Bombay High Court Allows Writ Petition for Rental Compensation in Land Acquisition Case Due to Long Delay in Payment. Petitioners Entitled to 8% Rental Compensation and 6% Interest on Compensation Paid After 27-28 Years of Possession.

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

The petitioners, Ashok Masu Bansode and Sunanda Ashok Bansode, were owners of agricultural lands in Village Chale, Taluka Pandharpur, District Solapur. The Respondent No.5 (Executive Engineer, Minor Irrigation) took possession of the lands in January 1992 for a public project, but no formal acquisition proceedings were initiated. After decades, in 2019-2020, the parties entered into private negotiations, and sale deeds were executed on 30 September 2019 and 16 September 2020, whereby compensation was paid to the petitioners. However, the petitioners were not compensated for the period from 1992 (when possession was taken) until the payment of compensation. They made representations to the authorities in 2020 seeking rental compensation with interest, but no action was taken. Consequently, they filed a writ petition under Article 226 of the Constitution seeking a mandamus directing the respondents to pay rental compensation at 8% per annum on the compensation amount along with 6% interest. The court examined the facts and noted that the respondents had taken possession without any legal acquisition proceedings and had paid compensation only after 27-28 years. The court held that the petitioners were entitled to rental compensation for the period of deprivation. The court directed the respondents to pay rental compensation at 8% per annum on the compensation amount from the date of possession (January 1992) until the date of payment, along with interest at 6% per annum, within eight weeks. The petition was allowed in these terms.

Headnote

A) Constitutional Law - Right to Property - Article 300A of the Constitution of India - Deprivation of Property - The petitioners' lands were taken possession of in 1992 without any acquisition proceedings. Compensation was paid only in 2019-2020 through private negotiations. The court held that the petitioners are entitled to rental compensation at 8% per annum on the compensation amount from the date of possession until payment, with interest at 6% per annum, as the State cannot deprive a person of property without compensation. (Paras 1-10)

B) Land Acquisition - Compensation - Private Negotiation - The court considered that the compensation was paid after a long delay of about 27-28 years. The court directed the respondents to pay rental compensation at 8% per annum on the amount of compensation from the date of possession until the date of payment, along with interest at 6% per annum, within eight weeks. (Paras 7-10)

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Issue of Consideration

Whether the petitioners are entitled to rental compensation at 8% per annum on the amount of compensation awarded through private negotiations for the period from the date of taking possession until the date of payment, along with interest at 6% per annum.

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Final Decision

The court allowed the writ petition and directed the respondents to pay rental compensation at 8% per annum on the amount of compensation from the date of possession (January 1992) until the date of payment, along with interest at 6% per annum, within eight weeks.

Law Points

  • Right to compensation for deprivation of property
  • Article 300A of Constitution
  • rental compensation for period between possession and payment
  • interest on delayed compensation
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Case Details

2023 LawText (BOM) (01) 180

WRIT PETITION NO.575 OF 2022

2023-02-24

R.D. Dhanuka, M.M. Sathaye

2023:BHC-AS:7454-DB

Ms. Pradnya Talekar i/b M/s. Talekar & Associates for the Petitioners, Ms. M.S. Bane, AGP for State-Respondent Nos.1 to 4, Mr. Vilas B. Tapkir for Respondent No.5

Ashok s/o Masu Bansode and Smt. Sunanda w/o Ashok Bansode

State of Maharashtra, Divisional Commissioner Pune, Collector Solapur, Special Land Acquisition Officer Bori Medium Project, Executive Engineer Minor Irrigation Division No.1 Solapur

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Nature of Litigation

Writ petition seeking mandamus for payment of rental compensation and interest on compensation paid through private negotiations for land taken possession of without acquisition proceedings.

Remedy Sought

Petitioners seek a writ of mandamus directing respondents to pay rental compensation at 8% per annum on the compensation amount along with 6% interest.

Filing Reason

Respondents took possession of petitioners' lands in January 1992 without acquisition proceedings and paid compensation only in 2019-2020 through private negotiations, but did not pay rental compensation for the period of possession before payment.

Issues

Whether the petitioners are entitled to rental compensation at 8% per annum on the compensation amount from the date of possession until payment? Whether the petitioners are entitled to interest at 6% per annum on the rental compensation?

Submissions/Arguments

Petitioners argued that they were deprived of their lands for 27-28 years without compensation and are entitled to rental compensation at 8% per annum with interest. Respondents did not oppose the petition; the court noted that the respondents had not filed any reply.

Ratio Decidendi

The State cannot deprive a person of their property without compensation. When possession is taken without acquisition proceedings and compensation is paid after a long delay, the landowner is entitled to rental compensation for the period of deprivation, calculated at 8% per annum on the compensation amount, along with interest at 6% per annum.

Judgment Excerpts

By this Petition filed under Article 226 of the Constitution of India, the Petitioners seek a writ of mandamus against the Respondents to pay to the Petitioners the rental compensation at the rate of 8% p.a. on the amount of compensation awarded to them through private negotiations as shown in the Sale Deeds dated 30th September, 2019 and 12th August, 2020 along with 6% interest thereon. The Respondent No.5 took possession of the writ lands in the month of January, 1992. No acquisition proceedings were commenced by the Respondents till private negotiations in respect of the writ lands took place between the parties in the year 2019.

Procedural History

The petitioners filed representations on 15 June 2020 and 27 August 2020 requesting rental compensation. The Deputy Collector and other officers issued letters on 19 March 2020, 10 August 2020, and 27 October 2020. No action was taken, leading to the filing of the writ petition on an unspecified date. The petition was reserved on 31 January 2023 and pronounced on 24 February 2023.

Acts & Sections

  • Constitution of India: Article 226, Article 300A
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