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Bombay High Court

AMARSING CHAMARYA PADVI DECEASED THROUGH LRS JALAMSING CHAMARYA PADVI AND OTHERSversusTHE STATE OF MAHARASHTRA AND ANOTHER

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The High Court held that the adjacent‑village sale is a comparable transaction after appropriate deductions and escalation, and the market value must be fixed at Rs 92,928 per hectare, thereby quashing the earlier award.

Summary

The appellants claimed land acquired for a minor irrigation project in Amlibari village and were compensated at Rs 53,000 per hectare by the Special Land Acquisition Officer. Dissatisfied, they filed references under Section 18 of the Land Acquisition Act, 1894, relying on a sale of agricultural land in the nearby village of Rajmohi (Exhibit 22) as a comparable transaction. The Reference Court rejected the references, deeming the sale non‑comparable. The High Court held that, in the absence of any sale from Amlibari, the Rajmohi transaction could be treated as comparable after a 20% location deduction and a 10% per‑annum escalation to the notification date, arriving at a market value of Rs 92,928 per hectare. Consequently, the Court partially allowed the appeals, quashed the earlier judgment and award, and ordered the compensation to be enhanced accordingly, with interest and statutory benefits.

Issues considered

  • Whether the Reference Court erred in rejecting the claimants' references under Section 18 of the Land Acquisition Act, 1894.
  • Whether a sale transaction from an adjacent village can be considered a comparable sale for valuation purposes.
  • What adjustments and escalations are appropriate to determine the market value of the acquired land.

Legislation cited

Subjects

  • Land acquisition
  • Compensation enhancement
  • Valuation of agricultural land
  • Comparable sale
  • Section 18 reference
  • Interest on compensation
  • Statutory benefits

Judgment

2026:BHC-AUG:41856
                                                                      901-FA-929-2015.odt
                                             1

                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                BENCH AT AURANGABAD
                             901 FIRST APPEAL NO. 929 OF 2015
                             Monya Monshi Naik (Deceased)
                        Through L.Rs. Atrya Divlya Naik And Another
                                          VERSUS
                           The State Of Maharashtra And Others
                                          WITH
                               FIRST APPEAL NO. 927 OF 2015
                               Atrya Divalya Naik and Others
                                          VERSUS
                            The State Of Maharashtra And Others
                                          WITH
                               FIRST APPEAL NO. 928 OF 2015
                              Supa Chhanya Valvi and Others
                                          VERSUS
                            The State Of Maharashtra And Others

                                          WITH
                               FIRST APPEAL NO. 930 OF 2015

                          Resubai @ Relubai Vesta Valvi and Others
                                         VERSUS
                           The State Of Maharashtra And Others
                                          WITH
                               FIRST APPEAL NO. 931 OF 2015
                              Jatrya Monshi Naik (Deceased)
                        Through L.Rs. Bhanga Jatrya Naik and Others
                                         VERSUS
                           The State Of Maharashtra And Others
                                          WITH
                               FIRST APPEAL NO. 932 OF 2015
                           Amarsing Chamarya Padvi (Deceased)
                     Through L.Rs. Jalamsing Chamarya Padvi and Others
                                          VERSUS
                           The State Of Maharashtra And Others
                                            ……
          Mr. Dhananjay Mane, Advocate h/f Mr. D.M. Pingale, Advocate for
          Appellants-Claimants
          Mr. S.N. Morampalle, AGP for Respondents No.1 and 2
                                            ……
                                                                901-FA-929-2015.odt
                                          2


                                   CORAM : SIDDHESHWAR S. THOMBRE, J.
                                   DATE       : 04 SEPTEMBER, 2026
PER COURT :

1.     Heard the learned counsel Mr. Dhananjay Mane, holding for Mr.

D.M. Pingale, learned counsel for the appellants-claimants, and the learned

AGP Mr. S.N. Morampalle for Respondents No.1 and 2. Though served, none

appears for Respondent No.3.


