Oil & Natural Gas Corporation Ltd vs Shri Jayarambhai Becharbhai Patel … on 22 April, 2026

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    Gujarat High Court

    Oil & Natural Gas Corporation Ltd vs Shri Jayarambhai Becharbhai Patel … on 22 April, 2026

    Author: Bhargav D. Karia

    Bench: Bhargav D. Karia

                                                                                                               NEUTRAL CITATION
    
    
    
    
                                  C/FA/4876/2006                             JUDGMENT DATED: 22/04/2026
    
                                                                                                                undefined
    
    
    
    
                                           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
    
                                                   R/FIRST APPEAL NO. 4876 of 2006
                                                                With
                                             CIVIL APPLICATION (FOR STAY) NO. 1 of 2006
                                                                 In
                                                   R/FIRST APPEAL NO. 4876 of 2006
                                                                With
                                            CIVIL APPLICATION (FOR ORDERS) NO. 1 of 2007
                                                                 In
                                                   R/FIRST APPEAL NO. 4876 of 2006
                                                                With
                                                   R/FIRST APPEAL NO. 4877 of 2006
                                                                With
                                             CIVIL APPLICATION (FOR STAY) NO. 1 of 2006
                                                                 In
                                                    R/FIRST APPEAL NO. 4877 of 2006
                                                                With
                                            CIVIL APPLICATION (FOR ORDERS) NO. 1 of 2007
                                                                 In
                                                    R/FIRST APPEAL NO. 4877 of 2006
                                                                With
                                                   R/FIRST APPEAL NO. 4878 of 2006
                                                                With
                                             CIVIL APPLICATION (FOR STAY) NO. 1 of 2006
                                                                 In
                                                   R/FIRST APPEAL NO. 4878 of 2006
                                                                With
                                            CIVIL APPLICATION (FOR ORDERS) NO. 1 of 2007
                                                                 In
                                                    R/FIRST APPEAL NO. 4878 of 2006
    
                            FOR APPROVAL AND SIGNATURE:
    
    
                            HONOURABLE MR. JUSTICE BHARGAV D. KARIA
                            and
                            HONOURABLE MR.JUSTICE L. S. PIRZADA
                            ==========================================================
    
                                          Approved for Reporting             Yes           No
    
                            ==========================================================
                                         OIL & NATURAL GAS CORPORATION LTD.
                                                        Versus
                              SHRI JAYARAMBHAI BECHARBHAI PATEL (SINCE DECEASED) & ORS.
                            ==========================================================
                            Appearance:
                            M/S TRIVEDI & GUPTA(949) for the Appellant(s) No. 1
                            DECEASED LITIGANT THROUGH LEGAL HEIRS/ REPRESTENTATIVES
                            for the Defendant(s) No. 1
    
    
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                                                                                                                           NEUTRAL CITATION
    
    
    
    
                                  C/FA/4876/2006                                        JUDGMENT DATED: 22/04/2026
    
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                            MS NIRALI SARDA, AGP for the Defendant(s) No. 2
                            RULE SERVED for the Defendant(s) No. 1.2,1.3,1.4
                            UNSERVED EXPIRED (R) for the Defendant(s) No. 1.1,1.5
                            ==========================================================
    
                               CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
                                     and
                                     HONOURABLE MR.JUSTICE L. S. PIRZADA
    
                                                                   Date : 22/04/2026
                                                                   ORAL JUDGMENT

    (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

    1. Heard learned advocate Ms. Aishwarya

    SPONSORED

    Reddy with learned advocate Neha

    Mukherjee for M/s. Trivedi & Gupta for

    the appellant, learned Assistant

    Government Pleader Ms. Nirali Sarda for

    respondent No.2 and learned advocate

    Mr. Jigar Gadhvi for respondent No.1 in

    First Appeal No. 4877 of 2006.

    2. These appeals arise out of the common

    Judgement and Award dated 19.10.2005

    passed by the learned Reference Court

    in Land Reference Case Nos. 5492/2003

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    to 5494/2003 under section 35(3) of the

    Land Acquisition Act, 1894 (for short

    ‘the Act, 1894’).

    3. The brief facts of the case are that

    respondent No.1 preferred a Reference

    being aggrieved by the Award dated

    18.05.1981 passed by the Land

    Acquisition Officer in Compensation

    Case No. 10/1981 under sections 35 and

    37 of the Act, 1894 whereby, the amount

    of compensation, by way of rent, was

    fixed at Rs. 00.42 paisa per sq.mtr.

    Respondent No.1, in each appeal, filed

    representation to the Special Land

    Acquisition Officer on 20.12.2002 to

    refer the matter before the District

    Court to fix the just and adequate

    amount of compensation. The Special

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    Land Acquisition Officer made reference

    to the District Court, Mehsana, for the

    purpose of determining just and

    adequate amount of compensation rent as

    requested by the claimants.

    3.1 The Learned Reference Court

    entertained the reference by holding

    that the claimants had proved that

    compensation rent awarded was

    inadequate and as such, after

    considering the aspect of delay in

    preferring the reference, the court

    enhanced the amount of rent at Rs. 3

    per sq. mtr. from the date of taking

    possession up to 31.12.1982 and

    thereafter, increasing @15% every year

    with interest @ 12% per annum up to

    13.12.1990 and thereafter, at the rate

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    of @9% per annum till the amount is

    realized and further held that the

    amount of compensation fixed at Rs. 15

    per sq. mtr. with effect from

    01.01.2005 shall be increased at the

    rate of 15% at every interval of three

    years commencing from the said date.

    Being aggrieved, the appellant-ONGC has

    preferred these appeals.

