Bombay High Court
KAMALBAI GOVINDRAO PATILversusSTATE OF MAHA and ORS
- Disposal
- DISMISSED
- Bench
- SANJAY A DESHMUKH
Holding
The Land Reference Court correctly rejected the city‑plot sale exemplars and upheld the compensation based on a comparable agricultural sale, so the appeal is dismissed.
Summary
The appellant’s agricultural land of 4 ha 65 are in Nilanga was acquired in 1987 for a 132 kV sub‑station and the Land Acquisition Officer initially awarded Rs 1,77,863, which the Land Reference Court later enhanced to Rs 3,91,819. The appellant sought a further increase, relying on two sale exemplars of small city plots (Exhibits 19 and 23) dated 1986, arguing they were comparable. The respondents contended that the Reference Court correctly used a contemporaneous sale of similar agricultural land (Exhibit 69, 13 April 1987) and that the city‑plot exemplars were not comparable in location, size or nature. The High Court examined the evidence and held that the city‑plot sales were irrelevant for determining the market value of the appellant’s land, which lay outside the city limits. Consequently, the Court found no error in the Reference Court’s appreciation of evidence and dismissed the appeal. The appeal was dismissed with no costs.
Issues considered
- Whether sale exemplars of small city plots can be treated as comparable for assessing market value of agricultural land acquired under the Land Acquisition Act.
- Whether the Land Reference Court erred in rejecting the appellant’s proposed comparable sales and in upholding the compensation based on a different sale exemplar.
Legislation cited
- Land Acquisition Act, 1894 — s. 18, 4
Subjects
- Land acquisition
- Compensation
- Market value
- Comparable sale
- Reference court
- Appeal
Judgment
2026:BHC-AUG:17568
FA NO.944 OF 2004.odt
IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD
FIRST APPEAL NO.944 OF 2004
Smt. Kamalbai W/o Govindrao Patil,
Age: 55 years, Occu: Agriculture & Household,
R/o. Nilanga, Dist. Latur ..APPELLANT
VERSUS
1. The State of Maharashtra
Through Collector, Latur,
Dist. Latur
2. Maharashtra State Electricity Board,
Through the Executive Engineer (Civil)
M.S.E.B. Aurangabad/Latur. ...RESPONDENTS
….
Mr. Bhargav Kulkarni a/w Mr. Bhushan B. Kulkarni, Advocate for
the appellant
Mr. S. B. Jadhav, AGP for Respondent/State
Mr. D. P. Palodkar, Advocate for respondent No.2
CORAM : SANJAY A. DESHMUKH, J.
RESERVED DATE : 19.12.2025
PRONOUNCED DATE : 18.03.2026
JUDGMENT :-
1. This appeal is preferred against the judgment and
award dated 19.09.2003 passed by the learned Land Reference
Court, Nilanga District Latur in L.A.R. No.157 of 2003 (Old L.A.R.
No.184 of 1990).
2. Earlier, the claimant had filed First Appeal No.176 of
1994 and the same was remanded to the learned trial Court with a
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direction for fresh adjudication by impleading the M.S.E.B. as an
additional respondent.
3. The appellant/claimant’s land bearing Survey No.30,
situated at Nilanga Dist. Latur, admeasuring 4 H 65 Are, was acquired
by the State Government for the purpose of installation of a 132 K.V.
Sub-Station of the Maharashtra State Electricity Board (M.S.E.B) Now
M.S.E.D.C.L. at Nilanga District Latur, pursuant to the notification
issued and published under Section 4 of the Land Acquisition Act,
1894, dated 30.07.1987. The Land Acquisition Officer passed an
award on 05.04.1989 and awarded compensation of Rs.1,77,863/-.
The learned Reference Court enhanced the amount of compensation
and awarded Rs.3,91,819/-. Being aggrieved and dissatisfied with the
judgment and award passed by the learned Reference Court, the
appellant has preferred the present appeal for enhancement of
compensation.