2.     These appeals take exception to the common Judgment and Award

dated 14.10.2014 passed by the learned Civil Judge, Senior Division,

Shahada in Land Acquisition Reference Nos.01 of 2009 to 06 of 2009,

whereby the references preferred by the respective claimants under Section

18 of the Land Acquisition Act, 1894 (for short, “the Act”) came to be

rejected.


3.     The lands belonging to the respective claimants, situated at village

Amlibari, Taluka Akkalkuwa, District Nandurbar, came to be acquired for the

Minor Irrigation Project, Amlibari. The particulars of the acquired lands are

as under:

            Sr. No.    LAR No.            Survey/Gat No.   Area Acquired
               1.     01 of 2009              66/29          1 H 09 R
               2.     02 of 2009                68           0 H 09 R
               3.     03 of 2009               66/1          1 H 10 R
               4.     04 of 2009                60          02 H 02 R
               5.     05 of 2009                65          02 H 43 R
               6      06 of 2009                67           0 H 01 R
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4.     The notification under Section 4 of the Act was published on

08.07.2004. The Special Land Acquisition Officer (for short, “the SLAO”)

thereafter passed the Award under Section 11 of the Act on 10.06.2006 and

determined the market value of the acquired dry land at the rate of

Rs.53,000/-   per   hectare.   Being   dissatisfied    with   the   quantum         of

compensation, the claimants received the amount under protest and sought

references under Section 18 of the Act. The said references were accordingly

made to the learned Reference Court.


5.     Before the learned Reference Court, the claimants relied upon sale

instances from adjacent villages, including the sale instance at Exhibit 22

from village Rajmohi and another sale instance from village Korai. The

learned Reference Court noticed that no sale instance from village Amlibari

was available. It examined the relied-upon sale instances and observed that

the transaction from village Korai was not comparable, inter alia, having

regard to the distance and the nature of the land. In respect of the sale

instance relied upon at Exhibit 22, the learned Reference Court proceeded

on the basis that the lands covered by the sale instances were irrigated lands

and, after applying a reduction, found the resultant rates to be lower than

the rate of Rs.53,000/- per hectare determined by the SLAO. The learned

Reference Court, therefore, rejected the references.
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6.     Learned counsel for the appellants submits that the learned

Reference Court failed to appreciate the sale instance at Exhibit 22 in its

proper perspective. It is submitted that the said transaction relates to 1 H 10

R of land situated at village Rajmohi, which was sold for consideration of

Rs.96,000/- on 04.05.2000. According to the learned counsel, village

Rajmohi is situated only about 2 to 3 kilometres from village Amlibari and,

therefore, the said transaction furnishes a reliable comparable instance,

particularly when no suitable sale instance from the acquired village was

available. It is further submitted that the SLAO had not based the valuation

on any comparable sale transaction from Amlibari, but had relied principally

upon the ready reckoner rate. Hence, according to the learned counsel, the

market value deserved to be reassessed on the basis of Exhibit 22 after

making reasonable deductions and applying appropriate escalation up to the

date of the Section 4 notification.


7.     Per contra, the learned AGP supports the impugned Judgment and

Award. He submits that the sale instances relied upon by the claimants were

not comparable with the acquired lands and that the learned Reference

Court had examined the material on record and recorded cogent reasons for

not granting enhancement. It is further submitted that the rate of

Rs.53,000/- per hectare determined by the SLAO was already fair and

reasonable. The learned AGP, however, does not dispute that there was no

comparable sale transaction available from village Amlibari and that the
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Court may independently examine the sale instance at Exhibit 22 on the

basis of the evidence available on record.


8.     I have considered the rival submissions and perused the Record and

Proceedings and the reasons recorded by the learned Reference Court.


