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2026 Supreme(Guj) 874

IN THE HIGH COURT OF GUJARAT AT AHMEDABADR
J. C. DOSHI, J.
Chaudhary Devjibhai Panchanbhai – Appellant 
Versus 
Executive Engineer & anr. – Respondent
FIRST APPEAL NO. 1060 of 2020,1061 of 2020,1062 of 2020,1063 of 2020,1064 of 2020,1065 of 2020,1066 of 2020,1067 of 2020,1068 of 2020,1069 of 2020,1070 of 2020,1815 of 2020,109 of 2021,262 of 2021,844 of 2021,949 of 2021,950 of 2021,1429 of 2021,1430 of 2021,1431 of 2021,1432 of 2021,2304 of 2021, CIVIL APPLICATION (FOR ADDITIONAL EVIDENCE) NO. 1 of 2021 In R/FIRST APPEAL NO. 2304 of 2021 With CIVIL APPLICATION (FOR ADDITIONAL EVIDENCE) NO. 1 of 2025 In R/FIRST APPEAL NO. 2304 of 2021 With R/FIRST APPEAL NO. 259 of 2022 With R/FIRST APPEAL NO. 366 of 2022
Decided On :  21-04-2026

Advocates:
Advocate Appeared:
For the Appellant : MR AV PRAJAPATI, MR HIMANSHUKUMAR B PATEL
For the Respondent: MR SHAILESH DESAI, AGP, MS SEJAL K MANDAVIA

Courts must not rely on land acquisition exemplars where the time gap exceeds five years. The primary objective is to ensure just and fair compensation based on the true market value, regardless of the specific amount claimed by the parties in their pleadings.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 6, 11, 18 and 54 - Determination of market value - Reliance on previous awards - Exemplar period - It is highly unsafe to rely on a judgment and award as an exemplar where the notification under the Act is older than 4-5 years. (Paras 4, 7)

(B) Compensation - Just and fair compensation - Court's duty - It is the duty of the Court to award just and fair compensation, taking into account the true market value and other relevant factors, irrespective of the claim made by the owners - The Court is not restricted by the amount claimed in the pleadings. (Paras 9, 10, 11)

Facts of the case:
The claimants challenged the inadequacy of compensation awarded by the reference court for lands acquired for public utility projects. The reference court had based its determination on previous awards pertaining to neighboring land with a temporal gap of over a decade.

Findings of Court:
The court criticized relying on stale exemplars for determining the valuation of agricultural land. Given the project similarity and proximity of the acquired parcels, the court adopted consistent judicial benchmarks established in coordinate rulings, resulting in an upward revision of the compensation rates.

Issues: Whether it is appropriate to use previous land acquisition awards as benchmarks for determining current market value when there is a significant temporal gap, and whether the court is bound by the specific amount claimed by the landowners.

Ratio Decidendi: The court reaffirmed that utilizing land acquisition awards as exemplars beyond a threshold period of 4-5 years is unreliable. Furthermore, it underscored that the judicial mandate in land compensation matters is to ensure just and fair payment, overriding restrictive pleading constraints to meet the true market value.

Result: Appeals allowed.

Table of Content
1. procedural context for land acquisition assessment appeals. (Para 1 , 2 , 3)
2. arguments concerning benchmark reliability and precedent application. (Para 4 , 5)
3. court duty to determine just market value beyond limitations. (Para 6 , 7 , 8 , 9 , 10)
4. applying consistent compensation ratios for neighboring lands. (Para 11 , 12 , 13)
5. final orders for disbursement and compensation payments. (Para 14 , 15 , 16)

COMMON JUDGMENT :

1. The caption first appeals, involving common question of law and facts, with the consent of learned advocates for both the parties, the first appeals are decided and disposed of by this common judgment.

2. In First Appeal No. 2304 of 2021 filed under section 54 of the Land Acquisition Act (in short “the Act”), challenge is made to the judgment and award dated 30.1.2009 passed by the learned Reference Court, Mehsana in LAR No. 2046 of 2003. It is a case where the land of village Lunva, Tal: Kheralu, Dist: Mehsana was acquired for the public purpose of construction of. Road, whereby notification under section 4 of the Act was published on. 20.2.1999 and notification under section 6 of the Act was published on 29.11.1999. In exercise of jurisdiction under section 11 of the Act in LAR No. 19 of 1998, the Special Land Acquisition Officer awarded compensation of Rs.10/- per sq mtr. The reference was preferred under section 18 of the Act, whereby the Reference Court, by impugned judgment and award, granted additional compensation of Rs.12/- per sq mtr over and above the compensation already awarded by the Special Land Acquisition Officer, relying upon the judgment and award pertaining to village Nortol, which is adjoining village, where notification u/s section 4 of the Act was published on 2.1.1986. Being aggrieved, the claimants preferred present first appeals.

2.1 In First Appeal Nos. 949/2021, 950/2021, 1429/2021 to 1432/2021 and 259/2022, challenge is made to the judgment and award dated 15.5.2009 passed by the learned Reference Court at Mehsana in LAR Nos. 1358 of 2003 to 1380 of 2003, having lead matter LAR No. 1366 of 2003, whereby the learned Reference Court was pleased to grant additional compensation of Rs.18.30/- per sq mtr with all statutory benefits. It was a case where land of Mandali village was acquired for the purpose of Dharoi – Vatrak Irrigation Canal. Notification under section 4 of the Act was published on 3.9.1998 and the Special Land Acquisition Officer determined the compensation at Rs.3.70/- per sq mtr for irrigated land and Rs.3/- per sq mtr for non-irrigated land. In a reference under section 18 of the Act, the learned Reference Court awarded additional composition of Rs.18.30/- per sq mtr relying upon the judgment passed in LAR No. 2046 of 2003, which is a subject matter of First Appeal No. 2304 of 2021. The claimants being aggrieved, filed the aforestated First Appeals.

2.2 In First Appeal Nos.1060/2020 to 1070/2020, 1815/2020, 109/2021, 262/2021, 844/2021 and 366/202, challenge is made to the impugned judgment and award dated 26.3.2010 passed by the learned Reference Court, Mehsana in LAR Nos. 1338 of 2003 and other allied LARs, whereby the learned Reference Court, vide judgment and award, was pleased to grant additional compensation to the tune of Rs. 18.30/- per sq mtr for irrigated land and Rs.14.85/- per sq mtr. for non-irrigated land with all statutory benefits. The notification under section 4 of the Act was published on 3.9.1998. The Special Land Acquisition Officer determined the compensation at 3.70 per sq mtr for irrigated land and Rs.3/- per sq mtr for non irrigated land. The learned Reference Court under section 18 of the Act granted compensation as stated herein above. Being aggrieved. the claimants have filed aforestated first appeals.

3. Heard learned advocate Mr. AV Prajapati for the claimants, learned advocate Ms. Sejal Mandavia for the acquiring body is First Appeal No.2304 of 2021 and learned AGP Mr. Shailesh Desai.

4. Learned advocate Mr. Praja

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