Gujarat High Court

Claimants are entitled to compensation based on market values determined for their specific village, regardless of inadvertent oral admissions.

ARJANBHAI BHIKHABHAI,DECD. THRO'HIS HEIRS vs SPL.LAQ OFFICER

Gujarat High CourtJUDGMENT: July 03, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The State Government acquired lands in Rajula village, Amreli district, under L.A.Q. Case No. 47/89 for the Dhatarwadi-2 irrigation project.

Source reference: p. 2

Notifications under Section 4 and Section 6 of the Land Acquisition Act were published in 1990 and 1992, respectively.

Source reference: p. 2

The Special Land Acquisition Officer awarded compensation at Rs. 300/Are for Bagayat (irrigated) land and Rs. 200/Are for Jirayat (non-irrigated) land.

Source reference: p. 2

Aggrieved, the claimants sought references under Section 18. The Reference Court, relying on a precedent regarding Khakbai village (First Appeal No. 1504/2001), awarded Rs. 12.50/sq. mtr. for irrigated and Rs. 9.50/sq. mtr. for non-irrigated land.

Source reference: p. 1, 3

The appellants challenged this, claiming they were entitled to the higher rates established for Rajula village in the same precedent.

Source reference: p. 3
02

Issues

1. Whether the Reference Court erred in applying the market value of land situated in Khakbai village instead of Rajula village, despite the acquired land being located in Rajula

Source reference: p. 3, para 4

2. Whether the claimants are entitled to enhanced compensation based on the principle of equality with other claimants from the same village under the same project

Source reference: p. 5, para 7
03

Law Applied

The court primarily applied the principles of fair compensation under Section 18 of the Land Acquisition Act.

Source reference: p. 2

It relied on the "Principle of Equality" in land compensation, ensuring that similarly situated landholders affected by the same project receive uniform rates.

Source reference: p. 5, para 7

The court further utilized the doctrine of judicial finality regarding market value determined by a Co-ordinate Bench in First Appeal No. 1504 of 2001, which set specific rates for Rajula village (Rs. 24/sq. mtr. irrigated and Rs. 19/sq. mtr. non-irrigated).

Source reference: p. 3, 5
04

Reasoning

The court observed that while the respondent (State) argued the claimant had admitted the land was in Khakbai village during deposition, the documentary evidence—specifically the Section 4 notification—conclusively established the land was situated in Rajula village.

Source reference: p. 4, para 5, 6

The High Court held that documentary records prevail over oral testimony in determining location for compensation purposes.

Source reference: p. 4, para 6.1

Since a Co-ordinate Bench in First Appeal No. 1504 of 2001 had already determined the market value for Rajula village at significantly higher rates than Khakbai, and the State had accepted that judgment, there was no justification for denying the same rates to the present appellants.

Source reference: p. 5, para 6.2
05

Holding

The High Court allowed both appeals and modified the Reference Court's award. It held that the appellants are entitled to compensation at the rate of Rs. 24/- per sq. mtr. for irrigated land and Rs. 19/- per sq. mtr. for non-irrigated land.

The State was directed to deposit the enhanced amount within eight weeks, and the appellants were directed to pay any deficiency in court fees.

Source reference: p. 6, para 9
Gujarat High Court

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ARJANBHAI BHIKHABHAI,DECD. THRO'HIS HEIRSvsSPL.LAQ OFFICER

Gujarat High Court · July 03, 2026

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