4. Learned Advocate for the appellant submitted that the sale
exemplars at Exhibits 19 and 23 pertain to Kasbe Nilanga town
executed on 12.12.1986 and 13.05.1986, respectively, i.e., about one
year prior to the acquisition are comparable sale exemplars, however,
the learned Reference Court did not rely upon them. It is contended
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that the learned Reference Court did not determine the compensation
of the acquired land as per the evidence on record. He further
submitted that the said sale exemplars are relevant and bona fide and
there is no reason to disbelieve them. He therefore prayed to
enhance the compensation in view of the said sale exemplars at
exhibits 19 and 23. In support of his submissions, he is relying upon
the following authority:
a. The State of Maharashtra Vs. Balaji S/o Baburao Shinde,
First Appeal No.601 of 1993 decided on 07.07.2004, wherein it is
held that even land situated within the Municipal Council area, as
reflected in the sale exemplar, can be considered, and compensation
can be awarded accordingly by taking into account its location, size,
shape, and potentiality.
5. Learned AGP Mr. S. B. Jadhav for respondent–State and
learned Advocate Mr. D. P. Palodkar for respondent No. 2 strongly
opposed the appeal and submitted that a reasonable amount of
compensation has been awarded by the learned Reference Court in
accordance with the market value prevailing at the time of acquisition
of land and the publication of notification under Section 4 of the Land
Acquisition Act, 1894, dated 30.07.1987. They submitted that the
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learned Reference Court, while awarding compensation, relied upon
the sale exemplar at Exhibit-69 dated 13.04.1987, pertaining to land
situated at Nilanga bearing Survey No.30, wherein land admeasuring
80 R was sold for a consideration of Rs.90,000/- i.e., Rs.45,000/- per
acre. They submitted that the acquired land is also a part of Survey
No.30 of Nilanga and it was acquired in the year 1987. They,
therefore, submitted that the said sale exemplar has been rightly
accepted by the learned Reference Court by giving cogent and
acceptable reasons. They, therefore, prayed to dismiss the appeal, as
there is no substance in the grounds of objections raised in it. In
support of their submissions, they are relying upon the following
authorities:
a. Chimanlal Hargovinddas Vs. Special Land Acquisition
Officer, Poona and Another, (1988) 3 SCC 751, wherein the Hon’ble
Supreme Court has held that the market value of the acquired land is
to be determined on the basis of comparable sale instances proximate
in time to the notification under Section 4, with due adjustments for
relevant factors such as location, size, and potentiality.
b. Goa Housing Board Vs. Rameshchandra Govind Pawaskar
and Another, (2011) 10 SCC 371, in which paragraph No.13 reads as
under:
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“13. The question is whether such prohibition will affect
the market value of the land. The respondent submitted that this Court
had repeatedly held that all lands situated in the same area and
acquired by the same notification, should be awarded the same
compensation. He relied upon the judgment in K. Pariasami V.
Tehsildar (LA) and DDA V. Bali Ram Sharma. There can be no doubt
that similarly situated land in the same area, having the same
advantages and acquired under the same notification should be
awarded the same compensation. But the question is when one land is
a freehold land not subject to any restrictions in regard to user and the
adjoining land though similarly situated is subject to a permanent
restriction regarding user requiring it to be used only for agricultural
purposes, the question is whether the two lands can be terms as
comparable lands which should be subjected to the same
compensation.”
c. Periyar And Pareekanni Rubbers Ltd. Vs. State of Kerala,
(1991) 4 SCC 195, in which paragraph No.15 reads as under:
“15. In the light of these principles, the further contention that
having rejected the documents produced by the State, the High Court
ought to have relied upon the documents produced by the appellant as
comparable sale and would have confirmed the compensation awarded
by the civil court does not impress us as well founded. It is well settled
law that the amount awarded by the Land Acquisition Collector forms
an offer and that it is for the claimants to adduce relevant and material
evi-dence to establish that the acquired lands are capable of fetching
higher market value and the amount offered by the Land Acquisition
Collector was inadequate and he proceeded on a wrong premise or
principle. In Ezra v. Secretary of State for India, it was held that the
amount awarded by the Collector forms an offer. It was reiterated by
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this Court in Raja Harish Chandra Raj Singh v. Dy. Land Acquisition
Officer, Khorshed Shapoor Chenai v. Assistant Controller of Estate Duty
and Dr G.H. Grant v. State of Bihar. In Dr Harisingh case, A.P. Sen, J.
