Citation : 2025 Latest Caselaw 130 Guj
Judgement Date : 5 May, 2025
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C/FA/2848/2019 JUDGMENT DATED: 05/05/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2848 of 2019
With
R/CROSS OBJECTION NO. 360 of 2023
In
R/FIRST APPEAL NO. 2848 of 2019
With
R/FIRST APPEAL NO. 2849 of 2019
With
R/CROSS OBJECTION NO. 361 of 2023
In
R/FIRST APPEAL NO. 2849 of 2019
With
R/FIRST APPEAL NO. 2850 of 2019
With
R/CROSS OBJECTION NO. 362 of 2023
In
R/FIRST APPEAL NO. 2850 of 2019
With
R/FIRST APPEAL NO. 2851 of 2019
With
R/CROSS OBJECTION NO. 363 of 2023
In
R/FIRST APPEAL NO. 2851 of 2019
With
R/FIRST APPEAL NO. 2852 of 2019
With
R/CROSS OBJECTION NO. 364 of 2023
In
R/FIRST APPEAL NO. 2852 of 2019
FOR APPROVAL AND SIGNATURE:
HONOURABLE MS. JUSTICE SANGEETA K. VISHEN
and
HONOURABLE MR.JUSTICE MOOL CHAND TYAGI
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Approved for Reporting Yes No
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DEPUTY COLLECTOR LAND ACQUISTION AND REHABILITATION
OFFICER & ANR.
Versus
HARIJAN KESHARBHAI RAVABAHI
Page 1 of 14
Uploaded by SINDHU NAIR(HC01395) on Fri May 09 2025 Downloaded on : Sat May 10 14:31:06 IST 2025
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Appearance:
MS FORAM TRIVEDI, AGP for the Appellant(s) No. 1,2
MR MAHESH P PATEL(3381) for the Defendant(s) No. 1
MR N P CHAUDHARY(3980) for the Defendant(s) No. 1
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CORAM:HONOURABLE MS. JUSTICE SANGEETA K. VISHEN
and
HONOURABLE MR.JUSTICE MOOL CHAND TYAGI
Date : 05/05/2025
COMMON ORAL JUDGMENT
(PER : HONOURABLE MS. JUSTICE SANGEETA K. VISHEN)
1. Being aggrieved by the judgment dated 07.04.2018 passed by the learned Principal senior Civil Judge,Deodar in Land Acquisition Reference Case No.7 of 2018 to Land Acquisition Reference Case No.12 of 2018 (hereinafter referred to as "the impugned judgment"), the Deputy Collector, Land Acquisition & Rehabilitation Officer and the Executive Engineer have preferred the captioned appeal whereby the learned Judge has determined the additional compensation at the rate of Rs.339.30/- per sq. mts. over and above the market value of Rs.2.70/- per sq. mts. determined by the Land Acquisition Officer as per the award under section 11 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act of 1894").
2. Ms Foram Trivedi, learned Assistant Government Pleader submitted that the impugned judgment is illegal and bad in law, inasmuch as, the learned Judge has seriously erred in awarding the additional compensation on higher side over and above the compensation awarded by the Land Acquisition
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Officer vide award dated 29.11.2004. It is submitted that disregarding the written arguments submitted, the learned Judge, has arrived at the additional compensation, despite the fact that each and every aspect has been minutely mentioned in the award of the Land Acquisition Officer and considered accordingly. It is submitted that there was adequate compensation awarded by the Land Acquisition Officer on the basis of the material available, namely the sale instances etc. Even the fertility and potentiality of the land was also considered and only thereafter, the Land Acquisition Officer was of the opinion that reasonable market value would be Rs.2.70/- per sq. mts. It is urged that the learned Judge could not have deviated from the market value determined by the Land Acquisition Officer, in absence of any evidence produced. It is urged that the appeals deserve to be allowed and the cross objections deserve to be rejected.
