Bombay High Court Considered Constitutional Challenge to Maharashtra Land Acquisition Amendment for Bullet Train Project. Petition Raised Questions of Repugnancy Under Article 254, Presidential Assent, Natural Justice, and Scope of Section 33 of the Right to Fair Compensation Act, 2013.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The litigation concerned a challenge to land acquisition for the Mumbai-Ahmedabad High Speed Rail project, commonly called the Bullet Train Project. The petitioner, a company incorporated under the Indian Companies Act, 1913, claimed ownership of lands in village Vikhroli, Mumbai, based on a conveyance deed executed on 30 July 1948 and a consent decree passed by the Bombay High Court on 8 January 1962, which declared that all lands in Vikhroli except those vested under Section 4(c) of the Salsette Estate (Land Revenue Exemption Abolition) Act, 1951 belonged to the petitioner. In 1973, the State of Maharashtra filed a title suit for Survey Nos.61 to 65. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 came into force, and an amendment ordinance was promulgated on 1 December 2014. The petitioner learned in September 2017 about the Bullet Train Project. On 26 April 2018, the Maharashtra Amendment Act No.XXXVII of 2018 came into effect, inserting Section 10A to exempt the project from Chapters II and III of the central Act. The petitioner first filed Writ Petition No.2131 of 2018 challenging acquisition on grounds that the proposed land split would render its property unfit for a proposed exhibition-cum-convention complex. During that petition, the parties discussed alternate land, and a public notice was issued on 25 September 2018 identifying CTS No.51/A (part) in Vikhroli as the subject plot for acquisition through private negotiation. The District Level Valuation Committee determined compensation of Rs.5,72,92,45,598/- on 15 November 2018. The National High Speed Rail Corporation Limited confirmed this valuation in a letter dated 29 January 2019. On 9 August 2019, the President of India, under Article 258(1), directed the Government of Maharashtra to perform the Central Government's functions under the Fair Compensation Act for the Bullet Train Project. Thereafter, on 20 August 2019, the State issued a notification under Section 10A exempting the project from Chapters II and III, and on 25 October 2019, a notification under Section 11(1) declaring the subject plot needed for public purpose. The first writ petition was disposed on 4 September 2019 with rights reserved. The present writ petition was filed in 2019 challenging the Maharashtra Amendment, the notifications, and the first proviso to Section 25. The court framed eleven issues covering estoppel, voluntary offer, burden of proof for constitutional challenge, natural justice, lapse, validity of the proviso, scope of Article 258(1) entrustment, scope of Section 33 rectification, and the court's discretionary power under Article 226 where public interest is involved. Interim applications sought disclosure of material placed before the President and an injunction against an award dated 15 September 2022. The available text does not contain the court's final analysis or decision on these issues.

Headnote

A) Constitutional Law - Repugnancy of State Amendment - Articles 14, 254(1), 300A - Maharashtra Act No.XXXVII of 2018, Section 3; Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Petitioner sought declaration that the Maharashtra Amendment is repugnant to the central Act and void ab initio being ultra vires the Constitution - The Court framed the challenge but the provided text does not include its final answer (Paras 2, 6).

B) Constitutional Law - Presidential Assent under Article 254(2) - Disclosure of Material Before President - Constitution of India, Article 254(2) - Interim Application sought production of letter dated 27 March 2020 and material placed before the President for assent to Maharashtra Legislative Assembly Bill No.7 of 2018 - The application was pending consideration (Para 3).

C) Land Acquisition - Exemption from Social Impact Assessment and Consent - Section 10A, Chapters II and III, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - State notification under Section 10A exempted the Bullet Train Project from provisions of Chapters II and III citing public interest - Petitioner challenged the exemption as part of constitutional challenge (Paras 15, 20).

D) Land Acquisition - Compensation and Valuation - Sections 11(1), 25, 33, 64, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - District Level Valuation Committee determined compensation at Rs.5,72,92,45,598/-; notifications under Sections 10A and 11(1) were issued; petitioner challenged first proviso to Section 25 as conferring unguided powers for multiple extensions (Paras 13-15, 17-18).

E) Administrative Law - Violation of Natural Justice - Personal Hearing and Award by Different Officers - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Issue framed whether personal hearing before one Deputy Collector and award by another violates natural justice - No final holding in available text (Para 6(iv)).

F) Land Acquisition - Lapse of Acquisition Proceedings - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Issue framed whether acquisition proceedings had lapsed - No final holding in available text (Para 6(v)).

G) Constitutional Law - Entrustment of Functions under Article 258(1) - State Amendment Beyond Scope - Constitution of India, Article 258(1); Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 10A - Issue framed whether State acted beyond entrustment by making Section 10A amendment - No final holding in available text (Paras 6(vii), 14, 15).

