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Bombay High Court

VIJAYABAI VIKRAM HIPPARKARversusSTATE OF MAHARASHTRA and ORS

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The market value of the acquired land is Rs 200,000 per hectare, and the appeal is partly allowed.

Summary

The land of 1 hectare 26 gunta in Pakharsavangi village was acquired in 1993 for the Wasangaon Tank under the Land Acquisition Act. The Special Land Acquisition Officer awarded Rs 65,000 per hectare in 1995, which the claimant challenged under Section 18, leading the reference court to raise compensation to Rs 130,000 per hectare based on a single sale instance (Exh 28). The appellant argued that the reference court erred by ignoring other comparable sales and failing to explain the exclusion of those instances. The High Court held that a more recent adjacent‑plot sale, after applying a 10 % deduction, yielded a market value of approximately Rs 195,000 per hectare, which it rounded to Rs 200,000 per hectare. Consequently, the appeal was partly allowed, granting the higher compensation, interest, statutory benefits, and directing the claimant to seek rental compensation from the Collector.

Issues considered

  • Whether the reference court correctly determined the market value of the acquired land by relying solely on one sale instance.
  • Whether other comparable sale instances should have been considered in assessing market value under Section 18 of the Land Acquisition Act.
  • Whether a deduction is appropriate in calculating market value from the sale of an adjacent plot.
  • Whether the claimant is entitled to rental compensation for possession taken before the Section 4 notification.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value determination
  • Section 18
  • reference court
  • rental compensation
  • interest
  • deduction

Judgment

2026:BHC-AUG:41127

                                                                                FA 927/06
                                                   1

                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    BENCH AT AURANGABAD

                                 11 FIRST APPEAL NO. 927 OF 2006

                                  VIJAYABAI VIKRAM HIPPARKAR
                                            VERSUS
                                STATE OF MAHARASHTRA AND ORS
                                               ...
                              Advocate for Appellant : Mr. B.N. Patil
                            AGP for Respondents 1 & 2 : Mr. A.D. Wange
                                               ...

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

            PER COURT :-

            1.    As the acquisition proceedings were initiated in the year 1993, heard

            finally with the consent of learned counsel for the respective parties.

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

            and award dated 21.4.2006 passed by the learned Civil Judge, Senior

            Division, Latur in LAR No. 362/1996, whereby the reference court has not

            granted compensation as claimed by the appellant.

            3.    The land of the claimant admeasuring 1 H. 26 R. from village

            Pakharsavangi, District Latur was acquired for the purpose of Wasangaon

            Tank. Notification under section 4 of the Land Acquisition Act was published

            on 11.3.1993. The Special Land Acquisition Officer (SLAO) has passed the

            award on 21.4.1995 and granted compensation at the rate of Rs.65,000/

            per H. Being dissatisfied with 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 land.

            Before the learned reference court the claimant relied upon the sale

            instance dated 6.3.2002 Exh.28 and on the basis of the same, the the
                                                                  FA 927/06
                                     2

learned reference court has enhanced the compensation at the rate of

Rs.1,30,000/- per H. Being dissatisfied with the same, the present appeal is

filed by the original claimant.

4.    Mr. B.N.Patil, learned counsel for appellant submits that the SLAO

awarded meager compensation and therefore, claimant preferred LAR No.

362/1996. The claimant relied upon sale instances at Exh. 27, 28 and 33.

He submits that the learned reference court has erred in determining the

market value of the acquired land solely relying on the sale instance at Exh.

28. The learned reference court has failed to assign cogent and satisfactory

reason for discarding the other sale instances. He therefore prays to allow

the appeal.

5.    Per contra, the learned AGP Mr. Wange supports the impugned

judgment and award and submits that the learned reference court has

rightly relied upon sale instance, Exh. 28 and correctly determined the

market value of the acquired land. He therefore prays to dismiss the appeal.

6.    Heard the learned counsel for the respective parties and with their

assistance I have gone through the record and proceedings and impugned

judgment and award. From perusal of the same, it appears that notification

under section 4 was published on 11.3.1993 and SLAO has declared the

award on 21.4.1995. The claimants relied upon the sale instance dated

26.9.1991, Exh. 28 by which 1 Acre 1 Gunta land was sold at the rate of

Rs.87,000/- However, the reference court has determined the rate of

acquired land as per sale instance, Exh. 28, which in my opinion is not

proper. The reference court discarded the sale instances relied upon by the

claimant without giving any reasons. One sale instance which was prior to

section 4 notification was available and the land involved in the said sale
                                                                       FA 927/06
                                         3

instance was at the distance of one and half k.m. from the acquired land.

On perusal of the record, it is seen that plots were led adjacent to the

acquired land and and the said sale instance is in respect of plot, and

adjacent to the acquired land involved in the present matter and therefore,

the same can be considered as more advantageous to the claimant. As the

said sale instance is in respect of plot, certain deductions needs to be

applied and therefore, this court holds that 10% deductions would be proper

to determine the market value of the acquired land. Therefore, after

applying 10% deductions from the sale deed the rate comes to around Rs.

1,95,000/- per H. and therefore, by rounding it off, I hold that the claimant

is entitled to receive compensation at the rate of Rs.2,00,000/- per H. It

was brought to my notice that possession was taken over prior to section 4

notification long back and therefore, claimant is entitled to receive rental

compensation as per the policy of the State. In view of the above, I pass

the following order :-

                                    ORDER

(i)     The appeal is partly allowed.

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

Rs.2,00,000/- per H. for acquired land.

(iii)   The claimant is entitled to receive interest and other statutory

benefits in view of the law laid down by the Full Bench of this Court in the

case of State of Maharashtra Vs. Kailash Shiva Rangari, 2016 (3) Mh.L.J.

457.

(iv)    The claimant is at liberty to file application before the Collector, Latur

for rental compensation. If such an application is filed, the Collector, Latur

to decide the same within a period of eight weeks from the date of
                                                                  FA 927/06
                                        4

appearance by giving opportunity of hearing to acquiring body or other

concerned and to pass the order in view of the policy of the Government

and pay compensation, if the claimant is eligible for the same.

(v)    Pending civil application, if any, stands disposed of.



                                            ( SIDDHESHWAR S. THOMBRE, J. )

ssc/


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