Bombay High Court Quashes Government Circular Restricting Land Compensation Under Consent Award. Circular dated 27.02.2020 Held Ultra Vires the RFCTLARR Act, 2013 and Maharashtra Rules, 2014.

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

The petitioner, Sanjay Mahadeo Japkar, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging a Government Circular dated 27th February 2020 issued by the Planning Department (EGS Division), Mantralaya, Mumbai. The petitioner's land was acquired by respondent No.3 (District Collector, Beed) for construction of a Village Tank under the Employment Guarantee Scheme. Possession was taken on 24.12.2002 with consent, subject to completion of acquisition proceedings. The acquisition proceedings were initiated in 2006 but due to shortcomings by the State authorities, the award could not be passed. The petitioner sought compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) and the Maharashtra Rules, 2014. The impugned Circular directed that compensation under consent award be paid only up to 50% of the market value, which the petitioner argued was contrary to the Act and Rules. The Court analyzed the provisions of the RFCTLARR Act, 2013, particularly Sections 26, 27, and 28 regarding determination of market value and consent awards. It held that the Circular was ultra vires the Act and Rules as it sought to restrict compensation below the statutory minimum. The Court quashed the Circular and directed the respondents to pass an award in accordance with the Act and Rules, considering the petitioner's entitlement to full compensation. The judgment emphasized that executive instructions cannot override statutory provisions.

Headnote

A) Land Acquisition - Compensation - Consent Award - Government Circular - The impugned Circular dated 27.02.2020 issued by the Planning Department (EGS Division) restricting compensation under consent award to 50% of market value was held ultra vires the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and the Maharashtra Rules, 2014. The Court held that the Circular cannot override the statutory provisions and that the consent award must be in conformity with the Act and Rules. (Paras 1-22)

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Issue of Consideration

Whether the Government Circular dated 27.02.2020, which restricts payment of compensation under the consent award to the extent of 50% of the market value, is ultra vires the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and the Maharashtra Rules, 2014.

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Final Decision

The Court allowed the writ petition, quashed the Government Circular dated 27.02.2020, and directed the respondents to pass an award in accordance with the RFCTLARR Act, 2013 and Maharashtra Rules, 2014, considering the petitioner's entitlement to full compensation.

Law Points

  • Land acquisition
  • compensation
  • consent award
  • government circular
  • ultra vires
  • RFCTLARR Act
  • 2013
  • Maharashtra Rules
  • 2014
  • Article 226
  • Article 227
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Case Details

2020 LawText (BOM) (10) 13

Writ Petition No. 5231 of 2020

2020-10-09

S. V. Gangapurwala, Shrikant D. Kulkarni

B.S. Bodkhe for petitioner, S. B. Yawalkar for respondents

Sanjay Mahadeo Japkar

State of Maharashtra and Others

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Nature of Litigation

Writ petition challenging a government circular restricting compensation under consent award in land acquisition.

Remedy Sought

Quashing of Government Circular dated 27.02.2020 and direction to pay compensation as per RFCTLARR Act, 2013 and Maharashtra Rules, 2014.

Filing Reason

The impugned circular restricted compensation to 50% of market value, which was contrary to the statutory provisions.

Issues

Whether the Government Circular dated 27.02.2020 is ultra vires the RFCTLARR Act, 2013 and Maharashtra Rules, 2014? Whether the petitioner is entitled to compensation as per the Act and Rules despite the circular?

Submissions/Arguments

Petitioner argued that the circular is contrary to the Act and Rules and cannot override statutory provisions. Respondents argued that the circular was issued to streamline the process and avoid excessive compensation.

Ratio Decidendi

Executive instructions or circulars cannot override statutory provisions. The consent award must be in conformity with the RFCTLARR Act, 2013 and the Maharashtra Rules, 2014, and compensation cannot be restricted below the statutory minimum.

Judgment Excerpts

The impugned Circular is not in conformity with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and the Maharashtra Rules, 2014. The Circular cannot override the statutory provisions.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the Government Circular dated 27.02.2020. The petition was heard and reserved on 8th September 2020, and judgment pronounced on 9th October 2020.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Sections 26, 27, 28
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Maharashtra) Rules, 2014:
  • Constitution of India: Articles 226, 227
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