IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
NISHA M. THAKORE, J.
GENERAL MANAGER – Appellant
Versus
THAKOR JENAJI MAGANJI – Respondent
First Appeal Nos. 492, 493, 494, 495, 496 of 2006
Decided On : 28-11-2024
(A) Land Acquisition Act, 1894 - Sections 4, 6, 11, 18, and 23(1-A) - Compensation for acquired land - The market price of acquired land was fixed at Rs. 40/- per sq. mtr. by the reference court, which was modified to Rs. 28/- per sq. mtr. by the appellate court - The court observed that the learned Judge relied on a previous case without proper comparability and applied an excessive annual increase rate. (Paras 16, 17)
(B) Appeal - The appellate court reviewed the reference court's determination of market value, concluding that a lower annual increase rate of 8% was more appropriate given the time gap and circumstances. (Paras 14, 15)
Facts of the case:
The land acquisition involved original agricultural land owned by respondents, acquired by ONGC for public purpose due to crude oil discovery. The original compensation was deemed inadequate, prompting the claimants to seek additional compensation. (Paras 2.1, 2.2)
Findings of Court:
The appellate court modified the compensation to Rs. 28/- per sq. mtr., requiring ONGC to deposit the compensation amount within six weeks. (Paras 16, 17)
Issues: The main issues were the adequacy of compensation and the appropriate method for determining market value of the acquired land. (Paras 2.3)
Ratio Decidendi: The court ruled that prior judgments should be carefully compared and that annual increases in compensation should be applied judiciously, modifying the reference court's decision as necessary. (Paras 14, 15)
Result: Appeals partly allowed.
JUDGMENT :
NISHA M. THAKORE, J.
1. By these appeals under Section 54 of the Land Acquisition Act, the acquiring body Oil & Natural Gas Corporation Ltd. (for short “ONGC or Corporation”) has assailed the common judgment and award dated 13.09.2005 passed by learned Civil Judge (Senior Division) of Mahesana at Mahesana in Land Reference Case Nos. 2392 of 2003 to 2396 of 2003 (main L.A.R. No. 2396 of 2003), whereby the reference at the instance of the land owners of the acquired lands came to be partly allowed by fixing the market price of the acquired land in L.A.Q. Case No. 12 of 1995 at the rate of Rs. 40/- per sq. mtrs. The Court further declared that each of the claimants shall be entitled to the aforesaid market value determined at the rate of Rs. 40/- per sq. mtrs. after applying deduction of the amount awarded by the Special Land Acquisition Officer under Section 11 of the Land Acquisition Act. The claimants were also held entitled to solatium at the rate 30% of the additional compensation as determined. The opponents were also directed to pay the amount of additional compensation which includes the amount awarded under Section 23(1-A) of the Land Acquisition Act and solatium as per the above order with interest at the rate of 12% per annum from the date of publication of Notification under Section 4 of the Act up to the date of the award passed by the Land Acquisition officer in L.A.Q. Case No. 12 of 1995 dated 04.09.1997 under Section 23(1-A) of the Act. The Court had also directed the opponents to pay the amount of additional compensation again which includes the amount awarded under Section 23(1-A) of the Land Acquisition Act and solatium as per the above order with running interest at the rate of 9% per annum for the period of one year from the date of taking over of the possession of the acquired lands. Further directions were also issued to the opponents to pay 15% interest on the aforesaid amount after the period of expiry of one year from the date of taking possession till the entire amount is paid or deposited. The opponents were also held liable to pay proportionate costs to each claimants.
2. Before examining the merits of the present appeals, it would be appropriate to look into the relevant facts, which read as under:
2.2 The original claimants-owners of the respective parcels of lands being aggrieved and dissatisfied with aforesaid amount, though had accepted the amount of compensation, had raised the objection before the competent authority by seeking reference under Section 18 of the Act. The references were received by the court of learned Civil Judge (Senior Division) of Mahesana at Mahesana on 18.03.1998 which were registered as Land Reference Case Nos. 2392 of 2003 to 2396 of 2003 by treating the L.A.R. No. 2396 of 2003 as the main case. Rest of the cases were consolidated and heard together by common judgment and award.
2.3 By seeking reference, the original claimants have prayed for additional amount of compensation by seeking fixation of the market value of the acquired lands at the rate of Rs. 190/- per sq. mtrs. The learned Judge framed following issues at Exh.5:
“[
Maya Devi (Dead) through Legal Representatives and others vs. State of Haryana and another
The court modified the compensation for acquired land, emphasizing the need for careful comparison of prior judgments and appropriate application of annual increase rates.
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 ....
Market value in land acquisition fixed using highest bona fide comparable sale exemplar, with time escalation (10%) and size deductions (20%), considering land potentiality near development areas.
The main legal point established in the judgment is the requirement for concrete evidence to determine the fair value of acquired land under the Land Acquisition Act, 1894, and the Court's authority ....
Acquisition of land – Fair and just compensation – Annual increase to determine just compensation varies from case to case and period to be applied is a major factor to be considered.
The court determined that compensation for acquired land must reflect fair market value, aligning with previous awards for similar properties.
Absence of local sales permits reliance on nearby circle awards for market value, with 10% annual cumulative increase for time gap; uniform rate applies to single-unit public acquisitions irrespectiv....
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