Market Value of Acquired Land Determined Based on Comparable Awards from Adjoining Villages Sharing Common Boundaries

The appellants’ lands in Fantadhirpur village, Taluka Bayad, were acquired by the State for a water canal project.

Section 4 notification was published on 05.08.2008, followed by Section 6 on 30.07.2009.

The Special Land Acquisition Officer initially awarded compensation at Rs. 10 per sq. mtr. on 30.04.2010.

On reference under Section 18, the Reference Court enhanced the compensation to Rs. 110.70 per sq. mtr. (awarding Rs. 100.70 additional) by relying on a previous award in LAR No. 501 of 2010 concerning the neighboring village, Desaipura.

The appellants sought a further enhancement to Rs. 400 per sq. mtr., citing subsequent higher awards in the same vicinity.

1. Whether the market value of the acquired land in village Fantadhirpur should be enhanced based on subsequent awards (LAR Nos. 1 to 12 of 2021) pertaining to the adjacent village of Desaipura.

2. Whether the appellants are entitled to interest for the period of delay in filing the appeal.

The court applied Section 54 of the Land Acquisition Act, 1894, and Section 96 of the Code of Civil Procedure, 1908, regarding appellate jurisdiction.

It utilized the principle of "comparable sales/awards," specifically that land in adjacent villages share common boundaries and similar characteristics should be valued consistently for compensation purposes.

The court also applied equity principles regarding the waiver of interest for self-induced delays in litigation.

The Court observed that in a subsequent judgment (LAR Nos. 1 to 12 of 2021), the market value for land in the adjacent village of Desaipura was determined to be Rs. 422 per sq. mtr.

Evidence showed a common boundary between Fantadhirpura and Desaipura, a fact not disputed by the State.

While the Section 4 notification in the current case (August 2008) differed by only four months from the Desaipura case (December 2008), the Court found no significant difference in the nature of the lands.

Furthermore, a precedent was established in First Appeal No. 30 of 2026, where this Court had already enhanced compensation to Rs. 422 per sq. mtr. for land under the same impugned award.

Since the State had accepted the valuation in the 2021 LARs, the Court held it just to apply the same rate to the present appellants.

The claimants are entitled to the difference in compensation to be paid within eight weeks, along with all permissible statutory benefits.

However, the Court held that the claimants are not entitled to interest for the delayed period in filing the appeal, as specified during the condonation of delay proceedings.