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Bombay High Court

THE EX. ENGINEER, URDHVA PRAVARA PROJECT DAM DIVISION, GHULEWADI AHMADNAGARversusNAMDEV GANGARAM WAVALE AND ANR

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The court held that the market value for lands acquired under the 18‑02‑1998 notification should be set at Rs.3,700 per R, while the Rs.5,000 per R valuation for lands acquired under the 29‑11‑2000 notification is affirmed, and the interest component must be adjusted according to State of Maharashtra v. Kailas Shiva Rangari.

Summary

The case involved multiple first appeals and cross‑objections arising from land acquisition proceedings for the Urdhva Pravara Project in villages Mehenduri and Bahirwadi, where claimants sought higher compensation and the acquiring body contested interest. The Special Land Acquisition Officer had initially fixed compensation rates of Rs.1,400‑1,870 per R for acquisitions notified on 18‑02‑1998 and Rs.1,974‑2,095 per R for those notified on 29‑11‑2000. The Reference Court later enhanced the market values to Rs.3,200 per R for the 1998 group and Rs.5,000 per R for the 2000 group, prompting further appeals. The court examined comparable sale transactions, the proximity of villages, and prior judgments to determine that a rate of Rs.3,700 per R was appropriate for the 1998 group, while the Rs.5,000 rate for the 2000 group should stand. It also modified the interest component in line with the Full Bench decision in State of Maharashtra v. Kailas Shiva Rangari. Consequently, several appeals were partly allowed, others dismissed, and the cross‑objections were partly allowed regarding interest.

Issues considered

  • The appropriate market value of the acquired land for compensation purposes
  • Whether the compensation awarded by the Reference Court should be further enhanced
  • The calculation and entitlement of interest on compensation under Sections 28 and 34 of the Land Acquisition Act
  • The relevance of prior sale transactions and earlier court determinations in setting market value

Legislation cited

Subjects

  • land acquisition
  • compensation
  • market value
  • interest
  • statutory benefits
  • reference court
  • enhancement
  • cross objection

Judgment

2026:BHC-AUG:44495
                                                                   9061FA-4618-2017 (+).odt
                                              1

                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  BENCH AT AURANGABAD
                               901 FIRST APPEAL NO. 4618 OF 2017
                               Keru Gopala Wavale (Deceased)
                              Through L.Rs.Gopala Keru Wavale
                                          VERSUS
             State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another
                                             AND
                     X-OBJECTION (STAMP) NO. 33669 OF 2018 IN FA/4618/2017

              The Ex. Engineer, Urdhva Pravara Project Dam Division, Ghulewadi
                                        Ahmadnagar
                                          VERSUS
                               Keru Gopala Wavale (Deceased)
                       Through L.Rs.Gopala Keru Wavale And Another

                                             AND
                               47 FIRST APPEAL NO. 4151 OF 2017

               Rambhau Kashinath Arote (Dead) Through L.Rs. Vijay And Others
                                           VERSUS
               State Of Maharashtra Thr S.L.A.O. No.3 Ahmednagar And Another

                                             AND
                          X-OBJECTION NO. 76 OF 2025 IN FA/4151/2017
                  The Ex. Engineer, Urdhva Pravara Project Dam Division,
                                 Ghulewadi Ahmadnagar
                                         VERSUS
               Rambhau Kashinath Arote (Dead) Through L.Rs. Vijay And Others
                                          ……
                               48 FIRST APPEAL NO. 4155 OF 2017
              Keru Gopala Wavale (Dead) L.Rs. Gopala Keru Wavale And Another
                                          VERSUS
             State Of Maharashtra Through S.L.AO. No.3 Ahmednagar And Another
                                             AND
                          X-OBJECTION NO. 74 OF 2025 IN FA/4155/2017
                   The Ex. Engineer, Urdhva Pravara Project Dam Division,
                                  Ghulewadi Ahmadnagar
                                          VERSUS
              Keru Gopala Wavale (Dead) L.Rs. Gopala Keru Wavale And Another
                                                      9061FA-4618-2017 (+).odt
                                2

