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High Court of Gujarat

PATEL SANTABHAI JIVIDAS(DECD) PATEL SAMIBEN SANTABHAI (DECD.)THROUGH HIS LH.versusSTATE OF GUJARAT

Disposal
58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH
Bench
C DOSHI

Holding

The appeal is allowed; compensation is enhanced to Rs.396 per square metre and no interest is payable due to the delay.

Summary

The appellant challenged the compensation awarded for land acquired for the Dharoi Canal Yojana, arguing that the award of Rs.149 per square metre (Rs.12 + Rs.137) was insufficient. The original award was made under Section 11 of the Land Acquisition Act, 1894, and the claimants had sought Rs.1,000 per square metre, leading the reference court to fix additional compensation of Rs.137 per square metre. Relying on a prior decision (First Appeal No.110 of 2023) that awarded Rs.396 per square metre in similar cases, the appellant invoked res‑judicata. The High Court adopted the earlier reasoning, enhanced the compensation to Rs.396 per square metre, and denied interest because the appeal was filed 4,743 days late. The appeal was allowed and the respondents were directed to deposit the additional amount within 12 weeks.

Issues considered

  • Whether the compensation of Rs.149 per square metre awarded by the reference court is lawful under the Land Acquisition Act, 1894.
  • Whether the decision in First Appeal No.110 of 2023 is binding on the present case under the principle of res‑judicata.
  • Whether interest is payable on the enhanced compensation due to the delay in filing the appeal.

Legislation cited

Subjects

land acquisitioncompensationres‑judicatainterestdelaySection 54Land Acquisition ActDharoi Canal Yojana

Judgment

      C/FA/2688/2026                                  ORDER DATED: 29/06/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       R/FIRST APPEAL NO. 2688 of 2026

==========================================================
     PATEL SANTABHAI JIVIDAS(DECD) PATEL SAMIBEN SANTABHAI
                 (DECD.)THROUGH HIS LH. & ORS.
                              Versus
                    STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR RAKESH R PATEL(3239) for the Appellant(s) No.
1,1.1,1.2,1.3,1.4,1.5,1.6,1.6.1,1.6.2,1.6.3
MS DHARITRI PANCHOLI, ASST. GOVERNMENT PLEADER for the
Defendant(s) No. 1,2
==========================================================

 CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI

                               Date : 29/06/2026

                                    ORDER


1.             The appeal under Section 54 of the Land Acquisition
Act, 1894 (hereinafter referred to as ‘the Act’) questions the
legality and propriety of the judgment and order passed in
Reference Case No.1161 of 2011 by the learned 2nd Additional
Senior Civil Judge, Mehsana @ Vijapur in a group of matters
consisting of Reference Case No. 1147 of 2011 to 1164 of 2011,
keeping the LAR no. 1147 of 2011 as main matter, whereby on
01.01.2013 the learned Reference Court granted additional
compensation to the claimants at the rate of Rs.137.00/- per sq.
mtr. with statutory benefits.

2.             The facts, in a nutshell, are that, the land in question
was acquired by the Special Land Acquisition Officer for the
purpose      of    Dharoi   Canal     Yojana,      Himmatnagar         and      the


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      C/FA/2688/2026                                 ORDER DATED: 29/06/2026




Notification under Section 4 was published on 29.01.2008,
followed by the Notification under Section 6 on 15.04.2008.

2.1            The Special Land Acquisition Officer, in exercise of
power under Section 11 of ‘the Act’, after issuing notice to the
concerned in LAQ Case No.38 of 2016, was pleased to pass the
award of compensation of Rs.12/- per sq. mtr. for the
agricultural land.

2.2            The original claimants, dissatisfied by such award,
preferred Reference under Section 18 of ‘the Act’ to claim and
obtain the compensation of Rs.1,000/- per sq. mtr.

2.3            Permitting both the parties to lead the evidence,
learned Reference Court was pleased to fix the compensation at
the rate of Rs.137.00/- per sq. mtr. as additional compensation,
thereby totaling the compensation of Rs.149/- per sq. mtr. with
statutory benefits.