3. On the other hand, Mr Jinesh Kapadia, learned Advocate appearing with Mr Mahesh Patel, learned Advocate for the original claimants has vehemently opposed the appeals and supported the cross objections. It is submitted that the issue on facts as well as on law is no longer res integra in principle. Undisputedly, the land was acquired for the public purpose of constructing Sujalam Sufalam Spreading Canal. In past and around the same period, the lands of village Lakhani were also acquired for the similar purpose. The market value was determined relying upon the report of the District Valuation Committee (hereinafter referred to as "the Valuation Committee") which, has determined an amount of Rs.570/- for
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the land admeasuring 2000 sq. mts. which, was to be allotted to BSNL. Thus, there was readily available market value determined by the committee, consisting of the Collector, the Town Planning Officer, who are experts in the field. More over, the land of village Lakhani is at a distance of 2 kilometers from the land of village Ghela. It is submitted that in one of the land reference cases, the amount determined was on the basis of the report of the Valuation Committee and the coordinate bench, while dismissing the appeal of the State Government has allowed the claim of the original claimants qua the deduction, from 40% to 20%. Therefore, the issue as regards the additional compensation stands crystallized in favor of the original claimants.
3.1 Reliance is placed on the judgment in the case of Land Acquisition and Rehabilitation Officer vs. Kanbi Ravataji Lumbaji passed in R/ First Appeal No. 669 of 2019 and other allied matters. It is submitted that the principle laid down in the said judgment applies on all fours to the facts of the present case considering the nature of similarity of acquisition, section 4 notification and the location of the villages having been situated adjacent to each other. Further reliance is placed on the judgment in the case of Special Land Acquisition Officer (Dy. Collector) & Anr. Vs. Patel Kanjibhai Ganeshbhai passed in R/First Appeal No. 2606 of 2016 and other allied matters. The coordinate bench has heavily placed reliance on the judgment in the case of Land Acquisition and Rehabilitation Officer vs. Kanbi Ravataji Lumbaji(supra) and applying the same has considered the additional
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compensation at the rate of Rs. 570/-.
3.2 For the proposition that the report of the Valuation Committee is reliable piece of evidence, reference is made to the judgment in the case of State of Gujarat through Special Land Acquisition Officer and Anr. vs. Amaji Mohanji Thakore reported in 2010(3) GLH 447. It has been held and observed that the Valuation Committee is comprising of the expert body in the field of valuation, including the District Collector etc. and therefore, there is no reason as to why the valuation made by the Valuation Committee of the Government fixing of the price for allotment of the land at the very village by way of sale instances for allotment, should not be taken into consideration. It is urged that when the lands are similarly situated so also the potentiality, it is well settled that distance between the lands would not by itself lead to a change in the respective market value. Reliance is placed on the judgment in the case of Thakarsibhai Devjibhai & Ors. vs. Executive Engineer, Gujarat & Anr. reported in (2001) 9 SCC 584.
3.3 Mr.Jinesh Kapadia, learned Advocate has fairly conceded that 3% appreciation is allowed but the learned Judge has not added in the calculation and the claimants are not pressing considering the fact that the duration between the report of the Valuation Committee and the section 4 notification is hardly less than two months. It is urged that so far as 40% deduction is concerned i.e. on a higher side and in view of the judgment of the coordinate bench, the deduction may be
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allowed to 20% rather that 40%.
4. Heard the learned Advocates appearing for the respective parties and considered the paper book made available.
5. The land in question is acquired for the public purpose of constructing Sujalam Sufalam Spreading Canal. The date of publication of section 4 notification is 07.07.2004 followed by section 6 notification on 02.11.2004. The Land Acquisition Officer has given its award on 29.11.2004 whereby, the additional compensation determined, was at the rate of Rs.2.70/- per sq. mts. This award led to the filing of the reference which culminated into the Land Acquisition Reference Case No.7 of 2018 to Land Acquisition Reference Case No.12 of 2018. Oral as well as documentary evidence have been produced by and on behalf of the claimants in the form of revenue record, certificates issued by the Talati cum Mantri of village Ghela, certified copy of the common judgment passed in Land Acquisition Reference Case No.65 of 2006 and other allied matters so also the valuation report dated 20.05.2004 of the Valuation Committee and the certified copy of the schedule of rates. On the other hand, the evidence produced on behalf of the appellants include notifications under section 4, 6, 11 and 12 etc., the statement of five years' sale instances, copies of the revenue record and the photocopy of the village map.
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6. Considering the above referred evidence, the learned Judge allowed the reference by awarding additional compensation at the rate of Rs.570.00/- per sq. mts. What weighed with the learned Judge was the report of Valuation Committee dated 20.05.2004 wherein, the market value fixed was Rs.570/-. Moreover, the learned Judge, applying the principle laid down by this Court, deducted 40% from the additional compensation. The amount derived was Rs.342/-; further deducting Rs.2.70/- already awarded, the additional compensation arrived at was Rs.339.30/- per sq. mts. The appellant is aggrieved by the said determination whereas the claimants are aggrieved by the deduction of 40%.
