Case Note & Summary
The petitioners, ten retired individuals, filed a writ petition challenging the acquisition of their lands by the Maharashtra Industrial Development Corporation (MIDC) under the Maharashtra Industrial Development Act, 1961. The lands were situated in various locations in Jalgaon district. The petitioners contended that although an award was passed in their favor, the compensation was not paid within five years from the date of the award, as required under Section 11(2) of the Act. They argued that the acquisition had therefore lapsed. The respondents, including MIDC and the State of Maharashtra, opposed the petition, claiming that possession of the lands had been taken and that the acquisition was valid. The court examined the provisions of Section 11(2) of the Maharashtra Industrial Development Act, 1961, which mandates that compensation must be paid within five years from the date of the award, failing which the acquisition lapses. The court found that the compensation had not been paid within the stipulated period, and therefore the acquisition had lapsed. The court also considered the applicability of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, but held that since the acquisition was under a state Act, the 2013 Act was not directly applicable. However, the principle of lapse due to non-payment of compensation within five years was similar. The court allowed the writ petition, declaring that the acquisition had lapsed, and directed the respondents to return possession of the lands to the petitioners within a period of three months.
Headnote
A) Land Acquisition - Lapse of Acquisition - Section 11(2) of Maharashtra Industrial Development Act, 1961 - Failure to Pay Compensation - The petitioners challenged the acquisition of their lands by the Maharashtra Industrial Development Corporation (MIDC) on the ground that compensation was not paid within five years from the date of the award, as required under Section 11(2) of the Act. The court held that the acquisition had lapsed due to non-compliance with the statutory requirement, and directed the respondents to return possession of the lands to the petitioners. (Paras 1-10) B) Land Acquisition - Applicability of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The court considered whether the provisions of the 2013 Act would apply to acquisitions under the Maharashtra Industrial Development Act, 1961. It held that since the acquisition was under a state Act, the provisions of the 2013 Act were not directly applicable, but the principle of lapse due to non-payment of compensation within five years was analogous. (Paras 5-8) C) Land Acquisition - Possession - Return of Possession - The court directed the respondents to hand over possession of the acquired lands to the petitioners within a specified period, as the acquisition had lapsed. (Para 10)
Issue of Consideration
Whether the land acquisition proceedings initiated under the Maharashtra Industrial Development Act, 1961 have lapsed due to non-compliance with Section 11(2) of the Act and failure to pay compensation within the stipulated period.
Final Decision
The court allowed the writ petition, declaring that the acquisition of the petitioners' lands had lapsed due to non-payment of compensation within five years from the date of award. The respondents were directed to return possession of the lands to the petitioners within three months.
Law Points
- Land Acquisition
- Lapse of Acquisition
- Section 11(2) Maharashtra Industrial Development Act
- 1961
- Compensation
- Possession
- Section 24(2) Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013



