Gujarat High Court Allows Defence Estates Officer's Appeal in Land Acquisition Compensation Case — Reduces Enhanced Compensation from Rs.492 to Rs.200 per sq.mtr. Claimants failed to provide evidence of market value under Section 23 of Land Acquisition Act, 1894 for land acquired for airfield construction.

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

The case involves two first appeals filed by the Defence Estates Officer against a common judgment and award of the learned Principal Senior Civil Judge, Deodar at Banaskantha, in Land Reference Case Nos.197 and 198 of 2017 (old Reference Case Nos.1/2005 and 2/2005). The land in question, Survey No.92 paiki 7 and other lands, was acquired for construction of an airfield. Notification under Section 4 of the Land Acquisition Act, 1894 was published on 3rd August 2009, followed by Section 6 notification on 10th November 2009. The Special Land Acquisition Officer passed an award on 11th June 2010, granting compensation at Rs.15.10 per sq.mtr. for irrigated land of some survey numbers and Rs.26.65 per sq.mtr. for others. Aggrieved, the original claimants sought a reference under Section 18, claiming compensation at Rs.750 per sq.mtr. The Reference Court, by judgment dated 18th February 2020, enhanced compensation to Rs.492 per sq.mtr. inclusive of the amount already awarded. The acquiring body appealed under Section 54 of the Act. The High Court noted that the Reference Court had not provided any evidence or reasoning for the enhancement. The claimants had not produced any sale instances or other material to justify the market value. The court held that the burden of proof lies on the claimant to establish the market value, and in the absence of evidence, the compensation awarded by the Special Land Acquisition Officer should not be disturbed. However, considering the potential of the land and the purpose of acquisition, the court reduced the compensation to Rs.200 per sq.mtr. The appeals were allowed, and the impugned judgment was modified accordingly.

Headnote

A) Land Acquisition - Compensation Enhancement - Market Value Determination - Section 23, Land Acquisition Act, 1894 - Claimants sought enhancement from Rs.15.10/26.65 per sq.mtr. to Rs.750 per sq.mtr. for irrigated land acquired for airfield construction - Reference Court awarded Rs.492 per sq.mtr. without proper evidence of comparable sales or potential value - Held that enhancement was excessive and not supported by evidence, reducing compensation to Rs.200 per sq.mtr. (Paras 1-5).

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Issue of Consideration

Whether the Reference Court was justified in enhancing compensation from Rs.15.10/26.65 per sq.mtr. to Rs.492 per sq.mtr. without adequate evidence?

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Final Decision

Appeals allowed. Impugned judgment and award modified. Compensation reduced from Rs.492 per sq.mtr. to Rs.200 per sq.mtr. for both survey numbers. Other statutory benefits as per law.

Law Points

  • Compensation for land acquisition must be based on market value as on date of Section 4 notification
  • burden of proof on claimant to establish higher value
  • reference court cannot award compensation without proper evidence
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Case Details

2026 LawText (GUJ) (03) 444

R/First Appeal No. 2028 of 2022 with R/First Appeal No. 2029 of 2022

2026-03-27

J. C. Doshi

Mr. Ankit Shah for Appellant, Mr. Bharat Vyas AGP for Defendant No.3, Mr. Trilok J Patel for Defendant No.1

Defence Estates Officer

Joshi Dipenkumar Ashokkumar & Ors.

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Nature of Litigation

First appeals against enhancement of compensation in land acquisition reference

Remedy Sought

Appellant (acquiring body) sought reduction of compensation awarded by Reference Court

Filing Reason

Appellant aggrieved by Reference Court's enhancement of compensation from Rs.15.10/26.65 per sq.mtr. to Rs.492 per sq.mtr.

Previous Decisions

Special Land Acquisition Officer awarded Rs.15.10 per sq.mtr. for some survey numbers and Rs.26.65 per sq.mtr. for others; Reference Court enhanced to Rs.492 per sq.mtr.

Issues

Whether the Reference Court's enhancement of compensation was justified without proper evidence? What is the correct market value of the acquired land as on the date of Section 4 notification?

Submissions/Arguments

Appellant argued that Reference Court erred in enhancing compensation without any evidence or reasoning. Claimants contended that compensation should be at Rs.750 per sq.mtr. based on potential of land.

Ratio Decidendi

In land acquisition matters, the burden of proof lies on the claimant to establish the market value of the acquired land. In the absence of any evidence such as sale instances or expert testimony, the Reference Court cannot arbitrarily enhance compensation. The market value must be determined based on the date of Section 4 notification.

Judgment Excerpts

The captioned First Appeals arise from the common judgment and award passed by the learned Principal Senior Civil Judge, Deodar at Banaskantha in Land Reference Case No.197 of 2017 (old Reference Case No.1/2005) and Land Reference Case No.198 of 2017 (old Reference Case No.2/2005). It is the case in which the notification under Section 4 was published on 3rd August, 2009, for acquisition of land of Survey No.92, paiki 7 and other lands of varying measurements.

Procedural History

Notification under Section 4 on 03/08/2009; Section 6 notification on 10/11/2009; Special Land Acquisition Officer award on 11/06/2010 granting Rs.15.10/26.65 per sq.mtr.; Claimants sought reference under Section 18; Reference Court enhanced compensation to Rs.492 per sq.mtr. on 18/02/2020; Acquiring body filed first appeals under Section 54; High Court decided on 27/03/2026.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 6, Section 18, Section 23, Section 54
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