Supreme Court Upholds Notification Date for Land Acquisition Compensation under RFCTLARR Act.


21 April 2025 Civil Appeals >> Civil & Consumer Law   |   Land Acquistion >> Property & Real Estate  

In Sumitraben Singabhai Gamit Vs State of Gujarat & Ors., the Supreme Court heard an appeal challenging a Gujarat High Court order that fixed January 1, 2014, as the date for determining the market value of land yet to be acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013). The appellant argued that the proviso to Section 26(1) of the Act clearly mandates that the date of the Section 11 notification should be used for determining market value.

The appellant owned land, part of which was previously acquired. However, an additional portion (He-0-11-41 sq. meters) was utilized for canal construction without acquisition or compensation. The High Court had directed the State to file an affidavit, which admitted this unauthorized utilization.


 

 

The appellant's counsel emphasized the mandatory nature of the proviso to Section 26(1), stating that compensation can only be determined once a Section 11 notification is issued for the remaining land. They argued that the statute provides no discretion in choosing the valuation date, citing an Allahabad High Court judgment in support.

The counsel for the State of Gujarat admitted a technical error preventing the submission of the acquisition proposal for the remaining land but assured the Court that the process would begin once the issue is resolved.

The Supreme Court framed the central issue as the interpretation of the proviso to Section 26(1) of the RFCTLARR Act, 2013, concerning the relevant date for market value determination. The Court held that this provision unequivocally establishes the date of the Section 11 notification as the basis for computing market value, emphasizing the mandatory nature of the word "shall."

The Supreme Court reasoned that the legislative intent is to provide landowners with fair compensation reflecting the market value at the time of acquisition. Fixing January 1, 2014, as the valuation date would deprive the appellant of potentially higher compensation based on 2023 rates.

The Court further clarified that the RFCTLARR Act, 2013, does not grant courts the discretion to select a valuation date. Instead, it expressly requires valuation as of the date of the Section 11 notification, which has not yet been issued in this case. The Court also stated that the Act's enactment date (January 1, 2014) is irrelevant for fresh acquisitions under the statute, applying only to pending proceedings under the old Land Acquisition Act, 1894, where no award had been made before the new Act's enforcement.

Consequently, the Supreme Court agreed with the appellant, allowing the appeal and setting aside the High Court's judgment. It directed that the market value of the remaining land (He-0-11-41 sq. meters of Survey No. 119) shall be determined based on the date of the Notification issued under Section 11 of the RFCTLARR Act, 2013.


RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013