Bombay High Court Dismisses Second Appeal in Land Acquisition Case — Suit Barred by Limitation and Res Judicata. Appellants' challenge to 1965 acquisition notification filed in 1992 held time-barred under Article 58 of Limitation Act, 1963 and earlier writ petition dismissal operates as res judicata.

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

The appellants, original plaintiffs, filed a suit in 1992 seeking declaration of title and permanent injunction in respect of two suit properties bearing survey no.222 (old), 234 (new) and survey no.254/2-B (old), 8/2-B (new) situated at Wai, District Satara. The properties were acquired by the State of Maharashtra for Maharashtra Industrial Development Corporation (MIDC) under the Land Acquisition Act, 1894. A notification under Section 4 was issued on 30th September 1965, followed by declaration under Section 6 on 28th July 1966. The Land Acquisition Officer passed an award on 30th June 1967 and possession was taken on 5th July 1967. The appellants' predecessor had earlier filed a writ petition in the High Court challenging the acquisition, which was dismissed on 24th August 1987. The appellants then filed the present suit in 1992. The trial court dismissed the suit on the ground of limitation and res judicata. The first appellate court confirmed the dismissal. In the second appeal under Section 100 CPC, the High Court framed substantial questions of law regarding limitation, res judicata, and maintainability of the suit. The High Court held that the suit was clearly barred by limitation under Article 58 of the Limitation Act, 1963 as the cause of action arose in 1965 when the Section 4 notification was issued, and the suit filed in 1992 was beyond three years. The court also held that the earlier writ petition dismissal operated as res judicata under Section 11 CPC. Further, the court observed that once possession was taken and award was made, the land vested in the State free from encumbrances under Section 16 of the Land Acquisition Act, and the suit for injunction was not maintainable. The court also noted that the appellants had not challenged the acquisition proceedings within the period of limitation and had not sought any relief under Section 48 of the Land Acquisition Act. The second appeal was dismissed with no order as to costs.

Headnote

A) Limitation Act, 1963 - Article 58 - Suit for Declaration - Limitation period of three years from cause of action - Suit challenging acquisition notification of 1965 filed in 1992 is barred by limitation as cause of action arose in 1965 when notification was issued (Paras 10-15).

B) Res Judicata - Section 11 CPC - Dismissal of Writ Petition - Earlier writ petition challenging same acquisition was dismissed in 1987 - Subsequent suit for same relief is barred by res judicata (Paras 16-20).

C) Land Acquisition Act, 1894 - Sections 4, 6, 9, 16, 48 - Acquisition Proceedings - Once possession is taken and award is made, land vests in State free from encumbrances - Suit for injunction not maintainable (Paras 21-25).

D) Specific Relief Act, 1963 - Sections 34, 38 - Declaration and Injunction - Suit for declaration of title and injunction against State after acquisition is not maintainable when plaintiffs failed to challenge acquisition within limitation (Paras 26-30).

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Issue of Consideration

Whether the suit for declaration and injunction challenging land acquisition proceedings is barred by limitation and res judicata in light of earlier dismissal of writ petition and long delay.

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Final Decision

Second Appeal No.742 of 2011 is dismissed. Civil Application No.1715 of 2011 is disposed of. No order as to costs.

Law Points

  • Limitation Act
  • 1963
  • Article 58
  • Res Judicata
  • Section 11 CPC
  • Land Acquisition Act
  • 1894
  • Section 4
  • Section 6
  • Section 9
  • Section 16
  • Section 48
  • Specific Relief Act
  • Section 34
  • Section 38
  • Code of Civil Procedure
  • 1908
  • Section 100
  • Order 7 Rule 11
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Case Details

2016:BHC-AS:29115

Second Appeal No.742 of 2011 with Civil Application No.1715 of 2011

2016-11-29

R.D. Dhanuka, J.

2016:BHC-AS:29115

Mr.R.A. Thorat, Senior Counsel with Mr.P.B. Gujar for the Appellants; Ms.Shyamali Gadre with Mr.Ankit Kulkarni i/b Little & Co. for the Respondents

Shri Namdev Sadashiv Adsul (deceased through legal heir Smt.Yashodabai Namdeo Adsul) and others

State of Maharashtra through Collector, Satara; Sub Divisional Officer, Wai; Maharashtra Industrial Development Corporation

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Nature of Litigation

Second appeal under Section 100 CPC against dismissal of suit for declaration and injunction challenging land acquisition proceedings.

Remedy Sought

Appellants sought declaration of title and permanent injunction restraining respondents from interfering with suit properties.

Filing Reason

Appellants claimed that the acquisition proceedings were invalid and that they continued to be in possession of the suit properties.

Previous Decisions

Trial court dismissed Regular Civil Suit No.171 of 1992 on 29th April 2005; First appellate court dismissed Regular Civil Appeal No.165 of 2005 on 2nd April 2011.

Issues

Whether the suit is barred by limitation under Article 58 of the Limitation Act, 1963? Whether the suit is barred by res judicata in view of dismissal of earlier writ petition? Whether the suit for declaration and injunction is maintainable in light of acquisition proceedings?

Submissions/Arguments

Appellants argued that they were in possession and that acquisition was not completed as possession was not taken; limitation should run from date of knowledge. Respondents argued that acquisition was complete, possession taken in 1967, suit filed in 1992 is barred by limitation and res judicata.

Ratio Decidendi

A suit challenging land acquisition proceedings filed 27 years after the Section 4 notification is barred by limitation under Article 58 of the Limitation Act, 1963. Dismissal of an earlier writ petition on merits operates as res judicata under Section 11 CPC. Once possession is taken and award is made, land vests in the State free from encumbrances under Section 16 of the Land Acquisition Act, 1894, and a suit for injunction is not maintainable.

Judgment Excerpts

By this appeal filed under section 100 of the Code of Civil Procedure, 1908, the appellants (original plaintiffs) have impugned the judgment and decree dated 2nd April 2011 passed by the Principal District Judge, Satara, dismissing Regular Civil Appeal No.165 of 2005 filed by the appellants. The suit was clearly barred by limitation under Article 58 of the Limitation Act, 1963 as the cause of action arose in 1965 when the Section 4 notification was issued. The earlier writ petition dismissal operates as res judicata under Section 11 CPC.

Procedural History

The appellants filed Regular Civil Suit No.171 of 1992 in the Court of Civil Judge, Senior Division, Satara, which was dismissed on 29th April 2005. The appellants appealed to the Principal District Judge, Satara, who dismissed Regular Civil Appeal No.165 of 2005 on 2nd April 2011. The appellants then filed the present Second Appeal No.742 of 2011 in the Bombay High Court, which was reserved on 18th October 2016 and pronounced on 29th November 2016.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100, Section 11, Order 7 Rule 11
  • Limitation Act, 1963: Article 58
  • Land Acquisition Act, 1894: Section 4, Section 6, Section 9, Section 16, Section 48
  • Specific Relief Act, 1963: Section 34, Section 38
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