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2025 Supreme(Guj) 1411

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Executive Engineer/General Manager - Appellant
Versus
Kaneliya Ajmalji Motiji and Another - Respondents
First Appeal Nos. 1640, 1647 , 1653, 1655 of 2018, Cross Objection Nos. 62, 91 of 2022, Cross Objection No. 371 of 2023
Decided On : 11-07-2025

Advocates:
Advocate Appeared:
For the Appellant : Krishna G. Rawal
For the Respondents: Jinesh H. Kapadia, Tushar Chaudhary, Roshni Patel

Compensation for acquired land must be based on reliable valuation evidence, with deductions reflecting the nature of the land and consistent with judicial precedents.

Headnote:(A) Land Acquisition Act, 1894 - Section 54 - Challenges the award of compensation for land acquisition - The acquired land's compensation was determined at Rs.160.75 paise per square meter in reference proceedings - The court found that the reference court had adequately relied upon the Market Valuation Committee Report in determining market value. (Paras 6, 10, 12)

(B) Principles of Valuation - The court reiterated that the reliance on expert opinions and recent transactions is permissible in determining the market value of the land acquired. (Paras 9, 13)

Facts of the case:
The respondents' agricultural lands in Village Ubari were acquired for the construction of a railway line, with initial compensation set at Rs.24.25 per square meter, which the claimants contested, asserting a value of Rs.1000 per square meter. (Paras 1, 2)

Findings of Court:
The court upheld the lower court's valuation of Rs.160.75 per square meter and the consequent statutory benefits provided to the claimants, finding no error in evaluating the Market Valuation Committee Report. (Para 12)

Issues: The court evaluated whether the Reference Court properly assessed the compensation, considering the type and location of the acquired land and the reliance on valuation reports. (Paras 10, 14)

Ratio Decidendi: Reliance on the Market Valuation Committee Report was justified as there was no other relevant evidence. The court underscored that deductions for agricultural land valuation should be reasonable and consistent with prior decisions. (Paras 7, 11)

Result: Appeals dismissed; decision of the lower court maintained.

Table of Content
1. land acquisition details and compensation awarded. (Para 1 , 2)
2. arguments challenging compensation calculation. (Para 4)
3. defense supporting the reference court's decision. (Para 5)
4. court’s analysis on land acquisition and valuation. (Para 7 , 8 , 9 , 10)
5. conclusions on market valuation and judgment. (Para 11 , 12 , 13 , 14)
6. final decision dismissing the appeals. (Para 15)

JUDGMENT :

HEMANT M. PRACHCHHAK, J.

1. The appellant has filed the present appeals under Section 54 of the LAND ACQUISITION ACT (hereinafter be referred to as “the Act”) challenging the impugned judgment and award dated 06.04.2017 passed by the learned 2nd Additional Senior Civil Judge, Deesa, District: Banaskantha in Land Acquisition Reference No.65 of 2013 (main case) and other allied matters. By the said common judgment and award, the learned Judge has partly allowed the Reference and has enhanced the amount of compensation determining the market value of land acquired at the rate of Rs.160.75 paise per square meter. Apart from the said enhancement amount of compensation, the learned Judge has also awarded consequential statutory benefits of solatium along with the interest.

2. Brief facts of the present case are that the agriculture lands of respondents-original claimants situated at Village Ubari, Taluka: Kankrej, District Banaskantha have been permanently acquired for the purpose of constructing new broad gauze railway line of Patan – Bhildi vide Land Acquisition Case No. 14 of 2009. For the purpose of acquisition, the award has been declared as per rate of Rs. 24.25 per square meter on 21.06.2012 and paid compensation to the respondents. It is contended that thereafter, the original claimants had preferred a reference cases before the Special Land Acquisition Officer claiming being as original value of the land should be Rs. 1000/- per square meter, but it was decided only Rs. 24.25 per square meter. The Notification under Section 4 of the Act has been issued.

2.1 That the amount of award on the basis of the comparison with the land bearing survey No. 18, 27 paiki, 128 midway of survey no. 3, midway between Sr.No. 395 and 420 and land of the River Banas etc. In respect of these lands, the award of Rs. 525 per square meter following the rates of year 2016 as per exhibit 15 and 16 based on such land has been converted into non-agriculture situated near the road.

2.2 The appellant has filed the written statements in each reference cases wherein it has been stated that the fixed compensation is just and proper after considering quality of the acquired land and surrounding sale transactions. At the time of hearing, claimants have not produced any single documents to decide the rate of compensation and the dispute nor objection has been raised.

2.3 After hearing the respective parties and considering the evidence on record, the learned Judge has partly allowed the reference and directed the respondents to pay compensation to the tune of Rs.185/- per square meter for the acquired agricultural land considering the rate of Rs.525/- per square meter in favour of the claimants. The details of the additional amount are as under:-

Calculation of additional amount which is to be paid L.A.R. No. 65/2013 to 125/2013

S. No.L.A.R. No.Survey numberAcquired land H.R.Square meterAmount per Sq.Mtr.Total amount
165/201391700-80-158015160.7512,88,411.25
266/2013918/P/200-22-002200160.753,53,650/-
367/2013918/P/100-04-76476160.7576517/-
468/2013922/P 200-25-452545160.754,09,108/-
569/2013922/Paiki 1/100-23-692369160.753,80,816.75
670/2013926 446/P100-00-02 00-56-972 5697160.75321.50 915792.75 9,16,114.25
771/2013927/P00-51-585158160.758,29,148.50
872/20131800-09-42942160.751,51,426.50
973/20136/P/1/2 7/200-01-01 00-00-26101 26160.7516235.75 4179.50 20415.25
1074/20136/P/1/100-34-123412160.755,48,479/-
1175/20136/P/200-60-656065160.759,74,948.75
1276/2013500-60-666066160.759,75,109.50
1377/20133/P 100-38-503850160.756,18,887.50
1478/2013128/6/P/100-13-211321160.752,

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