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2026 Supreme(Online)(Guj) 4761

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J. C. Doshi, J
Punabhai Bijalbhai – Appellant
Versus
State of Gujarat – Respondent
R/FIRST APPEAL NO. 2145 of 2024|R/FIRST APPEAL NO. 3214 of 2023|R/FIRST APPEAL NO. 3221 of 2023|R/FIRST APPEAL NO. 3222 of 2023|R/FIRST APPEAL NO. 3223 of 2023|R/FIRST APPEAL NO. 635 of 2024|R/FIRST APPEAL NO. 637 of 2024|R/FIRST APPEAL NO. 771 of 2024|R/FIRST APPEAL NO. 810 of 2024|R/FIRST APPEAL NO. 955 of 2024|R/FIRST APPEAL NO. 958 of 2024|R/FIRST APPEAL NO. 1086 of 2024|R/FIRST APPEAL NO. 1392 of 2024|R/FIRST APPEAL NO. 1475 of 2024|R/FIRST APPEAL NO. 1628 of 2024|R/FIRST APPEAL NO. 4006 of 2024|R/FIRST APPEAL NO. 4025 of 2024|R/FIRST APPEAL NO. 4028 of 2024|R/FIRST APPEAL NO. 188 of 2025



Advocates:
For the Appellants/Petitioners: Krushnakant D Patel, Tejas P Satta
For the Respondents: Bharat Vyas, Shailesh Desai, Hemali Soni

Determining fair market value for acquired land is a judicial duty that overrides strict technical pleading rules. Compensation must ensure substantial justice and be applied uniformly to similarly situated landowners, utilizing settled valuation principles regarding irrigated and non-irrigated land price differentials.

Headnote:(A) Land Acquisition Act, 1894 - Sections 11, 18, and 54 - Acquisition for public purpose - Enhancement of compensation - Determination of just market value - Court not restricted by original claims when assessing fair compensation - Objective of the Act is to provide adequate compensation to landowners - Principle of parity and non-discrimination for similarly situated landowners - Importance of substantial justice over technical rules of pleadings. (Paras 3, 4, 7, 8, 10, 11)

(B) Valuation - Methodology for land valuation - Irrigated land generally commands 25% higher market value than non-irrigated land - Derived valuation for waste land based on proportional enhancements from initial awards to ensure consistency. (Paras 8, 10, 11)

Facts of the case:
Appeals were filed by landowners against common awards of a lower court seeking further enhancement of compensation for lands acquired for an agricultural irrigation project. Compensation was initially determined by the acquiring authority and partially enhanced by the lower court. The appellants argued for higher compensation based on settled judicial precedents and consistent rates awarded to other affected landowners under the same acquisition notification.

Findings of Court:
The court held that landowners are entitled to just and fair compensation regardless of the amount initially claimed. Technicalities concerning pleadings must not obstruct the grant of fair value. Uniform compensation must be applied to all similarly situated persons to avoid discrimination. Irrigated land is to be valued following a established percentage differential over non-irrigated land, and waste land compensation is calibrated based on consistent enhancement patterns.

Issues: Whether the compensation awarded by the lower court was just and fair, and if technical rules of pleading and historical claims can restrict the court from granting higher compensation determined by established market value standards.

Ratio Decidendi: The court ruled that determining fair market value is a mandatory judicial duty that transcends strict pleading requirements. Maintaining parity among similarly situated landowners is essential to prevent discriminatory outcomes, and established valuation differentials between land types must be consistently applied to reflect true market value.

Result: Appeals allowed.

Table of Content
1. procedural context and history of land acquisition. (Para 1 , 2 , 3 , 4)
2. parties' contentions regarding just compensation benchmarks. (Para 5 , 6)
3. judicial determination of market value and land classification. (Para 7 , 8 , 9 , 10 , 11)
4. final award of enhanced compensation and procedural disposal. (Para 12 , 13 , 14 , 15 , 16)

CORAM: HONOURABLE MR. JUSTICE J. C. DOSHI

Date : 20/03/2026

COMMON JUDGMENT

1. The group of appeals arise under Section 54 of the Land Acquisition Act, 1894, against the common judgment and award passed in group of LAR Case Nos.227 to 243 of 1995 and 488 to 492 of 1996, with LAR Case No.227 of 1995 being treated as the lead matter.

2. In view of the above, and with the consent of learned advocates appearing for both sides, the captioned appeals are decided by this common judgment.

3. In LAQ No.12 of 1991, the Special Land Acquisition Officer, in exercise of power under Section 11 of the Act, determined the compensation at Rs.2/- per sq. mtr. for irrigated land, Rs.1.5/- per sq. mtr. for non-irrigated land, and Rs.1/- per sq. mtr. for waste (Kharaba) land. The acquisition was carried out in the village: Ranparda, Taluka: Bhanvad, Dist.: Jamnagar, for the public purpose of Vartun-2 Irrigation Scheme. Notification under Section 4 of the Act was published on 09.04.1992, thereby initiating the acquisition proceedings. Notification under Section 6 of the Act was published on 17.09.1995, and thereafter, upon completion of the procedure under Section 11 of the Act, the Special Land Acquisition Officer declared the award on 28.10.1994.

4. As per the said award, the compensation was assessed at Rs.2/- per sq. mtr. for irrigated land, Rs.1.5/- per sq. mtr. for non-irrigated land and Rs.1/- per sq. mtr. for waste (Kharaba land). Being aggrieved, the claimants requested that the matter be referred to the learned Reference Court under Section 18 of the Act. Upon acceptance of request, references were made and registered as different LAR Case Numbers. However, all the cases arose from the same LAQ. By a common judgment and award dated 07.04.2018, the learned Principal Senior Civil Judge, Khambhaliya, was pleased to allow all the reference and enhanced the compensation from Rs.2/- to Rs.20/- per sq. mtr. for irrigated land and from Rs.1.5/- to Rs.15/- per sq. mtr. for non-irrigated land and continue the assessment of Rs.1/- per sq. mtr. for Kharaba land. Being further aggrieved, claimants preferred the present First Appeals before this Court.

5. At the outset, learned advocate Mr.Tejas Satta appearing for the claimants referred to the judgment of the Co-ordinate Bench in First Appeal No.249 of 2023 and allied matters in the case of Sumer Osman Patel Vs. Deputy Collector Land Acquisition And Rehabilitation & Anr. decided on 06.10.2025, and submitted that, for the same public purpose of Vartun-2 Irrigation Scheme and the same village, the Co-ordinate Bench has assessed the compensation at Rs.25.23 per sq. mtr. relying upon the judgment of the Hon’ble Supreme Court. He further submitted that the same principle adopted by the Co-ordinate Bench for enhancement of compensation be applied to the present case. Upon above submissions, he has prayed to allow the present First Appeals.

6. As against the aforesaid submissions, learned AGPs Mr.Bharat Vyas, Mr.Shailesh Desai and Ms.Hemali Soni appearing in the respective matters tendered a communication dated 20.03.2006 received from the State Government and submitted that no decisions has yet been taken by the State Government to challenge the order passed by the Co-ordinate Bench in Firs Appeal No.249 of 2023 and allied matters. Further, learned AGP relied upon the case of Kantaben Manibhai Amin Vs. Special Land Acquisition Officer, Baroda reported in 1990(1)GLR 164 SC and submitted that where the compensation is determined for irrigated land, the compensation for non-irrigated land may be assessed at 25% less than of irrigated land. Therefore, it is subm

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