Landowners Awarded Equal Compensation in Land Acquisition Dispute: Supreme Court

In a significant judgment, the Supreme Court of India granted equal compensation to landowners in a dispute over land acquisition for the Vadodara Branch Canal of the Narmada Project. The bench, consisting of Hon'ble Mr. Justice Dipankar Datta and Hon'ble Ms. Justice Bela M. Trivedi, passed the verdict on August 16, 2023.

The case involved several affected landowners whose lands were acquired for the project. The appellants challenged a judgment by the Gujarat High Court that had reduced their compensation. The Supreme Court's decision, which came after granting special leave, upheld the principle of equal treatment for the appellants, ensuring they receive compensation equal to other affected landowners.

The Supreme Court emphasized the importance of fairness and social justice in its judgment, stating, "In a welfare state like ours where we have promised all the citizens social and economic justice, it would be fair and just if the appellants are meted equal treatment as the other affected landowners."

The dispute revolved around the calculation of compensation under the Land Acquisition Act, 1894. The Reference Court had initially enhanced the compensation, but the High Court had reduced it based on factors that were deemed irrelevant by the Supreme Court.

The judgment highlighted that the compensation for the appellants should not have been influenced by previous acquisitions that were not related to the project, stating, "The lands comprised in village Nimeta having been acquired in pursuance of a section 4 notification dated 18th June, 1981, which was at least 5 years prior to the acquisition by notification dated 26th June, 1986, such prior acquisition and compensation paid to the landowners affected by the same acquisition could not have served as a guiding factor for the High Court to determine compensation payable to the appellants."

The Supreme Court set aside the High Court's order and restored the Reference Court's judgment and award, directing that the appellants be granted compensation as determined by the Reference Court, along with interest, within a specified timeframe.

Date of Decision: 16th August, 2023

KALUBHAI KHATUBHAI ETC. ETC. vs STATE OF GUJARAT & ORS.       

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