Bombay High Court Allows Conversion of Occupancy Class-II to Class-I Under Maharashtra Land Revenue Code, 1966 — Holds That Section 44 of the Code Does Not Bar Such Conversion for Lands Acquired Under Part VII of the Land Acquisition Act, 1894.

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

The petitioner, Ananta Landmarks Private Limited, filed a writ petition under Article 226 of the Constitution of India challenging an order/communication dated 27.09.2021 issued by the District Collector of Thane (Respondent No.2) rejecting its application for conversion of occupancy from Class-II to Occupancy Class-I of certain lands. The State of Maharashtra had acquired an area of 1,89,680 sq. mtrs. of the lands under Part VII of the Land Acquisition Act, 1894 (Act, 1894) upon the request of the petitioner's predecessor-in-title, and an agreement to that effect was executed. Subsequently, the petitioner applied for conversion of occupancy from Class-II to Class-I under the Maharashtra Land Revenue Code, 1966 (MLRC). The Collector rejected the application on the ground that Section 44 of the MLRC prohibits conversion of occupancy of lands held on lease from the Government, and that the lands were acquired under Part VII of the Act, 1894. The petitioner contended that the lands were not held on lease from the Government but were acquired under the Act, 1894, and that Section 44 of the MLRC does not apply. The Court examined the provisions of Part VII of the Act, 1894 and Section 44 of the MLRC. It noted that under Part VII, the Government acquires land for a company upon the company's request, and the company pays the compensation. The land vests in the Government, but the company is granted a lease or other interest. The Court held that such acquisition is not a lease from the Government in the sense contemplated by Section 44 of the MLRC. Section 44 of the MLRC prohibits conversion of occupancy of lands held on lease from the Government, but the lands in question were acquired under the Act, 1894, and the petitioner's predecessor-in-title had an agreement with the Government. The Court concluded that the Collector erred in applying Section 44 of the MLRC to reject the conversion application. The Court allowed the petition, quashed the impugned order, and directed the Collector to consider the application afresh in accordance with law, without being influenced by the earlier rejection.

Headnote

A) Land Acquisition - Conversion of Occupancy Class - Section 44 of Maharashtra Land Revenue Code, 1966 - Lands acquired under Part VII of the Land Acquisition Act, 1894 - The petitioner sought conversion of occupancy from Class-II to Class-I for lands acquired under Part VII of the Land Acquisition Act, 1894. The Collector rejected the application citing Section 44 of the MLRC, 1966 which prohibits conversion of occupancy of lands held on lease from the Government. The Court held that Section 44 of the MLRC, 1966 does not apply to lands acquired under the Land Acquisition Act, 1894 as the acquisition is not a lease from the Government. The Court directed the Collector to consider the application afresh in accordance with law. (Paras 1-18)

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Issue of Consideration

Whether the District Collector was justified in rejecting the application for conversion of occupancy from Class-II to Class-I on the ground that the lands were acquired under Part VII of the Land Acquisition Act, 1894 and that Section 44 of the Maharashtra Land Revenue Code, 1966 prohibits such conversion.

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Final Decision

The Court allowed the writ petition, quashed the impugned order dated 27.09.2021, and directed the District Collector to consider the petitioner's application for conversion of occupancy from Class-II to Class-I afresh in accordance with law, without being influenced by the earlier rejection.

Law Points

  • Interpretation of Section 44 of the Maharashtra Land Revenue Code
  • 1966
  • Conversion of occupancy class
  • Part VII of the Land Acquisition Act
  • 1894
  • Applicability of MLRC to lands acquired under LA Act
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Case Details

2022 LawText (BOM) (06) 33

WRIT PETITION NO.8341 OF 2021

2022-06-09

S.V. GANGAPURWALA, M. G. SEWLIKAR

2022:BHC-AS:12021-DB

Dr. Milind Sathe, Senior Advocate with Mr. G.S. Godbole, Mr. Saket Mone, Mr. Subit Chakrabarti, Mr. Shrey Shah, Mr. Makarand Savant & Mr. Devansh Shah i/b M/s. Vidhii Partners for the Petitioner; Mr. A.A. Kumbhakoni, Advocate General with Ms. M.P. Thakur, A.G.P. for the State / Respondents

Ananta Landmarks Private Limited

State of Maharashtra through the Principal Secretary Revenue & Forest Department, District Collector of Thane

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging the rejection of application for conversion of occupancy from Class-II to Class-I.

Remedy Sought

The petitioner sought quashing of the impugned order dated 27.09.2021 and a direction to the Collector to consider the conversion application afresh.

Filing Reason

The District Collector rejected the petitioner's application for conversion of occupancy from Class-II to Class-I on the ground that Section 44 of the Maharashtra Land Revenue Code, 1966 prohibits such conversion for lands held on lease from the Government, and the lands were acquired under Part VII of the Land Acquisition Act, 1894.

Issues

Whether Section 44 of the Maharashtra Land Revenue Code, 1966 applies to lands acquired under Part VII of the Land Acquisition Act, 1894? Whether the District Collector was justified in rejecting the conversion application on the ground that the lands were held on lease from the Government?

Submissions/Arguments

The petitioner argued that the lands were not held on lease from the Government but were acquired under Part VII of the Land Acquisition Act, 1894, and Section 44 of the MLRC does not apply. The respondents argued that the lands were acquired under Part VII and the petitioner's predecessor-in-title had executed an agreement, and Section 44 of the MLRC prohibits conversion of occupancy of lands held on lease from the Government.

Ratio Decidendi

Section 44 of the Maharashtra Land Revenue Code, 1966, which prohibits conversion of occupancy of lands held on lease from the Government, does not apply to lands acquired under Part VII of the Land Acquisition Act, 1894, as such acquisition is not a lease from the Government in the sense contemplated by the MLRC. The Collector erred in rejecting the conversion application on that ground.

Judgment Excerpts

The Petitioner in the instant petition under Article 226 of the Constitution of India assails the impugned order / communication dated 27.09.2021 issued by the District Collector of Thane i.e. Respondent no.2 thereby rejecting the application filed by the Petitioner for conversion of occupancy from Class-II to Occupancy Class-I of the writ lands. The State of Maharashtra (Respondent no.1) acquired an area of 1,89,680 sq. mtrs. of the lands under the provisions of Part VII of the Land Acquisition Act, 1894. The Collector rejected the application on the ground that Section 44 of the Maharashtra Land Revenue Code, 1966 prohibits conversion of occupancy of lands held on lease from the Government. The Court held that Section 44 of the MLRC does not apply to lands acquired under the Land Acquisition Act, 1894 as the acquisition is not a lease from the Government.

Procedural History

The petitioner filed an application for conversion of occupancy from Class-II to Class-I before the District Collector, Thane. The Collector rejected the application by order/communication dated 27.09.2021. The petitioner then filed the present writ petition under Article 226 of the Constitution of India before the Bombay High Court. The petition was heard and reserved on 05.05.2022 and pronounced on 09.06.2022.

Acts & Sections

  • Land Acquisition Act, 1894: Part VII
  • Maharashtra Land Revenue Code, 1966: Section 44
  • Constitution of India: Article 226
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High Court Bombay High Court Allows Conversion of Occupancy Class-II to Class-I Under Maharashtra Land Revenue Code, 1966 — Holds That Section 44 of the Code Does Not Bar Such Conversion for Lands Acquired Under Part VII of the Land Acquisition Act, 1894.