Bombay High Court Allows Appeal in Land Acquisition Compensation Dispute — Appellant Society Entitled to Compensation Based on Registered Power of Attorney and Agreement. The Court held that the appellant, as power of attorney holder and agreement holder, had a right to receive compensation for the acquired land, and the Reference Court erred in directing payment solely to the respondent landowner.

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

The appellant, Justice Cooperative Housing Society Ltd. (proposed), through its Chief Promoter, filed an appeal challenging the judgment and award dated 9.1.2008 passed by the 2nd Joint Civil Judge, Senior Division, Nagpur in Land Acquisition Case No.164/1994. The Reference Court had directed the Land Acquisition Officer to pay compensation to the respondent, Sadashiv Durgaji Ambhore, the original landowner. The appellant contended that it had purchased the retainable land from the respondent vide registered sale-deed dated 12.3.1984 and had an agreement dated 21.12.1983 whereby the respondent agreed to surrender all retainable tenements to the society. Additionally, the respondent executed a registered power of attorney in favor of the appellant authorizing it to receive compensation. The appellant argued that it was entitled to the compensation amount. The court analyzed the facts and found that the appellant had a valid claim based on the power of attorney and agreement. The court held that the Reference Court erred in not considering the appellant's entitlement and directed that the compensation be paid to the appellant. The appeal was allowed, and the impugned judgment was set aside.

Headnote

A) Land Acquisition - Compensation - Right to Receive - Power of Attorney - The appellant, as holder of a registered power of attorney and agreement, claimed entitlement to compensation for acquired land. The court held that the appellant had a right to receive compensation based on the power of attorney and agreement, and the Reference Court's direction to pay only the respondent was erroneous. (Paras 1-10)

B) Land Acquisition - Reference Court - Jurisdiction - The Reference Court under the Land Acquisition Act, 1894 has jurisdiction to decide entitlement to compensation among claimants. The court held that the Reference Court should have considered the appellant's claim and not simply directed payment to the respondent. (Paras 5-10)

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Issue of Consideration

Whether the appellant, as a power of attorney holder and agreement holder, is entitled to receive compensation for the acquired land, and whether the Reference Court erred in directing payment solely to the respondent landowner.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 9.1.2008 passed by the 2nd Joint Civil Judge, Senior Division, Nagpur in Land Acquisition Case No.164/1994 is set aside. The Land Acquisition Officer is directed to pay the compensation amount to the appellant.

Law Points

  • Land Acquisition
  • Compensation
  • Power of Attorney
  • Agreement to Sell
  • Right to Receive Compensation
  • Urban Land Ceiling Act
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Case Details

2023 LawText (BOM) (01) 329

First Appeal No. 1261 of 2008

2023-01-19

Urmila Joshi-Phalke, J.

Mr. O.A. Ghare for Appellant, Mr. Nitin Vyawahare for Respondent

Justice Cooperative Housing Society Ltd. (Proposed) through its Chief Promoter, Shri Ramesh Bapu Gedam

Sadashiv Durgaji Ambhore

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Nature of Litigation

Appeal against judgment and award in land acquisition reference case.

Remedy Sought

Appellant sought setting aside of the Reference Court's order directing compensation to be paid to the respondent, and claimed entitlement to the compensation.

Filing Reason

The appellant claimed it was entitled to compensation based on a registered power of attorney and agreement with the respondent landowner.

Previous Decisions

The Reference Court (2nd Joint Civil Judge, Senior Division, Nagpur) in Land Acquisition Case No.164/1994 directed the Land Acquisition Officer to pay compensation to the respondent.

Issues

Whether the appellant is entitled to receive compensation for the acquired land based on the power of attorney and agreement. Whether the Reference Court erred in directing payment of compensation solely to the respondent.

Submissions/Arguments

Appellant argued that it had purchased the retainable land and had a registered power of attorney authorizing it to receive compensation. Respondent contended that he was the original owner and entitled to compensation.

Ratio Decidendi

A power of attorney holder and agreement holder can be entitled to receive compensation for acquired land if the documents confer such right. The Reference Court must consider all claimants' entitlements before directing payment.

Judgment Excerpts

By this appeal the appellant has challenged the judgment and award dated 9.1.2008 passed by the 2nd Joint Civil Judge, Senior Division, Nagpur in Land Acquisition Case No.164/1994 by which the Reference Court has directed the Land Acquisition Officer to pay the amount of compensation to the respondent. The appellant purchased the retainable land from Shri Sadashiv Ambhore vide registered sale-deed 12.3.1984 for total consideration of Rs.10,820/-. The appellant was also authorized by the land owner by registered power of attorney dated 21.12.1983 that the appellant shall have every right to receive the compensation which would be awarded by the Government.

Procedural History

The Special Land Acquisition Officer declared awards for acquisition of lands. The respondent filed a reference under Section 18 of the Land Acquisition Act, 1894, which was decided by the Reference Court on 9.1.2008 directing payment to the respondent. The appellant filed the present appeal challenging that order.

Acts & Sections

  • Land Acquisition Act, 1894:
  • Urban Land (Ceiling and Regulation) Act, 1976:
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