7. So far as 40% deduction is concerned, the issue is no longer res integra. In the judgment in the case of Land Acquisition and Rehabilitation Officer vs. Kanbi Ravataji Lumbaji (supra) in paragraphs 14 to 18, it has been observed thus:
"14. We have considered the ratio laid down and the principle enunciated in the aforesaid decisions. It is found out that the principles governing determination of market value of lands acquired are well- settled and at the time of determination of the compensation, the Hon'ble Supreme Court issued certain directions as regard the the methods of valuation to be considered i.e. (1) opinion of experts, (2) the prices paid within a reasonable time in bonafide transactions of purchase or sale of the lands acquired or of the lands adjacent to those acquired and possessing similar advantages and (3) a number of years' purchase of the actual or immediately prospective profits of the lands acquired. Therefore valuation made by the Valuation Committee can be a valid basis for the Reference Court in deciding the valuation of the land for the purpose of awarding compensation, subject to any change in the nature of the land, character etc. If the impugned judgment and order of the Reference Court is examined in light of the aforesaid
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observations and discussions, it appears to us that there is no error committed by the Reference Court in relying upon the price fixed for allotment of the land for the public purpose of Spreading Canal of Sujalam Safalam, but the Reference Court has committed error in not considering the aspect that the valuation as was made of the land in question on 20.05.2004 and the said valuation is to be considered, keeping in view the principles, as observed herein above and the Reference Court has also totally lost sight of in not considering the deduction to be made in the nature of the land allotted for non-agricultural purpose and the acquisition of agricultural land in the present case.
15. From the facts of the case, as stated above, it is found out that it is the case of the original claimants that the Valuation Committee has fixed the valuation of the Government land on 20.05.2004, whereas the Notification under Section 4 of the Act was published on 30.06.2004 i.e. after the fixation of the valuation of the land by the Valuation Committee and, hence, they are entitled for additional compensation, for which, reliance is put upon the decision of this Court in case of Patel Haribhai Manilal (supra) as well as in case of Amaji Mohanji Thakore (supra) and though the aforesaid facts have been pointed out before the Reference Court, it has not been considered and 40% deduction was made instead of 20%, which the original claimants are entitled for. We have gone through the record and proceeding and found out that the Reference Court has considered the report dated 20.05.2004 of the Valuation Committee. It is found out that the Reference Court has correctly evaluated the the report of the Valuation Committee but at the time of considering the amount, 40% amount is deducted from the said amount mentioned in the report solely on the count that in identical matter in case of Sardar Sarovar Narmada Nigam Ltd. delivered in First Appeal Nos.2832 to 2843 of 2006, the Division Bench of this Court has deducted 40% amount from the price fixed by the competent authority. It is found out from the record that in the said matter, the acquired land was situated in outskirt of the city area, whereas the present land, which is acquired by the acquiring body, is situated within the center of the city and as per the evidence led by the original claimants, surrounding and vicinity area of the acquired land is well developed area and in future, the Government need not have to spend any amount for the development of the said area, therefore, basic price value of the said land is on higher side, therefore, the deduction is required to be made 20% instead of 40%. We have gone through the record and proceedings and found out that the land, which was acquired by the acquiring body, is small plot and situated within the center of the city, therefore, we are of the opinion that the original claimants are entitled
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for 20% deduction instead of 40% deduction.
16. We have considered the report of the District Valuation Committee, village : Lakhani dated 20.05.2004 produced on record at Exhs.40 & 41 i.e. as well as the Map of village produced on record. It is found out from the aforesaid documents that the price of the land of land bearing Survey No.152 pk. has been evaluated and fixed at Rs.510/- per sq.mtr. And Sujalam Safalam Canal passes through land bearing Survey Nos.153 & 211 pk. and the said lands are situated adjacent to the land owned by the original claimants. It is also found out from the record that the lands owned by the original claimants are situated within well developed area, which would reduce the expenditure behind the development and, therefore after acquiring the said land, the Government need not have to spend money for its development. Thus considering the above facts of the case on hand, the original claimants are entitled for deduction of 20% instead of 40%, which has been done in the present case.