                               AND
                  FIRST APPEAL NO. 4158 OF 2017
                       Bhau Govinda Wavale
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                               AND
           X-OBJECTION NO. 75 OF 2025 IN FA/4158/2017
 The Ex. Engineer, Urdhva Pravara Project Dam Division, Ghulewadi
                           Ahmadnagar
                             VERSUS
                Bhau Govinda Wavale And Another
                               AND
                  FIRST APPEAL NO. 4159 OF 2017
                      Bharat Karbhari Wavale
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another
                               AND
      X-OBJECTION (STAMP) NO. 33604 OF 2018 IN FA/4159/2017
 The Ex. Engineer, Urdhva Pravara Project Dam Division, Ghulewadi
                           Ahmadnagar
                             VERSUS
               Bharat Karbhari Wavale And Another

                               AND
                  FIRST APPEAL NO. 4241 OF 2017
                     Manohar Sukhadev Chaskar
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another
                               AND
        CIVIL APPLICATION NO. 9953 OF 2026 IN FA/4241/2017
                    Manohar Sukhadev Chaskar.
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another
                               AND
           X-OBJECTION NO. 289 OF 2026 IN FA/4241/2017
      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
             Manohar Sukhadev Chaskar And Another
                                                      9061FA-4618-2017 (+).odt
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                               AND
                  FIRST APPEAL NO. 4239 OF 2017

               Laxman Baburao Chaskar And Another
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                               AND
      X-OBJECTION (STAMP) NO. 33552 OF 2018 IN FA/4239/2017

      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
               Laxman Baburao Chaskar And Others

                               AND

                 FIRST APPEAL NO. 4150 OF 2017

                     Namdev Gangaram Wavale
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                            AND
         X-OBJECTION NO. 78 OF 2025 IN FA/4150/2017

                        The Ex. Engineer,
   Urdhva Pravara Project Dam Division, Ghulewadi Ahmadnagar
                            VERSUS
             Namdev Gangaram Wavale And Another

                            AND
                FIRST APPEAL NO. 4152 OF 2017

      Dada Bhau Arote (Died) Through L.Rs. Ramhari And Others
                              VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                            AND
         X-OBJECTION NO. 73 OF 2025 IN FA/4152/2017

      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
     Dada Bhau Arote (Died) Through L.Rs. Ramhari And Others
                                                      9061FA-4618-2017 (+).odt
                                4


                            AND
                FIRST APPEAL NO. 4153 OF 2017
               Shantabai Laxman Arote And Another
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                           AND
   X-OBJECTION (STAMP) NO. 33548 OF 2018 IN FA/4153/2017

      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
               Shantabai Laxman Arote And Others

                            AND
                FIRST APPEAL NO. 4160 OF 2017

              Punjiram Bhimaji Phargade And Another
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                           AND
   X-OBJECTION (STAMP) NO. 33570 OF 2018 IN FA/4160/2017

      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
              Punjiram Bhimaji Phargade And Others

                            AND
                FIRST APPEAL NO. 4523 OF 2017

      Tukaram Abaji Bangal Through L.Rs. Bhimraj And Another
                             VERSUS
State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And Another

                           AND
   X-OBJECTION (STAMP) NO. 33567 OF 2018 IN FA/4523/2017

      The Ex. Engineer, Urdhva Pravara Project Dam Division,
                     Ghulewadi Ahmadnagar
                             VERSUS
      Tukaram Abaji Bangal Through L.Rs. Bhimraj And Others
                                                              9061FA-4618-2017 (+).odt
                                      5

                                 AND
                     FIRST APPEAL NO. 4627 OF 2017

      Keru Bapu Hase (deceased) Through L.Rs. Dattatraya And Others
                                VERSUS
 State Of Maharashtra Through S.L.A.O. No.3 Ahmednagar And And Others

                              AND
      X-OBJECTION (STAMP) NO. 33580 OF 2018 IN FA/4627/2017
          The Ex. Engineer, Urdhva Pravara Project Dam Division,
                         Ghulewadi, Ahmadnagar
                                 VERSUS
      Keru Bapu Hase (deceased) Through L.Rs.Dattatraya And Others