    4. The Co-ordinate Bench of this Court has

    admitted these appeals on 12.12.2006

    and in Civil Applications (For Stay)

    following order was passed:

    “Rule returnable on January 30,
    2007. Ad-interim relief in terms
    of Para-6(A) is granted on the
    condition that the applicant
    deposits, in each case, the
    amount of compensation at the
    rate of Rs.7/- per sq.mt. per

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    year, minus the amount of
    compensation already paid to the
    claimant/s, from the date of
    filing of the Reference
    Application till March 31, 2006
    with interest at the rate of 9%
    per annum thereon for the said
    period, with the Reference Court
    on or before the returnable
    date.”

    5. It appears that the appellant-ONGC has

    preferred Civil Application No.

    12124/2007 to 12126/2007 [New No. (CA

    1/2007 in the respective First Appeals]

    for modification of the aforesaid order

    dated 12.12.2006 passed in Civil

    Application (For Stay) wherein it was

    contended that the subject land was

    permanently acquired and the Special

    Land Acquisition Officer passed an

    award under section 11 of the Act, 1894

    on 20.01.1989 and the surplus portion

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    of the subject land was surrendered to

    the original claimant in the Year 1990.

    6. The appellant-ONGC has also filed an

    additional affidavit placing the

    relevant details with regard to the

    acquisition proceedings of the subject

    land.

    7. It is stated in the affidavit that out

    of the total subject land in question

    which is admeasuring 11832 sq. mtrs.,

    land admeasuring 7895 sq. mtrs. was

    permanently acquired on 20.01.1989 and

    balance land admeasuring 3937 sq. mtrs.

    was surrendered to the claimants on

    12.03.1990.

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    8. It is also stated that the rent payable

    for the subject land was not due and

    the appellant-Corporation had paid the

    rent to the tune of Rs. 43,641.78 till

    09.06.1990 [Rs. 22,757/- to the

    claimant of First Appeal No. 4876/2006

    + Rs. 12,638.53 to the claimant of

    First Appeal No. 4877/2006 +

    Rs. 8246.25 to the claimant of First

    Appeal No. 4878/2006].

    9. It was further stated in the additional

    affidavit filed on behalf of the

    appellant that the land admeasuring

    789.5 sq.mtrs was permanently acquired

    under the Act, 1894 and Notification

    under section 41 was published on

    07.08.1986 followed by a Notification

    under section 6(1) of the Act, 1894 on

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    12.12.1987. The Special Land

    Acquisition Officer passed an award

    under section 11 of the Act, 1894, by

    awarding the compensation Rs. 2 per sq.

    mtr. to the claimant. The claimant

    thereafter, preferred Land Acquisition

    Reference under section 18 of the

    Act,1894 for enhancement of the

    compensation. The learned Reference

    Court, by Judgement and Award dated

    26.10.1999 in LAR Nos. 2571 to 2573 of

    1993, awarded an amount of Rs. 10 per

    sq. mtr. with additional compensation

    under section 23(1)(a) and solatium

    under section 23(2) of the Act,1894

    with interest @9% per annum from the

    date of taking possession till one year

    and thereafter @15% till the amount is

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    realized from the date of award or from

    the date of taking possession whichever

    is earlier in point of time.

    10. The appellant, being aggrieved by the

    aforesaid Award dated 26.10.1999,

    preferred First Appeal Nos. 4076 to

    4078 of 2001 before this Court. The

    First Appeals were dismissed by the

    Judgement and order dated 05.12.2001.

    Being aggrieved, the appellant

    preferred an appeal before the Hon’ble

    Supreme Court. The Hon’ble Supreme

    Court vide Judgment dated 08.08.2005

    dismissed Civil Appeal No. 173 of 2004

    arising out of the above First Appeals

    filed by the appellant.The appellant,

    thereafter, deposited the amount of

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    compensation of Rs. 1,44,603/- on

    12.03.2004 before the Reference Court

    during the pendency of the appeal

    before the Hon’ble Apex Court.

    11. The appellant, therefore, has preferred

    the Civil Applications No. 1/2007 in

    each appeal for modification of the

    order dated 12.12.2006.

    12. In view of the above facts, we have

    taken up the appeals for hearing.

    13. Learned advocate Ms. Neha Mukerjee for

    the appellant submitted that the

    learned Reference Court could not have

    entertained the reference on the ground

    of delay as such reference was not

    maintainable as the claimants had filed

    the Reference after more than twenty

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    years. It was submitted that in similar

    facts, this Court in First Appeal Nos.

    791 and 794 of 2007 by Judgement and

    Order dated 13.03.2008 in case of Oil

    and Natural Gas Corporation Ltd vs.

    Shankarji Hemaji reported in (2008) 2

    GLR 1226 has allowed the appeals filed

    by the ONGC setting aside the Judgment

    and Award passed by the Reference Court

    under section 35(3) of the Act, 1894 in

    In Land Reference Case Nos. 3780 to

    3784 of 2003 filed by the claimant on

    similar facts regarding the land

    situated at Village:Dhanpura, Dist.-

    Mehsana.

    14.1 It was submitted that the

    subject land of these appeals are

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    situated at Survey Nos. 437/Paiki,

    440/1P, 436 and 438 at Village-Santhal,

    Taluka and District-Mehsana.

    14.2 Learned advocate

    Ms. Mukherjee submitted that by the

    Judgment and Order dated 15.06.2015 in

    First Appeal Nos. 4854 to 4855 of 2008

    filed by the appellant, this Court has

    again followed the decision in case of

    Oil and Natural Gas Corporation Limited

    vs Shankarji Hemaji (supra) by holding

    that the application under section

    35(3) of the Act, 1894, Reference Court

    is not empowered to pass an order in

    respect of the future rent and the

    reference application submitted by the

    original claimants were held to be not

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    maintainable on the ground of

    limitation considering Article 137 of

    the Limitation Act and the applications

    were held liable to be dismissed on the

    ground of delay and laches.

    14.3 It was therefore, submitted

    that even on merits, these appeals are

    squarely covered by the aforesaid

    Judgement and Order and are required to

    be allowed by quashing and setting

    aside the impugned Judgement and Award

    passed by the learned Reference Court.