H) Land Acquisition - Rectification of Award - Section 33, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Issue framed whether corrections ordered in award exceed scope of Section 33 - No final holding in available text (Para 6(viii)).

I) Constitutional Law - Judicial Review under Article 226 - Public Interest vs Private Interest - Constitution of India, Article 226 - Issues framed regarding discretionary powers and whether public interest of national project prevails over private landowner interest - No final holding in available text (Paras 6(ix)-(xi)).

J) Constitution of India - Fundamental Rights - Articles 14 and 300A - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, first proviso to Section 25 - Petitioner challenged first proviso as conferring unguided, uncanalised and unfettered powers, vague and contrary to Act's object, violating Articles 14 and 300A - Court framed issue of constitutional validity (Para 5, 6(iii)).

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Issue of Consideration

Whether Section 3 of Maharashtra Act No.XXXVII of 2018 is repugnant to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; whether the first proviso to Section 25 of the central Act is unconstitutional; whether the acquisition notifications under Sections 10A and 11(1) are valid; whether there was violation of natural justice; whether the acquisition proceedings lapsed; whether the State acted beyond entrustment under Article 258(1); whether corrections in the award exceeded Section 33; and whether the High Court should interfere under Article 226 given public interest.

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Law Points

  • Doctrine of repugnancy under Article 254
  • Requirement of Presidential assent for State amendment
  • Judicial review under Article 226
  • Principles of natural justice in personal hearing
  • Scope of Section 33 rectification
  • Entrustment of functions under Article 258(1)
  • Fundamental rights under Articles 14 and 300A
  • Lapse of land acquisition proceedings
  • Public interest versus private interest in eminent domain
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Case Details

2023 LawText (BOM) (01) 254

Writ Petition No. 3537 of 2019 along with Interim Application No.838 of 2020 and Interim Application (L) No.30586 of 2022

2023-02-09

R.D. Dhanuka, M.M. Sathaye

2023:BHC-OS:1129-DB

Navroz Seervai, Arti Raghavan, Shanay Shah, Ashutosh Kumbhakoni, Jyoti Chavan, Akshay Shinde, Anil Singh, T.J. Pandian, Aditya Thakkar, D.P. Singh, Savita Ganoo, Abhishek Bhadang, Smita Thakur, Chaitanya Chavan, Pranav Thackur, Akshay Puthran, Sargam Agrawal, Abhiraj Rao, R.M. Hajare, Sunil Sonawane

Godrej & Boyce Manufacturing Co. Ltd.

The State of Maharashtra, The Union of India, The Revenue and Forest Department, Deputy Collector (Land Acquisition) No.7, The Collector, Mumbai Suburban District, National High Speed Rail Corporation Limited, Municipal Corporation of Greater Mumbai

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging constitutional validity of a State amendment to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and acquisition notifications for a public infrastructure project.

Remedy Sought

Declaration that Section 3 of Maharashtra Act No.XXXVII of 2018 is repugnant to the central Act and void ab initio; declaration that the first proviso to Section 25 of the central Act is unconstitutional; quashing of notifications under Sections 10A and 11(1); injunction against implementation of award dated 15 September 2022; production of documents submitted to the President.

Filing Reason

State amendment exempted the Bullet Train Project from Chapters II and III of the central Act, acquisition notifications were issued without following those chapters, the first proviso to Section 25 conferred arbitrary extension powers, and compensation valuation was disputed.

Previous Decisions

Writ Petition No.2131 of 2018 disposed by Bombay High Court on 4 September 2019 reserving all rights and contentions of the parties, including the right to challenge valuation; consent decree dated 8 January 1962 declaring petitioner as owner of certain lands; title suit No.679 of 1973 filed by State of Maharashtra pending.

Issues

Whether the petitioner is estopped from challenging the acquisition in view of the order dated 4 September 2019 in Writ Petition No.2131 of 2018 and lacks locus standi. Whether the petitioner voluntarily offered the second alternate land for acquisition and, having been accepted, could only dispute compensation. Whether the petitioner discharged the burden to show clear transgression of constitutional principles to rebut the presumption of constitutionality of the proviso to Section 25. Whether personal hearing granted by one Deputy Collector and award passed by another Deputy Collector violates principles of natural justice. Whether the acquisition proceedings have lapsed. Whether the first proviso to Section 25 conferring power on the appropriate Government to grant multiple extensions to make an award is uncanalised, unregulated, arbitrary, vague, and unconstitutional. Whether the State of Maharashtra acted beyond the scope of entrustment under Article 258(1) by making State Amendment Section 10A to the central Act. Whether corrections ordered in the impugned award are beyond the scope of Section 33 of the central Act. Whether, the acquisition being for a public project of national importance, the Court can interfere with the acquisition proceedings on grounds of natural justice or non-compliance with Section 33, or the remedy is only enhancement of compensation under Section 64. What are the discretionary powers of the High Court under Article 226 while dealing with challenge to acquisition proceedings. Whether the public interest of the Bullet Train Project prevails over the private interest of the petitioner as owner of the writ property.

