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2026 Supreme(Guj) 25

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
DEVAN M. DESAI, J.
General Manager – Appellant 
Versus
Patel Kaushik Babubhai And Anr. – Respondents 
R/FIRST APPEAL NO. 599 of 2010 With R/FIRST APPEAL NO. 600 of 2010
With R/FIRST APPEAL NO. 601 of 2010
Decided On : 05-03-2026

Advocates Appeared:
For the Appellant : Ms Kj Brahmbhatt
For the Respondent: Mr Chirag Upadhyay, Agp, Ms. Shivani V Trivedi

The court mandated that all relevant evidence, including subsequent judgments, must be considered by the Reference Court in determining compensation for land acquisition cases.

Headnote:(A) Land Acquisition Act - Section 54 - Code of Civil Procedure, 1908 - Appeal against the judgment awarding compensation for land acquisition at Rs.104/- per sq. mtr. instead of Rs.21/- awarded by the Land Acquisition Officer. The Reference Court had considered evidence and prior awards for comparable land. (Paras 1, 3.1, 8, 10)

(B) The Reference Court is required to consider all relevant materials, including subsequent judgments, when determining compensation for land acquisition cases. (Paras 5.1, 7)

Facts of the case:
The appellant challenged the judgment and award concerning land acquisition for drilling purposes and disputes arose over the compensation amounts awarded compared to prior related awards.

Findings of Court:
The court found that subsequent award decisions relevant to compensation were not considered, warranting remittance of the case to the Reference Court for fresh determination.

Issues: Whether the Reference Court correctly assessed the market value of the land while setting compensation.

Ratio Decidendi: Court emphasized that all relevant materials and prior case outcomes must be taken into account in future determinations of compensation for land acquisition.

Result: Appeals disposed of; Reference Court's earlier judgment set aside and matter remitted for fresh decision.

Table of Content
1. overview of the appeal and its context. (Para 1 , 3)
2. arguments regarding compensation values. (Para 4)
3. counterarguments from claimants on compensation. (Para 5)
4. court's review and need for further evidence. (Para 6 , 7)
5. remand for fresh decision and procedural directives. (Para 8 , 9)
6. final decision to quash previous awards. (Para 10)

JUDGMENT :

DEVAN M. DESAI, J.

1. Present appeals are filed by the appellant - O.N.G.C. under Section 54 of the LAND ACQUISITION ACT read with Section 96 of the Code of Civil Procedure, 1908 (hereinafter, referred to as ‘the Code’) challenging the judgment and award dated 27.02.2009 passed in L.A.R. Nos. 1853 to 1855 of 2003 by the learned Additional District and Sessions Judge (5th Fast Track Judge), Mehsana (hereinafter referred to as the "Reference Court"). The Reference Court has partly allowed the said Reference and awarded compensation of Rs.104/- per sq. mtr. over and above the amount of compensation of Rs.21/- already awarded by the Special Land Acquisition Officer.

2. Heard learned advocate Ms. K.J. Brahmbhatt for the appellant, learned advocate Ms. Shivani Trivedi for respondent No.1 and learned AGP Mr. Chirag Upadhyay for the respondent – State.

3. The brief facts of the case are as follows:

3.1 The lands situated at village Meda Adaraj, Tal. Kadi, Dist. Mehsana were acquired for the purpose of Drilling No. JRFN by the appellant - O.N.G.C. for L.A.R. Nos. 1853 to 1855 of 2003. Notification under Section 4 of the Act was published on 21.01.1999 and under Section 6 was published on 05.02.2001. The Land Acquisition Officer, after issuing notice to the claimants and after hearing the claimants and considering the evidence led by the claimants passed an award dated 17.06.2003 awarding compensation at the rate of Rs.21/- per sq. mtr. Being aggrieved and dissatisfied with the award of the Land Acquisition Officer, the claimants filed reference proceedings claiming compensation at the rate of Rs.125/- per sq. mtr. After considering the relevant materials and after considering the oral as well as the documentary evidence, the Reference Court partly allowed references and awarded Rs.104/- per sq. mtr. over and above, the compensation awarded by the Land Acquisition Officer.

3.2 Being aggrieved and dissatisfied with the impugned judgment and awards passed by the Reference Court the, appellant - O.N.G.C. has filed present First Appeals.

4. Learned advocate for the appellant has submitted that the Reference Court has not considered the facts while determining the market value in its true and proper spirit. It is also submitted that the Division Bench of this Court, vide judgment and order dated 06.08.2015 passed in First Appeal No. 3531 of 2011 with Cross Objection No. 116 of 2012 with respect to the adjoining village Merda, has fixed the value at Rs. 44/- per sq. mtr. It is also submitted that the Reference Court has awarded a very high amount in present Appeals without considering the said fact.

4.1 Learned advocate for the appellant has referred to and relied upon the observations made by the Division Bench of this Court in paragraph No. 5 of the above referred judgment and order, which read as under:

"5. This court has gone through the documentary evidence placed on record alongwith the award of the reference court. The reference court has relied upon awards passed with respect of acquisition of lands of nearby villages. On basis of the said award, the reference court considered the compensation of around Rs. 69/- per sq. mt keeping in mind the notification under section 4 dated 05.04.2003 in that case. In the present case, the section 4 notification was issued on 31.12.1998. Considering the difference and time gap of around four years and four months and keeping the price at Rs. 69/- intact, we are of the view that the reference court ought to have arrived at compensation considering 40% decrease in price which comes to Rs. 44/- on the basis of reducing value method. Thus,

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