                                    ……
Mr. Vinod Y. Bhide, Advocate for Claimants in all FAs & X-Objs.
Mr. Sudhir G. Bhalerao, Advocate for Acquiring Body in all X-Objs and FAs
Mr. S.N. Morampalle, Mr. A.M. Phule, Mr. D.R. Korde, Mr. A.D. Wange, Mr.
B.A. Shinde, Mr. G.O. Wattamwar and Mr. S.S. Dande, AGPs for Respondent-
State in respective matters
                                    ……

                               CORAM      : SIDDHESHWAR S. THOMBRE, J.
                               DATE       : 24 SEPTEMBER, 2026
PER COURT :

1.    Heard the learned counsel for the respective parties.


2.    These First Appeals and Cross Objections arise out of the Judgments

and Awards passed by the learned Joint Civil Judge, Senior Division,

Sangamner, in Land Acquisition Reference Nos.92/2011, 129/2011,

136/2011, 66/2011, 90/2011, 131/2011, 65/2011, 135/2011, 132/2011,

137/2011, 133/2011, 134/2011 and 138/2011. Since all these matters arise

out of the same acquisition proceedings and involve a common issue relating

to determination of the market value, they are heard together and are being

disposed of by this common order. The First Appeals are filed by the original
                                                                9061FA-4618-2017 (+).odt
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claimants seeking further enhancement of compensation, whereas the Cross

Objections are preferred by the Acquiring Body, principally in relation to the

interest component.


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

Mehenduri and Bahirwadi, Taluka Akole, District Ahmednagar, were

acquired for the Urdhva Pravara Project Left Canal, Nilwade 2 and Urdhva

Pravara Project Right Canal. The relevant particulars are as under:


     Sr.
         First Appeal No.   LAR No.      Village      Gat No.        Area Acquired
     No.
      1   4241 of 2017      92/2011    Bahirwadi       24/2                60 R
                                                      85/3;                5 R;
                                                      85/4;               48 R;
      2     4618 of 2017    129/2011   Mehenduri     86/1-2/1;            13 R;
                                                      89/3;               12 R;
                                                       88/1             2 H 58 R
      3     4151 of 2017    136/2011   Mehenduri       41/3                18 R
      4     4155 of 2017     66/2011   Bahirwadi       24/4                36 R
      5     4158 of 2017     90/2011   Bahirwadi       25/6                53 R
                                                                         61 R; 1
      6     4159 of 2017    131/2011   Mehenduri       85/2
                                                                        0 R (PK)
                                                     23/22;               45 R;
      7     4239 of 2017    65/2011    Bahirwadi
                                                       24/1                18 R
      8     4150 of 2011    135/2011   Mehenduri     40/1-3B               69 R
      9     4152 of 2011    132/2011   Mehenduri     43/1-2A               35 R
     10     4153 of 2011    137/2011   Mehenduri       40/1                10 R
     11     4153 of 2011    133/2011   Mehenduri      87/1B             1H3R
     12     4523 of 2011    134/2011   Mehenduri    42/1-2A/1              20 R
     13     4627 of 2011    138/2011   Mehenduri      84/3A                70 R


4.        In L.A.R. Nos.129/2011, 136/2011, 131/2011, 135/2011, 132/2011,

137/2011, 133/2011, 134/2011 and 138/2011, the notification under

Section 4 of the Land Acquisition Act, 1894 (for short, “the Act”) was

published on 18.02.1998. The Special Land Acquisition Officer (for short,
                                                          9061FA-4618-2017 (+).odt
                                       7

“the SLAO”) passed the Award under Section 11 of the Act on 20.02.2001

and determined compensation ranging from Rs.1,400/- to Rs.1,870/- per R

for different classes of the acquired bagayat lands.


      In L.A.R. Nos.92/2011, 66/2011, 90/2011 and 65/2011, the

notification under Section 4 of the Act was published on 29.11.2000. The

SLAO passed the Award under Section 11 of the Act on 28.05.2002 and

determined compensation ranging from Rs.1,974/- to Rs.2,095/- per R for

the respective classes of the acquired lands.


      The claimants, being dissatisfied with the market value determined by

the SLAO, accepted the compensation under protest and sought references

under Section 18 of the Act for determination of the proper market value.

Accordingly, the references came to be made to the learned Reference Court.