Judgment Excerpts

By this petition filed under Article 226 of the Constitution of India, the petitioner seeks a declaration that the impugned Amendment viz. Section 3 of the Maharashtra Act No.XXXVII of 2018 is repugnant to and does not prevail over the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and is ultra vires Article 14, 254 (1) and 300A of the Constitution of India and is void ab initio. The following questions fell for consideration of this Court :- (i) Whether the petitioner is estopped from challenging the acquisition of the writ land in view of the order passed by this Court on 4 th September 2019 in Writ Petition No.2131 of 2018 and has thus no locus to file this writ petition? On 15 th November 2018, District Level Valuation Committee, under the Chairmanship of the Collector, Mumbai, (Respondent No.5), arrived at a compensation amount of Rs.572,92,45,598/- for the Subject Plot. On 20 th August 2019, Respondent No.3 issued a notification (“First Impugned Notification”) under Section 10A of the said Fair Compensation Act, stating that certain lands identified in the Schedule (the Subject Plot) were required for the Bullet Train Project and that Respondent No. 1 “...in public interest exempts the said Project from the application of the provisions of Chapter II and Chapter III of the said Act".

Procedural History

On 30 July 1948, a Deed of Conveyance was executed between Nowroji Pirojsha and the petitioner for lands constituting the village of Vikhroli. In April 1953, the petitioner filed a suit in Bombay High Court against the then State of Bombay for declaration of ownership. On 8 January 1962, a consent decree was passed declaring certain lands vested in Government under Section 4(c) of the Salsette Estate (Land Revenue Exemption Abolition) Act, 1951 and all other lands in Vikhroli belonged to the petitioner. On 17 April 1973, the State of Maharashtra filed Suit No.679 of 1973 for declaration that Survey Nos.61 to 65 belonged to it. On 1 December 2014, the Right to Fair Compensation and Transparency in Rehabilitation and Acquisition, Resettlement (Amendment) Ordinance, 2014 was promulgated. In September 2017, the petitioner learned from the website of Respondent No.6 about steps for the Bullet Train Project. On 27 March 2018, the Secretary (Legislation) to the Government of Maharashtra requested moving the Government of India to obtain the President's consent for the Maharashtra Amendment Bill as it was repugnant to the central Act. On 26 April 2018, Maharashtra Act No.XXXVII of 2018 came into effect. On 21 May 2018, the petitioner filed Writ Petition No.2131 of 2018 before Bombay High Court. On 19 June 2018 and 31 July 2018, the High Court recorded that the petitioner was to submit a proposal for alternate land and that parties had exchanged proposals. On 25 September 2018, Respondent No.4 issued a Public Notice agreeing to acquire CTS No.51/A (part) in village Vikhroli by private negotiation. On 15 November 2018, the District Level Valuation Committee fixed compensation at Rs.572,92,45,598/-. On 29 January 2019, Respondent No.6 confirmed the valuation. On 9 August 2019, the President of India, under Article 258(1), directed the Government of Maharashtra to perform functions of the Central Government under the Fair Compensation Act for the Bullet Train Project. On 20 August 2019, Respondent No.3 issued a notification under Section 10A exempting the project from Chapters II and III. On 4 September 2019, the High Court disposed of Writ Petition No.2131 of 2018 reserving all rights. On 25 October 2019, Respondent No.5 issued a notification under Section 11(1) declaring the subject plot needed for public purpose. On 2 November 2019, the petitioner came across the impugned notifications. In December 2019, the MVA Government came into power in the State; the provided text ends at this point.

Acts & Sections

  • Constitution of India: Article 14, Article 226, Article 254(1), Article 254(2), Article 258(1), Article 300A
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 10A, Section 11(1), Proviso to Section 25, Section 33, Section 64, Chapters II and III
  • Maharashtra Act No.XXXVII of 2018: Section 3
  • Salsette Estate (Land Revenue Exemption Abolition) Act, 1951: Section 4(c)
  • Right to Fair Compensation and Transparency in Rehabilitation and Acquisition, Resettlement (Amendment) Ordinance, 2014:
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