna. The High Court examined the facts, held that the land was already developed and no deduction was warranted, and found the Reference Court’s determination appropriate. Consequently, the appeal was dismissed without costs.
Issues considered
- Whether the claimants’ self‑stated 20 % deduction for development expenses constitutes a consent that must be applied in computing compensation.
- Whether sale instances of house properties can be used to determine the market value of agricultural land acquired under the Land Acquisition Act.
- Whether the Reference Court erred in enhancing compensation for the entire acquired land.
- Whether the appeal has merit to set aside the enhanced compensation award.
Legislation cited
- Land Acquisition Act, 1894 — s. 4
Subjects
- land acquisition
- compensation
- enhanced compensation
- market value
- development expense deduction
- Section 4
- appeal dismissed
Judgment
2026:BHC-AUG:36401
910-FA-920-2010.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
910 FIRST APPEAL NO. 920 OF 2010
Assistant Engineer (c) Mseb (now Msedcl) Civil Construction Sub Divn
Behind Usha Kiran Talkies Latu
VERSUS
Nandkumar Dnyanoba Darphalkar And Anr
...
Mr. A. M. Gaikwad for the Appellant.
Mr. Sachin Pahale for Respondent No.1.
Mr. B. A. Shinde, AGP for State.
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 6 AUGUST 2026
P. C.:
1. As the acquisition proceeding is of the year 1991, the Appeal is being
heard finally with the consent of learned counsel for the respective parties.
2. By this Appeal, the Appellant-acquiring body is challenging the
judgment and award dated 2nd May 2008, passed by the Ad hoc District
Judge-2, Latur in LAR No.576 of 1996 whereby enhanced compensation
came to be granted to the claimants.
3. The land of the claimants was acquired for the purpose of installation
of 33 KV sub-station at village Matola Tq. Ausa, Dist. Latur. The notification
under Section 4 was published on 11th November 1991, the possession was
taken prior to notification under Section 4 on 25 th January 1991, award was
passed on 11th December 1994 thereby awarding compensation @Rs.10/-
Shubham Page 1 of 4
910-FA-920-2010.doc
per sq. mt., the claimants had claimed compensation @Rs.15/- per sq. ft.
The learned Reference Court enhanced the same to Rs.6/- per sq. ft.
4. The learned counsel for the acquiring body submits that the learned
Reference Court has erroneously relied upon sale instances below Exhs.22,
23 and 24 while determining market value of the acquired land @Rs.6/- per
sq. ft. He further submits that once the claimants themselves have
mentioned in the claim petition about 20% area to be deducted towards
development expenses, the learned Reference Court ought not have granted
compensation for the whole acquired land. Therefore, he submits that the
impugned award requires modification to the extent of deducting 20% area
while determining enhanced compensation. He further submits that sale
instances below Exhs.23 and 24 pertain to house properties whereas the
acquired land is an agricultural land. Therefore, the learned Reference Court
ought not have relied upon said sale instances. Therefore, he prays to allow
the First Appeal and quashed the impugned award.
5. Per contra, learned counsel for the claimant supports the impugned
award by contending that though the claimants have themselves deducted
20% area while claiming enhanced compensation, the same shall not be
regarded as consent. Once the land was acquired for installation of electicity
sub-station, such deduction of 20% towards development expenses is wholly
unwarranted, though the claimants had mentioned in claim petition about
such deduction while claiming compensation. The learned Reference Court
Shubham Page 2 of 4
910-FA-920-2010.doc
has rightly granted enhanced compensation for the whole acquired land by
ignoring the fact that the claimants had deducted 20% area towards
development expenses. By relying upon the law laid down by the Hon’ble
Apex Court in Bhagwathula Samanna & Ors. Vs. Special Tahsildar and Land
Acquisition Officer Visakhapatnam Municpality, Visakhapatnam [(1991) 4
SCC 506], he prays to dismiss the First Appeal.
6. Having heard rival submissions of the learned counsel and perusing
the record, the claimants mentioned about deduction of 20% area from the
acquired land towards development expenses, but the same cannot be said
to be an explicit consent given by the claimants and the learned Reference
Court has to decide the reference by dwelling into the facts and
circumstances of the case. In the present matter, the learned Reference Court
has granted enhancement for the whole acquired land of 80R by considering
that there is no necessity to deduct 20% area towards development
expenses, which in my opinion is appropriate.
7. The learned Reference Court has relied upon sale instances below
Exhs.22, 23 and 24 dated 16th April 1991, 6th December 1989 and 27th May
1991, which were prior to Section 4 notification, wherein the market value
was Rs.5/- per sq. ft. and Rs.6/- per sq. ft. The learned Reference Court
considered the market value of the whole acquired land @Rs.6/- per sq. ft.
The learned Reference Court has recorded finding that the acquired land is
already a developed land and thus there is no need to deduct 20% area
Shubham Page 3 of 4
910-FA-920-2010.doc
towards development. Hence, I am of the opinion that the impugned award
warrants no interfere.
8. The First Appeal, being devoid of merits, stands dismissed. No order
as to costs.
9. Pending Civil Applications, if any, stand disposed of.
[SIDDHESHWAR S. THOMBRE, J.]
Shubham Page 4 of 4
Checking your session…