Landowners Who Missed Hearings Get Another Chance To Seek Higher Compensation, But No Interest For 2,881 Days: Gujarat HC

The claimants appealed against the Reference Court’s order rejecting their land-acquisition reference after they failed to appear and adduce evidence despite opportunities.

They sought restoration of the reference and an opportunity to present evidence, relying on a coordinate-bench decision involving similar circumstances.

The State opposed the appeal, arguing that the claimants’ failure to participate justified discontinuance of the proceedings.

The claimants agreed to waive interest for the delayed period.

The Court relied on the coordinate-bench decisions in First Appeal No. 4258 of 2022 and First Appeal No. 862 of 2022 and allied matters (order dated 29 June 2022).

Those decisions state that, in land-reference cases, the Reference Court must address the adequacy of compensation for landowners who have lost possession and determine entitlement to just, reasonable, and adequate compensation after considering the parties’ evidence.

A claimant may be afforded an opportunity to adduce evidence on remand, while the Court may withhold interest for a specified period where the claimant’s prior negligence contributed to delay.

The impugned order rejected the reference because the claimants had not appeared or produced evidence; the Reference Court had therefore not determined the adequacy of compensation.

Following the coordinate-bench approach, the Court considered that land-reference proceedings require determination of compensation and that the claimants should have an opportunity to establish their entitlement.

It balanced that opportunity against their prior failure to participate by directing them to attend every hearing and denying interest for the delayed period of 2,881 days.

The claimants were directed to attend every hearing and cooperate in the proceedings.

They were held not entitled to interest for the delayed period of 2,881 days.