Gujarat High Court

Market value determination based on highest comparable exemplar for same village lands held valid.

SPECIAL LAND ACQUISITION OFFICER vs RAVAJIBHAI RANCCHODBHAI PATEL DECD.THROUGH THE LRS

Gujarat High CourtJUDGMENT: July 30, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The State of Gujarat acquired agricultural lands in Village Adalaj, Gandhinagar, for the construction of a link road connecting the Adalaj-Nabhoi-Koba road.

Source reference: p.3

The Section 4 notification under the Land Acquisition Act was published on 23.12.1993, and possession was taken on 30.09.1991.

Source reference: p.3

The Special Land Acquisition Officer (SLAO) awarded compensation between ₹7 and ₹8 per square meter via an award dated 30.01.1996.

Source reference: p.4

The Reference Court (Principal Civil Judge, Gandhinagar) relied on an exemplar judgment (Exh. 44) of the same village where the market value was fixed at ₹252 per square meter for a 1990 notification. Adjusting for a three-year time gap with a 10% annual price rise, the Reference Court calculated the value at ₹327, ultimately awarding the claimed amount of ₹300 per square meter.

Source reference: p.5-6
02

Issues

1. Whether the Reference Court was justified in mechanically adopting the compensation rate from an exemplar judgment (Exh. 44) without independent assessment of the land's comparability, location, and potentiality

Source reference: p.6

2. Whether the addition of a 10% annual price rise over the exemplar rate was legally sustainable given the distance of the acquired land from the highway

Source reference: p.6-7
03

Law Applied

Section 23 of the Land Acquisition Act, 1894, which mandates the determination of market value based on the date of notification.

Source reference: p.3

Principle that where more than one exemplar is available, the landowner is entitled to the benefit of the highest comparable value.

Source reference: p.8

Principle of granting a percentage increase (incremental rise) for the time gap between the notification of the exemplar land and the subject land.

Source reference: p.5
04

Reasoning

The Court noted that the State provided no evidence to prove significant differences in potentiality.

Source reference: no citation

It found that since the lands in both the current case and the exemplar (Exh. 44) were situated in the same village (Adalaj) and acquired for similar purposes (road construction), they were comparable in nature.

Source reference: p.8

The High Court upheld the Reference Court’s reasoning that a three-year gap between the 1990 notification (exemplar) and the 1993 notification (present case) justified an upward adjustment in price. Even though the mathematical calculation suggested a value of ₹327, the court limited the award to ₹300 per square meter as it was the maximum amount claimed by the respondents.

Source reference: p.5-6
05

Holding

The Court held that the market value of ₹300 per square meter was rightly determined based on the highest available exemplar in the same village. The landowners were held entitled to the additional compensation, statutory interest under Section 28, solatium under Section 23(2), and the additional amount under Section 23(1-A).

The High Court dismissed the appeals, confirming the Reference Court's judgment and award dated 11.12.2006. The Registry was directed to transmit records and permit the landowners to withdraw the deposited amounts.

Source reference: p.9
Gujarat High Court

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SPECIAL LAND ACQUISITION OFFICERvsRAVAJIBHAI RANCCHODBHAI PATEL DECD.THROUGH THE LRS

Gujarat High Court · July 30, 2026

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