Bombay High Court Allows Claimants' Appeals in Land Acquisition Case for Irrigation Project — Enhances Compensation by Applying 1.5 Multiplier and Grants Additional Market Value Under Section 30(3) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Court held that the multiplier of 1.5 is mandatory for land acquired for irrigation projects and that additional market value at 12% per annum is payable from the date of Section 11(1) notification.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
  • 55
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Case Note & Summary

The case involves multiple first appeals arising from land acquisition proceedings for a minor irrigation project in Babhalgaon, Latur. The State of Maharashtra acquired agricultural lands belonging to the claimants (Shriram Dange, Manohar Todkar's legal heirs, Pandurang Kadam, Nilkanth Hattarge, and Ramchandra Todkar) under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Special Land Acquisition Officer awarded compensation, which was challenged before the Reference Court. The Reference Court enhanced the compensation but denied the multiplier of 1.5 and additional market value under Section 30(3). Both the claimants and the State appealed. The High Court considered the legal issues regarding the applicability of the multiplier for irrigation projects and the entitlement to additional market value. The Court analyzed the provisions of the Act, particularly Section 26(1) and the First Schedule, and held that the multiplier of 1.5 is mandatory for irrigation projects. It also held that additional market value under Section 30(3) is payable from the date of notification under Section 11(1) until the date of award or dispossession. The Court allowed the claimants' appeals, enhanced the compensation by applying the multiplier and granting additional market value, and dismissed the State's appeals. The Court directed the respondents to pay the enhanced compensation with solatium and interest within three months.

Headnote

A) Land Acquisition Compensation - Multiplier for Irrigation Projects - Section 26(1) and First Schedule of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Court held that for land acquired for irrigation projects, the multiplier of 1.5 as per Column 4 of the First Schedule is applicable, and the Reference Court erred in not granting the same. The Court enhanced the compensation by applying the multiplier. (Paras 10-12)

B) Land Acquisition Compensation - Additional Market Value under Section 30(3) - Section 30(3) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Court held that the claimants are entitled to additional market value at 12% per annum from the date of publication of notification under Section 11(1) till the date of award or dispossession, whichever is earlier. The Reference Court's denial was set aside. (Paras 13-14)

C) Land Acquisition Compensation - Solatium and Interest - Sections 30(1) and 34 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Court upheld the grant of solatium at 30% and interest at 9% per annum for the first year and 15% thereafter, as per the Act. (Paras 15-16)

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Issue of Consideration

Whether the Reference Court erred in not granting the benefit of multiplier of 1.5 as per the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and whether the claimants are entitled to additional market value under Section 30(3) of the said Act.

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Final Decision

The High Court allowed the claimants' appeals (First Appeal Nos. 2762-2766 of 2023) and dismissed the State's appeals (First Appeal Nos. 1196-1199 of 2023). The Court enhanced the compensation by applying the multiplier of 1.5 and granted additional market value at 12% per annum from the date of Section 11(1) notification till the date of award or dispossession. The respondents were directed to pay the enhanced compensation with solatium and interest within three months.

Law Points

  • Land Acquisition Compensation
  • Multiplier for Irrigation Projects
  • Additional Market Value under Section 30(3)
  • Solatium under Section 30(1)
  • Interest under Section 34
  • Reference Court's Discretion
  • Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
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Case Details

2025:BHC-AUG:30445-DB

First Appeal No. 2762 of 2023, First Appeal No. 2763 of 2023, First Appeal No. 2764 of 2023, First Appeal No. 2765 of 2023, First Appeal No. 2766 of 2023, First Appeal No. 1196 of 2023, First Appeal No. 1197 of 2023, First Appeal No. 1198 of 2023, First Appeal No. 1199 of 2023

0000-00-00

2025:BHC-AUG:30445-DB

Mr. Shrikant J. Sonkawade, Mr. N. S. Tekale

Shriram S/o Pandurang Dange, Manohar Rangnath Todkar (through LRs), Pandurang S/o Ganpati Kadam, Nilkanth S/o Laxman Hattarge, Ramchandra S/o Rangnath Todkar

The State of Maharashtra, The Executive Engineer, Minor Irrigation (Local Sector) Division, Latur

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Nature of Litigation

First appeals against the judgment and award of the Reference Court in land acquisition compensation matters.

Remedy Sought

Claimants sought enhancement of compensation by applying multiplier of 1.5 and grant of additional market value under Section 30(3) of the Act.

Filing Reason

The Reference Court denied the multiplier and additional market value, leading to appeals by claimants and cross-appeals by the State.

Previous Decisions

The Special Land Acquisition Officer awarded compensation; the Reference Court enhanced compensation but denied multiplier and additional market value.

Issues

Whether the claimants are entitled to the multiplier of 1.5 as per the First Schedule of the Act for land acquired for irrigation projects? Whether the claimants are entitled to additional market value under Section 30(3) of the Act?

Submissions/Arguments

Claimants argued that the multiplier of 1.5 is mandatory for irrigation projects and that additional market value under Section 30(3) is payable from the date of Section 11(1) notification. State argued that the multiplier is not applicable and that additional market value was rightly denied.

Ratio Decidendi

The multiplier of 1.5 as per the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is mandatory for land acquired for irrigation projects. Additionally, claimants are entitled to additional market value under Section 30(3) at 12% per annum from the date of publication of notification under Section 11(1) till the date of award or dispossession.

Judgment Excerpts

The Reference Court has not granted the benefit of multiplier of 1.5 as per the First Schedule of the Act. The claimants are entitled to additional market value under Section 30(3) of the Act.

Procedural History

The Special Land Acquisition Officer awarded compensation for land acquired for irrigation project. Claimants sought reference under Section 64 of the Act. The Reference Court enhanced compensation but denied multiplier and additional market value. Both parties appealed to the High Court.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 11(1), Section 26(1), Section 30(1), Section 30(3), Section 34, First Schedule
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