Case Note & Summary
The appellant, Ramesh Bakshi Rathod, owned agricultural land in Pimpri Dhangar, Khamgaon, Buldana. A notification was issued for acquisition of his fields Survey No. 76/1-B (94 acres) and Survey No. 76/2 (43 acres), total 1H 37 acres. The Special Land Acquisition Officer determined compensation at Rs. 42,000 per hectare by award dated 20.4.1988, totaling Rs. 2,78,523, against the appellant's claim of Rs. 1,00,000 per hectare. Dissatisfied, the appellant filed a reference under Section 18 of the Land Acquisition Act, registered as Land Acquisition Case No. 35 of 1990. The Reference Court (Civil Judge, Sr. Dn., Khamgaon) by judgment dated 18.3.1996 enhanced compensation to Rs. 3,20,540, still less than the claimed Rs. 4,89,500. The appellant appealed to the High Court. The High Court heard arguments: appellant's counsel argued that the Reference Court wrongly relied on sale instances from distant villages (Palshi Bk., Januna, etc.) at Rs. 42,000 per hectare, ignoring the best comparable sale instance (Exh. 37) of adjacent land in Vihigaon sold at Rs. 1,00,000 per hectare. The State's counsel supported the Reference Court's judgment. The High Court found that the sale instance at Exh. 37 was of land adjacent to the acquired land and was the best comparable, while other instances were from distant villages and not comparable. The court held that the market value should be determined at Rs. 1,00,000 per hectare. Accordingly, the appeal was allowed, the Reference Court's judgment was modified, and the appellant was entitled to enhanced compensation at Rs. 1,00,000 per hectare with all statutory benefits under the Land Acquisition Act.
Headnote
A) Land Acquisition - Compensation - Market Value Determination - Section 23, Land Acquisition Act, 1894 - The court considered whether the Reference Court correctly assessed market value based on sale instances from distant villages. Held that the sale instance of adjacent land (Exh. 37) at Rs. 1,00,000 per hectare was the best comparable, and the Reference Court erred in relying on distant village sales. (Paras 4-5) B) Land Acquisition - Reference - Section 18, Land Acquisition Act, 1894 - The appellant sought reference against the Special Land Acquisition Officer's award. The Reference Court enhanced compensation but not to the claimed amount. The High Court further enhanced compensation to Rs. 1,00,000 per hectare. (Paras 2-5)
Issue of Consideration
Whether the Reference Court erred in determining the market value of the acquired land at Rs. 42,000 per hectare instead of the claimed Rs. 1,00,000 per hectare, and whether the appellant is entitled to enhanced compensation.
Final Decision
Appeal allowed. The judgment and order of the Reference Court dated 18.3.1996 in Land Acquisition Case No.35 of 1990 is modified. The appellant is entitled to enhanced compensation at the rate of Rs. 1,00,000 per hectare for the acquired land, with all statutory benefits under the Land Acquisition Act.
Law Points
- Land Acquisition
- Compensation
- Market Value
- Comparable Sale Instances
- Section 23 Land Acquisition Act 1894
- Section 18 Land Acquisition Act 1894




