The Supreme Court of India disposed of cross-appeals filed by M/s JK Paper Ltd. and private landowners against a common interim order of the Gujarat High Court in pending land acquisition First Appeals. While declining to interfere under Article 136 with disputed questions of fact regarding possession timelines and compensation calculations, the Apex Court directed the company to deposit an additional ₹15 crore with the High Court within two months to keep the stay on the enhanced award and execution proceedings operational. The Court rejected the company’s attempt to lower land value based on an existing gorge/waterlogging encumbrance, holding that such facts were known at the initiation of acquisition, and requested the High Court to expedite the final disposal of the pending appeals.
1. Factual Matrix & Dispute
- Land Acquisition: Proceedings were initiated under the Land Acquisition Act, 1894 for acquiring approximately 34.72 acres (Block No. 207) at Village Gunsada, Gujarat, for the benefit of M/s JK Paper Ltd.
- Enhancement by Reference Court: The Special Land Acquisition Officer (SLAO) fixed the compensation rate at ₹124 per sq. meter. Upon a reference by the landowners, the Reference Court enhanced the valuation to ₹950 per sq. meter along with 12% price escalation, 30% solatium, and statutory interest.
- Cross-Appeals & Execution Order: Both parties filed First Appeals before the Gujarat High Court—landowners seeking enhancement to ₹1,500/sq.m. and the company challenging the ₹950/sq.m. rate. Meanwhile, the Executing Court issued a recovery warrant against the company for ₹48 crores.
- High Court Interim Order: The High Court stayed the operation of the award and execution subject to the company depositing 50% of the additional compensation with statutory benefits. Both sides appealed this interim conditional stay before the Supreme Court.
2. Key Findings & Observations of the Supreme Court
- Surrender of Possession: Pursuant to interim orders passed by the Supreme Court during these proceedings, full physical possession of the remaining 24.77 acres of land was formally handed over to the company by state authorities on November 10, 2025.
- Rejection of Gorge/Waterlogging Argument: The Court categorically rejected the company’s argument that a gorge (nala) or waterlogging diminished the usable area of the acquired land. The Court noted that the company had knowledge of all encumbrances since the acquisition process started in 2005 and barred them from raising this issue before the High Court.
- Scope of Appellate Jurisdiction (Article 136 & First Appeals): Reiterating Malluru Mallappa v. Kuruvathappa, the Court affirmed that the First Appellate Court (High Court) is the proper forum to examine complex and disputed questions of fact (such as exact possession dates and interest applicability). The Supreme Court declined to act as a fact-finding court under Article 136.
3. Final Directions & Verdict
- Additional Security Deposit: The company was ordered to deposit an additional amount of ₹15 crore with the Registrar General of the Gujarat High Court within two months.
- Continuation/Revocation of Stay: If the ₹15 crore deposit is made, the High Court’s stay on the award and execution proceedings will continue until the disposal of the first appeals; in case of default, the stay stands automatically revoked, freeing landowners to execute the award.
- Investment & Expedited Hearing: The Registrar General was directed to place the ₹15 crore in a short-term auto-renewal fixed deposit with a nationalized bank. Given that acquisition proceedings date back to 2005, the High Court was requested to decide the pending First Appeals on an expedited basis.



