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 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 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 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