The highest comparable unchallenged award governs market-value determination in land acquisition compensation.

ONGC acquired parcels of agricultural land situated at Village Ambaliyara, Taluka Kadi, District Mehsana, for its drilling project under the Land Acquisition Act, 1894.

In respect of First Appeal No. 1862 of 2012, the Section 4(1) notification was published on 12 March 2003 and the Special Land Acquisition Officer awarded compensation at ₹18.70 per sq. metre. The Reference Court enhanced the compensation to ₹69 per sq. metre, relying principally on an earlier award concerning Village Meda Adaraj.

In First Appeal No. 2910 of 2014 and the acquiring body’s First Appeals Nos. 68 and 70 of 2015, notifications were issued on 15 March 2003; the Reference Court likewise fixed the market value at ₹69 per sq. metre.

In First Appeals Nos. 3148–3150 of 2014, the relevant notification was dated 27 April 1999, the SLO had awarded ₹22 per sq. metre, and the Reference Court ultimately awarded an additional amount of ₹21 per sq. metre after applying a deduction for the time gap between notifications.

The landowners sought further enhancement, relying on earlier awards concerning neighbouring villages, particularly the award in LAR No. 5373 of 2003 relating to Village Merda, which had determined compensation at ₹100 per sq. metre and, according to the Court, had attained finality because ONGC had not challenged it.

ONGC opposed enhancement and relied on a Division Bench judgment fixing the rate for Village Merda at ₹44 per sq. metre.

The High Court heard all appeals together because they involved common questions concerning determination of market value.

1. Whether the Reference Courts had correctly determined the market value of the acquired lands at ₹69 per sq. metre, or whether a higher comparable value reflected in the prior award concerning Village Merda ought to be applied.

2. Whether an earlier award concerning a neighbouring village could be treated as the best exemplar where multiple previous awards were available and the villages were geographically proximate.

3. Whether the market value for acquisitions pursuant to the 1999 notification required any adjustment by reference to the later or earlier notification dates.

4. Whether the non-appealing claimants in First Appeal No. 70 of 2015 could receive the enhanced compensation under Order XLI Rule 33 of the Code of Civil Procedure, 1908.

The Court applied Section 54 of the Land Acquisition Act, 1894, governing appeals to the High Court against an award of a Reference Court, read with Section 18 concerning references for enhancement of compensation.

The governing principle for market-value determination is that, where more than one comparable exemplar is available, the landowner is entitled to the highest comparable value legitimately supported by the evidence; a prior award may serve as a relevant indicator where the lands are situated in neighbouring or geographically proximate villages.

A prior award that has attained finality, including because the acquiring body did not challenge it, cannot ordinarily be disregarded merely because the amount involved was small.

The Court also applied Order XLI Rule 33 CPC to extend the benefit of an enhanced award to similarly placed claimants who had not independently filed an appeal.

The High Court found that the Reference Courts had relied predominantly on the award concerning Village Meda Adaraj and had inadequately explained why they discarded the higher value reflected in the award concerning Village Merda.

The village map showed that Ambaliyara, Merda, Meda Adaraj and Laxmanpura were connected or within approximately five kilometres of one another; therefore, geographical proximity did not justify rejecting the Merda award as a comparable exemplar.

The Court treated the Merda award in LAR No. 5373 of 2003, fixing the market value at ₹100 per sq. metre, as the best and highest relevant indicator because it had attained finality and had been accepted by the acquiring body.

For the 2003 acquisitions, the Court added 30% to the ₹100 rate to account for the three-year interval between the relevant notifications, resulting in ₹130 per sq. metre as the enhanced amount, in addition to the SLO’s award of ₹18.70 per sq. metre and applicable statutory benefits.

For the 1999 acquisitions, the Section 4 notification in the Ambaliyara matters dated 27 April 1999 was substantially contemporaneous with the 22 April 1999 notification forming the basis of the Merda exemplar; accordingly, no escalation or deduction was warranted, and ₹100 per sq. metre was awarded as the additional compensation over the SLO’s ₹22 per sq. metre.

ONGC’s reliance on the later Division Bench determination of ₹44 per sq. metre for Merda was rejected because the specific ₹100 award relied upon by the landowners had independently attained finality.

For the 2003 acquisitions, the landowners were held entitled to an additional ₹130 per sq. metre, comprising the ₹100 comparable market value plus 30% escalation, over and above the SLO’s award of ₹18.70 per sq. metre, together with statutory benefits and interest.

For the 1999 acquisitions, the landowners were awarded an additional ₹100 per sq. metre over and above the SLO’s award of ₹22 per sq. metre, with statutory benefits and interest.

ONGC’s First Appeals Nos. 68 and 70 of 2015 were dismissed.

Under Order XLI Rule 33 CPC, the non-appealing claimants in First Appeal No. 70 of 2015 were also granted the enhanced additional compensation of ₹130 per sq. metre.

The parties were directed to pay any deficit court fees; deposited amounts were permitted to be withdrawn by the landowners, and there was no order as to costs.