In a significant verdict that wrapped up over five decades of litigation, the Supreme Court on Wednesday ordered the Nashik Municipal Corporation to pay enhanced compensation of over ₹20 crore to landowner Pradyumna Mukund Kokil for land it had used since the 1970s without proper acquisition. The bench of Justice B.R. Gavai and Justice Augustine George Masih restored the earlier award of the Land Acquisition Authority and waived the ₹10 lakh cost imposed by the Bombay High Court.
Background
The dispute dates back to 1972, when the then Nashik Road–Deolali Municipal Council reserved a 1.38-hectare plot in Deolali for public facilities and roads. Although only a portion was formally acquired in 1978, the Corporation continued to occupy the remaining 3,700 sq. meters without completing the acquisition process.
The original landowner fought for decades, asserting that the “reservation” under the Maharashtra Regional and Town Planning Act had lapsed and that the civic body’s possession was unlawful. After multiple writ petitions and appeals, the land eventually came into the hands of Pradyumna Kokil, who bought it in 2011 for ₹1.17 crore, hoping to resolve the matter.
In 2017, following a contempt petition, the State finally issued an acquisition notification and awarded compensation of ₹8.69 crore. Dissatisfied, Kokil sought a reference under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, which enhanced the compensation to over ₹20 crore in 2021. The High Court later reversed this, cutting it back to ₹8.69 crore and imposing costs on Kokil-prompting his appeal to the Supreme Court.
Court’s Observations
Hearing the matter, the bench closely examined how the valuation had been determined. Justice Masih observed that the Reference Court had “rightly relied on genuine sale instances in the vicinity” and followed Section 26 of the 2013 Land Acquisition Act, which prescribes how to calculate fair market value based on comparable sale deeds.
“The Reference Court applied the statutory formula correctly and its findings could not have been disturbed,” the bench noted, criticizing the High Court for substituting its own view without legal basis.
On the issue of rental or “occupation compensation” for the period since 1972, the Court was cautious. The judges noted that earlier records showed the original owner continued to use the land, mortgage it, and even lease it out. “The claim of rental compensation prior to 2011 cannot be accepted,” the bench clarified.
However, the Court acknowledged that Kokil had purchased the land in good faith and was entitled to some relief. “To do complete justice, the appellant shall receive interest at 8% per annum on ₹1.17 crore from July 29, 2011, till May 8, 2017,” the judgment stated.
Decision
Finally, the Supreme Court restored the Reference Court’s award of ₹20.20 crore and directed that Kokil be paid interest at 9% for one year and 15% thereafter until full realization. The ₹10 lakh cost and adverse personal remarks made by the High Court were also set aside.
With this, a 50-year-old property tussle that saw multiple rounds of litigation from the municipal council to the apex court has reached closure. The bench’s measured order not only reaffirmed the principle of fair compensation but also signaled that governmental possession without due process cannot escape judicial scrutiny, even after decades.
Case Title: Pradyumna Mukund Kokil vs Nashik Municipal Corporation & Others
Citation: 2025 INSC 1236
Case Type: Civil Appeal (arising out of SLP (C) No. 18305 of 2023)
Date of Judgment: October 15, 2025