High Court of Gujarat Allows Appeal in Land Acquisition Case, Enhances Compensation to Rs. 1,500 per sq m Following Precedent. The court applied the same market value rate as determined in a prior Division Bench decision for the same village, ensuring consistency in compensation.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 16:18:32

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Case Note & Summary

The case arises from a land acquisition proceeding for Village Shahpur, where the Special Land Acquisition Officer acquired land and the Reference Court in LAR No. 39 of 2023 fixed the market value at Rs. 1,380 per square meter. The appellants, legal heirs of the original landowner, filed a First Appeal under Section 54 of the Land Acquisition Act, 1894, seeking enhancement. During hearing, both parties' counsel submitted that a common judgment and award had been passed by the Reference Court in LAR Nos. 39 of 2003 to 49 of 2003, and that this Court had already allowed First Appeals for other claimants from the same group, determining the market value at Rs. 1,500 per square meter. The appellants relied on a Division Bench decision in First Appeal No. 2065 of 2024 dated 28.11.2025, which had set the rate at Rs. 1,500 per sq m for the same village. The High Court, after perusing the Division Bench decision, found that the present case was identical and that consistency required the same rate to be applied. Accordingly, the Court allowed the appeal, set aside the Reference Court's award to the extent of the rate, and fixed the market value at Rs. 1,500 per square meter with all statutory benefits. The judgment was delivered by a single judge, M. K. Thakker J., on 27 January 2026.

Headnote

A) Land Acquisition - Market Value Determination - Section 54 of the Land Acquisition Act, 1894 - Enhancement of Compensation - The appeal challenged the Reference Court's award fixing market value at Rs. 1,380 per sq m. The High Court, following a Division Bench decision in First Appeal No. 2065 of 2024 dated 28.11.2025, enhanced the compensation to Rs. 1,500 per sq m, noting that similar appeals for the same village had been allowed at that rate. Held that consistency requires the same rate to be applied (Paras 4-5).

Issue of Consideration

Whether the market value of acquired land in Village Shahpur should be enhanced from Rs. 1,380 per sq m to Rs. 1,500 per sq m based on a prior Division Bench decision.

Final Decision

The appeal is allowed. The judgment and order dated 27.01.2026 passed by the learned Principal Senior Civil Judge, Gandhinagar in LAR No. 39 of 2023 is set aside to the extent of the rate. The market value of the acquired land is fixed at Rs. 1,500 per square meter. The appellants are entitled to all statutory benefits under the Land Acquisition Act, 1894. Rule is made absolute.

Law Points

Land Acquisition Act
1894
Section 54
Market Value Determination
Precedent Binding
Enhancement of Compensation

Case Details

2026:GUJHC:5575

R/First Appeal No. 93 of 2026

2026-01-27

M. K. Thakker

2026:GUJHC:5575

MR AV PRAJAPATI for the Appellant(s), MR. PARTH PATEL, AGP for the Defendant(s)

LH of Patel Kacharabhia Shakarabhia & Ors.

Special Land Acquisition Officer & Anr.

Nature of Litigation

First Appeal under Section 54 of the Land Acquisition Act, 1894 challenging the Reference Court's determination of market value.

Remedy Sought

Appellants sought enhancement of compensation from Rs. 1,380 per sq m to Rs. 1,500 per sq m.

Filing Reason

The Reference Court fixed market value at Rs. 1,380 per sq m, which the appellants considered inadequate.

Previous Decisions

The Reference Court in LAR No. 39 of 2023 fixed market value at Rs. 1,380 per sq m. This Court had earlier allowed similar appeals for other claimants from the same group, fixing market value at Rs. 1,500 per sq m.

Issues

Whether the market value of the acquired land should be enhanced to Rs. 1,500 per sq m based on a prior Division Bench decision.

Submissions/Arguments

Appellants argued that a Division Bench of this Court in First Appeal No. 2065 of 2024 dated 28.11.2025 had fixed market value at Rs. 1,500 per sq m for the same village, and the present case should follow the same rate. Respondent-State did not oppose the enhancement, and the AGP submitted to the court's discretion.

Ratio Decidendi

Consistency in compensation for similarly situated claimants requires that the same market value rate be applied as determined by a Division Bench in a prior appeal for the same village.

Judgment Excerpts

At the outset, the learned advocates for the respective parties submitted that a common judgment and award were passed by the learned Reference Court in LAR Nos. 39 of 2003 to 49 of 2003. Out of the same, except LAR No. 39 of 2003, this Court has allowed the First Appeals filed by the claimants and determined the market value at Rs. 1,500/- per square meter. Having considered the above submissions, this Court has perused the decision rendered by the Division Bench in the aforementioned First Appeal...

Procedural History

The Reference Court (Principal Senior Civil Judge, Gandhinagar) passed an award in LAR No. 39 of 2023 on 27.01.2026 fixing market value at Rs. 1,380 per sq m. The appellants filed First Appeal No. 93 of 2026 before the High Court of Gujarat challenging the rate. The High Court heard the appeal on 27.01.2026 and allowed it, enhancing the rate to Rs. 1,500 per sq m.