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2026 Supreme(Guj) 149

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Devan M. Desai, J.
General Manager – Appellant
Versus
Patel Kaushik Babubhai & Anr. – Defendants
R/First Appeal No. 599 of 2010, R/First Appeal No. 600 of 2010, R/First Appeal No. 601 of 2010
Decided On : 29-01-2026

Advocates Appeared:
For the Appellant : Ms K J Brahmbhatt
For the Defendant : Mr Chirag Upadhyay, Agp, Ms.Shivani V Trivedi

Compensation for land acquisition must reflect current market values based on latest information and regional judgments.

Headnote:(A) Land Acquisition Act - Section 54 - Code of Civil Procedure, 1908 - Appeals against awards of compensation for land acquisition - The Reference Court awarded compensation of Rs.104/- per sq. mtr. which the appellant contests, arguing it disregarded market value. - Past judgments were cited to suggest a lower value should apply; however, the Reference Court considered evidence available at the time - Appeals remitted for fresh decision after considering updated information and subsequent awards. (Paras 1, 4, 8, 9)

(B) Fresh Decision - The court ordered the Reference Court to reconsider the claims and requested expedited resolution due to the time elapsed since the land acquisition. (Paras 9, 10)

Facts of the case:
The appeal arises from land acquired for drilling purposes, with initial compensation being Rs.21/- per sq. mtr., increased by the Reference Court. Claims of market value were contested based on other regional judgments.

Findings of Court:
The court found merit in concerns about comparability of the earlier compensation assessments to reject the Reference Court's valuations and remand for a fresh decision.

Issues: Primary issue pertains to the adequacy of compensation awarded and respect for market value principles.

Ratio Decidendi: The court emphasized the necessity to reassess compensation to reflect current and relevant evidence concerning land values, while allowing for a complete recount of claims.

Result: Appeals allowed and remitted for fresh decision.

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, the claimants are entitled to get Rs. 40/- per sq. mtr as additional compensation over and above Rs. 4/- per sq. mtr already granted by the Land Acquisition Officer." additional compensation over and above Rs. 4/- per sq. mtr already granted by the Land Acquisition Officer."

4.2 Learned advocate for the appellant has referred to and relied upon the decision of the

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