held (and majority did not disagree) at p. 191 C to E that: (SCC p. 244,
para 16)
"In a reference under Section 18 of the Act, the burden of proving that
the amount of compensation awarded by the Collector is inadequate
lies upon the claimant, and he must show affirmatively that the
Collector had proceeded upon a wrong basis. The nature and the
burden of establishing that he was wrong, depends on the nature of the
enquiry held by him.... It is equally well settled that where the claimant
leads no evidence to show that the conclusions reached in the award
were inadequate, or, that it offered unsatisfactory compensation, the
award has to be confirmed."
In that case it was held that the evidence produced was untrustworthy.
Same is the view of Bombay High Court in Asstt. Development Officer v.
Tayaballi Allibhoy Bohori and of A.P. High Court in Narasingh Rao case
and T.W. Higgins-claimant v. Secretary of State, Naresh Chandra Bose v.
State of West Bengal, Smt Kusumgauri Ramray Munshi v. Special Land
Acquisition Officer, Ahmedabad and Maharao Shri Madansinhji v. State
of Gujarat. It is also the duty of the State to adduce evidence in
rebuttal.”
6. Nobody will dispute ratio laid down in the above
authorities. However, it is well settled that facts of the case are
decisive.
7. On perusal of the evidence, pleadings, grounds of objection
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raised in the appeal, and the reasons and findings in the impugned
judgment, it is crystal clear that Exhibits-19 and 23 pertain to open
plots situated within Nilanga town. The sale exemplar at Exhibit-19
dated 12.12.1986 relates to a plot Admeasuring 20 X 15 bearing
Survey No.289, sold for a consideration of Rs.15,000/-. Similarly,
the sale exemplar at Exhibit-23 dated 06.05.1986 pertains to a plot
admeasuring 45 X 20 bearing Survey No.296 sold for Rs.15,000/-.
Those sale exemplars pertain to a small-sized plots situated within the
city, which naturally fetch higher rates as compared to the claimant’s
agricultural land.
8. The learned Reference Court, in paragraph No.12 of the
impugned judgment, has held that the sale exemplar at Exhibit-19 is
situated near the bus stand and Shivaji Chowk, Nilanga which is not
adjacent to the acquired land. The sale exemplar at Exhibit-23 is also
situated far away from the acquired land. Therefore, both these sale
exemplars are not helpful in determining the market value of the
acquired land, as they do not relate to lands adjoining or similarly to
the acquired land.
9. The claimant’s land is adjacent to the city but not situated
within the city limits. Hence, it cannot be equated with the plots
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covered under sale exemplars at Exhibits-19 and 23 for awarding the
higher rates of compensation, i.e., Rs.50 per sq. ft. and Rs.16.50 per
sq. ft., respectively. On the contrary, the sale exemplar at Exhibit-69
dated 13.04.1987 pertains to land bearing Survey No.30 at Nilanga.
The acquired land is also part of Survey No.30 and it was also
acquired in the same year, i.e., 1987. Therefore, the learned
Reference Court has rightly relied upon the said sale exemplar.
10. Considering the above aspects, this Court is of the view that
the learned Reference Court has rightly appreciated the evidence and
held that the sale exemplars at Exhibits-19 and 23 are not comparable
due to differences in location, size and nature, whereas the sale
exemplar at Exhibit-69 is of a similar nature of land situated outside
the city of Nilanga. Thus, the reasons and findings of the learned
Reference Court are found legal and correct and no interference is
warranted therein.
11. The law laid down in case of The State of Maharashtra Vs.
Balaji (Supra) is not helpful to the appellant for seeking interference
in the impugned judgment, as the evidence has been properly
appreciated by the learned Reference Court.
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12. There is no scope for interference in the impugned
judgment and award as no any illegality and perversity is found on
re-appreciation of entire evidence. The appeal, therefore, deserves to
be dismissed. The appeal is dismissed accordingly with no costs.
Pending civil applications, if any, are disposed of.
[ SANJAY A. DESHMUKH, J. ]
HRJadhav
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