High Court Remands Land Acquisition Case for Fresh Consideration Due to Non-Payment of Compensation. Acquisition Proceedings Lapsed as Neither Compensation Paid Nor Possession Taken Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The dispute arose from the acquisition of land under an award dated 25 February 2001, which the petitioners challenged under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The petitioners claimed that they had not received any compensation and that the state had not taken possession of their land, leading to the filing of the writ petition in 2015. The High Court initially allowed the petition, declaring the acquisition proceedings lapsed. However, the respondents, claiming allotment of the land, appealed to the Supreme Court, which remanded the case back to the High Court for fresh consideration in light of the Supreme Court's judgment in Indore Development Authority vs. Manoharlal. The petitioners argued that the state had failed to prove that possession was taken or compensation offered, while the state contended that the petition was barred by delay and laches. The court found that the petitioners had a fresh cause of action under Section 24(2) of the 2013 Act, as the Act came into force after the award was made. The court noted that the state had not provided sufficient evidence to support its claims regarding possession and compensation. Ultimately, the court rejected the state's objections and reiterated that the absence of a panchanama or credible evidence of possession meant that the petitioners' claims were valid. The court emphasized that the state must provide cogent evidence to establish that it had taken possession of the land. The matter was reserved for orders after hearing the arguments. The court's decision favored the petitioners, leading to the conclusion that the acquisition proceedings had lapsed.

Headnote

A) Land Acquisition - Lapsing of Acquisition - Non-Payment of Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The court held that the acquisition proceedings lapsed as neither compensation was paid nor possession taken, fulfilling the conditions under Section 24(2) of the 2013 Act. The petitioners were in continuous possession of the properties since the award was made. (Paras 3, 29-30).

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Issue of Consideration

Whether the land acquisition proceedings lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 due to non-payment of compensation and non-taking of possession.

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Final Decision

The court held that the acquisition proceedings lapsed as neither compensation was paid nor possession taken, fulfilling the conditions under Section 24(2) of the 2013 Act. The petitioners were in continuous possession of the properties since the award was made.

Law Points

  • Land Acquisition
  • Compensation
  • Possession
  • Lapsing of Acquisition
  • Article 226
  • Writ Jurisdiction
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Case Details

2025 LawText (BOM) (3) 101

WP-5854 of 2015

2025-03-10

M. S. Sonak, Jitendra Jain

Mr. Amol Gatne, Mr. B V Samant, Ms. M S Bane, Mr. Akshay R Kapadia, Mr. M R Sherekar

Shri Sakharam Govinda Kadam ] Since deceased through legal heirs And Anr.

State of Maharashtra And Ors.

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Nature of Litigation

Writ petition challenging land acquisition proceedings.

Remedy Sought

Petitioners sought declaration that acquisition proceedings lapsed.

Filing Reason

Claim of non-payment of compensation and non-taking of possession.

Previous Decisions

Initial petition allowed, acquisition declared lapsed.

Issues

Whether the acquisition proceedings lapsed under Section 24(2) of the 2013 Act. Whether the state provided sufficient evidence of possession and compensation.

Submissions/Arguments

Petitioners argued that no compensation was paid and possession was not taken. State contended that the petition was barred by delay and laches.

Ratio Decidendi

The acquisition proceedings lapse if neither compensation is paid nor possession is taken, as per Section 24(2) of the 2013 Act. The state must provide cogent evidence to establish possession.

Judgment Excerpts

The acquisition proceedings lapsed as neither compensation was paid nor possession taken. The petitioners were in continuous possession of the properties since the award was made.

Procedural History

The writ petition was filed on 14 June 2015, initially allowed on 02 May 2017, and remanded by the Supreme Court on 21 October 2024 for fresh consideration.

Acts & Sections

  • Land Acquisition Act, 1894: Section 12(2)
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
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