5.    Upon appreciation of the oral and documentary evidence adduced by

the parties, the learned Reference Court, vide Judgments and Awards dated

19.12.2016, enhanced the market value in L.A.R. Nos.129/2011, 136/2011,

131/2011, 135/2011, 132/2011, 137/2011, 133/2011, 134/2011 and

138/2011 to Rs.3,200/- per R, along with statutory benefits. By the

Judgments and Awards dated 01.12.2016, in L.A.R. Nos.92/2011, 66/2011,

90/2011 and 65/2011, the learned Reference Court enhanced the market

value to Rs.5,000/- per R, along with statutory benefits.    The claimants

have, therefore, preferred the First Appeals seeking further enhancement,
                                                            9061FA-4618-2017 (+).odt
                                      8

whereas the Acquiring Body has preferred the Cross Objections challenging

the entitlement to interest from the date of publication of the Section 4

notification.


6.    Learned counsel Mr. Bhide for the claimants submits that the

claimants had led evidence before the learned Reference Court showing that

the acquired lands are irrigated lands. He submits that, in the matters

relating to the notification dated 29.11.2000, the learned Reference Court

relied upon the sale instance dated 21.10.1997 from village Bahirwadi,

under which 17 R of land was sold for Rs.60,000/-. By applying 10%

increase per year, the learned Reference Court worked out the market value

at Rs.5,421/- per R and, after rounding off, granted Rs.5,000/- per R.


7.    It is submitted that the record also shows that villages Unchkhadak

(Kd.), Bahirwadi and Mehenduri are adjacent to each other and within a

periphery of 1 Km. It is further submitted that Mehenduri and Bahirwadi

were historically part of the same village and that Unchkhadak (Kd.) and

Mehenduri came to be bifurcated from Bahirwadi. Learned counsel,

therefore, submits that Sale Deed No.908/2000 dated 17.05.2000 from

Unchkhadak (Kd.) is a relevant comparable sale instance. He particularly

relies upon the said sale instance for the matters in which the Section 4

notification was published on 29.11.2000, as the sale transaction preceded

the said notification.
                                                            9061FA-4618-2017 (+).odt
                                     9

8.    Per contra, learned counsel Mr. Sudhir G. Bhalerao for the Acquiring

Body submits that this Court has already considered sale instances from

village Bahirwadi in First Appeal No.120 of 2015 and connected matters

and, relying upon the sale instances at Exhibits 17 and 19 dated 13.06.1996,

determined the market value at Rs.3,700/- per R. In that case also, lands

from village Bahirwadi were acquired for the Urdhva Pravara Project, the

Section 4 notification was published on 01.03.1998 and the Award was

declared on 30.12.2000.


9.    Learned counsel submits that the said determination is relevant to the

present acquisition. He further submits that, in some of the present matters,

the learned Reference Court has already granted Rs.5,000/- per R and,

therefore, no further enhancement is warranted.


10.   I have considered the submissions advanced by the learned counsel

for the claimants and the learned counsel for the Acquiring Body. With their

able assistance, I have gone through the Record and Proceedings, the

impugned Judgments and Awards and the material placed on record.


11.   As regards the matters in which the Section 4 notification was

published on 18.02.1998, i.e. in L.A.R. Nos.129/2011, 136/2011,

131/2011, 135/2011, 132/2011, 137/2011, 133/2011, 134/2011 and

138/2011, the Acquiring Body has placed reliance upon the earlier

determination of this Court in First Appeal No.120 of 2015 and connected
                                                           9061FA-4618-2017 (+).odt
                                    10

matters, wherein, on the basis of sale instances dated 13.06.1996 from

village Bahirwadi, the market value was determined at Rs.3,700/- per R for

an acquisition involving a Section 4 notification dated 01.03.1998. The

notification in the present group is dated 18.02.1998, i.e. only a short

interval earlier. The record placed before this Court also shows the close

geographical proximity of the villages concerned. In the absence of any

material on record demonstrating a materially different market trend

between the two dates, the rate of Rs.3,700/- per R provides an appropriate

basis for determination of the market value in this group of matters. The

claimants are, therefore, entitled to enhancement from Rs.3,200/- to

Rs.3,700/- per R.


