Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 07 October 2026

Case Overview

  • Parties: petitioner M/s JK Paper Ltd (company) vs. respondents Bipinchandra Natwarlal Shah & others (landowners); also cross‑appeals involving the same parties.
  • Background: Land acquisition of Block No.207, Village Gunsada, covering 1,40,504 sq m (≈34.72 acres) initiated under the Land Acquisition Act, 1894 for JK Paper Ltd’s benefit.
  • Reference Court award (23 Feb 2023) valued land at Rs 950 per sq m, adding 12 % price escalation, 30 % solatium, interest 9 % for the first year and 15 % thereafter. Additional compensation calculated at Rs 826 per sq m (after deducting Rs 124 already paid).
  • Both the company and landowners filed First Appeals (No. 2489 of 2023 – company; No. 1653 of 2023 – landowners) before the Gujarat High Court, seeking stay of the award and further compensation (landowners claim Rs 1500 per sq m).
  • During pendency, landowners obtained a warrant (23 May 2025) for recovery of Rs 67,48,34,981.00; the company filed a stay application (Civil Application No.1 of 2025) for the execution proceedings.
  • High Court stayed implementation of the award and execution proceedings, directing deposit of 50 % of the awarded compensation.
  • JK Paper Ltd has deposited Rs 9,33,33,744 to date.
  • Possession: Initially JK Paper possessed ≈9.95 acres; on 10 Nov 2025, the Mamlatdar handed over the remaining ≈24.77 acres, completing possession of the entire 34.72 acres.
  • The company’s claim that a gorge (nala) causing water‑logging reduced usable land was rejected; the Court noted the company had knowledge of the issue since 2005.
  • Several factual disputes (exact date and extent of possession, etc.) remain for the High Court to resolve.

Final Outcome

  • The Supreme Court stays the High Court’s order implementing the Reference Court’s award and execution proceedings for a further two‑month period.
  • JK Paper Ltd must deposit an additional Rs 15 crore with the Registrar General of the High Court within two months; the amount will be placed in a short‑term fixed deposit earning interest and renewed every three years.
  • Failure to deposit the Rs 15 crore will result in revocation of the stay, allowing landowners to pursue their claim in the Executing Court.
  • The stay on the award and execution proceedings will continue subject to the deposit, pending final disposal of the First Appeals by the High Court.
  • All pending applications, if any, are closed.

Topics: Court Order, Land Acquisition, Compensation