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2025 Supreme(Guj) 1200

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Bhikhubhai Govindbhai - Appellant 
Versus
State Of Gujarat & Anr. - Respondents 
R/FIRST APPEAL NO. 265 of 2012 With R/FIRST APPEAL NO. 266 of 2012 With R/FIRST APPEAL NO. 267 of 2012 With R/FIRST APPEAL NO. 268 of 2012 With R/FIRST APPEAL NO. 269 of 2012 With R/FIRST APPEAL NO. 270 of 2012 With R/FIRST APPEAL NO. 271 of 2012 With R/FIRST APPEAL NO. 272 of 2012 With R/FIRST APPEAL NO. 273 of 2012 With R/FIRST APPEAL NO. 274 of 2012 With R/FIRST APPEAL NO. 277 of 2012 With R/FIRST APPEAL NO. 278 of 2012 With R/FIRST APPEAL NO. 279 of 2012 With R/FIRST APPEAL NO. 280 of 2012 With R/FIRST APPEAL NO. 281 of 2012 With R/FIRST APPEAL NO. 282 of 2012 With R/FIRST APPEAL NO. 283 of 2012 With R/FIRST APPEAL NO. 284 of 2012 With R/FIRST APPEAL NO. 285 of 2012 With R/FIRST APPEAL NO. 286 of 2012 
Decided on : 08-08-2025

Advocates Appeared:
For the Appellant : VMP LEGAL
For the Respondent: MS ROSHNI PATEL AGP

Compensation for acquired land must reflect its fair market value, including consideration of agricultural yield and proper escalation adjustments based on market conditions at the time of acquisition.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 6, 9, and 18 - Irrigated and non-irrigated agricultural land - Appeals against the compensation awarded by the Reference Court, which awarded Rs.225/- per Are for irrigated land and Rs.200/- per Are for non-irrigated land - Appeals contended the market value of the lands should be Rs.60/- per square meter based on yield method and correction for annual escalation, which the Reference Court disregarded. (Paras 1, 12, 19)

(B) Compensation Assessment - The assessment of land compensation must consider the agricultural yield, evidence of irrigation, and legitimate market value at the time of acquisition; the Reference Court's reliance on outdated sales and failure to account for annual escalation were deemed erroneous. (Paras 5, 11, 17)

Facts of the case:
The case involves appeals against a common judgment and award related to the acquisition of irrigated agricultural land for the construction of a road. The original compensation rates provided by the Special Land Acquisition Officer were challenged based on evidence of historical sale prices in the area and agricultural productivity. The appellants claimed the awarded compensation was inadequate and sought enhanced payment. (Paras 4, 5)

Findings of Court:
The appeals were partly allowed; the court modified the compensation rates to Rs.60/- per square meter after applying appropriate deductions and verifying evidentiary support for agricultural yield and market conditions over time. (Paras 19, 20)

Issues: The court considered whether the Reference Court miscalculated compensation by not properly considering crop yield evidence, the impacts of annual price escalation, and whether the categorization of the land as irrigated was accurate. (Paras 12, 16)

Ratio Decidendi: The court reaffirmed the necessity of using appropriate methods for compensation assessment that align with market realities, including the validated yield method and acknowledging evidence of irrigation. The annual increase in land value must be applied consistently to reflect accurately the compensation owed to landowners. (Paras 11, 19)

Result: Appeals allowed in part; judgment regarding compensation modified to Rs.60/- per square meter, while upholding other directions regarding interest and statutory benefits. (Para 20)

JUDGMENT :

HEMANT M. PRACHCHHAK, J.

1. There are two batch of appeals out of which First Appeal Nos.265 of 2012 to 274 of 2012 is directed against the common judgment and award dated 27.09.2011 passed by the learned 4th Additional Senior Civil Judge and Additional Chief Judicial Magistrate, Junagadh, (hereinafter referred to as the "Reference Court") in Land Acquisition Reference Case Nos.185 of 2005, 178 of 2005 to 189 of 2005, 192 of 2005, 195 of 2005, 198 of 2005, 201 of 2005, 204 of 2005 and 205 of 2005 whereby the References were allowed and the respondents were held liable to pay additional amount of compensation to the original claimants along with interest and costs. Notification under Section 4 of the LAND ACQUISITION ACT , 1894 (hereinafter be referred to as “the Act”) in respect of the irrigated agricultural lands under acquisition situated at Village: Dhanfulia, Taluka: Vanthli, District: Junagadh was published on 09.09.1999 for the purpose of Construction of Vadla Dhanfulia Sonardi Road Project and notification under Section 6 of the Act was published on 04.10.2001 and, thereafter, the notice under Section 9 of the Act issued to the claimants and the Special Land Acquisition Officer passed an award on 01.04.2002 under Section 11 of the Act whereby awarded Rs.6.25 per square meters for irrigated land (Piyat) and Rs.5/- per square meters for non-irrigated land (Baret).

1.1 The another batch of appeals being First Appeal Nos.277 of 2012 to 286 of 2012 is directed against the common judgment and award dated 27.09.2011 passed by the learned 4th Additional Senior Civil Judge and Additional Chief Judicial Magistrate, Junagadh, (hereinafter referred to as the "Reference Court") in Land Acquisition Reference Case Nos.170 of 2005 to 176 of 2005, 178 of 2005, 183 of 2005 and 184 of 2005 whereby the References were allowed and the respondents were held liable to pay additional amount of compensation to the original claimants along with interest and costs. Notification under Section 4 of the LAND ACQUISITION ACT , 1894 (hereinafter be referred to as “the Act”) in respect of the irrigated agricultural lands under acquisition situated at Village: Dhanfulia, Taluka: Vanthli, District: Junagadh was published on 09.09.1999 for the purpose of Construction of Vadla Dhanfulia Sonardi Road Project and notification under Section 6 of the Act was published on 06.01.2000 and, thereafter, the notice under Section 9 of the Act issued to the claimants and the Special Land Acquisition Officer passed an award on 01.04.2002 under Section 11 of the Act whereby awarded Rs.6.25 per square meters for irrigated land (Piyat) and Rs.5/- per square meters for non-irrigated land (Baret).

2. This batch of appeals, is being decided by this common judgment and order.

3. Brief facts of the present case are that the irrigated agricultural land (Piyat) of the respective claimants were acquired by the respondent – State Authorities for the purpose of constructing of Vadla Dhanfulia Junagadh Road situated at Village: Dhanfulia, Taluka: Vanthli, District: Junagadh. The Notification under Section 4 of the Act was published on 09.09.1999 and Notification under Section 6 of the Act was published on 06.01.2000 in second batch of appeals and 04.10.2001 in first batch of appeals respectively. The Notice under Section 9 of the said Act was issued to the claimants.

3.1 It is the case of the appellants that an award dated 01.04.2002 came to be passed by the Special Land Acquisition Officer in Land Acquisition Case No.22 of 1999 whereby the Special Land Acquisition Officer awarded Rs.6.25/- per square meters for irrigated land (Piyat) and Rs.5/- per square meter for irrigated land (Baret) in first batch of appeals.

3.2 It is the case of the appellants that an award dated 16.03.2002 came to be passed by the Special Land Acquisition Officer in Land Acquisition Case No.22 of 1999 whereby the Special Land Acquisition Officer awarded Rs.6.25/- per square meters for irrigated la

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