    14. On the other hand, learned advocate Mr.

    Jigar Gadhvi for the claimant of First

    Appeal No. 4877 of 2006 rlied up on and

    supported the Judgement and Award

    passed by the learned Reference Court.

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    15. Though Served, no one appeared for the

    claimants in other two appeals.

    16. Having heard learned advocates for the

    respective parties and considering the

    facts of the case when the subject land

    is already acquired permanently in the

    Year 1989 and the surplus land has

    already been surrendered to the

    claimants in the year 1990, the

    claimants could not have sought

    reference under section 35 of the Act,

    1894 in the Year 2001 which is almost

    after twenty years from the date of the

    award determining the compensation rent

    passed by the Special Land Acquisition

    Officer on 10.05.1981.

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    17. Similar issue of delay has been

    considered by this Court in case of Oil

    and Natural Gas Corporation Ltd vs.

    Shankarji Hemaji (Supra) wherein, it is

    held as under:

    “23. At the outset, it is
    required to be noted that
    acquisition of the land in question
    was temporary acquisition for ONGC
    under sec.35 of the Act. The award
    came to be declared by the Special
    Land Acquisition Officer as back as
    on 11/8/1980 determining the
    compensation/rent at the rate of
    0.35 paise per sq. mtr. The
    reference applications under
    sec.35(3) of the Act were submitted
    by the claimants on 16/7/2001 i.e.
    after a period of 21 years with
    regard to adequacy of the rent
    determined by the Special Land

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    Acquisition Officer on 11/8/1980.
    On behalf of all the claimants,
    claimant of LAR No.3780 of 2003
    Thakor Shivaji Hemaji came to be
    examined at Ex.11 for and on behalf
    of all the claimants. Nothing is on
    record to show that there was any
    difference/dispute raised by the
    original land owners at the time of
    acquisition in the year 1980 and at
    the time when the Special Land
    Acquisition Officer declared the
    award on 11/8/1980 determining the
    compensation/rent at the rate of
    0.35 paise per sq. mtr. per annum.
    On the contrary in the cross
    examination the said witness –
    claimant of L.A.R. No.3780 of 2003
    has admitted that he is not aware
    with regard to acquisition of the
    land in question. He has stated
    that the possession was handed over
    by his father and he was not
    present. Translation of the cross-

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    examination of the said witness
    reads as under:-

    “Cross Examination by Shri D.R.
    Trivedi for the State. I do not
    know about the land acquisition
    of my survey number. I do not
    know as to the possession of
    much my land is handed over. My
    father had handed over the
    possession of the land. The
    possession of the land was
    handed over about 25 years ago.
    I do not know as to how much
    rent was fixed at that time. My
    father had taken the rent which
    was fixed. My father had
    expired before 14 years. My
    father did not make any
    application for increasing the
    rent during his life time. An
    application was made 11 years
    after the demise of my father.
    I do not know as to why did my
    father make an application.
    Cross examination by Shri I.K.
    Shah for the respondent No.2.
    It is true that the rent was
    fixed on the basis of rate
    prevailing at the relevant
    time. At present the O.N.G.C.
    pay me Rs.20,000 (in words
    Rupees Twenty Thousand) per
    annum for my land. At present I
    do not have any land for

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    cultivation. It is true that my
    father was knowing as to how
    much produce was available from
    this land prior to the land
    acquisition. I did not carry
    any cultivation after the death
    of my father because my entire
    land is acquired by the
    O.N.G.C. I am doing agriculture
    labour work. I have never gone
    to sell the agriculture
    produce. It is true that we buy
    grain for consumption and so we
    know the price otherwise we do
    not know the price of other
    items. I can not assume the
    rent. I have no specific
    demand. I do not know as to
    what is written in my
    application and I do not know
    as to how much demand is there.
    An advocate approached me for
    making this application. I
    have not given any details to
    the advocate for making an
    application. I do not know as
    to what is written in my
    examination-in-chief by my
    advocate. I do not know as to
    what is stated in my affidavit
    before the court. At present
    the O.N.G.C. is paying me the
    rent which is sufficient. No
    re-examination”

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    24. No other witness has been
    examined on behalf of the
    claimants. In the cross
    examination, it is admitted by the
    aforesaid witness that the rent was
    fixed considering the price
    prevailing at the relevant time.
    There is no other evidence on
    record to suggest that at the
    relevant time when the rent was
    determined and the award was
    declared by the Special Land
    Acquisition Officer in the year
    1980, there was any dispute with
    regard to sufficiency of the
    compensation/rent. Under sec.35(3)
    of the Act, only in case the
    Collector and the persons
    interested differ as to the
    sufficiency of the compensation or
    apportionment thereof, the
    Collector shall refer such
    difference to the decision of the
    Court. Under the circumstances,
    when there was no dispute raised on
    behalf of the claimants as to the
    sufficiency of the compensation at
    the time when the award was
    published by the Special Land
    Acquisition Officer in the year
    1980 determining the compensation
    paid at the rate of 0.35 paise per
    sq. mtr. per annum, the Collector
    was not required to refer the
    dispute to the court. Under the
    circumstances, the reference

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    applications submitted by the
    claimants in the year 2001 with
    respect of sufficiency of the
    compensation/rent itself are not
    maintainable. At the relevant time,
    the claimants were satisfied with
    regard to adequacy of the
    compensation, and nothing is on
    record that there was any dispute
    raised as to the sufficiency of the
    compensation/rent. It is also
    required to be noted at this stage
    that the original land owners have
    accepted the compensation/rent at
    the rate of 0.35 paise per sq. mtr.

