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2025 Supreme(Guj) 1199

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANGEETA K. VISHEN, MOOL CHAND TYAGI, JJ.
 
ONGC LTD. Thro. Deputy General Manager - Appellant
Versus 
Patel Ranchhodbhai Narandas & Ors. – Respondents
R/First Appeal No. 5259 of 2008 With R/First Appeal No. 5260 of 2008 With R/First Appeal No. 5261 of 2008 With R/First Appeal No. 5262 of 2008 With R/First Appeal No. 5263 of 2008 
Decided On : 21-08-2025

Advocates Appeared:
For the Appellant : Mr. Ajay R. Mehta.
For the Respondents: Shivam Parikh, Assistant Government Pleader, Ms. Shivani V. Trivedi.

Compensation in land acquisition must be based on comparative market values and previous adjudications, ensuring fairness and consistency in awards.

Headnote:(A) Land Acquisition Act, 1894 - Section 4 - Compensation determination - The common judgment allowed additional compensation at Rs.411-00 per sq. mtr., over the base amount awarded by the Special Land Acquisition Officer at Rs.24-00 per sq. mtr. Additional compensation calculated based on comparable land values in adjacent villages. The court found that the methods used to determine market value were appropriate, affirming the reference court's decision. (Paras 3, 10, 11, 17)

(B) Legal principles in determining compensation - The court emphasized that for determining compensation, reliance should be placed on credible evidence and comparable land assessments, preventing arbitrary application of values. Previous judgments serve as significant evidence. It relies on the principle that awards already accepted and raised in similar acquisitions must be taken into consideration for consistency. (Paras 12, 14, 16)

Facts of the case:
The appellant challenged the additional compensation ordered by the reference court for land acquired for drilling sites by a state-owned enterprise. The initial compensation was set at Rs.24 per sq. mtr. The claimants sought a higher amount based on market value judgments from comparable land.

Findings of Court:
The overall compensation was upheld, adjusted downwardly and affirmed based on market evaluations, with prior judgments determining comparable valuations influencing the final amount.

Issues: Whether the reference court correctly awarded additional compensation; whether reliance on previous judgments on land values from adjacent villages was proper; and considerations of acceptable evidence in determining land value.

Ratio Decidendi: The court maintained the reference court's calculation of compensation, asserting that similar prior judgments and market evidence justified the amounts awarded, rejecting claims of oversight in previously set compensations which had attained finality.

Result: Appeals dismissed, maintaining the lower court’s judgment.

Table of Content
1. overview of the appeals and compensation awarded. (Para 1 , 2 , 3)
2. arguments regarding the error in compensation determination. (Para 4)
3. arguments supporting additional compensation based on precedent. (Para 5 , 6)
4. details on the land acquisition process and previous judgments. (Para 8 , 9 , 10 , 11)
5. court's observations on reliance over previous compensation judgments. (Para 13 , 14 , 15 , 16)

JUDGMENT :

SANGEETA K. VISHEN, J.

1. Captioned group of appeals, is directed against the common judgment dated 22.03.2007 (hereinafter referred to as “the impugned judgment”) passed by the learned Principal Senior Civil Judge, Gandhinagar in Land Acquisition Reference case nos.91 of 2005, 93 of 2005 to 96 of 2005 whereby, the reference cases, have been partly allowed. Additional compensation has been allowed to the claimants at the rate of Rs.411-00 per sq. mtr. over and above the amount of compensation already awarded by the Special Land Acquisition Officer.

2. Since all the appeals arise out of the impugned judgment, they are being heard analogously and are disposed of by this common oral judgment. For the sake of convenience, the parties shall hereinafter be referred to as per their respective status before the Reference Court.

3. Pertinently, the lands in question are situated in the sim of village Mansa and were acquired for the purpose of Drill Site No.L.M.D.T. by the Oil and Natural Gas Corporation (hereinafter referred to as “the ONGC”). Initially, possession of the lands was taken by the acquiring body through personal negotiations sometime in the year 1997. Subsequent thereto, as the requirement continued, the Land Acquisition Officer, published notification under Section 4 of the LAND ACQUISITION ACT , 1894 (hereinafter referred to as “the Act of 1894”) on 21.12.1999, followed by a notification under Section 6 of the Act on 13.12.2000. The Land Acquisition Officer, determined the market value of the land at the rate of Rs.24-00 per sq. mtr. and awarded permissible statutory benefits. Since the claimants were aggrieved, preferred the Land Acquisition Reference case nos.91 of 2005, 93 of 2005 to 96 of 2005. The Reference Court, by the impugned judgment, awarded additional compensation at the rate of Rs.411-00 paisa per sq. mtr. Other statutory benefits were also awarded. Being aggrieved, the captioned appeals have been preferred against the impugned judgment.

4. Mr Ajay R. Mehta, learned advocate for the acquiring body, submitted that there is an error committed by the learned Judge in awarding additional compensation at Rs.411-00 per sq. mtr. over and above Rs.24-00 per sq. mtr. awarded by the Land Acquisition Officer. It is submitted that it ought to have been appreciated that the market value determined by the Land Acquisition Officer, was after considering the sale instances which were the best available material on the record. While inviting the attention of this Court to the oral order dated 19.04.2023 passed by the coordinate Bench in R/First Appeal no.5272 of 2010, it is submitted that what weighed with the Division Bench was factors as indicated in paragraph 15, namely, (i) the notification dated 13.10.1999 in Land Acquisition Reference case no.171/174 of 2005; (ii) notification dated 14.10.1999 for which, the compensation determined was Rs.431 per sq. mtr. and it having attained finality as the ONGC, has accepted the judgment; (iii) notification dated 26.08.2004 in relation to Land Acquisition Reference case no.410 to 461 of 2006 wherein, the Apex Court, has awarded the amount of Rs.491 per sq. mtr. and (iv) the notification dated 21.12.1999 under Section 4 of the Act of 1894 and the Reference Court, has determined the amount of Rs.435 per sq. mtr.

4.1 It is further submitted that in fact, previously another Division Bench had decided the First Appeal no.4979 of 2008 and other allied matters pertaining to the lands of village Mansa. Section 4 notification was issued on 22.12.1999, that is, on

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