2.4            Being aggrieved, the original claimants has filed this
appeal.

3.             Heard   learned   advocate      Mr.     Rakesh        R.        Patel
appearing for appellant and learned AGP appearing for the State
Government.

3.1            Learned advocate Mr. Rakesh R. Patel referred to the
judgment passed in the First Appeal No.110 of 2023 and allied
matters by the coordinate Bench dated 01.07.2025 between
Pathan Ikbal Latifkhan v. State Of Gujarat & Anr., and



                                 Page 2 of 5
      C/FA/2688/2026                           ORDER DATED: 29/06/2026




submitted that other group of the matters have been decided by
the coordinate Bench in the said first appeal and awarded total
compensation of Rs. 396/- per sq. mtr.

3.2            He would further submit that in view of the principle
of Res-judicata, the judgment and award passed by the
coordinate Bench will apply to the facts of the present case and
thus, the appeal, therefore, deserves consideration to that
extent.

3.3            Upon above submission, he submitted to allow this
appeal.

4.             Learned AGP on perusal of the judgment passed by
the coordinate Bench in the First Appeal No.110 of 2023 was
pleased to submit that this Court may pass the necessary order.

5.             Having heard learned advocates for both the sides
and considering the fact that the other matters in a group of
LARs matters have been finally decided by the coordinate Bench
in First Appeal No.110 of 2023 and allied matters by judgment
dated 01.07.2025, this appeal deserves to be allowed on the
reasons assigned by the coordinate Bench. Para 12 and 13 of the
judgment passed by the coordinate Bench reads as under:-

       “12. The only question remains for consideration is that in
       the land reference Cases bearing Land Reference Cases
       Nos.151 of 2015 to 163 of 2015, section 4 notification was
       published on 25.3.2011 whereas in the present case, it is
       published on 29.1.2008. The duration between 2
       notifications is almost 39 months. Therefore, the deduction is
       required to be considered while determining the market


                                Page 3 of 5
     C/FA/2688/2026                            ORDER DATED: 29/06/2026




      value of the land in question. When there is a substantial
      gap between the 2 notifications, it would be appropriate to
      deduct 10% decrease on the market value of the land in
      question.

      13. In the present case, the judgment and award in the land
      reference cases is required to be modified and the claimants
      are entitled to compensation of Rs.396/- (Rs.586-190) per
      square meter (Rs.586X10X39 months / 100X12 +
      Rs.190.45, rounded off as Rs.190/-). The Special Land
      Acquisition Officer and the learned reference Court has
      determined the market value of the land in question @
      Rs.12/- and Rs.137/- per square meter. Therefore, the
      additional compensation would come to Rs.253/- per square
      meter.”


6.            In view of above, this Court adopts the very same
reasons and grant the total compensation of Rs.396/- per sq.
mtr., which includes the compensation already fixed by the
Special Land Acquisition Officer as well as by the learned
Reference Court. In nutshell, the claimants would be entitled to
compensation of Rs.396/- per sq. mtr. with statutory benefits.

7.            Here the appeal was filed in delay and it was a delay
of 4743 days. Therefore, the appellant would not be entitled to
the interest of 4743 days on the enhanced amount of
compensation.

8.            In view of above, the appeal is allowed. In aforesaid
terms, the compensation is enhanced and accordingly, the
respondents herein are directed to deposit the additional amount
before the learned Reference Court within 12 weeks from the
date of receipt of this order.



                                 Page 4 of 5
          C/FA/2688/2026                                                           ORDER DATED: 29/06/2026




 9.                   Upon           deposit           of       the        additional              amount             of
 compensation, the learned Reference Court is directed to
 disburse the amount of compensation deposited by the State
 Government after deducting Court fee to the claimants along
 with interest and after due verification and identification and
 after verifying their right to claim the compensation.

 10.                  Registry is directed to return back the R & P, if any,
 to the concerned Court forthwith.

                                                                                                 (J. C. DOSHI,J)
 SHEKHAR P. BARVE



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SHEKHAR PRAFULBHAI BARVE(HC00200), Principal Pvt. Secretary, at High Court of Gujarat on 29/06/2026 14:38:18




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