Bombay High Court Allows Petition to Quash Land Acquisition Proceedings Under Land Acquisition Act, 1894 Due to Lapse Under Section 24(2) of 2013 Act. Acquisition Lapsed as Possession Not Taken and Compensation Not Paid Despite Award Made in 2008.

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

The petitioners, Reliance Natural Resources Limited and its director Murli Manohar Purohit, filed a writ petition under Article 226 of the Constitution of India challenging the land acquisition proceedings initiated by the State of Maharashtra and other respondents. The acquisition was initiated by a notification dated 24th December 1992 under Section 4 of the Land Acquisition Act, 1894, for a public purpose. The petitioners contended that despite the passage of time, neither possession of the land was taken nor compensation paid, and therefore the proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The respondents argued that the acquisition was complete and the petitioners were not entitled to any relief. The court examined the facts and found that the award under Section 11 of the 1894 Act was made on 30th June 2008, more than five years before the 2013 Act came into force on 1st January 2014. Since neither possession was taken nor compensation paid, the conditions of Section 24(2) were satisfied, and the proceedings lapsed. The court allowed the petition, quashing the acquisition proceedings and directing the respondents to return the land to the petitioners if still in their possession.

Headnote

A) Land Acquisition - Lapse of Proceedings - 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 initiated by a notification under Section 4 of the Land Acquisition Act, 1894, on the ground that the proceedings had lapsed under Section 24(2) of the 2013 Act as neither possession was taken nor compensation paid. The court held that since the award was made more than five years before the 2013 Act came into force, and neither possession nor compensation was effected, the proceedings stood lapsed. (Paras 1-20)

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Issue of Consideration

Whether the land acquisition proceedings initiated under the Land Acquisition Act, 1894, lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as possession was not taken and compensation was not paid.

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Final Decision

The court allowed the petition, quashing the land acquisition proceedings and directing the respondents to return the land to the petitioners if still in their possession.

Law Points

  • Land acquisition proceedings lapse under Section 24(2) of the 2013 Act if possession not taken or compensation not paid for five years or more
  • Land Acquisition Act
  • 1894
  • Section 4 notification
  • Section 6 declaration
  • Section 11 award
  • Section 16 possession
  • Section 24(2) of 2013 Act
  • Article 226 of Constitution of India
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Case Details

2019 LawText (BOM) (05) 20

Writ Petition No. 572 of 2019

2019-05-02

R.M. Borde, N.J. Jamadar

Mr. S.U. Kamdar, Senior Advocate, a/w. Mr. Cyrus Bharucha, Mr. Chirag Kamdar, Mr. Tushad Kakalia, Mr.D.J. Kakalia, Ms.Bhavna Singh, Mr.Paresh Patkar, i/b. M/s. Mulla & Mulla & Craiegie Blunt & Caroe for petitioners. Mr.A.A. Kumbhakoni, Advocate General, a/w. Ms. Geeta R. Shastri, Addl.G.P., Mr. Akshay Shinde, 'B' Panel Counsel, Mr. S.B. Gore, AGP for respondent Nos. 1 to 4State.

Reliance Natural Resources Limited and Murli Manohar Purohit

State of Maharashtra, Deputy Collector (Land Acquisition), Special Land Acquisition Officer, Controller of Accommodation

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging land acquisition proceedings.

Remedy Sought

Petitioners sought a writ or direction to quash and set aside the land acquisition proceedings initiated by notification dated 24th December 1992 under Section 4 of the Land Acquisition Act, 1894.

Filing Reason

Petitioners claimed that the acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as possession was not taken and compensation was not paid.

Issues

Whether the land acquisition proceedings initiated under the Land Acquisition Act, 1894, lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Submissions/Arguments

Petitioners argued that the award was made on 30th June 2008, more than five years before the 2013 Act came into force, and neither possession was taken nor compensation paid, hence the proceedings lapsed. Respondents contended that the acquisition was complete and the petitioners were not entitled to any relief.

Ratio Decidendi

Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, where an award under the Land Acquisition Act, 1894 has been made five years or more prior to the commencement of the 2013 Act, the proceedings shall be deemed to have lapsed if either possession of the land has not been taken or compensation has not been paid. In this case, the award was made on 30th June 2008, more than five years before 1st January 2014, and neither possession nor compensation was effected, so the proceedings lapsed.

Judgment Excerpts

By this petition under Article 226 of the Constitution of India, the petitioners seek a writ or direction to quash and set aside the land acquisition proceedings initiated in accordance with the notification dated 24th December 1992 issued under Section 4 of the Land Acquisition Act, 1894. Since neither possession was taken nor compensation paid, the proceedings lapsed under Section 24(2) of the 2013 Act.

Procedural History

The petitioners filed a writ petition under Article 226 of the Constitution of India in the High Court of Judicature at Bombay challenging the land acquisition proceedings initiated by notification dated 24th December 1992 under Section 4 of the Land Acquisition Act, 1894. The petition was reserved on 16th April 2019 and pronounced on 2nd May 2019.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 6, Section 11, Section 16
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
  • Constitution of India: Article 226
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