Bombay High Court Allows Writ Petition Challenging Land Acquisition for Non-Payment of Compensation Under Land Acquisition Act, 1894. Acquisition Lapses as Compensation Not Paid Within Five Years Despite Possession Taken.

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

The petitioners, original owners of land at Roadpali, Taluka Panvel, District Raigad, challenged the acquisition of their land by CIDCO under the Land Acquisition Act, 1894. The acquisition was for the purpose of developing a new township. The award was made on 30th April 1997, but compensation was not paid to the petitioners within five years from the date of the award. The petitioners contended that under Section 11A of the Land Acquisition Act, 1894, if compensation is not paid within five years, the acquisition lapses. They also relied on Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which provides that if compensation has not been paid, the acquisition lapses. The respondents, including the State of Maharashtra and CIDCO, argued that possession of the land was taken and therefore the acquisition did not lapse. The court examined the provisions and held that mere taking of possession without payment of compensation does not prevent lapsing. The court allowed the writ petition, declaring that the acquisition lapses due to non-payment of compensation. The court also allowed an interim application for impleadment of other affected persons. The judgment was pronounced on 29th April 2022.

Headnote

A) Land Acquisition - Lapsing of Acquisition - Non-payment of Compensation - Section 11A of Land Acquisition Act, 1894 and Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The petitioners challenged the acquisition of their land for CIDCO on the ground that compensation was not paid within five years from the date of the award. The court held that since compensation was not paid, the acquisition lapses under Section 24(2) of the 2013 Act. (Paras 1-10)

B) Land Acquisition - Possession - Effect of Possession Taken - Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The respondents argued that possession was taken and therefore the acquisition did not lapse. The court held that mere taking of possession without payment of compensation does not prevent lapsing under Section 24(2). (Paras 11-15)

C) Land Acquisition - Interim Application - Impleadment - The court allowed an interim application for impleadment of other affected persons. (Paras 16-20)

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Issue of Consideration

Whether the acquisition of the petitioners' land lapses due to non-payment of compensation within the stipulated period under the Land Acquisition Act, 1894 and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

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Final Decision

The court allowed the writ petition, declaring that the acquisition of the petitioners' land lapses due to non-payment of compensation. The interim application for impleadment was also allowed.

Law Points

  • Land acquisition
  • lapsing of acquisition
  • non-payment of compensation
  • Section 11A of Land Acquisition Act
  • 1894
  • Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
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Case Details

2022 LawText (BOM) (04) 44

Writ Petition No.2087 of 2021

2022-04-29

R.D. Dhanuka, S.M. Modak

2022:BHC-AS:10259-DB

Mr. Shriram S. Kulkarni, Mr. Rajendra M. Deshmukh for petitioner; Mr. Niketan Nakhawa for applicant in Interim Application; Mr. S.B. Kalel, AGP for respondent nos.1,2,4 and 7; Mr. Gopal S. Hegde, Ms. Pinky M. Bhansali for CIDCO for respondent nos.5 & 6

Trimbak Joma Thakur (since deceased through LR & heirs) and others

Principal Secretary Urban Development Department and others

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Nature of Litigation

Writ petition challenging land acquisition for non-payment of compensation.

Remedy Sought

Declaration that the acquisition of the petitioners' land lapses due to non-payment of compensation.

Filing Reason

Compensation was not paid within five years from the date of the award under the Land Acquisition Act, 1894.

Issues

Whether the acquisition of the petitioners' land lapses due to non-payment of compensation within the stipulated period under the Land Acquisition Act, 1894 and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Submissions/Arguments

Petitioners argued that compensation was not paid within five years from the date of the award, hence acquisition lapses under Section 11A of the Land Acquisition Act, 1894 and Section 24(2) of the 2013 Act. Respondents argued that possession of the land was taken and therefore the acquisition did not lapse.

Ratio Decidendi

Mere taking of possession without payment of compensation does not prevent lapsing of acquisition under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Judgment Excerpts

The court held that since compensation was not paid, the acquisition lapses under Section 24(2) of the 2013 Act. Mere taking of possession without payment of compensation does not prevent lapsing under Section 24(2).

Procedural History

The writ petition was filed in 2021 challenging the acquisition. An interim application was filed in 2022 for impleadment. The judgment was reserved on 23rd February 2022 and pronounced on 29th April 2022.

Acts & Sections

  • Land Acquisition Act, 1894: Section 11A
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
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High Court Bombay High Court Allows Writ Petition Challenging Land Acquisition for Non-Payment of Compensation Under Land Acquisition Act, 1894. Acquisition Lapses as Compensation Not Paid Within Five Years Despite Possession Taken.