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2025 Supreme(Guj) 1202

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Badharbhai Limjibhai Vasava & Ors. - Appellants 
Versus
Special Land Acquisition Officer & Ors. - Respondents 
R/First Appeal No. 1679 of 2012 With Civil Application (For Orders) No. 1 of 2012
Decided on : 08-08-2025

Advocates Appeared:
For the Appellant : MR KM SHETH
For the Respondent:MR KM PATEL, SENIOR ADVOCATE WITH MR.VARUN K.PATEL, MS ROSHNI PATEL, ASST. GOVERNMENT PLEADER

Compensation for land acquisition must consider legal principles of escalation and delay, leading to justified adjustments based on precedents in similar cases.

Headnote:(A) Land Acquisition Act, 1894 - Section 54 - Code of Civil Procedure, 1908 - Appeal regarding compensation for land acquisition - Reference Court awarded Rs.1.75 per square meter, while Special Land Acquisition Officer awarded Rs.50/- per Are. Appellant claimed Rs.1277.63 per Are. Court modified the award to Rs.13.28 per square meter after considering legal principles regarding delay and escalation of compensation. (Paras 1-9)

(B) Compensation - Principles relating to land compensation, including escalation and delay, weighed against previous judgments relevant to the same land acquisition. (Paras 5 and 6)

Facts of the case:
The case arose from the land acquisition for Lignite Mining in Village Amod, with principal compensation contested leading to the appeal for enhancement based on prior relevant awards from similar lands.

Findings of Court:
The court determined that the appellant was entitled to compensation modified to Rs.13.28 per square meter, while maintaining other statutory benefits intact.

Issues: The primary issue revolved around entitlements for additional compensation and established guidelines for interest based on delay in proceedings.

Ratio Decidendi: The court ruled that, considering similar previous cases and the principles of compensation adjustments, the appellant merits enhanced compensation to balance disparities with other acquired lands, endorsing the legal rationale behind compensation for land lost in public projects.

Result: Appeal allowed, with additional compensation of Rs.13.28 per square meter directed for payment.

Table of Content
1. details of land acquisition and initial compensation (Para 1 , 2)
2. court's evaluation of compensation and judgment precedents (Para 4 , 8)
3. arguments for and against appeal (Para 5 , 6)
4. final judgment on compensation enhancement (Para 9 , 10)

JUDGMENT :

HEMANT M. PRACHCHHAK, J.

1. Present appeal is filed by the appellant – original claimant under Section 54 of the LAND ACQUISITION ACT , 1894 (hereinafter be referred to as “the Act”) read with Section 96 of the Code of CIVIL PROCEDURE CODE , 1908 challenging the judgment and award dated 05.06.2008 passed by the learned Principal Senior Civil Judge, Bharuch (hereinafter be referred to as “the Reference Court”) in Land Acquisition Reference No.204 of 1988, whereby, the Reference Court has awarded Rs.1.75 per square meter, over-and-above the amount awarded by the Special Land Acquisition Officer which comes Rs.2.25 per square meter.

2. For the purpose of development of Lignite Mining, the respondents herein acquired the lands of the appellant – original claimant situated at Village: Amod, Taluka: Zagadia, District: Bharuch. A notification under Section 4 of the LAND ACQUISITION ACT was issued on 11.07.1986 and declaration under Section 6 of the Act was published on 10.04.1987. An amount of Rs.1277.63ps. per Are was demanded by the appellant, but the Special Land Acquisition Officer awarded Rs.50/- per Are by passing an award dated 30.05.1987.

2.1 Being aggrieved, the appellant – original claimant, preferred the aforesaid LAR Case under Section 18 of the Act for additional compensation of Rs.1277.63ps. per Are. After service of summons, the respondent Nos.1 and 2 had filed their written statements at Exh.-8 and respondent No.3 had filed written statement at Exh.-19 contending that the reference filed by the claimant is not legal and proper and barred by law of limitation and the award passed by the Special Land Acquisition Officer is legal and proper.

2.2 After considering the pleadings of both the sides, the Reference Court had framed the following issues :

(1) Whether the claimant is entitled to the additional compensation as prayed?

(2) If yes, what amount?

(3) What order?

2.3 That, the issues were replied by the Reference Court in para-8. To prove the case, the claimant had produced following oral as well as documentary evidence :

Oral Evidence :
Exh.-56deposition of Mansingbhai Narottambhai
Exh.-71deposition of Natvarlal Nandlal Shah
Exh.-108deposition of Punabhai Somabhai Prajapati (Government Registered Valuer)
Documentary Evidence :
Exh.-40certified copy of judgment of LAR No.254/86 (Main) in respect of village Amod, Ta. Jhagaida, Dist. Bharch
Exhs.-41 to 55copies of village form no.7/12
Eshx.-60 to 63certified copies of index-2
Exh.-73copy of sale deed
Exh.-107copy of award of L.A.Q. No.7/2000
Exh.-109valuation report of Chartered Engineer, Govt. Registered Valuer
2.4 The defendants had also produced following oral as well as documentary evidence :
Exh.-78deposition of Yaqubbhai Taiyabali Khushiwal
Exh.-140certified copy of judgment of LAR No.635/87 in respect of village Maljipura, Ta. Jhagadia, Dist. Bharuch

2.5 After considering the oral as well as documentary evidence led by both the sides, the judgment and award dated 05.06.2008 came to be passed by the learned Principal Senior Civil Judge, Bharuch, whereby, the Reference Court has awarded Rs.1.75/- per square meter, over-and-above the amount awarded by the Special Land Acquisition. This has aggrieved the appellant, has preferred the present appeal raising various grounds.

4. Heard Mr.K. M. Sheth, learned counsel appearing for the appellant, Ms.Roshni Patel, learned Assistant Government Pleader appearing for respondent Nos.1 and 2 and Mr.K.M. Patel, learned senior counsel assisted by Mr.Varun K. Patel, learned counsel appearing for respondent No.3-Gujarat Mineral Development Corporation.

5. Mr.Sheth, learned counsel has submitted the same facts which are narrated in the memo of appeal. He has relied upon the decision

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