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2025 Supreme(Bom) 2022

IN THE HIGH COURT OF JUDICATURE OF BOMBAY, BENCH AT AURANGABAD
Sanjay A. Deshmukh, J.
Ratanbi Hira Saheb - Appellant
Versus
The State Of Maharashtra Through, the Collector and ors - Respondents
First Appeal No. 1359 of 2011, First Appeal No. 1357 of 2011, First Appeal No. 1358 of 2011, First Appeal No. 1360 of 2011, First Appeal No. 1361 of 2011, First Appeal No. 1362 of 2011, First Appeal No. 1363 of 2011, First Appeal No. 1364 of 2011, First Appeal No. 1601 of 2015
Decided On : 10-12-2025

Advocates Appeared:
For the Appellant :Mr. G. K. Sontakke, Advocate
For the Respondent: Mr. D. J. Patil, AGP

Compensation for acquired land must reflect fair market value with adjustments for differences in land use and characteristics, as established through careful evaluation of sale exemplars.

Headnote:(A) Land Acquisition Act - Section 4 - Compulsory Acquisition - Compensation for land acquired for construction of a Water Tank - Initial compensation awarded by the Land Acquisition Officer at Rs.336 per Are was enhanced to Rs.40,000 per acre by the Reference Court; appellant claimed further enhancement based on sale exemplar - The Reference Court failed to properly appreciate Sale Exemplar Exhibit-35, resulting in low compensation. Court held that Exhibit-35 requires reliance for determination of the value but necessitated a 20% deduction for plotting purpose. Final compensation determined to be Rs.1,03,680 per acre along with statutory benefits. (Para 3, 5, 6, 8)

(B) Appeals - Authority of court to modify previous compensation awards - Court upheld the need for fair compensation in light of market realities, stressing that the Reference Court's evaluation was insufficient and that enhanced compensation was warranted. (Paras 4, 6)

Facts of the case:
The appellants’ lands were acquired for construction purposes after a historical compensation award was deemed unreasonable. The sale instance was presented as a benchmark for reassessing the appropriate compensation.

Findings of Court:
Court found that the appropriate compensation for the acquired lands was Rs.1,03,680 per acre, clarifying the components of interest and conditions regarding court fees.

Issues: Whether the Reference Court properly considered the sale evidence and issued adequate compensation for the acquired lands.

Ratio Decidendi: The court reaffirmed that previous sale exemplars must be diligently evaluated for determining fair market value and compensation must reflect real-time market conditions with reasonable adjustments.

Result: Appeals partly allowed; previous award modified.

Table of Content
1. compensation for acquired lands determined. (Para 2)
2. advocate argues for enhanced compensation. (Para 3)
3. state opposes enhancement of compensation. (Para 4)
4. court’s analysis justifies compensation adjustment. (Para 5)

JUDGMENT :

SANJAY A. DESHMUKH, J.

1. First Appeal Nos.1360 of 2011, 1361 of 2011 and 1601 of 2015 are not on board. Upon being mentioned, taken on board.

2. The following lands of the appellants / claimants as shown in the chart were acquired by the State Government for the purpose of construction of Chakur Percolation Tank No.3 at Village Chakur, Taluka Chakur and District Latur.

The Land Acquisition Officer passed an award on 28.05.1996 and awarded compensation @ Rs.336/- per Are i.e., Rs.13,440/- per acre to the acquired lands of the claimants. The learned Reference Court at Latur enhanced the amount of compensation and awarded compensation @ Rs.40,000/- per acre. Being aggrieved and dissatisfied by the common judgment and award passed by the learned Land Reference Court, Latur in L.A.R. Nos.268 of 2002, 269 of 2002, 270 of 2002, 271 of 2002, 272 of 2002, 273 of 2002, 274 of 2002, 275 of 2002 and 276 of 2002 dated 08.07.2008, the claimants have preferred these appeals.

3. The learned advocate for the appellants / claimants pointed out the impugned judgment and award as well as the pleadings of the parties. He submitted that the lands of the claimants were acquired on 28.03.1992 and after nine months i.e., 18.12.1992, sale instance- Exhibit-35 was executed in respect of land survey No.442 admeasuring 00 H 60 Are land for a consideration of Rs.1,08,000/- which comes to Rs.1800/- per Are i.e., Rs.72,000/- per acre. He further submitted that the learned Reference Court has not considered and fully relied upon the said sale exemplar Exhibit – 35 dated 18.12.1992 in its proper perspective and awarded meager amount of compensation @ Rs.40,000/- per acre i.e., Rs.1,00,000/- per hectare. He lastly prayed to allow the appeals by enhancing the amount of compensation. He relied upon the authority of Manohar and Others. Vs. State of Maharashtra and others , Diary No.26900 of 2023 decided on 28.07.2025, in which paragraph No.50 reads as under:

50. Having held thus, we, however, cannot lose sight of the aspect that the ten sale exemplars placed before the Reference Court by the claimants/Appellants are of small plots of land in Jintur town, each of them being less than 1 Hectare. The Reference Court, therefore, correctly came to the conclusion that while accepting the sale instances a reasonable reduction requires to be made. As such, the land which is acquired being much larger in area, the Reference Court applied a deduction of 20% in the price determined. Being in agreement with the same, while accepting the sale exemplar at Sr. No. 4 dated 31st March 1990, and having market value of Rs. 72,900/- per Acre, we deem it appropriate to apply a deduction of 20% i.e., Rs. 14,580/- per Acre.

4. The learned AGP for the State strongly opposed the appeals. He submitted that the learned Reference Court after considering the entire material on record gave legal and correct reasons for not believing sale exemplar-Exhibit-35 and awarded reasonable amount of compensation to the claimants. He submitted that the reasons and findings of the learned Reference Court are legal and correct and no interference is warranted in it. He lastly prayed to dismiss the appeals.

5. Perused the Record and Proceedings, particularly the impugned judgment as well as the sale exemplar-Exhibit-35 which is of the highest price. It shows that the land in sale exemplar at Exhibit-35 is situated in one and the same village, therefore, the said sale exemplar Exhibit-35 has to be relied upon. The land in sale exemplar Exhibit-35 was purchased for plotting, however, the lands in question are acquired for the purpose of construction of Chakur Percolation Tank. Therefore, more consideration must have paid for it. Therefore, in view of the law laid do

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