17. At this stage, it is pertinent to note that we have also gone through the impugned judgment and award passed by the learned Reference Court including the finding given and conclusion arrived at by the learned Reference Court and found that except deduction of 40% instead of 20%, there is no error committed by the learned Reference Court, which would require interference from this Court. Hence, rest of the impugned judgment and award remain unaltered.
18. Therefore in view of the aforesaid observations made, First Appeals filed by the State of Gujarat are hereby dismissed. Whereas Cross Objections filed by the original claimants are allowed as prayed for. Therefore, the impugned judgment and award dated 22.09.2017 passed by the learned Additional Senior Civil Judge, Deesa in Land Acquisition Reference Nos.26 to 31 of 2005 is hereby modified to the extent that instead of compensation at Rs.333.50, which is already awarded by the Reference Court, the original claimants are entitled to get additional compensation at Rs.160/- per Sq.Mtr i.e. total compensation at Rs.493.50. Rest of the observation and direction would remain unaltered. Decree to be drawn accordingly. Record & Proceedings are sent back forthwith."
8. The amount determined by the reference Court was Rs.570/- which was on the basis of the interim valuation
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report; however, considering the final valuation report dated 20.05.2004, the coordinate bench has determined the market value. Clearly,as per the report of the Valuation Committee the market value derived was Rs. 570/- which, was taken as a base by the learned Judge. The coordinate bench while accepting the said report so also the market value, allowed 20% deduction instead of 40% deduction. The said judgment was followed by the coordinate bench in the case of Special Land Acquisition Officer (Dy. Collector) & Anr. Vs. Patel Kanjibhai Ganeshbhai(supra). While modifying the award the division bench has observed thus:
3. In light of the decision rendered by the co-ordinate bench of this Court in First Appeal No. 669 of 2019 of which paragraphs no. 14 and 15 are reproduced as under, the compensation awarded to the claimants has to be on the basis of the valuation report dated 20.05.2004.
"14. We have considered the ratio laid down and the principle enunciated in the aforesaid decisions. It is found out that the principles governing determination of market value of lands acquired are well- settled and at the time of determination of the compensation, the Hon'ble Supreme Court issued certain directions as regard the the methods of valuation to be considered i.e. (1) opinion of experts, (2) the prices paid within a reasonable time in bonafide transactions of purchase or sale of the lands acquired or of the lands adjacent to those acquired and possessing similar advantages and (3) a number of years' purchase of the actual or immediately prospective profits of the lands acquired. Therefore valuation made by the Valuation Committee can be a valid basis for the Reference Court in deciding the valuation of the land for the purpose of awarding compensation, subject to any change in the nature of the land, character etc. If the impugned judgment and order of the Reference Court is examined in light of the aforesaid observations and discussions, it appears to us that there is no error committed by the Reference Court in relying upon the price fixed for allotment of the land for the public purpose of Spreading Canal of Sujalam Safalam, but the Reference Court has committed error in not considering the
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aspect that the valuation as was made of the land in question on 20.05.2004 and the said valuation is to be considered, keeping in view the principles, as observed herein above and the Reference Court has also totally lost sight of in not considering the deduction to be made in the nature of the land allotted for non-agricultural purpose and the acquisition of agricultural land in the present case.
15. From the facts of the case, as stated above, it is found out that it is the case of the original claimants that the Valuation Committee has fixed the valuation of the Government land on 20.05.2004, whereas the Notification under Section 4 of the Act was published on 30.06.2004 i.e. after the fixation of the valuation of the land by the Valuation Committee and, hence, they are entitled for additional compensation, for which, reliance is put upon the decision of this Court in case of Patel Haribhai Manilal (supra) as well as in case of Amaji Mohanji Thakore (supra) and though the aforesaid facts have been pointed out before the Reference Court, it has not been considered and 40% deduction was made instead of 20%, which the original claimants are entitled for. We have gone through the record and proceeding and found out that the Reference Court has considered the report dated 20.05.2004 of the Valuation Committee. It is found out that the Reference Court has correctly evaluated the the report of the Valuation Committee but at the time of considering the amount, 40% amount is deducted from the said amount mentioned in the report solely on the count that in identical matter in case of Sardar Sarovar Narmada Nigam Ltd. delivered in First Appeal Nos.2832 to 2843 of 2006, the Division Bench of this Court has deducted 40% amount from the price fixed by the competent authority. It is found out from the record that in the said matter, the acquired land was situated in outskirt of the city area, whereas the present land, which is acquired by the acquiring body, is situated within the center of the city and as per the evidence led by the original claimants, surrounding and vicinity area of the acquired land is well developed area and in future, the Government need not have to spend any amount for the development of the said area, therefore, basic price value of the said land is on higher side, therefore, the deduction is required to be made 20% instead of 40%. We have gone through the record and proceedings and found out that the land, which was acquired by the acquiring body, is small plot and situated within the center of the city, therefore, we are of the opinion that the original claimants are entitled for 20% deduction instead of 40% deduction."
