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2023 Supreme(Guj) 421

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.J. DESAI, NISHA M. THAKORE, JJ.
General Manager Oil and Natural Gas Corporation Ltd - Appellant
Versus
Patel Manilal Keshavlal - Defendant
R/First Appeal Nos. 1027, 1026, 1028, 1029 of 2021 With R/Cross Objection Nos. 77, 73, 76, 74 of 2023
Decided On : 20-02-2023

Advocates Appeared:
For the Appellant : Mr. Ajay R. Mehta.
For the Defendant : Mr. Aditya A. Davda, AGP, Mr. A.V. Prajapati.

The valuation of acquired land for compensation under the Land Acquisition Act should consider the status and potential of the land, and the payment of interest should be in accordance with the relevant legal provisions.

Headnote:

Land Acquisition Act - Compensation - Section 54, Section 96 of the Code of Civil Procedure - [Section 4, Section 6, Section 11, Section 18, Section 28] - The court discussed the valuation of land for compensation under the Land Acquisition Act. It compared the land in question with nearby villages and considered the status and potential of the land. The court also addressed the issue of interest payment from the date of notification to the date of award, citing relevant legal provisions and an interim order from the Hon’ble Apex Court.

Fact of the Case:

The Oil And Natural Gas Corporation Ltd. (O.N.G.C.) challenged the judgment and award passed by the Reference Court, which had enhanced the compensation for land acquisition from Rs.60 per sq. mtr. to Rs.700/- per sq. mtr. The claimants sought an enhancement of compensation to Rs.2,000/- per sq. mtrs. based on the valuation of nearby lands and the potential of the acquired land.

Finding of the Court:

The court found that the lands in question were not comparable due to differences in status and potential. It upheld the compensation awarded by the Reference Court and addressed the issue of interest payment from the date of notification to the date of award.

Issues: The issues included the valuation of acquired land, comparability with nearby lands, and the payment of interest under the Land Acquisition Act.

Ratio Decidendi: The court considered the status and potential of the acquired land, compared it with nearby villages, and addressed the issue of interest payment from the date of notification to the date of award.

Final Decision: The compensation awarded by the Reference Court was confirmed, and the court addressed the disbursement of interest accrued from the date of notification to the date of award.

JUDGMENT :

A.J. Desai, J.

1. By way of present appeals under Section 54 of the Land Acquisition Act (hereinafter to be referred as “the Act”) read with Section 96 of the Code of Civil Procedure, 1908, the original opponent No.2/Acquiring Body-Oil And Natural Gas Corporation Ltd. (hereinafter to be referred as “O.N.G.C.”), the acquiring body has challenged the judgment and award dated 30.11.2019 passed by learned 4th Additional Senior Civil Judge, Mehsana in Land Acquisition Reference Case No.4 to 6 of 2016 and 16 of 2016, by which, the Reference Court has enhanced the amount of compensation awarded by the learned Collector from Rs.60 per sq. mtr. to Rs.700/- per sq. mtr. (additional amount of Rs.640/- per sq. mtr.).

2. The appeal came to be admitted by the Co-ordinate Bench of this Court on 15.03.2021. As per the order passed in civil application of the same date, the amount has been deposited before the Reference Court and subsequently as per the order dated 21.06.2021, passed by the Co-ordinate Bench of this Court, 50% of the amount awarded has been disbursed among the respondent/original land owners. Record and proceedings have also been called for and have reached to this Court.

3. The short facts arising from the record are as under:

3.1 Present appellant-O.N.G.C. intended to construct a tube well No. LJDE for its project at village-Langhanj, Taluka & District-Mehsana and accordingly, the Land Acquisition Officer issued a Notification under Section 4 of the Act on 12.10.2009. As provided under the Act, the Notification No.6, under Section 6 of the Act was issued within two years i.e. 19.06.2010. The Land Acquisition Officer determined the price of land at Rs.60/- per sq. mtr. and declared award under Section 11 on 18.06.2012.

3.2 The original land owners/opponent, whose lands were sought to be acquired sought reference under Section 18 of the Act and accordingly, the Collector referred the matter to the competent civil court at Mehsana. The claimants sought an enhancement compensation to the tune of Rs.2,000/- per sq. mtrs. mainly on the ground that the Government had acquired a piece of land of village-Langhanj in the year-2013 for construction in response to a demand made by Mehsana District Co-operative Bank and as per the District Land Valuation Committee headed by the Collector for determining the market price of the village had come to the conclusion holding the price of the said land Rs.2,000/- per sq. mtr. The claimant has also relied upon the judgment delivered by the Reference Court and confirmed by the Hon’ble Apex Court, in which, the land of nearby village namely Gozaria was acquired for Sujalam Sufalam Irrigation Scheme and the date of notification issued under Section 4 for the said village Gozaria was also of the year-2009. The claim was opposed by the present appellant.

3.3 The original claimants have examined two witnesses whereas respondent has examined one witness. Several documentary evidences were produced by both the parties. The Reference Court only relied upon the report of District Land Valuation Committee, Mehsana wherein the price of Langhanj village was fixed at Rs.2,000/- per sq. mtr. in the year-2013. The Reference Court noticed that the land, which is sought to be acquired was agricultural land and was a meager size and hence reduced the same to 50%. Thereafter, considering the valuation relates to year-2013 and the notification issued in the case on hand of the year-2009, further deducted 30% and ultimately came to the conclusion that the correct price of the land acquired would be Rs.700/- per sq. mtr and not Rs.60/- per sq. mtr. as awarded by the Land Acquisition Officer. Hence, this Appeal at instance of acquiring body against the enhancement of compensation.

4. Learned advocate Mr. Ajay R. Mehta appearing for the appellant has vehemently submitted that the learned Judge has committed error in comparing the land of the village for which report was produced at Exh.25 at the instance of the claim

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