MANOHAR AND OTHERS versus THE STATE OF MAHARASHTRA & OTHERS

MANOHAR AND OTHERS versus THE STATE OF MAHARASHTRA & OTHERS

The Supreme Court held that the Reference Court and High Court erred in failing to consider the highest bona-fide sale exemplar (Sr. No.4 dated 31-03-1990, Rs.72,900/- per Acre) which was proximate to the date of notification; averaging was impermissible given the wide range of exemplars, and Section 51A and absence of rebuttal evidence supported reliance on the exemplar. While accepting Sr. No.4, a 20% deduction was applied because the exemplars were for small plots and the acquired land was larger; accordingly compensation was enhanced to Rs.58,320/- per Acre with consequential statutory benefits.

Parties
Appellants: Manohar and Others; Respondents: The State of Maharashtra & Others
Jurisdiction
India
Judgment Date
28 July 2025
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeals allowed
Legal Topics
Highest Exemplar Sale Deed, Market Value Determination, Averaging of Sale Exemplars, Bona Fide Transaction, Solatium, Interest on Enhanced Compensation
Land Acquisition Compensation Maharashtra Industrial Development Act, 1961 Land Acquisition Act, 1894 Highest Exemplar Sale Deed Market Value Determination Averaging of Sale Exemplars Bona Fide Transaction +2 more

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Parties

Manohar and Others

Appellants

The State of Maharashtra & Others

Respondents

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the highest bona-fide sale exemplar should be adopted to determine compensation
  2. 2 Whether averaging of sale exemplars was permissible in the present facts
  3. 3 Whether the sale exemplar at Serial No.4 dated 31-03-1990 was a bona-fide transaction and ought to have been considered

Ratio Decidendi

The Supreme Court held that the Reference Court and High Court erred in failing to consider the highest bona-fide sale exemplar (Sr. No.4 dated 31-03-1990, Rs.72,900/- per Acre) which was proximate to the date of notification; averaging was impermissible given the wide range of exemplars, and Section 51A and absence of rebuttal evidence supported reliance on the exemplar. While accepting Sr. No.4, a 20% deduction was applied because the exemplars were for small plots and the acquired land was larger; accordingly compensation was enhanced to Rs.58,320/- per Acre with consequential statutory benefits.

Court Disposition

Appeals allowed

Orders

  • The appeals are allowed
  • Judgment and final order dated 21-04-2022 of the High Court is quashed and set aside