Bombay High Court Dismisses Land Owner's Petition for Rental Compensation Prior to Section 4 Notification in Land Acquisition Case. Possession Lost Before Notification Does Not Entitle Owner to Additional Compensation Under Section 34 or Rental Compensation Under Government Policy.

High Court: Bombay High Court Bench: AURANGABAD
  • 67
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Tukaram Maruti Pawar, was a land owner whose land was acquired by the State of Maharashtra for a minor irrigation project. He lost possession of his land on 13th February 1999, prior to the issuance of the Section 4 notification under the Land Acquisition Act, 1894, which was published on 30th November 2000. The Section 11 award was made on 5th March 2002. The petitioner sought reference under Section 18 for enhancement of compensation. The reference court, on 26th September 2006, declined the petitioner's claim for interest under Section 34 of the Act but granted him the benefit of Section 23(1A) for the period from the Section 4 notification to the date of the award. The petitioner then filed a writ petition before the Bombay High Court, Aurangabad Bench, seeking rental compensation from the date he lost possession (13th February 1999) until the Section 4 notification (30th November 2000), relying on a government policy. The High Court, after hearing the parties, held that since possession was lost before the Section 4 notification, the petitioner was not entitled to rental compensation for that period. The court noted that the reference court had erroneously granted benefit of Section 23(1A) to the petitioner, but since the petitioner was not aggrieved by that grant, the court did not interfere. The court also observed that the petitioner was not in a position to disclose whether interest under Section 28 had been granted. The court dismissed the petition, finding no merit in the claim for rental compensation prior to the Section 4 notification.

Headnote

A) Land Acquisition - Compensation - Possession prior to notification - Land Acquisition Act, 1894, Sections 4, 11, 23(1A), 28, 34 - Petitioner lost possession on 13-2-1999, prior to Section 4 notification dated 30-11-2000 - Reference court granted benefit of Section 23(1A) for period from notification to award but declined Section 34 - Held that since possession was lost before Section 4 notification, the petitioner is not entitled to rental compensation for the period prior to notification, and the reference court erred in granting Section 23(1A) benefit, but the court did not interfere as the petitioner was not aggrieved by that grant (Paras 2-6).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a land owner who lost possession prior to the Section 4 notification under the Land Acquisition Act, 1894 is entitled to rental compensation for the period between loss of possession and the Section 4 notification, and whether the reference court correctly granted benefit of Section 23(1A) despite possession being lost before notification.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court dismissed the writ petition, holding that the petitioner is not entitled to rental compensation for the period prior to Section 4 notification as possession was lost before the notification. The court noted that the reference court had erroneously granted Section 23(1A) benefit, but since the petitioner was not aggrieved, no interference was made.

Law Points

  • Land Acquisition
  • Compensation
  • Possession prior to notification
  • Section 4 notification
  • Section 11 award
  • Section 23(1A)
  • Section 28
  • Section 34
  • Rental compensation
  • Market value
Subscribe to unlock Law Points Subscribe Now

Case Details

2014 LawText (BOM) (12) 13

Writ Petition No. 4415 of 2014

2014-12-15

B.P. Dharmadhikari, A.M. Badar

Mr. D.R. Jayabhar for petitioner, Mrs. M.A. Deshpande for respondent nos.1 to 3, Mr. R.T. Nagargoje for respondent no.4

Tukaram s/o. Maruti Pawar

The State of Maharashtra, The Collector, Beed, The Special Land Acquisition Officer, Beed, The Executive Engineer, Minor Irrigation Division, Zilla Parishad, Beed

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the reference court's order declining rental compensation for period prior to Section 4 notification under Land Acquisition Act, 1894.

Remedy Sought

Petitioner sought rental compensation from the date of loss of possession (13-2-1999) till the date of Section 4 notification (30-11-2000) based on government policy.

Filing Reason

Petitioner lost possession of his land on 13-2-1999, prior to Section 4 notification dated 30-11-2000, and the reference court declined to grant rental compensation for that period.

Previous Decisions

Reference court on 26-9-2006 declined benefit of Section 34 but granted benefit of Section 23(1A) for period from Section 4 notification to award.

Issues

Whether the petitioner is entitled to rental compensation for the period between loss of possession (13-2-1999) and Section 4 notification (30-11-2000) under government policy. Whether the reference court correctly granted benefit of Section 23(1A) despite possession being lost before Section 4 notification.

Submissions/Arguments

Petitioner argued that he must be given benefit of government policy and rental compensation from the date possession was lost till date of Section 4 notification. Respondents argued that since possession was lost before Section 4 notification, the petitioner is not entitled to rental compensation or Section 34 interest.

Ratio Decidendi

Under the Land Acquisition Act, 1894, compensation is determined as on the date of Section 4 notification. If possession is lost prior to that notification, the owner is not entitled to rental compensation for the period before the notification, as the market value is assessed as of the notification date and interest under Section 28 compensates for delayed payment thereafter.

Judgment Excerpts

Section 4 notification was published on 30-11-2000 and Section 11 award has been made on 5-3-2002. The petitioner lost possession on 13-2-1999 i.e. prior to Section 4 notification. As possession was lost before date of Section 4 notification, reference court rightly declined to extend benefit of Section 34 of 1894 Act, to the petitioner. The rental compensation under Section 4 is awarded at 8 % of the market value determined in Section 11 award. Thus, the petitioner ceases to be owner from date of Section 4 notification itself. As such, there is no question of paying rental compensation for the period subsequent to Section 4 notification.

Procedural History

Section 4 notification published on 30-11-2000; Section 11 award on 5-3-2002; petitioner filed reference under Section 18; reference court decided on 26-9-2006 declining Section 34 but granting Section 23(1A); petitioner filed writ petition in 2014.

Acts & Sections

  • Land Acquisition Act, 1894: 4, 11, 18, 23(1A), 28, 34
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Quashes Lok Adalat Award in BSNL Dues Dispute — Lack of Consent Invalidates Compromise. Permanent Lok Adalat Cannot Pass Award Without Parties' Consent Under Section 22C of Legal Services Authorities Act, 1987.
Related Judgement
High Court Bombay High Court Dismisses Land Owner's Petition for Rental Compensation Prior to Section 4 Notification in Land Acquisition Case. Possession Lost Before Notification Does Not Entitle Owner to Additional Compensation Under Section 34 or Rental Compe...