Gujarat High Court
General Manager, O N G C vs Girishbhai Mohanlal Patel on 5 December, 2025
NEUTRAL CITATION
C/FA/2897/2008 JUDGMENT DATED: 05/12/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2897 of 2008
With
R/FIRST APPEAL NO. 2898 of 2008
With
R/FIRST APPEAL NO. 2899 of 2008
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE DEVAN M. DESAI
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Approved for Reporting Yes No
No
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GENERAL MANAGER, O N G C
Versus
GIRISHBHAI MOHANLAL PATEL & ANR.
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Appearance:
MS KJ BRAHMBHATT(202) for the Appellant(s) No. 1
ADVOCATE NOTICE SERVED for the Defendant(s) No. 1
MS RAJVI SHAH AGP for the Defendant(s) No. 2
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CORAM:HONOURABLE MR. JUSTICE DEVAN M. DESAI
Date : 05/12/2025
ORAL JUDGMENT
1. The present First Appeals are filed under Section 54 of the Land Acquisition Act, 1894 read with Section 96 of the Code of Civil Procedure, 1908 by appellant O.N.G.C. - original Page 1 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined opponent No.2 assailing the judgment and award dated 05.11.2004 passed by the learned Civil Judge (S.D.), Mehsana in L.A.R. Nos. 3590/2003 to 3592/2003.
2. Heard learned advocate Ms. K. J. Brahmbhatt for the appellant and learned AGP Ms. Rajvi Shah for the respondent No.2. Though served, none appears for the respondent No.1.
3. The brief facts of the case are that the Special Land Acquisition Officer issued a notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act") on 16.02.1999 for the purpose of acquisition of the land situated at Village Balol, Taluka Mahesana, District Mahesana as the crude oil was found by the appellant O.N.G.C. from the internal part of the said land. Hence, for the public purpose and for the Nation, the said land came to be acquired. A notification under Section 6 of the Act was published on 17.09.1999. Special Land Acquisition Officer passed an award under Section 11 of the Act on 23.02.2001 by awarding Rs.10/- per sq. mtr. as compensation. The land owners, being aggrieved by the said award, filed the reference cases under Section 18 of the Act. The learned Reference Court, after Page 2 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined considering the evidence, on 05.11.2004, granted the additional compensation of Rs.57/- per sq. mtr. over and above the compensation granted by the Special Land Acquisition Officer. Being aggrieved and dissatisfied by the impugned judgment and award dated 05.11.2004, the appellant has filed the present First Appeals.
4. Learned advocate appearing for the appellant O.N.G.C. - original opponent No.2 submits that the learned Reference Court has committed an error by considering the sale deed at Exh.15, which is of adjoining Village Santhal. It is further contended that the claimants have produced a decision rendered in the L.A.R. Nos.2626/1993 to 2652/1993 at Exh.17, wherein the learned Reference Court has awarded a compensation of Rs.10.67ps per sq. mtr. over and above Rs.2/- awarded by the Special Land Acquisition Officer. A notification under Section 4 of the Act in the said land reference cases was published on 03.04.1987. It is further contended that though the learned Reference Court was having an exemplar of the same Village, the learned Reference Court did not consider the said decision and wrongly relied upon Exh.17, which is a sale deed of Village Santhal. It is contended that both the villages Page 3 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined are different and the fertility of both the lands situated in different villages is different. It is further contended that the market value of the lands of both the villages cannot be compared, however the learned Reference Court took into consideration the sale deed Exh.15 and awarded an unreasonable compensation.
4.1 Learned advocate appearing for the appellant further contends that the learned Reference Court has also committed a grave error in awarding the interest from the date of issuance of notification under Section 4 of the Act. It is contended that factually, the claimants are entitled to the interest from the date of taking over the possession of the land in question and not from the date of issuance of notification under Section 4 of the Act. Learned advocate for the appellant relies upon Sections 11 and 16 of the Land Acquisition Act. It is submitted that Section 16 contemplates power to take possession by the Collector. The Collector shall be entitled to take the possession of the land when he makes an award under Section 11 of the Act. In the present case, the date of the award under Section 11 of the Act is dated 23.02.2001. Therefore, the interest ought to have been awarded from Page 4 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined 23.02.2001 and not from the date of Notification under Section 4 of the Act. Except above, no other submissions have been made.
