High Court Partly Allows Appeal for Enhanced Compensation in Land Acquisition Case. The court modified the compensation for acquired land based on its non-agricultural potentiality and comparable market rates.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The case involved an appeal against the judgment and award dated 28.09.2015, passed by the Civil Judge, Senior Division, Nanded, concerning the compensation for land acquired for establishing a Government Medical College at Vishnupuri, Tq. Nanded. The appellants, Mayadevi's legal representatives, sought enhancement of the compensation determined by the Special Land Acquisition Officer at Rs. 37,000 per hectare. They argued that the compensation was inadequate and presented sale instances indicating a higher market rate of Rs. 45 per square foot for similar lands in the vicinity. The respondents contended that the acquired lands could not be equated with the sale instances as they were not formally converted to non-agricultural lands. The court acknowledged the non-agricultural potentiality of the acquired lands but noted that the sale instances were for converted plots in a prime location. The court applied the doctrine of balancing compensation, ultimately determining that the appropriate compensation should be Rs. 4,84,370 per acre, reflecting the land's potential and location. The appeal was partly allowed, and the acquiring body was ordered to deposit the enhanced compensation within six months, with interest governed by a previous judgment. The claimants were permitted to withdraw the amount upon deposit, subject to any deficit court fees.

Headnote

A) Land Acquisition - Compensation - Adequacy of Compensation - Land Acquisition Act, 1894, Section 18 - The appellants challenged the compensation awarded by the Special Land Acquisition Officer, arguing for a higher rate based on comparable sale instances. The court found that while the land was not formally converted to non-agricultural status, it possessed non-agricultural potentiality and thus adjusted the compensation accordingly. Held that the compensation was modified to Rs. 4,84,370/- per acre (Paras 20).

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Issue of Consideration

Whether the compensation awarded for the acquired land was adequate and whether the land had non-agricultural potentiality.

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Final Decision

The court partly allowed the appeal, modifying the compensation to Rs. 4,84,370 per acre, and directed the acquiring body to deposit the enhanced amount within six months.

Law Points

  • Land Acquisition
  • Compensation
  • Non-Agricultural Potentiality
  • Comparable Valuation
  • Doctrine of Balancing Compensation
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Case Details

2026 LawText (BOM) (10) 81

First Appeal No. 3558 of 2016

2026-10-15

AJIT B. KADETHANKAR

Mr. A. H. Kasliwal, Mr. K. B. Jadhavar, Mr. B. V. Virdhe

Mayadevi wd/o Narayandas Rizwani, Vijay s/o Narayandas Rizwani, Prakash s/o Narayandas Rizwani

The State of Maharashtra, Special Land Acquisition Officer, Special Executive Officer

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Nature of Litigation

Appeal against the compensation awarded for land acquisition.

Remedy Sought

Enhancement of compensation for acquired land.

Filing Reason

Dissatisfaction with the compensation awarded by the Special Land Acquisition Officer.

Previous Decisions

Compensation initially set at Rs. 37,000 per hectare, later modified to Rs. 51,800 per hectare by the Reference Court.

Issues

Adequacy of compensation awarded Non-agricultural potentiality of the acquired land

Submissions/Arguments

Appellants argued for higher compensation based on comparable sale instances. Respondents contended that the acquired lands could not be equated with the sale instances.

Ratio Decidendi

The court determined that while the land was not formally converted to non-agricultural status, it possessed non-agricultural potentiality, warranting a higher compensation based on comparable market rates.

Judgment Excerpts

The acquired lands are also described as forming part of erstwhile survey no.26/B of village Vishnupuri, Tq. Nanded. The compensation of lands was fixed at Rs.51,800/- per hectare. The just and proper compensation to the Appellant would be @ Rs. Rs.4,84,370/- per acre.

Procedural History

The appellants filed an appeal against the compensation awarded by the Special Land Acquisition Officer, which was modified by the Reference Court, leading to the current appeal for further enhancement.

Acts & Sections

  • Land Acquisition Act, 1894: Section 18
  • Maharashtra Land Revenue Code, 1966:
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