Judgment Intelligence
OtherM/s JK Paper Ltd v. Bipinchandra Natwarlal Shah & Ors.
2026 INSC 1095
Civil Appeal No. 13477 of 2026 (arising out of SLP (C) No. 21774 of 2025) with Civil Appeals arising out of SLP (C) Nos. 23751-52 of 2025
- Court
- Supreme Court of India
- Date of Decision
- 7 October 2026
- Bench
- Justice Dipankar Datta and Justice Sheel Nagu
- Relevant Acts & Sections
- Land Acquisition Act, 1894; Constitution of India — Article 136
Final Outcome
Appeals disposed of. The stay continues for two months, and till further orders if JK Paper deposits a further Rs 15 crore with the High Court's Registrar General within two months, without prejudice; failing that, it stands revoked. The High Court is requested to expedite the first appeals (paras 16-18).
Key holdings
- A first appeal is a continuation of the original proceedings; the first appellate court must decide all issues of fact and law with reasons (para 14).
- The Supreme Court declined to decide disputed facts under Article 136 while the first appeals were pending (para 15).
- The company's plea that a nala reduced the usable land, raised long after the acquisition began, was rejected and cannot be raised before the High Court (para 12).
- The stay continues only if JK Paper deposits a further Rs 15 crore within two months; otherwise it stands revoked (para 16).
- The High Court is asked to expedite the first appeals, with all other points left open (para 17).
Brief Facts
About 34.72 acres at Village Gunsada were acquired under the Land Acquisition Act, 1894 for JK Paper, in proceedings begun in 2005. The SLAO valued the land at Rs 124 per square metre; on 23.02.2023 the Reference Court raised it to Rs 950, with a 12% escalation, 30% solatium and interest (paras 3, 12). Both the company and the landowners filed first appeals in the Gujarat High Court, and the executing court issued a warrant to recover Rs 67,48,34,981 (paras 4-5). On 30.06.2025 the High Court stayed the award and execution on condition of a 50% deposit; the company had deposited Rs 9,33,33,744 (paras 2, 6-7).
Court's Findings
As a common interim order in pending appeals was under challenge, the Court dealt only with some contentions (para 9). After its directions, the State reported that the remaining 24.77 acres were handed over to the company on 10.11.2025, so the company now holds the whole land (paras 10-11). The Court rejected the company's claim that a nala through the land caused waterlogging and reduced its usable area: the company had known of the nala and other encumbrances since the acquisition began in 2005, and it may not raise the issue before the High Court (para 12). Other disputed facts, such as when and to what extent the company got possession, affect the final compensation and are for the High Court (para 13). Relying on Malluru Mallappa, the Court noted that a first appeal is a rehearing on law and fact in which every issue must be decided with reasons (para 14). The first appellate court being the most appropriate forum, the Supreme Court would not enter disputed facts under Article 136 (para 15).
Legal Principle
A first appeal is a rehearing on facts and law, and the first appellate court is the proper forum to resolve disputed questions of fact. The Supreme Court will not decide such questions under Article 136 while first appeals are pending, though it may adjust interim conditions such as deposits (paras 14-16).
Precedents Relied Upon
- Malluru Mallappa (Dead) v. Kuruvathappa & Ors. (2020) 4 SCC 313
An appeal is a continuation of the original proceedings; the first appellate court rehears law and fact and must decide all issues, recording findings supported by reasons.
