LexHIRALAL MOTILAL PARIKH (DECEASED THROUGH LRS) versus SPL. LAQ OFFICER & ANR.
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[2025] 3 S.C.R. 1519 : 2025 INSC 815 Hiralal Motilal Parikh (Deceased Through Lrs) v. Spl. LAQ Officer & Anr. (Civil Appeal No. 1438 of 2016) 27 March 2025 [J.K. Maheshwari* and Aravind Kumar, JJ.] Issue for Consideration Whether the compensation awarded by the Reference Court, marginally enhanced by the High Court along with other statutory benefits is fair and reasonable. Headnotes† Land Acquisition Act, 1894 – Compensation – Enhancement of – Document proximate to the date of notification, if can be considered as exemplar for determination of compensation: Held: Bona fide transaction of sale, if proximate to the land acquired and the date, in absence of any evidence that acquisition has not motivated the purchaser to pay a higher price on account of resultant improvement in development prospects, can be relied upon while determining the compensation – Exhibit 53 (the sale deed of an adjoining land, executed within a month from the date of notification of s.4 LAA, indicating the value at Rs.152.37/- per square metre) is accepted as exemplar – Purchaser of the land was not motivated to pay the higher price for execution of the said sale deed – Furthermore, even prior to the notification, the land was allotted at the rate of Rs.65/- per square metre [Exhibit 44, an allotment letter] – Said exemplar is also relevant to determine the fair and reasonable amount of compensation – Compensation as determined by the High Court at the rate of Rs.53/- per square metre is on the lower side – Mean of the exemplars Exhibits 44 and Exhibit 53 [i.e., (65 + 152.37) / 2] comes to Rs.108.68/- per square metre – Thus, compensation of the land be determined at the rate of Rs.107/- per square metre. [Paras 9, 11, 15, 16] Case Law Cited Union of India v. Raj Kumar Baghal Singh (Dead) Through Legal Representatives and Others [2014] 7 SCR 709 : (2014) 10 SCC 422; * Author 1520 [2025] 3 S.C.R. Supreme Court Reports Mehta Ravindrarai Ajitrai (Deceased) Through His Heirs and LRs. and Others v. State of Gujarat [1989] 3 SCR 743 : (1989) 4 SCC 250; Chimanlal Hargovinddas v. Special Land Acquisition Officer, Poona and Anr. [1988] Supp. 1 SCR 531 : (1988) 3 SCC 751 – relied on. List of Acts Land Acquisition Act, 1894. List of Keywords Land acquisition; Fair and reasonable amount of compensation; Enhancement of compensation; Compensation enhanced; Exemplars; Exemplars Exhibits; Documents proximate to the date of notification and the land acquired; Exemplar for determination of compensation; Bona fide transaction of sale; Proximate to the land acquired and the date of notification; Purchaser of the land not motivated to pay the higher price; Reference Court; Compensation on the lower side; Mean of the exemplars. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1438 of 2016 From the Judgment and Order dated 20.07.2015 of the High Court of Judicature at Gujarat at Ahmedabad in FA No. 1036 of 2002 Appearances for Parties Advs. for the Appellant: Harin P. Raval, Sr. Adv., Ms. Anushree Prashit Kapadia, Ms. Urmi H Raval, Ms. Shreya Bansal, Ms. Shrestha Narayan, Siddhartha H Raval, Ms. Shivangi Chawla. Advs. for the Respondents: Ms. Deepanwita Priyanka, Deepak Singh. Judgment / Order of the Supreme Court Judgment J.K. Maheshwari, J. 1. Arising out of the order dated 20.07.2015 passed by the High Court of Gujarat in the First Appeal No. 1036 of 2002 preferred by the legal [2025] 3 S.C.R. 1521 Hiralal Motilal Parikh (Deceased Through Lrs) v. Spl. LAQ Officer & Anr. representatives of the original claimant, assailing the award dated 05.11.20011 passed by the Reference Court; which was against the award passed on 30.07.19882 by Special Land Acquisition Officer (in short ‘LAO’), the present appeal has been preferred. In this appeal, the adequacy of compensation granted by the LAO, the Reference Court and also the High Court has been questioned. 2. For the sake of convenience, it is noted that the subject land is non-agricultural bearing Survey No. 25, admeasuring about 33387 sq. mtrs., situated at village/taluka ‘Mehmedabad’, District – Kheda, Gujarat, which was acquired by Gujarat Housing Board for residential/ housing/construction purpose. The notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘LAA’ for brevity) was published on 30.07.1985, followed by notification under Section 6 dated 31.07.1986. After inviting objections, compensation at the r
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