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2024 Supreme(Guj) 1329

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, NISHA M. THAKORE, JJ.
Dy. Chief Engineer (Construction) - Appellant
Versus
Bilwad Maganbhai Kadiyabhai & Ors. - Defendants
R/First Appeal No. 3633 of 2017 With R/First Appeal No. 3634 of 2017 With R/First Appeal No. 3635 of 2017 With R/First Appeal No. 3636 of 2017 With R/First Appeal No. 3637 of 2017 With R/First Appeal No. 3638 of 2017 With R/First Appeal No. 3639 of 2017 With R/First Appeal No. 3640 of 2017 With R/First Appeal No. 3641 of 2017 With R/First Appeal No. 3642 of 2017 With R/First Appeal No. 3643 of 2017 With R/First Appeal No. 3644 of 2017 With R/First Appeal No. 3645 of 2017 With R/First Appeal No. 3646 of 2017 With R/First Appeal No. 3647 of 2017 With R/First Appeal No. 3648 of 2017 With R/First Appeal No. 3649 of 2017 With R/First Appeal No. 3650 of 2017
Decided On : 30-07-2024

Advocates Appeared:
For the Appellant : Ms Archana U. Amin.
For the Defendants : Mr. Nikunt Raval With Ms. Dilbur Contractor, Vidit S. Sharma.

The court established that in land acquisition cases, the method of calculating compensation must consider the time gap between transactions and the specific circumstances of the land's location and potential development.

Headnote:

Compensation - Land Acquisition - Section 18, 23(1-A), 23(2), 28 - The court interpreted the provisions of the Land Acquisition Act to determine just compensation, emphasizing the need for a fair market value assessment based on surrounding circumstances and previous awards.

Fact of the Case:

The original claimants, landowners affected by the acquisition of agricultural land for a railway project, contested the compensation awarded by the Special Land Acquisition Officer, seeking a higher amount through reference under Section 18 of the Land Acquisition Act.

Finding of the Court:

The court found that the Reference Court had applied an inappropriate methodology for determining compensation, leading to an excessive increase in the awarded amount without sufficient justification based on market conditions.

Issues: Whether the compensation awarded by the Land Acquisition Officer was fair and adequate, and what additional compensation the claimants were entitled to.

Ratio Decidendi: The court held that the methodology of applying a 10% annual increase on previous awards was not justified due to the significant time gap, and a more cautious approach of 8% cumulative increase should be applied instead.

Result: The appeals were dismissed, affirming the Reference Court's award of compensation.

JUDGMENT :

Nisha M. Thakore, J.

1. The appellant is aggrieved and dissatisfied with the judgment and award dated 17.05.2017 passed by the learned Principal Senior Civil Judge, Dahod in Land Reference Case Nos. 5 of 2011 to 22 of 2011 (main Land Reference Case No.5 of 2011) passed under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as the “Act”). By the said judgment and award, the learned Judge has partly allowed the petitions of the original claimants by granting additional compensation at the rate of Rs.383/- per sq mtrs for the land acquired, with interest at the rate of 9% p.a. from the date of taking possession or passing of an award, whichever is earlier, till one year and thereafter at the rate of 15% p.a. till realization. The learned Judge has also held claimants entitled to additional compensation at the rate of 12% p.a. under Section 23(1-A) and 30% solatium under Section 23(2) of the Act, with interest at the rate of 9% p.a. from the date of taking over possession or award, whichever is earlier, till one year and thereafter at the rate of 15% p.a. till realization of the amount payable under Section 28 of the Act.

2. The facts necessary for adjudication of the issue involved in brief are as under:

2.1. The original claimants are the landowners affected by the acquisition of their agricultural land situated at village Jalat, Tal & Dist. Dahod. The Notification by the State under Section 4 of the Act came to be published on 18.05.2009 declaring the intention of acquisition of land specified in the schedule for public purpose for construction of new Railway Line between the Dahod and Indor (MP). The said Notification was followed by Notification under Section 6 of the Act which was published on 27.07.2009. The interested persons, mainly affected landowners, were served with the notice under Section 9(3)(4) of the Act by the Special Land Acquisition Officer seeking objection from them. At the end of the proceedings, the Special Land Acquisition Officer had determined the amount of compensation at the rate of Rs.16.52/- per sq mtrs for the acquired lands by passing appropriate orders under Section 11 of the Act. The original claimant being aggrieved and dissatisfied with the aforesaid amount of compensation as determined by the Special Land Acquisition Officer had preferred application on 11.08.2010 within the prescribed period of limitation seeking reference under Section 18 of the Act for the purpose of determination of just and adequate compensation. The Land Reference Cases were registered before the Court of learned Principal Senior Civil Judge, Dahod on 22.02. 2011, which were registered as Land Reference Cases No.5 of 2011 to 22 of 2011. All the aforesaid cases were heard together and decided by the learned Judge by common impugned judgment and award.

2.2. During the course of adjudication of the aforesaid claim petitions, the original claimants a part from the examination in chief of the claimant of Land Reference Case No.8 of 2011 viz. Bilwad Rumalbhai Madubhai at Exh.30, had also led various documentary evidence which mainly included certified copy of the village form no.7/12 of the respective lands as well as certified copy of village map at Exh.30, certified copy of judgment and dated 19.4.2006 passed by the learned Judge in earlier acquisition proceedings being LR Case No.226 of 2004 at Exh.31 and certified copy of judgment passed by the High Court of Gujarat in First Appeal No.3567 of 2009 at Exh.32. As against the aforesaid evidence of the original claimants, the learned Government Pleader appearing for the opponent – State Authorities had presented their objection by submitting a written statement at Exh,9. The acquiring body had also tendered their written statement at Exh.6. The State Authorities have placed on record the copy of minute submitted by the District Land Valuation Committee dated 19.10.2009 along with report of Nagar Niyojak at Exh.44 and had examined one Mr. Gamit Padma

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