Gujarat HC Upholds Rs 105/sq m Land Compensation Against ONGC, Starts Enhanced-Compensation Interest From 2012 Reference Award

The Special Land Acquisition Officer acquired the claimant’s land for ONGC’s drilling purpose under a Section 4 notification dated 19 October 2004 and fixed compensation at ₹14 per square metre.

On the claimant’s Section 18 reference, the Reference Court enhanced compensation to ₹105 per square metre and awarded statutory interest under Section 28 of the Land Acquisition Act, 1894.

ONGC appealed, principally challenging the interest direction; its counsel raised no major dispute regarding the compensation amount, and the claimant did not appear.

Section 54 of the Land Acquisition Act, 1894, read with Section 96 of the Code of Civil Procedure, 1908, provided the appellate basis for review.

Section 28 of the Land Acquisition Act governs interest on excess compensation.

Relying on the High Court’s decision in First Appeal No. 3533 of 2012 and the interest framework discussed there by reference to First Appeal No. 18 of 2010, the Court applied interest at 9% per annum for the first year and 15% per annum thereafter until realization; in this case, it directed that interest commence from the date of the Reference Court’s award.

The Court left the compensation amount undisturbed because ONGC’s counsel raised no major dispute on quantum and the Court found no basis to interfere with the Reference Court’s award of ₹105 per square metre.

On interest, it followed the framework in First Appeal No. 3533 of 2012 and held that the claimant was entitled to 9% interest for the first year, commencing on 1 October 2012—the date of the Reference Court’s award—and 15% thereafter until realization.

ONGC was directed to calculate and deposit the modified balance with accrued interest before the Reference Court within 12 weeks of receiving the order; the Reference Court was directed to disburse the amount after verification.