Supreme Court on Land Acquisition: Proximity to Town & Highway Matters in Valuation

The Supreme Court allowed the appeals, applying parity from its earlier decision in Manohar & Others. It upheld the market value determined from comparable sale exemplars but mandated a 20% deduction due to the superior location and smaller size of the exemplar plots. The Court awarded enhanced compensation with statutory benefits under the Land Acquisition Act, 1894, while denying interest for the delay in filing the Special Leave Petition.

Facts Of The Case:

The appellants were landowners whose agricultural lands near Jintur town in Parbhani District were acquired in the 1990s under the Maharashtra Industrial Development Act, 1961, for setting up an industrial area. The Land Acquisition Officer passed an award in 1994, fixing compensation. Dissatisfied with the quantum, the appellants accepted compensation under protest and filed a reference under Section 18 of the Land Acquisition Act, 1894, in 1997. The Reference Court partly allowed the reference in 2007, enhancing the compensation. This enhancement was challenged by the respondents, and the High Court dismissed the appellants’ first appeals in a common judgment dated April 21, 2022. The appellants then approached the Supreme Court by way of special leave. Their core contention was that they were similarly situated to other landowners whose appeals were allowed by the Supreme Court in the earlier case of Manohar & Others v. The State of Maharashtra. The respondents, however, argued for a distinction, claiming the appellants’ lands were situated farther from Jintur town and that any enhancement should involve a higher deduction.

Procedural History:

The procedural history commenced with the Appellants filing References under Section 18 of the Land Acquisition Act, 1894, before the Principal District Judge, Parbhani (the Reference Court) in 1997, challenging the compensation awarded by the Land Acquisition Officer in 1994. In 2007, the Reference Court partly allowed these references and enhanced the compensation. The Respondents then appealed to the High Court of Judicature at Bombay (Aurangabad Bench). A learned Single Judge of the High Court dismissed these First Appeals via a common judgment and final order dated April 21, 2022. Aggrieved by this dismissal, the Appellants filed Special Leave Petitions before the Supreme Court of India, which granted leave and culminated in the present batch of Civil Appeals.

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Court Observation:

The Supreme Court observed that the High Court, in its impugned judgment, had itself concurred with the findings of the Reference Court that the acquired lands were adjacent to Jintur town, situated near a State Highway, and possessed non-agricultural potential with good water access. The Court found no substance in the respondent’s contention that these lands were situated far away and thus distinguishable from the earlier Manohar case. It held the appellants were similarly situated, and the rationale from Manohar applied, where a market value of Rs. 72,900 per Acre was accepted from comparable sale exemplars, subject to a reasonable 20% deduction due to the exemplars being smaller plots within the town.

Final Decision & Judgement:

The Supreme Court allowed the appeals. It set aside the judgments of the High Court and the Reference Court. The compensation was enhanced from Rs. 32,000 to Rs. 58,320 per Acre, applying the same 20% deduction (from Rs. 72,900 per Acre) as in the precedent case of Manohar & Others. The appellants were granted consequential statutory benefits of solatium and interest on the enhanced amount under the Land Acquisition Act, 1894. However, they were denied interest for the period of delay in filing the Special Leave Petition.

Case Details:

Case Title: Ashok s/o Vitthalrao Jagtap vs. The State of Maharashtra and Ors.
Citation: 2025 INSC 1348
Appeal Number:  (Diary No. 25098 of 2025)
Date of Judgement: November 18, 2025.
Judges/Justices: Justice B.R. Gavai and Justice K. Vinod Chandran
Download The Judgement Here

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