The court affirmed that compensation for acquired land should be calculated with a 20% deduction based on established valuation standards, modifying the Reference Court's decision to reflect correct market value.

JUDGMENT :

NIRAL R. MEHTA, J.

1. These First Appeals filed by the appellants - State authorities and the Cross Objections filed by the respondents - original Claimants are directed against the judgment and award dated 19^th April 2019 passed in Land Acquisition Reference Nos.35 of 2017 and 36 of 2017, whereby the learned Principal Senior Civil Judge, Deodar has partly allowed the Reference and awarded additional compensation at the rate of Rs.333.50 per sq. mtrs. along with interest at the rate of 9% per annum on the additional compensation from the date of taking over the possession for the first year and thereafter, 15% per annum till actual realization of the payable aggregate amount.

2. The brief facts can be stated as under:

2.1. That the land of the original claimants situated at village : Lakhani, Taluka : Lakhani, District : Banaskantha, came to be acquired for the public purpose of Spreading Canal of Sujalam Safalam. Notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act" for short) was issued on 1^st July 2004 and declaration under Section 6 of the Act was made on 5^th January 2005 and the same culminated into the award under Section 11(1) of the Act, which was made and declared by the Land Acquisition Officer on 21^st February 2005. The Land Acquisition Officer by the said award determined the market value of the land acquired at Rs.8.50 per sq. mtrs.

2.2. Being dissatisfied with the said award, the respondent along with other land owners preferred an application as provided under Section 18 of the Act and the same was referred to the Reference Court at Deodar, which came to be numbered as Land Acquisition Reference Nos.35 of 2017 and 36 of 2017.

2.3. In the said reference, both the parties have led oral as well as documentary evidence to support their claim. The Reference Court, after appreciation of the evidence on record, partly allowed the reference application and determined the market value of the land under acquisition at Rs.333.50 per sq. mtrs. and also awarded all statutory benefits as provided under Sections 23(1)(a) and 23(2) of the Act.

3. Being aggrieved by the same, the appellants - State authorities have preferred these First Appeals and for enhancement of the claim, the original Claimants have filed cross objections.

4. We have heard learned Assistant Government Pleader Mr. Aditya Jadeja for the appellants – State authorities and Mr. Jinesh Kapadia for the respondents – Original Claimants.

5. At the outset, learned advocates appearing for the respective parties have submitted that in acquisition proceedings with respect to very same village, the Coordinate Division Bench of this Court, vide judgment dated 18^th December 2023 passed in R/First Appeal No.669 of 2019 and allied appeals with Cross Objections, has already decided the issue of compensation. Relevant observations made by the Coordinate Division Bench of this Court in the said R/First Appeal No.669 of 2019 are quoted hereinbeblow:

“14. We have considered the ratio laid down and the principle enunciated in the aforesaid decisions. It is found out that the principles governing determination of market value of lands acquired are well- settled and at the time of determination of the compensation, the Hon'ble Supreme Court issued certain directions as regard the the methods of valuation to be considered i.e. (1) opinion of experts, (2) the prices paid within a reasonable time in bonafide transactions of purchase or sale of the lands acquired or of the lands adjacent to those acquired and possessing similar advantages and (3) a number of years' purchase of the actual or immediately prospective profits of the lands acquired. Therefore valuation made by the Valuation Committee can be a valid bas