Bombay High Court Allows Petition for Compensation for Land Taken Possession Before Acquisition Under Land Acquisition Act, 1894. Agreement for Compensation Between Landowners and Acquiring Body Enforced for Period from Possession to Award.

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

The petitioners, Ajinath, Bajirao, and Dhondiba Avhad, owned agricultural land in Mahinda, Taluka Ashti, District Beed. Their land was required for the construction of a village water tank, a public purpose. Before formal acquisition proceedings were initiated or completed, the respondents (the State of Maharashtra, the Collector, the Special Land Acquisition Officer, and the Executive Engineers of the Irrigation Department) approached the petitioners for consent to take possession of the land. On 16th June 2005, an agreement was executed between the petitioners and respondent nos.4 and 6 (the acquiring body). Clause 1 of the agreement allowed the petitioners to harvest only the existing crop but prohibited sowing new crops. Clause 2 stated that compensation for the period between the date of possession and the date of the award would be determined by the Collector. Possession of the land was taken on 16th June 2005, as admitted by the respondents in their affidavits. The award was made on 30th June 2010. The petitioners filed a writ petition seeking compensation for the use and occupation of their land from 16th June 2005 to 30th June 2010, as per the agreement. The respondents argued that the compensation would be determined by the Collector and that the petitioners were not entitled to any interim compensation. The court held that the respondents were bound by the agreement and must pay compensation for the period from possession to the award. The court directed the respondents to pay compensation at the rate determined by the Collector, or if not determined, at the market rate as on the date of possession, with interest. The petition was allowed with costs.

Headnote

A) Land Acquisition - Pre-acquisition Possession - Compensation - Agreement - The petitioners' land was taken possession of on 16th June 2005 before formal acquisition proceedings, under an agreement dated 16th June 2005. Clause 2 of the agreement provided that compensation for the period between possession and award would be determined by the Collector. The court held that the respondents are bound by the agreement and must pay compensation for the use and occupation of the land from the date of possession until the date of the award, as per the agreement. (Paras 3-5)

B) Land Acquisition - Delay in Award - Section 11A Land Acquisition Act, 1894 - The award was made on 30th June 2010, nearly five years after possession was taken. The court noted that the delay in making the award does not absolve the respondents from their obligation to pay compensation under the agreement. The court directed the respondents to pay compensation for the period from 16th June 2005 to 30th June 2010, as per the agreement. (Paras 4-6)

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Issue of Consideration

Whether the petitioners are entitled to compensation for the period between taking possession of their land on 16th June 2005 and the date of the award, and whether the respondents are liable to pay compensation as per the agreement executed on 16th June 2005.

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Final Decision

The court allowed the writ petition and directed the respondents to pay compensation to the petitioners for the use and occupation of their land from 16th June 2005 to 30th June 2010, as per the agreement dated 16th June 2005. The compensation shall be determined by the Collector, and if not determined, at the market rate as on the date of possession with interest. The respondents were also directed to pay costs.

Law Points

  • Compensation for pre-acquisition possession
  • Agreement for compensation
  • Duty of acquiring body to pay compensation
  • Section 11A Land Acquisition Act
  • 1894
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Case Details

2012 LawText (BOM) (03) 18

Writ Petition No. 10672 of 2010

2012-03-21

D.G. Karnik, S.B. Deshmukh

Mr. V.M. Chate (for petitioners), Mr. B.V. Wagh (for respondent nos.1 to 3), Mr. S.G. Sangle (for respondent nos.4 and 6)

Ajinath s/o. Dagdu Avhad, Bajirao s/o. Dagdu Avhad, Dhondiba s/o. Dagdu Avhad

The State of Maharashtra, The Collector, The Special Land Acquisition Officer No.2, The Executive Engineer, Irrigation Department, Beed, The Executive Engineer, Minor Irrigation Division [L.S.], Beed, The Deputy Engineer, Minor Irrigation, Sub-Division, Patoda, District Beed

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Nature of Litigation

Writ petition seeking compensation for land taken possession before formal acquisition proceedings.

Remedy Sought

Petitioners sought direction to respondents to pay compensation for use and occupation of their land from 16th June 2005 to 30th June 2010 as per agreement.

Filing Reason

Respondents took possession of petitioners' land on 16th June 2005 under an agreement but failed to pay compensation for the period until the award was made on 30th June 2010.

Issues

Whether the petitioners are entitled to compensation for the period between taking possession and the date of the award under the agreement dated 16th June 2005. Whether the respondents are liable to pay compensation as per the agreement.

Submissions/Arguments

Petitioners argued that possession was taken on 16th June 2005 under an agreement which provided for compensation to be determined by the Collector, but no compensation was paid for the period until the award on 30th June 2010. Respondents contended that compensation would be determined by the Collector and that the petitioners were not entitled to any interim compensation.

Ratio Decidendi

The respondents are bound by the agreement executed on 16th June 2005, which requires them to pay compensation for the period between possession and the award. The delay in making the award does not absolve them from this obligation.

Judgment Excerpts

Clause No.2 states that the compensation for the period between the date of possession and the date of award shall be determined by the Collector. The respondents are bound by the agreement and must pay compensation for the use and occupation of the land from the date of possession until the date of the award.

Procedural History

The petitioners filed Writ Petition No. 10672 of 2010 before the Bombay High Court, Aurangabad Bench, seeking compensation for land taken possession on 16th June 2005. The court issued rule and heard the matter by consent of parties, disposing it on 21st March 2012.

Acts & Sections

  • Land Acquisition Act, 1894: Section 11A
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High Court Bombay High Court Allows Petition for Compensation for Land Taken Possession Before Acquisition Under Land Acquisition Act, 1894. Agreement for Compensation Between Landowners and Acquiring Body Enforced for Period from Possession to Award.
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