Land Acquisition: 10% annual appreciation applicable to compensation when comparing adjacent village market values.

The State of Gujarat acquired lands in Village Mera, Taluka Deodar, District Banaskantha for the public purpose of constructing Narmada Irrigation Project water canals

The Section 4 notification was published on 24.04.2000, followed by Section 6 on 13.10.2000

The Special Land Acquisition Officer awarded compensation at ₹2.70/- per sq. mtr. via award dated 02.01.2002

Aggrieved, the claimants sought a reference under Section 18 of the Land Acquisition Act, 1894. The Reference Court (2nd Additional Senior Civil Judge, Palanpur) granted additional compensation of ₹22.50/- per sq. mtr. (total ₹25.20/-) on 24.09.2013

The appellants filed these appeals seeking further enhancement based on parity with adjacent villages

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)

2. Whether the claimants are entitled to a 10% annual increase in compensation due to the time gap between Section 4 notifications of different village acquisitions

The Court applied the provisions of the Land Acquisition Act, 1894, specifically Section 18 regarding references to Civil Courts and principles of market value determination under Section 23

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

Settled legal precedent of granting a 10% annual enhancement (escalation) when there is a significant time gap between comparable notifications under Section 4

The Court observed that the lands in Village Mera are adjacent to and share boundaries with villages Dhunsal, Kotarvada, and Manpura

In those adjacent villages, previous judicial determinations (e.g., L.A.R. No. 13/2018 and F.A. No. 5246/2019) had fixed the compensation at ₹81.05/- per sq. mtr., which the State had accepted

Since the Section 4 notification for Village Mera (24.04.2000) was issued approximately three years after the notifications for the adjacent villages (1997), the Court determined that a 30% cumulative enhancement (10% per year) was necessary to reflect the rise in market value

The calculation followed: (Base Rate ₹2.70 + Additional ₹81.05 = ₹83.75) + 30% escalation (₹25.125) = ₹108.875, rounded to ₹109/- per sq. mtr.

After deducting the amount already awarded by the Reference Court (₹25.20/-), the Court granted an additional ₹83.8/- per sq. mtr. with all statutory benefits. The State was directed to deposit the amount within 12 weeks, and the Reference Court was ordered to disburse it to the claimants after verifying identities and deducting additional court fees