    per annum as per the award
    dtd.11/8/1980 without raising any
    objection. Nothing is on record
    that the claimants have, at any
    point of time, objected to the
    compensation/rent at the rate of
    0.35 paise per sq. mtr. per annum.
    Under the circumstances, the
    findings and observations of the
    reference court that it was the
    duty of the Collector to refer the
    dispute to the reference court and
    as the Collector has failed to
    perform his duty, the entire
    acquisition proceedings and the
    award are null and void, require to
    be quashed and set aside, as the
    same is contrary to the evidence on
    record and sub section (3) of
    sec.35 of the Act. Even by raising
    subsequent dispute, reference

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    applications under sec.35(3) of the
    Act are not maintainable. On fair
    reading of entire section 35 of the
    Act, sub section (1) of sec.35 of
    the Act authorises the appropriate
    Government to direct the Collector
    to procure the occupation and use
    of the same for such terms as it
    shall think fit, not exceeding
    three years from the commencement
    of such occupation. As per Sub
    section (2) of sec.35, the
    Collector is required to give
    notice in writing to the persons
    interested in such land of the
    purpose for which the same is
    needed, and shall, for the
    occupation and use thereof, for
    such term as aforesaid, and for the
    material, (if any), to be taken
    therefrom, pay to them such
    compensation, either in a gross sum
    of money, or by monthly or other
    periodical payments, as shall be
    agreed upon in writing between him
    and such persons respectively. Sub
    section (2) of sec.35 will be
    attracted when there is an
    agreement with respect to the
    compensation between the Collector
    and the land owner and/or a person
    interested in the land. If the
    Collector and the persons
    interested do not agree and there
    is difference as to the sufficiency
    of the compensation in that case

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    the Collector is required to refer
    such difference to the decision of
    the Court. Therefore, even when the
    Collector is required to refer the
    dispute to the reference court
    under sub section (3) of section 3
    of the Act, the same will be only
    in respect to such difference as to
    the sufficiency of the compensation
    between the Collector and the
    persons interested. Only such
    difference as to the sufficiency of
    the compensation, the Collector is
    required to refer the dispute to
    the decision of the Court. Even
    considering sub section (3) of
    section 35, there is nothing
    provided that the land owner can
    submit the application for
    referring the dispute to the
    reference court as so provided
    under sec.18 of the Act in case of
    permanent acquisition. In the
    present case as stated above, no
    such dispute has been raised by the
    original land owners as to the
    sufficiency of the compensation and
    claimants have accepted the
    compensation/rent as per the award
    dtd.11/8/1980 without raising any
    objection and therefore, the
    reference applications submitted by
    the original claimants are not
    maintainable.

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    25. Even otherwise as stated
    above, the Special Land Acquisition
    Officer declared the award under
    sec.35 of the Act as back as on
    11/8/1980 determining the
    compensation/rent at the rate of
    0.35 paise per sq. mtr. per annum
    which was never objected to by the
    original land owners / interested
    persons, but the same came to be
    accepted without raising any
    objection and still the respondents
    herein – original claimants
    submitted the applications for
    making reference to the reference
    court under sub section (3) of
    sec.35 i.e. after a period of 21
    years raising the dispute as to
    sufficiency of the compensation
    which was determined while
    declaring award on 11/8/1980. It is
    the contention on behalf of the
    original claimants that as under

    sub section (3) of sec.58 of the
    Act on 11/8/2008, no time limit is
    prescribed and as it is the duty of
    the Collector to refer the dispute
    to the Reference Court and as the
    Collector has failed to perform the
    duty cast upon him, the application
    submitted by the claimants are
    within the period of limitation
    and/or not barred by delay and
    laches. It is the contention on
    behalf of the appellants and the
    Special Land Acquisition Officer

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    that when there is no limitation
    prescribed, Article 137 of the
    Limitation Act would come in
    picture and within three years from
    the date of cause of action, the
    applications could have been made.
    It is true that under sub section
    (3) of sec.35 of the Act, no
    limitation is prescribed. However,
    that does not mean that the
    application for reference can be
    made at any time. Article 137 of
    the Limitation Act provides that
    when there is no limitation
    prescribed or provided, three years
    would be the limitation and from
    the date of cause of action within
    three years, an aggrieved person
    can initiate proceedings. The
    reference court has misinterpreted
    the provisions of Sec.35 of the
    Act. While considering the
    submissions with regard to the
    limitation, the reference court has
    held that as the entire land
    acquisition proceedings and the
    award are null and void, Article
    137
    of the Limitation Act
    (reference court has considered
    sec.137 of the Limitation Act
    wrongly) would not be applicable,
    more particularly when the
    Collector has failed to perform the
    duty cast upon him, making the
    reference to the reference court as
    provided under sub section (3) of

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    section 35 of the Act. As stated
    above, such a findings and the
    observations of the Reference Court
    are perverse and illegal. As held
    by us, there was no dispute with
    regard to sufficiency of the
    possession raised by the claimants
    at the relevant time when the
    award was declared, therefore,
    there was no occasion for the
    Collector to refer the dispute to
    the reference court, and we have
    also held that the reference
    applications are not maintainable.

    Even otherwise, assuming that it
    was the duty of the Collector to
    refer the dispute to the reference
    court and when the Collector failed
    to perform his duty, in that case
    also, the claimants are required to
    initiate appropriate proceedings
    within reasonable time, as there is
    no time limit prescribed under the
    Act. Certainly, the claimants
    cannot submit the applications
    and/or raise the dispute after a
    period of 21 years. Thus, on the
    ground of delay and laches the
    reference applications were not
    maintainable. As such when the
    applications were submitted after a
    period of 21 years raising dispute
    with regard to adequacy of the
    compensation awarded in the year
    1980, the Special Land Acquisition
    Officer, ought not to have referred

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    the dispute to the reference court.

    As such the Special Land
    Acquisition Officer himself has
    committed an error and/or acted
    arbitrarily in referring the
    dispute to the reference Court
    after a period of 21 years.

