Annual 10% appreciation on prior awards is valid for determining market value in subsequent land acquisitions.

The State of Gujarat acquired several parcels of land in Village Bodka, Taluka Jodiya, for the public purpose of the Aji-4 Irrigation Project.

Notification under Section 4 of the Land Acquisition Act, 1894, was published on 27.03.2008, followed by Section 6 on 23.07.2008.

The Special Land Acquisition Officer (SLAO) awarded compensation at the rate of ₹7.50 per square meter via an award dated 04.08.2009.

Dissatisfied, the claimants sought ₹100 per square meter before the Reference Court.

The Reference Court, Jamnagar, granted additional compensation of ₹81.83 per square meter (totaling ₹89.33 per square meter) based on a 25% escalation over a previous award (LRC No. 23/08) for the same village.

The State appealed this enhancement.

1. Whether the Reference Court was justified in determining the market value of the acquired land at ₹89.33 per square meter by relying on a previous award and granting a 10% annual escalation.

2. Whether the compensation awarded is consistent with previous decisions of the High Court involving the same village and project.

Section 23 of the Land Acquisition Act, 1894, regarding the determination of compensation.

Thakarshi Devjibhai v. Executive Engineer (AIR 2001 SC 2424) and Ramanbhai Prabhudas Bechardas v. Special Land Acquisition Officer (2001 (2) GLH (U.J.) 10), which establish that previous awards for comparable lands in the same or nearby villages serve as good evidence for determining market value in subsequent acquisitions.

Special Land Acquisition Officer v. Harjivan Ramji (2010 (3) GCD 2299 (Guj)), permitting a 10% annual increase in land value when there is a significant time gap between Section 4 notifications of different acquisitions.

The Court observed that since no sale deeds were produced by either party, the Reference Court correctly relied on comparable awards and agricultural yield evidence.

The Reference Court used LRC No. 23/08 (relating to the same village, Bodka) as a benchmark, which had fixed the rate at ₹71.47 per square meter for a 2005 notification.

Finding a gap of approximately 2.5 years between that notification (25.11.2005) and the present notification (27.03.2008), the court applied a cumulative 25% escalation (10% per annum) to arrive at ₹89.33.

The High Court noted that a Division Bench in First Appeal No. 878 of 2021 had already confirmed the exact same rate (₹81.83 additional compensation) for land acquired in the same village for the same irrigation project.

The Supreme Court had dismissed the Special Leave Petition against that Division Bench judgment.

The High Court dismissed the State's appeals and confirmed the judgment of the Reference Court, directing the disbursement of the remaining amounts to the claimants after proper verification.