BABUBHAI NANJIBHAI DESAI THROUGH POAversusSTATE OF GUJARAT

     C/FA/1083/2012                           ORDER DATED: 30/07/2026




     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

            R/FIRST APPEAL NO. 1083 of 2012
=========================================
     BABUBHAI NANJIBHAI DESAI THROUGH POA & ORS.
                           Versus
                STATE OF GUJARAT & ORS.
=========================================
Appearance:
MR VAIBHAV A VYAS(2896) for the Appellant(s) No. 1,2,3,4
MS SURBHI S. BHATI, AGP for the Defendant(s) No. 1,3
RULE SERVED for the Defendant(s) No. 2
=========================================
 CORAM:HONOURABLE MR. JUSTICE ILESH J. VORA
        and
        HONOURABLE MR. JUSTICE R. T. VACHHANI

                         Date : 30/07/2026

                   ORAL ORDER
 (PER : HONOURABLE MR. JUSTICE R. T. VACHHANI)


1.    The present appeal is filed against the judgment and award
passed by the Reference Court dated 21/07/2011 in Land Reference
Case No. 5 of 1998, whereby the Learned 2nd Additional Senior
Civil Judge, Amreli has awarded compensation at Rs.125/- per sq.
mtr. plus statutory benefits.


2.    The facts of the case are that for the purpose of the Amreli
Chittal bypass road, lands were compulsorily acquired under the
Land Acquisition Act (hereinafter referred to as the "Act"). The
notification under section 4 of the Act was published in the year
1996. The notification under section 6 of the Act was subsequently
published, and thereafter, the award was passed by the Land
Acquisition Officer under section 11, wherein he awarded a meager
compensation at Rs.900/- per Are, i.e., Rs.9/- per sq. mtr. As the
land owners-original claimants were not satisfied with the said
compensation for their valuable land, they raised a dispute under


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     C/FA/1083/2012                                   ORDER DATED: 30/07/2026




section 18 of the Act and demanded higher compensation at
Rs.600/- per sq. mtr. Such disputes were referred to the Reference
Court for adjudication being Land Reference Case No. 5 of 1998.
The Reference Court, at the conclusion of the Reference, passed
the above-referred judgment and award fixing the compensation to
the tune of Rs.125/- per sq. mtr. Under the circumstances, the
present appeal has been preferred before this Court.


3.    We have heard the learned counsel appearing for the
appellant-original claimant and Mr. Vaibhav A. Vyas, learned AGP
Ms. Surbhi S. Bhati for the respondent State.


4.    The principal contention raised by the learned counsel
appearing for the appellant is that the Reference Court, while
fixing the market value at Rs.125/- per sq. mtr., lost sight of the
aspect of annual price appreciation. It is submitted that this Court
in an identical matter pertaining to the same project and
surrounding       land,   namely   First     Appeal   No.     3175     of       2011
(Rameshbhai Savjibhai Vs. State of Gujarat), took note of the
base compensation of Rs.125/- per sq. mtr. fixed by the Apex Court
for the year 1993. It is submitted that in First Appeal No. 3175 of
2011, since the Section 4 notification was of the year 1997, this
Court granted a 10% per annum appreciation for four years and
enhanced the compensation to Rs.175/- per sq. mtr. The learned
counsel submitted that since the Section 4 notification in the
present case is of the year 1996, the claimants are entitled to a
similar cumulative annual appreciation of 10% p.a. for a period of
three years from the 1993 base year, and the order on hand aptly
applies to these facts.


5.    On the other hand, Ms. Surbhi S. Bhati, learned AGP for the


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      C/FA/1083/2012                                   ORDER DATED: 30/07/2026




respondents, has placed reliance on alternative decisions to
contend that the Reference Court's award of Rs.125/- per sq. mtr. is
just and proper and requires no interference. She has placed
reliance on the judgment of this Court in the case of Special Land
Acquisition Officer vs. Okhabhai Ukabhai passed in First
Appeal No. 3887 of 2014, as well as the decision in Viruben
Jhalamsingh Contractor (D) By Lrs Vs. State of Gujarat
decided on 13th April 2005. Further reliance was placed on the
decision of the High Court of Gujarat in Special Land Acquisition
Officer vs. Sidappa Omanna Tumari and Ors. etc. decided on
27th October 1994 to support the contentions of the respondent
State.


6.       It is an undisputed position that for the lands located in the
same project area, the base compensation of Rs.125/- per sq. mtr.
was recognized based on the benchmark set by the Apex Court in
the case of Deputy Collector, Land Acquisition, Gujarat & Anr
Vs.   Madhubhai        Gobarbhai      &        Anr.,   which      pertained      to
notifications up to the year 1993.


7.       This Court has already evaluated the trajectory of land value
appreciation for the Amreli-Chittal bypass road project in First
Appeal No. 3175 of 2011. In that matter, where the Section 4
notification was published in 1997, this Court computed the
escalation at the rate of 10% p.a. for four years over the base rate
of Rs.125/- per sq. mtr., thereby fixing the final compensation at
Rs.175/- per sq. mtr. We cannot go beyond the logic and framework
adopted in that decision, as it covers the exact same area and
project.


8.       Applying the very same principle to the case on hand, the


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           C/FA/1083/2012                                                                    ORDER DATED: 30/07/2026




 notification under section 4 of the Act in this matter was published
 in the year 1996. The difference between the baseline year (1993)
 and the current notification year (1996) is exactly one year less
 than the benchmark case of 1997. Therefore, calculating the
 appreciation at the rate of 10% p.a. for a period of three years on
 the base amount of Rs.125/- per sq. mtr. (or by deducting one
 year's 10% p.a. appreciation from the 1997 rate of Rs.175/-), the
 addition works out to Rs.37.50 per sq. mtr. Accordingly, the just
 and reasonable principal compensation for the subject land comes
 to Rs.163 per sq. mtr. As the principal amount of compensation is
 enhanced, there would be a consequential proportionate rise in the
 statutory benefits under sections 23(1A), 23(2), and 28 of the Act.


 9.         In view of the aforesaid observations and discussions, it is
 observed and held that the original claimants-appellants herein
 would be entitled to the enhanced compensation at the rate of
 Rs.163 per sq. mtr. plus statutory benefits under sections 23(1A),
 23(2), and 28 of the Act on the principal amount of compensation.


 10.        The appeal is allowed to the aforesaid extent and stands
 partly allowed. Considering the facts and circumstances, there
 shall be no order as to costs. The difference in the amount of
 compensation shall be deposited by the respondent State with the
 Reference Court within a period of 8 weeks from the date of the
 order of this Court.



                                                                                                 (ILESH J. VORA,J)



                                                                                            (R. T. VACHHANI, J)
 Kaushal Rathod
Original copy of this order has been signed by the Hon'ble Judges.
Digitally signed by: KAUSHAL MAHESHBHAI RATHOD(HCD0078), ENGLISH STENOGRAPHER GRADE TWO CLASS TWO, at High Court of Gujarat on 30/07/2026 15:13:14




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