    26. In the case of Laxuman
    (supra), while dealing with
    sec.18(3) of the Act which also
    does not provide any time limit,
    the Hon’ble Supreme Court has held
    that since the application is to
    the Court, though under a special
    enactment, Article 137, the
    residuary article of the Limitation
    Act, 1963
    , is attracted and the
    application has to be made within
    three years of the expiry of 90
    days from the date of application
    under sec.18(1) of the Act made by
    the claimant. In the said decision,
    the Hon’ble Supreme Court has
    considered the another decision of
    the Hon’ble Supreme Court in the
    case of Additional Special Land
    Acquisition Officer Vs. Thakoredas
    ,
    reported in (1997) 11 SCC 412. The
    Hon’ble Supreme Court has further
    observed in the said decision that
    the right undisputedly available to
    a litigant becomes unenforceable if
    the litigant does not approach the
    Court within the time prescribed
    and the law is for the diligent. It

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    is also further observed that the
    law expects a litigant to seek the
    enforcement of a right available to
    him within a reasonable time of the
    arising of the cause of action.

    27.The Calcutta High Court in the
    case of Bayer Aktiengesellschft of
    Leverkusen Federal Republic of
    Germany Vs. Controller of Patents,
    Government of India
    , reported in
    AIR 1982 Calcutta 30, while dealing
    with sec.71 of the Patents Act,
    1970 and Article 137 of the
    Limitation Act, 1963 has also held
    that If any special or local law
    does not prescribe any time for
    application to made to Court such
    application would be governed by
    Article 137.

    28.Considering above, the findings
    of the reference court that the
    applications submitted by the
    claimants for making reference
    under sub section (3) of sec.35 of
    the Act were within the period of
    limitation and/or were not barred
    by Limitation and/or were not
    required to be dismissed on the
    ground of delay and laches, are
    perverse, illegal and contrary to
    the evidence on record and sec.35
    of the Act and Article 137 of the

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    Limitation Act, which require to be
    quashed and set aside.

    Thus, it is held that the reference
    applications submitted by the
    claimants under sec.35(3) of the
    Act were not maintainable and could
    not have been entertained by the
    reference court as the same were
    barred by the limitation and/or in
    the alternative barred by delay and
    laches. It is also held that the
    reference applications under sub-
    section (3) of sec.35 of the Act
    were not maintainable at all, as
    there was no dispute raised by the
    claimants / original owners at the
    time when the award was declared
    and/or there was no difference as
    to the sufficiency of compensation
    at the relevant time.

    28.Now, that takes us to some of
    the findings and observations
    recorded by the reference court
    which are as under; –

    (i) That the entire land
    acquisition proceedings and the
    award declared by the Special Land
    Acquisition Officer are illegal and
    null and void.

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    (ii)The competent authority has not
    followed the mandatory provisions
    under sec.35 of the Act.

    (iii)”Reference Court” under the
    provisions of Land Acquisition Act,
    have exclusive jurisdiction and
    hence, the said jurisdiction
    includes jurisdiction to determine
    whether a particular proceeding
    falls within its jurisdiction or
    not. The reference Court has
    jurisdiction to decide each and
    every fact whether it exists or
    not, it is not the proposition of
    law that the reference court has no
    jurisdiction to decide any question
    or dispute except the question or
    dispute of compensation. “Reference
    Court” has all rights, powers and
    authority to adjudicate every
    question falling under the ambit of
    the provisions of Land Acquisition
    Act
    . The Reference Court has not
    only the jurisdiction to decide the
    question of quantum of
    compensation, but Reference Court
    has also jurisdiction to decide all
    questions and disputes relating to
    and ancillary to the acquired land
    and compensation.

    (iv)Reference court can order to
    surrender the land to the owner or
    occupier or interested person by
    mandatory order against the

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    Government or acquiring body as per
    the circumstances of each case.

    (v)The question of compensation is
    residuary clause which arises out
    of provisions of sec.35 of the Act.
    The Court as a “Reference Court”

    has ample powers to restore the
    possession after the maximum period
    of temporary occupation and use
    exceeding three years period to the
    owner or occupier or to the
    interested person as the case may
    be.

    (vi)The Special Land Acquisition
    Officer who has carried out the
    said proceedings under sec.35 of
    the Act and passed the order, has
    no right, power or authority under
    the Act to declare and pass such
    award under sec.35 of the Act under
    the head of Compensation Case No.38
    of 1980 and the same is without
    jurisdiction, illegal, arbitrary,
    null and void and consequently no
    right over the land of the
    claimants or interested person or
    occupier has been accrued in favour
    of the Corporation i.e. ONGC and
    the compensation for the land by
    acquiring body and it stands in the
    category of trespasser and the
    possession for the land by
    acquiring body and its stands in

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    the category of trespasser. The
    possession of the acquiring body is
    illegal and unauthorised right from
    the inception and they are
    trespassers.

    (vii)The reference court has
    jurisdiction to award compensation
    by way of mesne profit. Now so far
    as the aforesaid observations and
    findings of the Reference Court in
    a references arising out of sub
    section (3) of sec.35 of the Act
    are per-se perverse, illegal,
    without jurisdiction and without
    authority under the law. It is
    required to be noted that the
    Special Land Acquisition Officer
    declared the award under sec.35(3)
    of the Act on 11/8/1980 being Land
    Acquisition
    Case No.38 of 1980
    determining compensation/rent at
    the rate of 0.35 paise per sq.mtr.

    per annum. All the claimants
    submitted the reference
    applications before the Special
    Land Acquisition Officer on
    16/7/2001 under sub-sec.(3) of 35
    of the Act, raising objections for
    the first time with regard to
    adequacy of the compensation/rent
    determined in 1980 by submitting
    that the compensation/rent
    determined by the Special Land
    Acquisition Officer vide award
    dtd.11/8/1980 is inadequate and

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    requested for enhancement of the
    compensation/rent and the Special
    Land Acquisition Officer referred
    the said dispute to the reference
    court. Thus, what was referred by
    the Special Land Acquisition
    Officer was the dispute with regard
    to adequacy of quantum of
    compensation and nothing beyond
    that. Even it was not the case of
    the claimants that the entire
    acquisition proceedings and the
    award are illegal and/or null and
    void and that ONGC is in illegal
    and unauthorised occupation and
    possession of the land in question.
    Still the reference court has given
    the aforesaid findings.