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4. Thereafter, the above decision was followed in a subsequent decision of this court in First Appeal No. 671 of 2019. In view of the above, the total compensation therefore in light of the aforesaid appeals, the orders of which are relied upon, has to be Rs.456/- per sq. mtrs for the respective acquired lands with all statutory benefits and interest after adjustment of the amounts already received by the claimants. Such statutory benefit accrued shall be as per the rate prescribed under Section 28 of the Act. It is further directed that the enhanced compensation shall be deposited with the Nazir of concerned Court within period of eight weeks from the date of receipt of this order and on deposit of such amount, the same is directed to be disburse and paid to respective claimants on due verification of their identity by account payee cheque. "
9. At this stage the judgment in the case of State of Gujarat through Special Land Acquisition Officer and Anr. vs. Amaji Mohanji Thakore (supra) would be worth referring to. Paragraph 27 and 28 are reproduced hereinbelow for ready reference:
27.The Apex Court in the case of Lal Chand v. Union of India, reported in (2009) 15 SCC, 769 on the contrary at paragraph 44 has observed as under:-
"44. One of the recognised methods for determination of market value is with reference to the opinion of experts.
The estimation of market value is with reference to the opinion of experts. The estimation of market value by such statutorily constituted Expert committee, as expert evidence can therefore form the basis for determining the market value in land acquisition cases, as a relevant piece of evidence. It will be however open to either party to place evidence to dislodge the presumption that may flow from such guideline market value. We, however, hasten to add that the guideline market value can be a relevant piece of evidence only if they are assessed by the statutorily appointed Expert Committees, in accordance with the prescribed procedure."
28. In the present case, the valuation has been made by the Valuation Committee for giving opinion to the District
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Collector in exercise of the statutory power. The Valuation Committee is comprising of the expert body in the field of valuation, including the District Collector himself, T.P. Authority, etc. Therefore, there is no reason why the valuation made by the Valuation Committee of the Government for fixation of the price for allotment of the land at the very village by way of sale instance or price fixed by the Government for allotment of a land to an organization should not be taken into consideration."
10. It has been held and observed that the Valuation Committee is comprising of the expert body in the field of valuation, including the District Collector etc. and therefore, there is no reason as to why the valuation made by the Valuation Committee of the Government for fixing the price for allotment of the land by way of sale instances, should not be taken into consideration. Weighing the evidence produced by the claimants on one hand and the evidence on the part of the appellants on the other, the evidence of the claimants, supports the market value determined by the learned Judge and hence, we find no perversity or illegality committed by the learned Judge in determining the market value. This Court, therefore is of the considered opinion that the learned Judge has determined just and reasonable compensation relying upon the report of the Valuation Committee dated 20.05.2004. So far as the deduction is concerned, considering the judgment in connection with the very same acquisition, the same should be 20% instead of 40%.
11. In view of the above discussion, the claimants therefore would be entitled to claim compensation at the rate of Rs.456/- per sq. mts.(Rs.570 - Rs.114(20% deduction))
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together with all statutory benefits and interest as per the provisions of section 28 of the Act of 1894. The State Government, is directed to calculate the differential amount and deposit the same within a period of ten weeks from the date of receipt of copy of this order. Once the amount is deposited, the trial Court shall disburse the remaining amount after due and proper verification.
12. In view of the above, the captioned first appeals filed by the State Government are dismissed accordingly and cross objections filed by the claimants stand partly allowed. Connected civil applications, if any, stand disposed of. No order as to costs.
(SANGEETA K. VISHEN,J)
(MOOL CHAND TYAGI, J) SINDHU NAIR
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