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Synopsis

The Supreme Court has directed the Gujarat government to pay higher compensation to landowners for the land acquired for the Vadodara branch canal of Narmada project in 1986.

"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," a bench of Justices Bela M Trivedi and Dipankar Datta said.

The apex court set aside the Gujarat High Court's judgement of March 28, 2012 and restored the judgement and award of the reference court of May 10, 2007. 

As per facts of the case, lands of villages Morlipura, Kumetha and Nimeta of Waghodia taluka, district Vadodara were acquired for the project on diverse dates.

In the case of appellants, the Land Acquisition Officer calculated the market value of their lands at the rate of Rs 19,000 per hectare. The reference court enhanced to the amount of compensation to Rupees four lakh per hectare, relying upon the compensation awarded to lands acquired in other village for the purpose of highways.

On appeal by the state government, the High Court held that acquisition of lands in village Dumad (which were not acquired for the project) could not be a guiding factor for determining compensation. 

However, at the same time, the top court found that the High Court fell in error in reducing the compensation payable to the appellants based on compensation awarded in respect of lands comprised in village Nimeta since the lands there were acquired in 1981, which was at least 5 years prior to the acquisition here in 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 bench said.

The bench, however, held that both the reference court as well as the appellate court committed errors in determining fair and just compensation payable to the appellants. 

"We would have embarked on our task of such determination based on the materials on record, instead of ordering a remand having regard to the lapse of time since acquisition was made; however, such task is cut short because of a development, which has its own significance, post grant of leave to appeal by this Court on 2nd September, 2013," the bench said.

It noted in case of other affected landowners in Morlipura village, the HC had determined the compensation at the rate of Rs four lakh per hectare. The Gujarat government accepted the award and disbursed the amount to the affected villagers.

"We are of the view that the appellants cannot be worse off than the other affected landowners of the same village, i.e., Morlipura, who have been paid more compensation," the bench said directing the state government to pay the appellants the due amount within 90 days.

Case Title: KALUBHAI KHATUBHAI v. STATE OF GUJARAT & ORS