SC – Highest Sale Exemplar must guide land compensation
Judgment dated 28.8.2025 of the Supreme Court of India in SLP (Civil) Diary No.26900 of 2023 of Manohar and others Vs. The State of Maharashtra and others with connected matters
Compensation – Acquisition for MIDC Industrial Area – Lands have NA potential and on the outskirts of Jintur Town
The lands of the appellants and others on the outskirts of Jintur town and touching the municipal limits were acquired for Industrial Area, under the Maharashtra Industrial Development Act, 1961.
In 1994 the Award was passed for Rs.27,000 per hectare.
The Reference Court partly allowed the reference for enhancement of the compensation. The High Court confirmed the said decision and dismissed first appeals of the appellants.
Out of 10 sale instances, the sale instance of 96 R for Rs.72,900/- per acre was the highest sale deed. The State did not give rebuttal evidence.
HELD that the Reference Court has completely overlooked the bona fide sale instance of Rs.72,900/- per acre. Therefore, the finding of the High Court in para 50 of the judgment is also erroneous.
It is settled position of law that when there are several exemplars of similar land, usually the highest which is bona fide transaction will be considered.
The lands acquired are at prime location, there was no occasion for the Reference Court to deviate from the well settled position of law that the appellants deserve the benefit of highest sale exemplar.
However, the land acquired being much larger in area, the deduction of 20% from the sale exemplar of Rs.72,900/- per acre is required to be given.