9.     In the absence of any comparable sale instance from village Amlibari,

the available sale instance from the adjacent village is required to be

examined for determining the market value of the acquired lands. The

valuation was, therefore, required to be assessed on the basis of the best

available comparable evidence. The sale instance at Exhibit 22 is dated

04.05.2000 and relates to 1 H 10 R of agricultural land situated at village

Rajmohi. The evidence on record indicates that village Rajmohi is situated at

a distance of about 2 to 3 kilometres from the acquired lands at village

Amlibari. Such distance, by itself, cannot render the transaction wholly

irrelevant, particularly when no contemporaneous sale instance from the

acquired village is available.


10.    Therefore, the sale instance at Exhibit 22 can, therefore, be

considered as a comparable sale instance, subject to appropriate adjustment

having regard to the difference in location, situation and other relevant

factors. The said transaction relates to 1 H 10 R of land sold for a

consideration of Rs.96,000/-. The rate per hectare under the said

transaction would accordingly work out to Rs.87,272.73/- per hectare.

Having regard to the fact that the sale instance is from an adjacent village
                                                                901-FA-929-2015.odt
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and not from the acquired village itself, a deduction of 20% from the

aforesaid rate would be appropriate. Thus, the deduction of 20% from

Rs.87,272.73/- works out to Rs.17,454.55/-. Consequently, the rate after

such deduction would work out to Rs.69,818.18/- per hectare. The sale

transaction is dated 04.05.2000, whereas the notification under Section 4 of

the Act was published on 08.07.2004. By applying cumulative escalation at

the rate of 10% per annum for three years, the rate of Rs.69,818.18/- per

hectare works out to Rs.92,928/- per hectare.


11.    The aforesaid determination is also consistent with the assessment

made by the learned Reference Court that the sale instances relied upon by

the claimants, after appropriate deductions, worked out to rates comparable

to the rate determined by the SLAO. However, the learned Reference Court

failed to give due weight to the fact that Exhibit 22 was a transaction from a

village situated in close proximity to the acquired lands and that there was

no sale instance available from village Amlibari itself.


12.    In view of the above discussion, the impugned Judgment and Award

cannot be sustained to the extent that the learned Reference Court rejected

the references in their entirety. The claimants are entitled to enhancement of

compensation by determining the market value of the acquired dry land at

Rs.92,928/- per hectare as on the date of publication of the notification

under Section 4 of the Act, namely, 08.07.2004. Hence, the following order:
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                                    ORDER


(i)      The First Appeals are partly allowed.


(ii)     The common Judgment and Award dated 14.10.2014 passed by the

learned Civil Judge, Senior Division, Shahada in Land Acquisition Reference

Nos.01 of 2009 to 06 of 2009 is quashed and set aside.

(iii)    The market value of the acquired dry lands covered by Land

Acquisition Reference Nos.01 of 2009 to 06 of 2009 shall be determined at

the rate of Rs.92,928/- per hectare instead of Rs.53,000/- per hectare

awarded by the Special Land Acquisition Officer.


(iv)     The claimants shall be entitled to the enhanced compensation

accordingly, after giving credit for the amount already paid.

(iv)     The claimants shall be entitled to all consequential statutory benefits

on the enhanced compensation in accordance with the provisions of the

Land Acquisition Act, 1894.


(v)      The claimants shall be entitled to interest on the enhanced

compensation in accordance with Sections 28 and 34 of the Act and the law

laid down by the Full Bench in State of Maharashtra v. Kailas Shiva Rangari,

2016 (3) Mh.L.J. 457.

(vi)     The appellant-claimant shall pay deficit court fees.


(vii)    Modified award be drawn accordingly.


(viii)   Pending Civil Applications, if any, stand disposed of.
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13.        The learned counsel for the appellants submits that these

proceedings have been pending since 2009 and that some of the appellants

are reported to have expired. Therefore, the legal heirs of the deceased

appellants are at liberty to initiate execution proceedings before the

Executing Court upon obtaining the requisite succession certificate/heirship

certificate.



                                          [ SIDDHESHWAR S. THOMBRE ]
                                                    JUDGE
S P Rane


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