Gujarat High Court

Enhancement of land compensation based on parity and 10% annual escalation for adjacent village notifications.

THAKOR CHAMNAJI NEMAJI DECD.THRO HIS L.H vs DEPUTY COLLECTOR

Gujarat High CourtJUDGMENT: July 27, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants’ lands situated in Village Mera, Taluka Deodar, District Banaskantha, were acquired for the Narmada Irrigation Project

Source reference: p. 3

The Section 4 notification was published on 29.10.1999

Source reference: p. 3

The Special Land Acquisition Officer (SLAO) awarded compensation at ₹2.70 per sq. mtr. via award dated 16.02.2000

Source reference: p. 2-3

Dissatisfied, the claimants sought a reference under Section 18 of the Land Acquisition Act, 1894. The Reference Court enhanced the compensation to ₹22.50 per sq. mtr. plus consequential benefits

Source reference: p. 3

The claimants preferred these first appeals seeking further enhancement based on parity with adjacent villages

Source reference: p. 4
02

Issues

1. Whether the claimants are entitled to enhanced compensation based on the principle of parity with market values determined for adjacent villages (Dhunsal, Kotarvada, and Manpura)

Source reference: p. 4-5

2. Whether an annual increment of 10% should be applied to the market value of lands acquired via earlier notifications to determine the value for the subject land

Source reference: p. 7
03

Law Applied

The Court applied the Land Acquisition Act, 1894, specifically Sections 4, 6, 11, and 18

Source reference: p. 3

Principle of Parity, which dictates that if lands of adjoining villages share similar boundaries, marketability, feasibility, and fertility, they should be awarded similar compensation

Source reference: p. 4, 7

The Court further utilized the established judicial precedent of granting cumulative annual increments (10%) for the time gap between different Section 4 notifications to account for the rise in market value

Source reference: p. 7
04

Reasoning

The Court observed that the subject village (Mera) is adjacent to villages Dhunsal, Kotarvada, and Manpura, all falling within Taluka Deodar

Source reference: p. 7

Evidence showed that the Reference Court and the High Court (in First Appeal No. 5246/2019) had previously granted ₹81.05 per sq. mtr. as additional compensation for those adjacent villages

Source reference: p. 5-6

The Court noted that the Section 4 notifications for those villages were issued in 1997, whereas the notification for Village Mera was issued in 1999—a gap of approximately two years

Source reference: p. 6-7

Taking the total market value of the adjacent lands (approx. ₹83.75 per sq. mtr.) as a base, the Court applied a 20% enhancement (10% per year for two years) amounting to ₹16.75

Source reference: p. 7

Consequently, the total market value for the subject land was determined to be ₹100.5 per sq. mtr.

Source reference: p. 7
05

Holding

The High Court allowed the appeals, holding that the claimants are entitled to a total compensation of ₹100.5 per sq. mtr.

Subtracting the amount already awarded by the Reference Court (₹25.20), the Court granted an additional ₹75.3 per sq. mtr. with all statutory benefits

Source reference: p. 8

The State was directed to deposit the amount within 12 weeks

Source reference: p. 9

The Court further clarified that if interest was waived in any delay condonation application, the claimants would not be entitled to interest for that specific delayed period

Source reference: p. 8
Gujarat High Court

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THAKOR CHAMNAJI NEMAJI DECD.THRO HIS L.HvsDEPUTY COLLECTOR

Gujarat High Court · July 27, 2026

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