    30.In the case of Balaram Chandra
    (supra), the Hon’ble Supreme Court
    while dealing with and considering
    the scope, duties and powers of the
    reference Court under sec.18 of the
    Act, has held that the District
    Court (Reference Court) has no
    jurisdiction to declare
    notification under sections 4(1)
    and 6 to be null and void and/or
    illegal and he is required to make
    award with reference to the
    objections raised by the claimants
    in respect of area of land or
    amount of compensation or persons
    entitled to receive compensation

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    and his duties are confined to the
    provisions contained in secs.11, 18
    and 20 to 23. It is also further
    held by the Hon’ble Supreme Court
    in the said decision that the
    reference court cannot go beyond
    the reference and give a
    declaration that the notifications
    under secs.4(1) and 6 are illegal
    or null and void. It is also held
    that the reference court would not
    traverse beyond his powers.

    31.While taking a similar view, the
    Hon’ble Supreme Court in the case
    of P.K. Sreekantan (supra),
    considering the decision of the
    Privy Council and earlier decisions
    of the Supreme Court in para 14 has
    observed as under:-

    “14. Every tribunal of limited
    jurisdiction is not entitled but
    bound to determine whether the
    matter in which it is asked to
    exercise its jurisdiction comes
    within the limits of its special
    jurisdiction and whether the
    jurisdiction of such tribunal is
    dependent on the existence of
    certain facts or circumstances.
    Its obvious duty is to see that
    these facts and circumstances
    exist to invest it with
    jurisdiction, and where a
    tribunal deserves its

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    jurisdiction from the statute
    that creates it and that statute
    also defines the conditions
    under which the tribunal can
    function, it goes without saying
    that before that tribunal
    assumes jurisdiction in a
    matter, it must be satisfied
    that the conditions requisite
    for its acquiring seisin of that
    matter have in fact arisen. As
    observed by the Privy Council in
    Nusserwanjee Pestonjee v. Meer
    Mynoodeen Khan LR [(1955) 6
    M.I.A. 134 (PC)], whether
    jurisdiction is given to a court
    by an Act of Parliament and such
    jurisdiction is only given upon
    certain specified terms
    contained in that Act, it is a
    universal picture that these
    terms must be complied with the
    jurisdiction does not arise
    [See: Mohammed Hasnuddin v.
    State of Maharashtra
    (1979 (2)
    SCC 572)].”

    32.In an another decision in the
    case of Prayag Upnivesh Avas Nirman
    Sahkari Samiti Ltd. (supra) the
    Supreme Court has observed and held
    that a reference court has no
    jurisdiction to decide a matter not
    referred to it.

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    33.Considering the above decisions
    and the reference made by the
    Special Land Acquisition Officer,
    the findings of the reference court
    which are reproduced hereinabove
    with regard to acquisition
    proceedings and award being null
    and void and illegal and ONGC –
    acquiring body is in unauthorised
    and illegal possession and are
    trespassers, all such findings are
    wholly without jurisdiction and
    perverse and without authority
    under the law and even beyond the
    reference and/or the dispute
    referred to the reference court. In
    a reference under sec.35 of the
    Act, reference court has no
    jurisdiction and/or authority under
    the law to decide any other
    dispute/question other than the
    dispute as to the sufficiency of
    the compensation and that too with
    respect to only such difference as
    to the sufficiency of compensation
    which has arisen between the
    Collector and the persons
    interested at the relevant time.
    The reference court is not vested
    with any other powers to declare
    the acquisition proceedings and/or
    award null and void and/or illegal
    and/or give a finding whether the
    acquiring body is in illegal
    possession and/or trespasser.
    Similarly, the reference court also

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    has no jurisdiction and/or
    authority under the law to restore
    possession of the land to the
    original land owners in a reference
    under sec.35(3) of the Act. On
    going through the entire judgement
    and award of the Reference Court,
    It appears that the entire
    judgement and award runs into
    approximately 82 pages and
    considering the same, it appears
    that the reference court has tried
    to show his knowledge without
    proper application of mind to the
    issues and without appreciating the
    fact that he has no jurisdiction to
    decide any other dispute other than
    the dispute as to the sufficiency
    of compensation and that he is
    dealing with the reference under
    sec.35(3) of the Act. The reference
    court has tried to show his
    knowledge by referring to various
    judgments unnecessarily and has
    given findings without any
    jurisdiction. The reference court
    has exercised the jurisdiction not
    vested in it and has decided the
    questions not referred to it and/or
    which have not arisen at all.

    34.It is also required to be noted
    at this stage that even the issues
    which are framed by the reference
    court are:-

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    “(i) Whether the applicant proves
    that the compensation awarded is
    inadequate?

    (ii)What additional compensation,
    if any, he is entitled to?

    (iii)What award and decree?.

    No other issues have been framed by
    the reference court. No issue,
    whether the acquisition proceedings
    and the award declared by the
    Special Land Acquisition Officer
    under sec.35(3) of the Act are
    illegal and/or non-est, has been
    framed by the reference court. No
    issue, whether the acquiring body
    is a trespasser and/or they are in
    illegal and unauthorised occupation
    and possession of the land in
    question, has been framed by the
    reference court. The reference
    court has not framed issue with
    regard to limitation, though in the
    written statement specific
    contention has been raised that the
    reference applications are time
    barred and/or they are required to
    be dismissed on the ground of
    delay. As per Sec.53 of the Act,
    save in so far as they may be
    inconsistent with anything
    contained in the Act, the
    provisions of the [Code of Civil

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    Procedure, 1908 (5 of 1908)] shall
    apply to all proceedings before the
    Court under the Act. No decision
    and/or finding can be given without
    framing any issue and drawing
    attention of the parties to the
    proceedings to the said issues.
    Thus, even on this ground also, the
    findings of the reference court
    that the entire acquisition
    proceedings and the award declared
    by the Special Land Acquisition
    Officer are illegal and non-est and
    that the acquiring body – ONGC is
    in illegal and unauthorised
    occupation and possession of the
    land in question and that they are
    trespasser, also cannot be
    sustained without framing any
    proper issue.

