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Bombay High Court

THE EXECUTIVE ENGINEER, OSMANABAD MEDIUM PROJECTversusTHE STATE OF MAHARASHTRA AND OTHERS

Disposal
DISPOSED OFF

Holding

Interest on compensation must be payable as laid down in State of Maharashtra v. Kailash Shiva Rangari, and the rest of the award stands confirmed.

Summary

The Executive Engineer, Osmanabad Medium Project appealed against the State of Maharashtra challenging the quantum of interest payable on compensation awarded under Sections 28 and 34 of the Land Acquisition Act, 1894. The claimants had withdrawn the amount already paid and the matter was referred to the National Lok Adalat for settlement. The panel examined the legal position on interest and reiterated the precedent set by State of Maharashtra v. Kailash Shiva Rangari (2016) that interest must be calculated as per that decision. Accordingly, all first appeals were disposed of with a marginal modification directing that interest be paid in accordance with the Rangari case, while the rest of the award was confirmed. The appellant was permitted to initiate recovery proceedings for any amount overpaid to the claimants, and the record was sent back to the reference court.

Issues considered

  • The correct rate and mode of interest payable on compensation under Sections 28 and 34 of the Land Acquisition Act, 1894.
  • Whether the earlier award and judgment should be modified or confirmed.

Legislation cited

Subjects

  • Land Acquisition
  • Interest on Compensation
  • Lok Adalat
  • Settlement
  • Overpayment Recovery
  • Maharashtra
  • Legal Services

Judgment

                                (1)
                                                   Sr. No. 139-140.odt


  BEFORE THE NATIONAL LOK ADALAT HELD AT HIGH COURT OF
                        BOMBAY
                  BENCH AT AURANGABAD

      Organized by High Court Legal Services Sub-Committee,
Aurangabad under section 19, of the Legal Services Authorities Act,
1987 (Central Act)

Appellant : THE EXECUTIVE ENGINEER, OSMANABAD MEDIUM
             PROJECT

Respondents : THE STATE OF MAHARASHTRA AND OTHERS


No. of proceedings : FIRST APPEAL NO. 3692 OF 2018
                              WITH
                  FIRST APPEAL NO. 3696 OF 2018
                              WITH
                  FIRST APPEAL NO. 3697 OF 2018
                              WITH
               CIVIL APPLICATION NO. 15976 OF 2013
                          IN FA/3696/2018
                               WITH
                  FIRST APPEAL NO. 3695 OF 2018
                               WITH
               CIVIL APPLICATION NO. 15978 OF 2013
                          IN FA/3697/2018
                               WITH
               CIVIL APPLICATION NO. 15974 OF 2013
                          IN FA/3695/2018
                               WITH
               CIVIL APPLICATION NO. 15972 OF 2013
                          IN FA/3694/2018
                              WITH
                CIVIL APPLICATION NO. 984 OF 2014
                          IN FA/3692/2018
                              WITH
               FIRST APPEAL NO. 3694 OF 2018

                             AND
               140 FIRST APPEAL NO. 925 OF 2019
                             WITH
              CIVIL APPLICATION NO. 15442 OF 2013
                         IN FA/925/2019
                                    (2)
                                                      Sr. No. 139-140.odt


   THE EXECUTIVE ENGINEER, OSMANABAD MEDIUM PROJECT
                            VERSUS
          THE STATE OF MAHARASHTRA AND OTHERS
                              ...
                             WITH
                FIRST APPEAL NO. 924 OF 2019
                             WITH
            CIVIL APPLICATION NO. 15441 OF 2013
                        IN FA/924/2019
                             WITH
                FIRST APPEAL NO. 927 OF 2019
                             WITH
            CIVIL APPLICATION NO. 15449 OF 2013
                        IN FA/927/2019
                             WITH
            CIVIL APPLICATION NO. 15446 OF 2013
                        IN FA/926/2019
                              WITH
                FIRST APPEAL NO. 926 OF 2019
                              AND
            FIRST APPEAL (ST) No. 14296 OF 2013
             EXECUTIVE ENGINEER, MEDIUM PROJECT
             DIVISION, OSMANABAD
                            VERSUS
             MURALIDHAR BHAVANI GHULE AND OTHERS
                             AND
            FIRST APPEAL (ST) No. 14629 OF 2013
            EXECUTIVE ENGINEER, MEDIUM PROJECT
            DIVISION, OSMANABAD
                            VERSUS
            CHHBABAI CHAGAN GHULE AND OTHERS

Present :-

Name of Hon’ble High Court Judge: SHRI SHAILESH P. BRAHME

Retired Judicial Officer: Shri. Kishor R. Chaudhari

Name of Member : Adv. Yogita S. Thorat (Kshirsagar)

                                AWARD

             The dispute between the parties has been referred for
settlement before the Lok Adalat.
                                   (3)
                                                       Sr. No. 139-140.odt
1.    Learned counsels Mr. Gulab Rajale and Smt. S.D. Shelke

respectively for the appellant/ Acquiring Body along with officer

namely Mr. Askasi Mohd. Umar, Sub Divisional Officer, and learned

A.G.P. Mr. A.M. Phule for the State are present before the panel.



2.    None appeared for the private party/ claimants, though duly

served in the First Appeal.



3.    The challenge in the First Appeals are in respect of the payment

of interest under Sections 28 and 34 of the Land Acquisition Act,

1894. It is settled legal position that, the interest would be payable as

per the law laid down in the case of State of Maharashtra Vs. Kailash

Shiva Rangari 2016(4) ALL MR 513. The counsel for the appellants

confirms that there is no challenge on any other ground in the

appeals.



4.    All First Appeals shall stand disposed of with the marginal

modification that the interest under Sections 28 and 34 of the Land

Acquisition Act shall be payable as per law laid down by Full Bench in

the case of State of Maharashtra Vs. Kailash Shiva Rangari (supra)



4.    Rest of the judgment and award in the appeal under challenge

stands confirmed as it is.
                                   (4)
                                                        Sr. No. 139-140.odt
5.     The respondents/ claimants have withdrawn the amount from

the Reference Court and in view of marginal modification of the

impugned judgment and award, it would be open for the appellant/

Acquiring Body to initiate proceedings for recovery of amount, which

is found to be overpaid to the claimants, as is permissible in the law.

6.     Award be drawn up accordingly.


7.     Record and proceedings be sent back to the Reference Court.



8.       The parties are informed that the Court fee, if any, paid by any

of them, shall be refunded.



YOGITA S. THORAT KISHOR R. CHOUDHARI SHAILESH P. BRAHME. J
       MEMBER        Rtd. DISTRICT JUDGE      HEAD OF THE PANEL


 Date: 14.03.2026


                                  (Seal of the Authority/Committee)
Ysk/


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