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2025 Supreme(Guj) 1388

N THE HIGH COURT OF GUJARAT AT AHMEDABAD 
A.Y. KOGJE, N.S.SANJAY GOWDA, JJ.
M/s. J.K Paper Ltd. - Appellant
Versus
Natwarlal Mohanlal Shah Through Lhrs Bipinchandra Natwarlal Shah & Ors. - Respondent
Civil Application (For Stay) No. 1 Of 2023 In R/First Appeal No. 2489 Of 2023 With Civil Application (For Stay) No. 1 Of 2025 In R/First Appeal No. 2489 Of 2023
Decided On : 30-06-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Mihir Thakore, Senior Advocate with Mr. Percy Kavina, Senior Advocate With Ms Prachiti V Shah, Nanavati & Nanavati
For the Respondent:Ms. Urvashi Purohit, AGP, Mr. S. N. Soparkar, Senior Advocate with Mr Nikunt K Raval, Notice Served By DS, Pratik K Khubchandani, Vidit S Sharma

The court can grant a stay on an award of land valuation pending appeal, subject to conditions including the deposit of a percentage of awarded compensation to protect the interests of both parties.

Headnote:(A) Land Acquisition Act, 1894 - Section 54 - Valuation of acquired land - Award by Land Acquisition Officer assessed value at Rs.124/- per square meter, enhanced by Reference Court to Rs.950/-; aggrievement by company regarding valuation and possession issues. (Paras 2, 4, 26)

(B) Stay Applications - Requirements for granting stay pending appeal; necessary to safeguard rights of the parties during litigation, requiring deposit of compensation as specified in award. (Paras 26)

Facts of the case:
The appeal involved valuation of land acquired, where the Land Acquisition Officer assessed it at Rs.124/- per square meter and the Reference Court enhanced the value to Rs.950/-, contested by the appellant-company. The case also involves ownership and possession disputes over specific land portions.

Findings of Court:
The court stayed the impugned judgment while permitting interim relief contingent upon required deposits by the appellant, ensuring rights of the original landowner.

Issues: The primary issues addressed involve the validity of the land valuation and the necessity of deposit for stay on execution of the impugned award.

Ratio Decidendi: The court emphasized the need for fair relief to maintain judicial balance, prescribing deposits while considering the competing claims of ownership and possession.

Result: Stay granted on impugned award, subject to conditions.

Table of Content
1. details of applications and legal context (Para 1 , 2 , 3)
2. dispute on land valuation and appeal process (Para 4 , 5 , 6)
3. arguments regarding possession and valuation (Para 8 , 9 , 10)
4. court's analysis of submissions (Para 11 , 12)
5. possession rights and compensation (Para 18 , 21)
6. order for stay and deposit terms (Para 24 , 26)
7. conclusion and order issued (Para 27 , 28)

ORDER :

(PER : HONOURABLE MR. JUSTICE A.Y. KOGJE)

1. The Civil Applications are filed at different times pending the First Appeal. Civil Application No.1 of 2023 was filed along with the filing of First Appeal with the prayer as under:

“A) Your Lordships may be pleased to allow this application; and B) Your Lordships may be pleased to stay the impugned judgment and award dated 23-02-2023 by the Ld. Addl. Sr. Civil Judge, Tapi at Vyara passed in Land Reference Application No.78/2012. (Old No.61/2007) during the pendency and final disposal of this appeal; and

BB) Your Lordships may be pleased to direct the Respondent No.2 to takeover balance area of acquired land admeasuring 100230 Sq. mtrs. i.e. 24.77 acres from the Resp. Nos.1.1 to 1.3 and handover the same in favour of applicant-company during the pendency and final disposal of this Appeal;

C) Your Lordships may be pleased to grant ad-interim relief in terms of above sub-para (B);”

1.1. While Civil Application No.1 of 2025 was filed later, on account of certain subsequent development; with prayer clause as under:

“A. Your Lordships may be pleased to allow this Application; and

B. Your Lordships may be pleased to stay further proceedings of LAR Execution No.3/23 pending before the Ld. Principal Sr. Civil Judge at Vyara, Dist. Tapi, during the pendency and final disposal of captioned First Appeal; and

C. Your Lordships may be pleased to pass an order withholding the amount of Rs.4.72 Cr. and not to be released in favour of Respondents-Claimants (Decree Holders) and further to invest the same in with any nationalized bank vide FDRs till the final adjudication of the caption First Appeal; and

D. Your Lordships may be pleased to grant ad-interim relief in terms of Sub-Para (B & C) pending hearing and final disposal of caption First Appeal;

2. The First Appeal is preferred under Section 54 of the LAND ACQUISITION ACT , 1894 by the Appellant-Company against the judgment and award dated 23-02-2023 by Additional Senior Civil Judge, Tapi at Vyara in Land Reference Application No.78/2012. (Old No.61/2007).

3. The Acquisition proceedings were pertaining to acquisition of Land bearing Block No.207 of Village-Gunsada ad-measuring 1,40,504 square meters. The facts not in dispute are Section-4 Notification, which was published on 21-04-2005, Section-6 Declaration on 08-08-2005. The award under Section-11 was made by Land Acquisition Officer on 27-12-2006. The reference under LAND ACQUISITION ACT under Section-18 appear to have been made in the year 2007, as the Old Reference No. is assigned as 61/2007, which was given New Reference No.78/2012 and the Reference was ultimately decided on 23-02-2023 (impugned).

4. The Appeal is by the aggrieved appellant-Company in whose benefit, the Acquisition proceedings have taken place and the grievance is primarily to the valuation of the Land. The Land Acquisition Officer has assessed the land at the rate of Rs.124/- square meter, which the Reference Court has enhanced to Rs.950/- per square meter. It is this increase in Land Valuation, the Appellant-Company has challenged in the First Appeal on various grounds.

5. Original claimants have also preferred First Appeal No.1653/2023 against the very judgment and award claiming the valuation of land at the rate of Rs.950/- per square meter is on the lower side and claimed additional compensation at the rate of Rs.1500/- per square meter. That Appeal stands admitted.

6. In the present Appeal, this Court has passed an initial order dated 26-06-2023 referring to order of admission in First Appeal No.1653/2023 and issuing Notice bo

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