High Court of Gujarat Allows Appeals in Land Acquisition Case, Enhances Compensation for Sujlam Suflam Canal Project. Reference Court's award of Rs.97.10 per sq. mtr. enhanced to Rs.110.10 per sq. mtr. based on previous Division Bench decision in related appeal.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The case involves two first appeals filed under Section 54 of the Land Acquisition Act, 1894, by the appellant, Dhamanva Gopalk Sahkari Mandli, challenging the award dated 09.04.2012 passed by the learned Reference Court in LAR Nos.663 and 665 of 2009. The Reference Court had determined additional compensation at Rs.97.10 per sq. mtr. for land acquired in Village Dhamanva, Taluka Visnagar, District Mehsana, for the public purpose of constructing the Sujlam Suflam Spreading Canal, for which Section 4 notification was issued on 24.06.2004/03.07.2004. At the outset, learned advocates for both parties submitted that a common judgment was passed by the Reference Court in a group of LAR Nos.663 to 665 of 2009, and that First Appeal No.5629 of 2019, arising from LAR No.664 of 2009 filed by the claimant, had been partly allowed by a Division Bench, directing the opponent-State to pay additional compensation at Rs.110.10 per sq. mtr. with permissible statutory benefits, instead of Rs.97.10 per sq. mtr. The High Court considered the submissions and referred to the decision in First Appeal No.5629 of 2019, wherein the Division Bench had determined the market value of the lands of Village Dhamanva acquired for the same canal project. The Division Bench had examined the impugned judgment and award in First Appeal No.1520 of 2011 and noted that the claimant had relied on a previous award at Exhibit-27, being judgment and award in Land Acquisition Reference Nos.329 to 332 of 2008. The High Court, in the present appeals, found that the facts were identical and that the Division Bench's decision was binding. Consequently, the court allowed the appeals, set aside the Reference Court's award, and directed the opponent-State to pay additional compensation at Rs.110.10 per sq. mtr. with all permissible statutory benefits under the Act.

Headnote

A) Land Acquisition - Compensation Enhancement - Section 54 of Land Acquisition Act, 1894 - Market Value Determination - The appeals challenged the Reference Court's award of Rs.97.10 per sq. mtr. for land acquired for Sujlam Suflam Spreading Canal. The High Court, relying on a Division Bench decision in First Appeal No.5629 of 2019, enhanced the compensation to Rs.110.10 per sq. mtr. with statutory benefits, holding that consistency in compensation for similarly situated claimants is necessary (Paras 1-3).

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Issue of Consideration

Whether the compensation awarded by the Reference Court for acquired land in Village Dhamanva should be enhanced in line with a previous Division Bench decision in a related appeal.

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Final Decision

The appeals are allowed. The impugned judgment and award dated 09.04.2012 passed by the learned Reference Court in LAR Nos.663 and 665 of 2009 is set aside. The opponent-State is directed to pay additional compensation at the rate of Rs.110.10 per sq. mtr. with all permissible statutory benefits available under the Land Acquisition Act, 1894.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 54
  • Market value determination
  • Reliance on previous awards
  • Enhancement of compensation
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Case Details

2026:GUJHC:11482

R/First Appeal No. 1426 of 2022 with R/First Appeal No. 1433 of 2022

2026-02-11

M. K. Thakker

2026:GUJHC:11482

MR AV PRAJAPATI for the Appellant(s) No. 1, BHAVES DESAI for the Defendant(s) No. 2

Dhamanva Gopalk Sahkari Mandli Through Mantri Rabari Ishavrbhai Bhagavanbhai

Special Land Acquisition Officer and Deputy Collector Land Acquisition and Rehabilitation & Anr.

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Nature of Litigation

First appeals under Section 54 of the Land Acquisition Act, 1894 challenging the award of the Reference Court determining additional compensation for land acquisition.

Remedy Sought

Appellant sought enhancement of compensation from Rs.97.10 per sq. mtr. to Rs.110.10 per sq. mtr. with statutory benefits.

Filing Reason

Dissatisfaction with the Reference Court's award of additional compensation at Rs.97.10 per sq. mtr. for land acquired for Sujlam Suflam Spreading Canal.

Previous Decisions

Reference Court in LAR Nos.663 and 665 of 2009 awarded Rs.97.10 per sq. mtr. on 09.04.2012. Division Bench in First Appeal No.5629 of 2019 enhanced compensation to Rs.110.10 per sq. mtr. for similar land.

Issues

Whether the compensation awarded by the Reference Court should be enhanced in line with the Division Bench decision in First Appeal No.5629 of 2019.

Submissions/Arguments

Learned advocates for both parties submitted that the Division Bench in First Appeal No.5629 of 2019 had already enhanced compensation to Rs.110.10 per sq. mtr. for similar land, and the same should apply.

Ratio Decidendi

The court held that where a Division Bench has already determined the market value for similarly situated claimants in a related appeal, consistency requires that the same rate be applied to other claimants from the same acquisition, and thus the compensation was enhanced to Rs.110.10 per sq. mtr.

Judgment Excerpts

The present first appeals are filed under Section 54 of the Land Acquisition Act, 1894, challenging the award passed by the learned Reference Court in LAR Nos.663 and 665 of 2009 dated 09.04.2012. Having considered the submissions made by learned advocates for the parties and on referring to the decision rendered in First Appeal No.5629 of 2019, wherein the Division Bench has observed... the opponent-State is directed to pay additional compensation at the rate of Rs.110.10/- per sq. mtr. with permissible statutory benefit available under the Act.

Procedural History

The Reference Court passed an award on 09.04.2012 in LAR Nos.663 and 665 of 2009 determining additional compensation at Rs.97.10 per sq. mtr. The appellant filed First Appeal Nos.1426 and 1433 of 2022 challenging the same. Meanwhile, a related appeal, First Appeal No.5629 of 2019, was decided by a Division Bench on an earlier date, enhancing compensation to Rs.110.10 per sq. mtr. The present appeals were heard and disposed of on 11.02.2026.

Acts & Sections

  • Land Acquisition Act, 1894: Section 54
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