5. Heard the learned advocate for the appellant and perused the record & proceedings.
6. The learned counsel for the appellant has raised mainly two fold contentions in the present Appeals. Firstly, with regard to determination of market value of the land in question and secondly, the date of entitlement of interest. So far as the question of market value of the land in question is concerned, the claimants have relied upon two documents i.e. sale deed Exh.15 and the decision rendered in L.A.R. Nos. 2626/1993 to 2652/1993 at Exh.17. The claimants have also examined the vendors of the sale deed Exh.15. The appellant has not contradicted either the claimant or the witnesses, whose evidence's recorded at Exh.19. So far as the exemplar of the sale deed is concerned. So far as the decision in L.A.R. Nos. 2626/1993 to 2652/1993 at Exh.17 is concerned, the date of notification under Section 4 of the Act was published on 03.04.1987 and the land was acquired for pilot plan. The Page 5 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined learned Reference Court has awarded an additional compensation of Rs.8.67 ps. per sq.mtr. (total compensation of Rs.10.67ps per sq.mtr.). If the sale deed Exh.15 is considered, the market value of the land would come to Rs.56.47ps per sq. mtr. While considering the principle of best available exemplar for determining the market value, the learned Reference Court, instead of relying upon the Exh.17, relied upon the sale deed Exh.15. The learned Reference Court has observed that the distance between the Village Balol and the Village Santhal is hardly 2 kilometers and the boundaries of both the villages are one. This observation is coming out from the deposition of the witness one Patel Jeevabhai Kesabhai, whose evidence is recorded at Exh.19. The learned Reference Court, therefore, adopted the best evidence available on record, which can fetch the best market value of the land which has been acquired. The learned Reference Court has adopted the proper method and manner for determining the market value of the land in question. A decision, which has been relied upon by the learned advocate for the appellant in the case of General Manager vs. Jagubhai Khodabhai Patel and anr. passed in First Appeal No. 4519 of 2009 and connected appeals decided on 25.07.2025 is not helpful to the contentions of Page 6 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined the appellant for the reason that the Coordinate Bench of this Court, while deciding the appeals of the appellant, has occasion to consider only the one exemplar i.e. the award passed in the land reference cases of same Village Balol. The Coordinate Bench of this Court had only one evidence available. Whereas, in the present case, the learned Reference Court had two evidences available on record, i.e. (i) sale instance and (ii) award passed in other land reference cases. When the learned Reference Court adopts and accepts the best evidence in favour of the claimants, the finding on such evidence determining the market value cannot be disturbed. The contention that the second view is possible is not a ground to allow the appeals. Therefore, in my view, the determination of the market value of the land in question is just and proper.
The second question, which is to be answered, is with regard to the award of interest. The learned Reference Court, while passing the award, has awarded the interest to the claimants from the date of taking over the possession of the acquired land. It would be apposite to refer to Section 11 and Section 16 of the Land Acquisition Act, 1894 as under :- Page 7 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025
NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined "11. Enquiry and award by Collector. - [(1)] On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objection (if any) which any person interested has stated pursuant to a notice given under section 9 to the measurements made under section 8, and into the value of the land [at the date of the publication of the notification under section 4, sub-section (1)], and into the respective interests of the persons claiming the compensation and shall make an award under his hand of-
(i) the true area of the land;
(ii) the compensation which in his opinion should be allowed for the land; and
(iii) the apportionment of the said compensation among all the persons known or believed to be interested in the land, or whom, or of whose claims, he has information, whether or not they have respectively appeared before him :
[Provided that no award shall be made by the Collector under this sub-section without the previous approval of the appropriate Government or of such officer as the appropriate Government may authorize in this behalf:
Provided further that it shall be competent for the appropriate Government to direct that the Collector may make such award without such approval in such class of cases as the appropriate Government may specify in this behalf.
[(2) Notwithstanding anything contained in sub-section (1), if at any stage of the proceedings, the Collector is satisfied that all the persons interested in the land who appeared before him have agreed in writing on the matters to be included in the award of the Collector in the form prescribed by rules made by the appropriate Government, he may, without making further enquiry, make an award according to the terms of such agreement.
(3) The determination of compensation for any land under sub-
section (2) shall not in any way affect the determination of compensation in respect of other lands in the same locality or elsewhere in accordance with the other provisions of this Act. (4) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no agreement made under sub-section (2) shall be liable to registration under that Act.]"
16. Power to take possession. - When the Collector has made an award under section 11, he may take possession of the land, which shall thereupon [vest absolutely in the [Government]], free from all encumbrances..Page 8 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025
NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined
7. The Collector may take the possession of the land after the award under Section 11 of the Act is passed. Before the award is passed under Section 11 of the Act, the Collector is not empowered to take the possession of the land in question.
In the present case, the Special Land Acquisition Officer has passed an award under Section 11 of the Act on 23.02.2001 and therefore, in my view, the claimants are entitled to the interest only from 23.02.2001 and not from the date of the notification published under Section 4 of the Act. The learned Reference Court has committed an error of law in awarding the interest from the date of issuance of notification. Therefore, the impugned judgment and award is required to be modified to the extent of award of interest and the claimants are entitled to interest from 23.02.2001 instead of 16.02.1999.
8. Considering the facts and circumstances of the present case, the First Appeals are partly allowed. The impugned judgment and award dated 05.11.2004 passed by the learned Civil Judge (S.D.), Mehsana in L.A.R. Nos. 3590/2003 to 3592/2003 is modified to the extent that the claimants are entitled to the interest from the date of taking over the Page 9 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025 NEUTRAL CITATION C/FA/2897/2008 JUDGMENT DATED: 05/12/2025 undefined possession of the lands in question. Rest of the judgment and award shall remain unaltered.
The Record & Proceedings be sent back forthwith.
(D. M. DESAI,J) cmk Page 10 of 10 Uploaded by CHANDRASHEKHAR MEHESHKUMAR KOSHTI(HC01066) on Wed Dec 10 2025 Downloaded on : Sat Dec 20 00:39:50 IST 2025