    35.It has come on record that not
    only the claimants have accepted
    the amount of compensation/rent
    determined by the Special Land
    Acquisition Officer while declaring
    the award on 11/8/1980, but even
    thereafter, the ONGC has enhanced
    the amount of compensation/rent at
    the interval of every three years
    from time to time and the said
    enhanced compensation/rent has been
    accepted by the claimants without
    raising any objection. In such
    circumstances, the reference court

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    could not have declared ONGC as
    trespassers. It is also required to
    be noted at this stage that even
    the findings of the dereference
    court with regard to possession of
    the acquiring body are also self
    contradictory. The reference court
    in para 31 has observed that “this
    is simple case of assumption of
    quantum of compensation on the
    ground of mesne profit as the
    opponent No.2 ONGC are permissive
    user and occupier of the land
    specifically stated in Compensation
    Case No.38/80.” Even after para
    31(iii), the reference court has
    observed as under:-

    “The opp.No.2 ONGC is in
    possession of the land which has
    been acquired under the
    provision of Section 35 of the
    Land Acquisition Act by the
    Competent Authority under the
    said Act and till then, they are
    in possession of the land and
    hence their possession can be
    called permissive possession.”

    36.Inspite of the above, the
    reference court has held that the
    ONGC – acquiring body is in illegal
    and unauthorised possession of the
    land in question and they are
    trespasser. Even otherwise, as

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    stated above, ONGC – acquiring body
    has increased quantum of
    compensation/rent at the interval
    of every three years substantially,
    which have been accepted by the
    claimants without any objections
    and therefore it can be said that
    the claimants have impliedly and/or
    by necessary conduct have agreed
    with the possession and occupation
    of the land by ONGC and continue to
    occupy the possession by the ONGC.
    As such all these questions and the
    disputes are not required to be
    dealt with and considered in a
    reference under sec.35(3) of the
    Act. Whether there is any implied
    extension of contract etc. all are
    questions which are required to be
    decided and dealt with in
    appropriate proceedings when a suit
    is filed before the civil court.

    37.Now so far as the amount of
    compensation awarded by the
    reference court and the operative
    portion of the order which is
    reproduced hereinabove in para 1 of
    the judgement, the reference court
    has awarded the compensation even
    for the period beyond three years
    i.e. till date and even for future
    also. As held by this Court in the
    case of Oil & Natural Gas

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    Commission Vs. Pandya Prahladbhai
    Manilal and Ors.
    , reported in 2006
    (3) GLH 662 and in the case of
    Patel Shambhubhai Bhaichanddas Vs.
    State of Gujarat
    , reported in 2007
    (2) GLH 272, the reference court,
    in temporary acquisition under
    sec.35 of the Act, has no
    jurisdiction to determine
    sufficiency of compensation for
    retention of the land beyond the
    period of three years. In other-
    way, the Collector in a reference
    under sec.35 has power to determine
    sufficiency of compensation only
    for retention of land upto a
    maximum period of three years and
    recourse to possession after the
    stipulated period can be sought
    only by remedy provided under
    common law. This court is in
    complete agreement with the
    aforesaid two decisions. Thus, even
    the order passed by the reference
    court awarding compensation beyond
    the period of three years in a
    reference under sec.35 of the Act,
    is wholly without jurisdiction. In
    the present case, even the question
    may arise whether in view of the
    periodical rise given by ONGC at
    the interval of every three years,
    which have been accepted by the
    claimants without raising any
    objection, whether the claimants
    are entitled to raise dispute with

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    regard to sufficiency of
    compensation/rent.

    38.Even while determining the
    quantum of compensation, the
    reference court has misinterpreted
    the evidence and the cross
    examination of the claimant who has
    been examined on behalf of all the
    claimants at Ex.11, which has been
    reproduced hereinabove. The
    claimant has specifically stated in
    his cross examination that he has
    no knowledge about the income
    derived from the land in question;
    he has no personal knowledge what
    amount he has asked in the
    reference application; he does not
    know the contents of the reference
    application; he also does not know
    on what basis the amount of
    compensation/rent is sought to be
    increased. He has specifically
    admitted that he has not given any
    instructions to the advocate and in
    fact, the advocate himself has
    written everything. He has also
    admitted that he has no account
    and/or evidence to justify income
    of Rs.40,000, as stated in the
    examination-in-chief. However, the
    reference court has held that the
    claimant has proved the income of
    Rs.40,000 per annum derived from
    the land in question. It is also

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    required to be noted that no
    documentary evidence has been
    produced with regard to the income
    derived from the land in question.
    In absence of any documentary
    evidence, the reference court could
    not have given any finding with
    regard to income of Rs.40,000
    derived from the land in question.
    Thus, even otherwise, the finding
    with respect to the income by the
    reference court is perverse and on
    misreading of the evidence and the
    same is on no evidence. The
    operative portion of the order
    awarding compensation to the
    claimants at the enhanced rate
    periodically is also without
    jurisdiction and based on no
    evidence. Even the amount of
    compensation/rent awarded by the
    reference court seems to be more
    than the compensation paid for
    permanent acquisition. The
    directions issued by the reference
    court in para 49 to 51 and
    operative portion of the judgement
    in para 52, are all without
    jurisdiction and de-hors the
    provisions of the Act. The
    reference court has issued certain
    directions with regard to interest,
    as if the reference court is
    dealing with the reference with
    regard to permanent acquisition.
    The reference court has failed to

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    appreciate that it was dealing with
    the reference with respect to
    temporary acquisition of land under
    sec.35(3) of the Act. Thus, the
    impugned judgement and award
    require to be quashed and set
    aside.

