Gujarat High Court

Adoption of Award from Adjoining Village as Exemplar Requires Assessment of Comparative Commercial Viability

BHAGWANJI GOVINDBHAI vs DEPUTY COLLECTOR

Gujarat High CourtJUDGMENT: May 07, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants, whose lands in Village Gingni were acquired for the Fulzar (Ko. Ba.) Irrigation Project under a Section 4 Notification dated 09.12.2004, challenged the Reference Court’s judgment dated 15.12.2018.

Source reference: p. 2

The Reference Court had awarded additional compensation of ₹22/sq. mtr. (irrigated) and ₹16/sq. mtr. (non-irrigated) based on crop yield methods.

Source reference: p. 2

The appellants contended that the court ignored a superior exemplar: a valuation of ₹200/sq. mtr. for land in the adjacent Village Sidsar, and a neighboring reference case (LAR No. 196/2007) where the same project acquisition resulted in an award of ₹192.62/sq. mtr.

Source reference: p. 3
02

Issues

1. Whether the Reference Court erred in ignoring the "exemplar method" and commercial viability of adjacent lands while determining just compensation.

Source reference: p. 3-4

2. Whether the disparity in compensation between similarly situated lands acquired for the same public purpose necessitates a remand for fresh evidence.

Source reference: p. 4-5
03

Law Applied

The Court applied Section 54 of the Land Acquisition Act, 1894, regarding appeals from awards.

Source reference: p. 2

It emphasized the established legal principle that the "exemplar method"—specifically utilizing previous judgments or awards accepted by the State for adjacent or similar lands—is a recognized and often superior method for determining fair market value.

Source reference: p. 4

The court noted the judicial duty to ensure "just and adequate compensation" under the Act by evaluating the commercial viability and geographic proximity of compared lands.

Source reference: p. 4
04

Reasoning

The High Court found that the Reference Court’s approach was "against the rudimentary facts" by failing to consider available exemplars from the same irrigation project.

Source reference: p. 4

The Court reasoned that if a judgment for adjacent land (Village Sidsar) was accepted by the State, it constitutes the "best example" for determining compensation for Village Gingni, provided differences in commercial viability are assessed.

Source reference: p. 4-5

The Court observed a "colossal difference" between the current award and the ₹192.62/sq. mtr. awarded in connected cases, suggesting the claimants were prejudiced by a lack of comparative evidence during the initial trial.

Source reference: p. 4

To ensure justice, the Court determined that a fresh inquiry is required to reconcile the valuation gap.

Source reference: p. 5
05

Holding

The High Court allowed all appeals, quashed the impugned judgments, and remanded the cases to the Reference Court for fresh hearing.

The holding directs the Reference Court to decide the matters within six months, permitting both parties to lead new evidence.

Source reference: p. 5

The Court ordered that due to the delay in filing these appeals (approx. 2027 days), the claimants are not entitled to interest on any additional compensation for the period of delay.

Source reference: p. 5-6

Existing deposits remain with the Registry subject to the final outcome.

Source reference: p. 6
Gujarat High Court

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BHAGWANJI GOVINDBHAIvsDEPUTY COLLECTOR

Gujarat High Court · May 07, 2026

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