Bombay High Court Allows Writ Petition for Rental Compensation in Land Acquisition Case — Government Policy Entitles Claimants to Compensation from Date of Possession to Award Date. Possession Taken Before Section 4 Notification and Award; Rental Compensation Under Government Resolution Dated 1.12.1972 Granted.

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

The petitioners, owners of land acquired for the K.T. Weir at Killari, challenged the denial of rental compensation for the period between the taking of possession (15.11.1988) and the passing of the award (5.3.1992). The notification under Section 4 of the Land Acquisition Act was issued on 29.3.1990, after possession was taken. The petitioners sought rental compensation under the Government Resolution dated 1.12.1972, which provides for such compensation when possession is taken before the award. The Reference Court, in a Section 18 reference, had granted solatium and interest but did not specifically award rental compensation. The High Court, after hearing arguments, allowed the writ petition, directing the respondents to consider the claim for rental compensation in accordance with the Government Resolution and pass appropriate orders within three months. The court observed that the petitioners were entitled to rental compensation from the date of possession to the date of the award, as per the policy.

Headnote

A) Land Acquisition - Rental Compensation - Possession Before Notification - Government Resolution dated 1.12.1972 - Petitioners' land was acquired for K.T. Weir at Killari; possession was taken on 15.11.1988, but Section 4 notification was issued on 29.3.1990 and award on 5.3.1992. The petitioners claimed rental compensation for the period from possession to award under the Government policy. The Reference Court had granted solatium and interest but did not specifically award rental compensation. The High Court held that the petitioners are entitled to rental compensation as per the Government Resolution, as the possession was taken prior to the award and the policy applies. (Paras 2-5)

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Issue of Consideration

Whether the petitioners are entitled to rental compensation for the period between the date of taking possession (15.11.1988) and the date of passing of the award (5.3.1992) under the Government Resolution dated 1.12.1972, despite the notification under Section 4 of the Land Acquisition Act being issued later on 29.3.1990.

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Final Decision

Writ petition is allowed. Respondents are directed to consider the claim of the petitioners for rental compensation in accordance with the Government Resolution dated 1.12.1972 and pass appropriate orders within three months from the date of receipt of the order.

Law Points

  • Rental compensation
  • Land acquisition
  • Possession before notification
  • Government policy
  • Section 4 notification
  • Section 18 reference
  • Solatium
  • Interest
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Case Details

2014 LawText (BOM) (03) 9

Writ Petition No. 2495 of 2003

2014-03-14

S.V. Gangapurwala, N.W. Sambre

Mr A.G. Mukhedkar (holding for Mr L.C. Patil and Mr V.V. Muglikar) for petitioners; Mr S.B. Pulkundwar, A.G.P. for respondents no.1 & 2; Mr S.G. Sangle for respondent no.3

Madhavrao s/o Sidramappa Shetkar and others

The State of Maharashtra and others

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Nature of Litigation

Writ petition seeking rental compensation for land acquisition

Remedy Sought

Petitioners seek direction to respondents to pay rental compensation from date of possession (15.11.1988) to date of award (5.3.1992) under Government Resolution dated 1.12.1972

Filing Reason

Petitioners' land was acquired for K.T. Weir at Killari; possession taken on 15.11.1988, Section 4 notification on 29.3.1990, award on 5.3.1992; petitioners claim rental compensation for the period between possession and award as per government policy

Previous Decisions

Reference Court in L.A.R. Nos.92/95 and 97/95 partly allowed references, granting solatium and interest but not specifically awarding rental compensation

Issues

Whether petitioners are entitled to rental compensation for the period between taking possession and passing of award under Government Resolution dated 1.12.1972

Submissions/Arguments

Petitioners' counsel argued that as per Government Resolution dated 1.12.1972, rental compensation is payable from date of possession to date of award when possession is taken before award Respondents opposed the claim, but the court found merit in petitioners' submission

Ratio Decidendi

When possession of land is taken prior to the passing of the award under the Land Acquisition Act, the claimants are entitled to rental compensation for the period from the date of possession to the date of the award as per the Government Resolution dated 1.12.1972, irrespective of the date of Section 4 notification.

Judgment Excerpts

The petitioners claim that their land was acquired for the purpose of K.T. Weir at Killari. The notification under section 4 of the Land Acquisition Act came to be issued on 29.3.1990. The possession of the land owned by the petitioners was taken on 15.11.1988, whereas after completing the acquisition proceedings, award came to be passed on 5.3.1992. In view of the policy of the Government reflected in Govt. Resolution dated 1.12.1972, the petitioners are claiming rental compensation from the date of taking over possession till the date of passing of the award.

Procedural History

Land acquisition proceedings initiated for K.T. Weir at Killari; Section 4 notification issued on 29.3.1990; possession taken on 15.11.1988; award passed on 5.3.1992; petitioners filed reference under Section 18 on 4.9.1998; Reference Court partly allowed references on 15.3.1994 granting solatium and interest but not rental compensation; petitioners filed writ petition in 2003 challenging denial of rental compensation.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 18, Section 23, Section 28, Section 34
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