    39.At this stage it is required to
    be noted and it appears from the
    judgement and award that the
    reference court has awarded
    compensation/rent by way of mesne
    profit by giving contradictory
    findings with regard to possession
    and occupation of the ONGC. As
    stated hereinabove, the reference
    court has no jurisdiction to decide
    any dispute de-hors the dispute
    referred to it. It is also held
    that the reference court has no
    jurisdiction to restore the
    possession of the land owners. The
    competent Civil Court can award
    mesne profit only in a suit for
    possession and when it is found
    that the occupier is in illegal
    possession and that the mesne
    profit can be awarded by that court
    who can pass a decree for
    possession. In the present case as
    stated above, the Reference Court
    has no jurisdiction to restore the
    possession and consequently, pass a
    decree for possession in a

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    reference under sec.35(3) of the
    Act. Under the circumstances also,
    the directions issued by the
    reference court in the award to pay
    mesne profit as compensation, are
    also required to be quashed and set
    aside as the same is without
    jurisdiction.

    40.Before parting with the present
    judgement, it is required to be
    noted and it is brought to our
    notice that in more than 100 cases
    like present one, the concerned
    Special Land Acquisition Officer,
    Mehsana has referred the references
    to the reference court which have
    been made after a period of more
    than 20 years and the very
    reference court (Mr.J.R. Shah,
    Principal Senior Civil Judge,
    Mehsana) has entertained the
    reference applications and has
    acted beyond the scope of the
    reference and has passed the
    judgement and awards with the
    similar findings and observations
    which are without jurisdiction.
    Thus, we are of the considered
    opinion that the conduct of the
    reference court (Mr.J.R. Shah, the
    then Principal Senior Civil Judge,
    Mehsana) is required to be
    considered seriously on
    administrative side. Under the

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    circumstances, the registry is
    directed to place the judgement and
    award impugned in these appeals,
    along with other similar judgement
    and awards passed by the reference
    court (Mr.J.R. Shah, the then
    Principal Senior Civil Judge,
    Mehsana) before the Hon’ble the
    Chief Justice and concerned
    Administrative Judge to consider
    the same on administrative side.

    41.Similarly, even the conduct and
    the action of the then Special Land
    Acquisition Officer, who has
    referred the references
    applications in more than 100 cases
    to the reference court, though the
    applications for reference were
    filed after a period of more than
    20 years, is also required to be
    considered seriously at the hands
    of Government. Under the
    circumstances, Chief Secretary,
    Revenue Department is directed to
    hold necessary inquiry against the
    concerned Special Land Acquisition
    Officer with regard to his conduct
    and actions. Registry is directed
    to communicate this order to the
    Chief Secretary, Revenue
    Department, State of Gujarat for
    compliance.

    42.For the reasons stated
    hereinabove, all the appeals

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    succeed and are allowed with costs
    which is quantified at Rs.5000
    (Rupees Five Thousand only) per
    each appeal. The impugned common
    judgement and award dtd. 15/10/2005
    passed by the learned Principal
    Senior Civil Judge, Mehsana
    (Mr.J.R. Shah) in Land Reference
    Case Nos.3780 to 3784 of 2003 is
    hereby quashed and set aside and it
    is held that :-

    (i) The reference applications
    submitted by the original claimants
    were not maintainable.

    (ii)The reference applications were
    required to be dismissed on the
    ground of limitation considering
    Article 137 of the Limitation Act.

    In the alternate, the same were
    required to be dismissed on the
    ground of delay and laches.

    (iii)The reference court has no
    power, authority, competence and/or
    jurisdiction to decide the dispute
    de-hors the reference made to him.

    (iv)The reference court has no
    jurisdiction to decide any other
    question except the difference as
    to sufficiency of compensation in
    a reference under sec.35(3) of the
    Act.

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    (v)The reference court has no
    jurisdiction to declare acquisition
    proceedings and the award declared
    by the Special Land Acquisition
    Officer under sec.35(3) of the Act
    as illegal and/or non-est in a
    reference under sec.35(3) of the
    Act.

    (vi)The reference court has no
    jurisdiction to declare possession
    of the acquiring body as illegal
    and/or unauthorised and
    consequently the reference court
    has no jurisdiction to declare the
    ONGC – acquiring body as trespasser
    that too without framing any issue.

    (vii)The reference court has no
    jurisdiction to award compensation
    by way of mesne profit declaring
    compensation of the acquiring body
    as illegal and unauthorised.

    (viii)The reference court has also
    no jurisdiction to award statutory
    benefits and/or interest, as
    awarded by the reference court, as
    if the acquisition proceedings is a
    permanent acquisition.

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    (ix)The reference court has no
    jurisdiction to determine the
    dispute with regard to sufficiency
    of the compensation beyond the
    period of three years from the date
    of tasking the possession.

    (x)The Reference Court has no
    jurisdiction to restore the
    possession of the land to the
    original owners while deciding the
    reference under sec.35(3) of the
    Act.”

    18. In view of the above adopting the same

    reason in similar facts of these

    appeals, these appeals also succeed and

    are accordingly allowed. The impugned

    common Judgement and Award dated

    19.10.2005 passed by the learned

    Principal Senior Civil Judge, Mehsana,

    in Land Reference Case Nos. 5492 to

    5494 of 2003 is hereby quashed and set

    aside.

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    19. In view of the disposal of the appeals,

    Civil Applications would not survive

    and are accordingly disposed of.

    (BHARGAV D. KARIA, J)

    (L. S. PIRZADA, J)
    JYOTI V. JANI

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