Gujarat High Court Allows Appeal in Land Acquisition Reference Case Due to Non-Receipt of Notice Under Section 12(2) of the Act — Limitation Period Begins from Receipt of Notice. The court held that the reference court erred in dismissing the reference on limitation grounds without considering the non-receipt of notice under Section 12(2) of the Land Acquisition Act, 1894.

High Court: Gujarat High Court
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Case Note & Summary

The present appeal arises from a judgment and order dated 01.10.2024 passed by the learned Additional Senior Civil Judge, Bayad, District: Aravalli in Land Reference Case No.188 of 2024, whereby the reference court dismissed the reference on the ground of limitation. The original claimant, Bamania Navaji Nathaji, had filed a reference under Section 18 of the Land Acquisition Act, 1894 seeking enhancement of compensation for land acquired by the State. The claimant died during the pendency of the proceedings, and the present appellants, being his legal heirs, were not aware of the reference proceedings. The learned reference court dismissed the reference as barred by limitation and confirmed the compensation awarded by the Special Land Acquisition Officer. The appellants challenged this dismissal before the High Court. The core legal issue was whether the limitation period for filing a reference under Section 18 of the Land Acquisition Act begins from the date of the award or from the date of receipt of notice under Section 12(2) of the Act. The appellants argued that no notice under Section 12(2) was served upon the original claimant, and therefore, the reference was within limitation. The respondent-State contended that the reference was filed beyond the prescribed period. The High Court, relying on the Supreme Court decision in Premji Nathu v. State of Gujarat (AIR 2012 SC 1624), held that the limitation period commences only upon receipt of notice under Section 12(2). Since the claimant did not receive such notice, the reference could not be dismissed as time-barred. The court further observed that the reference court has a duty to ascertain the correct market value even in the absence of the claimant. Consequently, the High Court allowed the appeal, set aside the impugned judgment, and remanded the matter to the reference court for fresh adjudication on merits, directing the reference court to decide the reference within six months.

Headnote

A) Land Acquisition - Limitation for Reference - Section 18, 12(2) of the Land Acquisition Act, 1894 - The limitation period for filing a reference under Section 18 begins from the date of receipt of notice under Section 12(2) of the Act. If no such notice is received, the reference cannot be dismissed as barred by limitation. The court held that the reference court erred in dismissing the reference on limitation grounds without considering the non-receipt of notice. (Paras 1-5)

B) Land Acquisition - Duty of Reference Court - Section 18 of the Land Acquisition Act, 1894 - The reference court has a bounden duty to ascertain the correct market value of the acquired land even if the claimant does not participate. Dismissing the reference solely on limitation without adjudicating on merits is improper. (Paras 2.1-3)

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Issue of Consideration

Whether the reference filed by the claimant was barred by limitation when no notice under Section 12(2) of the Land Acquisition Act was received by the claimant.

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Final Decision

The appeal is allowed. The judgment and order dated 01.10.2024 passed by the learned Additional Senior Civil Judge, Bayad in Land Reference Case No.188 of 2024 is set aside. The matter is remanded to the reference court for fresh adjudication on merits. The reference court is directed to decide the reference within six months from the date of receipt of the order.

Law Points

  • Limitation for reference under Land Acquisition Act begins from receipt of notice under Section 12(2)
  • not from date of award
  • Non-receipt of notice renders reference within limitation
  • Duty of reference court to ascertain correct market value even in absence of claimant
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Case Details

2026 LawText (GUJ) (02) 761

R/First Appeal No. 159 of 2026

2026-02-05

M. K. Thakker

2026:GUJHC:10232

Mr. Rakesh R. Patel for the Appellants, Mr. Bhavesh Desai, AGP for the Respondents

Bamania Navaji Nathaji Since Deceased Through Legal Heirs & Ors.

Deputy Collector and Special Land Acquisition Officer & Anr.

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Nature of Litigation

First Appeal against dismissal of Land Reference Case on limitation

Remedy Sought

Setting aside of the judgment and order dated 01.10.2024 dismissing the reference and remand for fresh adjudication on merits

Filing Reason

The reference court dismissed the reference as barred by limitation without considering that no notice under Section 12(2) was received by the claimant

Previous Decisions

The learned Additional Senior Civil Judge, Bayad dismissed Land Reference Case No.188 of 2024 on 01.10.2024 on the ground of limitation

Issues

Whether the reference filed under Section 18 of the Land Acquisition Act was barred by limitation when no notice under Section 12(2) was served upon the claimant? Whether the reference court has a duty to ascertain the correct market value even in the absence of the claimant?

Submissions/Arguments

Appellant: Limitation begins from receipt of notice under Section 12(2) as per Premji Nathu v. State of Gujarat; no notice was received; reference is within limitation. Respondent: The reference was filed beyond the prescribed period and was rightly dismissed.

Ratio Decidendi

The limitation period for filing a reference under Section 18 of the Land Acquisition Act, 1894 commences from the date of receipt of notice under Section 12(2) of the Act. If no such notice is received, the reference cannot be dismissed as barred by limitation. The reference court has a duty to ascertain the correct market value of the acquired land even if the claimant does not participate.

Judgment Excerpts

as per the decision rendered by the Apex Court in the case of Premji Nathu Vs State of Gujarat reported in AIR 2012 SC 1624 the limitation would begun from receiving the notice under section 12(2) of the Act and the claimant did not receive any notice under section 12(2) of the Act therefore, the reference cannot be said to be barred by law of limitation. it is bound duty of the learned reference court to ascertain the correct market value of the land acquired

Procedural History

The original claimant filed Land Reference Case No.188 of 2024 before the learned Additional Senior Civil Judge, Bayad, which was dismissed on 01.10.2024 on limitation grounds. The present appeal was filed on 05.02.2026 before the High Court of Gujarat.

Acts & Sections

  • Land Acquisition Act, 1894: 12(2), 18
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