Supreme Court: Date For Determination Of Market Value Of Land For Acquisition Must Be Date Of Section 11 Notification
The Supreme Court was considering a landowner's appeal challenging a judgment of the Gujarat High Court.
The Supreme Court has held that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013) expressly mandates that compensation/valuation of land must be determined as on the date of Notification issued under Section 11.
The Apex Court was considering a landowner's appeal challenging a judgment of the Gujarat High Court.
The Division Bench comprising Justice Dipankar Datta and Justice Manmohan held, “Consequently, this Court agrees with the submission of the learned counsel for Appellant that proviso to Section 26(1) explicitly states that the market value of the land shall be determined as on the date of issuance of the Notification under Section 11 of RFCTLARR Act, 2013.”
Advocate Aastha Mehta represented the Appellant, while AOR Deepanwita Priyanka represented the Respondent.
Factual Background
The case, as presented by the appellant, was that an area had been acquired out of the appellant’s land to construct the Ukai High Level Cantor Canal. An additional portion of He-0-11-41 sq. meters had been utilised without carrying out any acquisition proceedings or payment of compensation.
The High Court directed the State of Gujarat to file an affidavit regarding the alleged utilisation of the land. Under the said direction, the Executive Engineer, Ukai Dam Division-1, filed an affidavit admitting that He-0-11-41 sq. meters of Appellant's land had been utilized for the construction of a canal without any legal acquisition or payment of compensation.
Arguments
The Counsel for the appellant contended that the High Court had erroneously held that the date for determination of market value of yet to be acquired He-0-11-41 sq. meters land of Survey No.119 shall be January 1, 2014 i.e., the date of commencement of the RFCTLARR Act, 2013 instead of the date on which acquisition notification was issued as prescribed in proviso to Section 26(1) of the RFCTLARR Act, 2013.
Reasoning
Referring to Section 11, the Bench explained that the said provision lays down the methodology for computing the market value of the land on the date of the acquisition notification. The use of the word ‘shall’ in Section 26(1) proviso is reflective of the legislative mandate that Section 11 Notification is the date for the determination of the compensation.
“This Court has no doubt that the legislative intent is to ensure that the land owners receive fair compensation reflective of the market value prevailing at the time of acquisition. By fixing the date of 01st January, 2014 as the date for determination of market value, the impugned order deprives the Appellant of compensation at the 2023 rates, which must be considerably higher”, it held.
The Bench further added, “In fact, the legislative scheme does not give discretion to the Courts to select a date for valuation. On the contrary, RFCTLARR Act, 2013 expressly mandates that compensation/valuation must be determined as of the date of Notification under Section 11 of the RFCTLARR Act, 2013 – which in this present case is yet to be issued.”
Thus, allowing the present appeal and setting aside the impugned judgment, the Bench ordered, “...it is directed that the date of determination of market value of He-0-11-41 sq. meters land of Survey No.119 shall be the date on which Notification under Section 11 of the RFCTLARR Act, 2013 is issued by the Respondents.”
Cause Title: Sumitraben Singabhai Gamit Vs The State of Gujarat (Neutral Citation: 2025 INSC 521)
Appearance:
Appellant: Advocates Aastha Mehta, Prina Sharma, Prerana Mohapatra, AOR Anshuman Srivastava
Respondent: AOR Deepanwita Priyanka
