Comparable land-acquisition compensation was reduced by 35% for the 42-month notification gap, fixing value at ₹100.75 per square metre.

The State acquired lands in Village Tavra, Bharuch, for construction of a minor canal under the Narmada Yojana.

The Special Land Acquisition Officer, acting under LAQ No. 23 of 1991, awarded compensation at Rs.4 per sq. metre under Section 11 of the Land Acquisition Act, 1894 (“the Act”).

The landowners sought references under Section 18 of the Act.

The Reference Court enhanced the total compensation to Rs.50 per sq. metre, granting an enhancement of Rs.46 per sq. metre over the Collector’s award.

The acquiring authorities preferred appeals under Section 54 of the Act, while the landowners filed cross-objections under Order XLI Rule 22 of the Code of Civil Procedure, 1908, seeking further enhancement.

The landowners relied on the coordinate Bench decision in First Appeal No.1649 of 2008 and allied matters, which had awarded Rs.155 per sq. metre for comparable lands in Tavra acquired for the same Narmada canal project.

Whether the compensation awarded by the Reference Court at Rs.50 per sq. metre required enhancement in light of the coordinate Bench decision awarding Rs.155 per sq. metre for comparable lands in Village Tavra.

Whether an appropriate deduction was required from the rate of Rs.155 per sq. metre on account of the 42-month difference between the relevant Section 4 notifications.

Whether the landowners were entitled to statutory benefits and interest on the enhanced compensation, subject to exclusion of interest for the period of delay specified by the Court.

The Court applied Sections 4, 6, 9, 11, 18 and 54 of the Land Acquisition Act, 1894: market value is to be determined with reference to the relevant Section 4 notification; the Collector’s award is subject to reference and appellate review; and the High Court may determine enhanced compensation in an appeal under Section 54.

The Court also applied Order XLI Rule 22 of the CPC, permitting respondents to maintain cross-objections against the decree or award under challenge.

It relied on the coordinate Bench judgment in First Appeal No.1649 of 2008 and allied matters, which treated the lands of Tavra and adjoining Zadeshwar as sufficiently comparable, considering their proximity, the similar public purpose of acquisition, and the passage of the Narmada canal through both areas, and fixed compensation at Rs.155 per sq. metre.

Applying the principle that market value may be adjusted for temporal differences, the Court deducted 10% for each year of the 3.5-year interval, resulting in a 35% deduction.

The Court found that the earlier coordinate Bench decision concerned lands in Tavra acquired for the same canal project and had awarded Rs.155 per sq. metre; that decision had not been challenged before the Supreme Court and had been accepted by the State.

Although the present lands were in the same village and involved a comparable acquisition, the Section 4 notification in the present batch preceded that in First Appeal No.1649 of 2008 by approximately 42 months.

Accordingly, the Court applied a 35% temporal deduction to Rs.155 per sq. metre: Rs.155 minus Rs.54.25, yielding Rs.100.75 per sq. metre.

Since the Reference Court had already awarded Rs.50 per sq. metre, the Court granted a further enhancement of Rs.50.75 per sq. metre.

Interest was excluded for the period from 1 January 2009 to 4 May 2018 on account of delay.

The acquiring authorities were granted eight weeks to deposit the additional compensation.

Upon deposit, the Reference Court was directed, after deducting applicable court fees and verifying entitlement, identity and title, to disburse the compensation with interest to the claimants.