12.   As regards L.A.R. Nos.92/2011, 66/2011, 90/2011 and 65/2011, in

which the Section 4 notification was published on 29.11.2000, the learned

Reference Court, upon appreciation of the oral and documentary evidence

adduced by the parties, has determined the market value at Rs.5,000/- per R

for the acquired bagayat lands. Having regard to the material placed on

record and the reasons recorded by the learned Reference Court, I find no

sufficient ground to interfere with the said determination. Consequently, no

further enhancement is warranted in these matters.


13.   As regards the application for leading additional evidence, since the

learned Reference Court has already granted compensation at the rate of

Rs.5,000/- per R in the concerned matters and no further enhancement is
                                                           9061FA-4618-2017 (+).odt
                                     11

being granted therein, the application does not survive and is accordingly

disposed of.


14.    As regards the Cross Objections, the Acquiring Body has questioned

the grant of interest from the date of publication of the Section 4

notification. The interest payable under Sections 28 and 34 of the Act is

required to be governed by the law laid down by the Full Bench of this Court

in State of Maharashtra vs. Kailas Shiva Rangari, 2016 (3) Mh.L.J. 457.

Accordingly, the interest component in the impugned Judgments and

Awards requires modification to that extent.


15.   In view of the above discussion, First Appeal Nos.4618/2017,

4151/2017, 4159/2017, 4150/2017, 4152/2017, 4153/2017, 4160/2017,

4523/2017 and 4627/2017 deserve to be partly allowed. First Appeal

Nos.4155/2017, 4158/2017, 4241/2017 and 4239/2017 deserve to be

dismissed. The Cross Objections filed by the Acquiring Body deserve to be

partly allowed to the extent of modification of the interest component.

Hence, the following order:


                                 ORDER

(i) First Appeal Nos.4618/2017, 4151/2017, 4159/2017, 4150/2017,

4152/2017, 4153/2017, 4160/2017, 4523/2017 and 4627/2017 are partly

allowed.


(ii) First Appeal Nos.4155/2017, 4158/2017, 4241/2017 and 4239/2017

are dismissed.
                                                            9061FA-4618-2017 (+).odt
                                      12


(iii) The Cross Objections filed by the Acquiring Body are partly allowed to

the extent of modification of the interest component.


(iv)   The appellants/claimants in First Appeal Nos.4618/2017, 4151/2017,

4159/2017, 4150/2017, 4152/2017, 4153/2017, 4160/2017, 4523/2017

and 4627/2017 shall be entitled to compensation at the rate of Rs.3,700/-

per R for their respective acquired lands.


(v)    In   First   Appeal   Nos.4155/2017,   4158/2017,    4241/2017         and

4239/2017, the compensation awarded by the learned Reference Court at

the rate of Rs.5,000/- per R shall remain unaltered.


(vi)   The claimants shall be entitled to all statutory benefits on the

enhanced compensation, in accordance with the provisions of the Land

Acquisition Act, 1894.


(vii) The claimants shall be entitled to interest under Sections 28 and 34 of

the Act strictly in accordance with the law laid down by the Full Bench of

this Court in State of Maharashtra vs. Kailas Shiva Rangari, (supra).


(viii) Save and except the aforesaid modifications, the impugned Judgments

and Awards dated 19.12.2016 and 01.12.2016 passed by the learned Joint

Civil Judge, Senior Division, Sangamner, in the aforesaid Land Acquisition

References shall remain unaltered.
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                                          13

(ix)       The claimants shall pay the deficit court fees, if any, on the enhanced

amount.


(x)        The claimants and/or their legal heirs are permitted to withdraw the

amount deposited by the Acquiring Body, along with accrued interest,

subject to adjustment of the interest component in terms of the law laid

down by the Full Bench of this Court in State of Maharashtra vs. Kailas

Shiva Rangari, (supra).


(xi)       At the time of withdrawal of the amount, the Registrar (Judicial) shall

verify all requisite documents, including the heirship certificate, if any.


(xii) After payment of the amount due to the claimants, if any excess

amount remains, the same shall be paid to the Acquiring Body along with

the accrued interest thereon.


(xiii) The modified Awards be drawn accordingly.


(xiv) Pending Civil Applications, if any, stand disposed of.



                                               [ SIDDHESHWAR S. THOMBRE ]
                                                         JUDGE
S P Rane


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