High Court Rejects Challenge to Land Acquisition Award Under MRTP Act; Section 24(2) of New Land Acquisition Act Held Inapplicable. Acquisition Proceeding Saved by Section 114 of 2013 Act and Section 6 of General Clauses Act, Compensation Determined per Section 24(1)(a).

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
  • 1
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, owner of land admeasuring 9 Gunthas of City Survey No. 3328 at Bhosari, challenged an acquisition award under the Maharashtra Regional Town Planning Act, 1966 and consequent notice under the Land Acquisition Act, 1894. The land was notified for a school purpose in 2004, and the petitioner had existing constructions and occupants. The Special Land Acquisition Officer passed an award on 24 September 2015 acquiring 500 square meters and issued a notice fixing possession on 14 October 2015. The petitioner filed a writ petition under Article 226 of the Constitution of India, contending that the acquisition proceedings had lapsed due to the enactment of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The principal legal issue was whether Section 24(2) of the 2013 Act applied to lapse the acquisition, and whether the award could validly be passed under the repealed Land Acquisition Act after the new Act came into force. The petitioner argued that because the award was made on 24 September 2015, after the 2013 Act commenced, the proceedings stood lapsed under Section 24(2), as no award under the old Act had been made five years prior. He further contended that notices issued in 2005 were not taken to logical conclusion and the old Act could not be invoked after repeal. The respondent State defended the continuation of proceedings relying on the saving clause. The High Court examined Section 24(2) and held that on a plain reading, it requires the award to have been made at least five years before the commencement of the 2013 Act, which was not the case, as the award was made on 24 September 2015. The Court further relied on the Full Bench decision in Mehtab Laiq Ahmed Shaikh v. State of Maharashtra, which held that Section 24(2) does not apply to acquisitions initiated under Sections 125 to 127 of the MRTP Act, which is a complete code. Since the present acquisition was under the MRTP Act, the argument based on Section 24(2) was untenable. Addressing the second submission, the Court referred to Section 114(2) of the 2013 Act and Section 6 of the General Clauses Act, 1897, which save proceedings initiated under the repealed Act and allow them to be continued and completed under its provisions. The Court noted that the only exception was in Section 24(1)(a) regarding determination of compensation, which was correctly applied. The award was validly made under the old Act with compensation calculated as per the new Act. The petitioner's final contention that the award was a composite award under both Acts was rejected as a misreading. Consequently, the High Court dismissed the writ petition, holding that the acquisition proceedings and the award were valid.

Headnote

A) Land Acquisition - Lapsing - Section 24(2) Right to Fair Compensation Act - Award must be five years prior - Award dated 24.09.2015, not five years before the Act's commencement - Held that Section 24(2) has no application (Paras 5-6).

B) Land Acquisition - MRTP Act - Section 24(2) Applicability - Mehtab Laiq Ahmed Shaikh v. State of Maharashtra - Section 24(2) does not apply to acquisitions under Sections 125-127 of MRTP Act - Held that reliance on Section 24(2) to claim lapsing is misconceived (Para 7).

C) Land Acquisition - Repeal and Saving - Section 114 New Act, Section 6 General Clauses Act - Proceedings initiated under Land Acquisition Act, 1894 must be continued under that Act - Award under Section 11 made on 24.09.2015 was valid - Exception under Section 24(1)(a) only applies to compensation calculation - Held that award validly passed (Paras 8-11).

D) Land Acquisition - Nature of Award - Composite Award Argument - Award correctly states it is under old Act but compensation calculated per Section 24(1)(a) of new Act - Held that argument of composite award is wholly misconceived (Para 12).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the acquisition proceedings under the Maharashtra Regional Town Planning Act, 1966 and Land Acquisition Act, 1894 lapsed owing to Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and whether the award passed under the old Act after the new Act came into force was valid.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court dismissed the writ petition, holding that Section 24(2) of the 2013 Act did not apply because the award was not five years old, and even if it applied, it would not apply to MRTP Act acquisitions as per the Full Bench in Mehtab Laiq Ahmed Shaikh. The Court further held that the proceedings were validly continued under the old Act by virtue of Section 114(2) of the new Act read with Section 6 of the General Clauses Act, and the award was properly made under the old Act with compensation calculated as per Section 24(1)(a) of the new Act. The argument regarding a composite award was rejected as misconceived.

Law Points

  • Section 24(2) of Right to Fair Compensation Act lapses acquisition only if award was made five years before the new Act
  • Section 24(2) does not apply to acquisitions under MRTP Act
  • proceedings initiated under repealed Land Acquisition Act continue by virtue of Section 114(2) read with Section 6 General Clauses Act
  • compensation for such proceedings determined as per Section 24(1)(a) of the new Act.
Subscribe to unlock Law Points Subscribe Now

Case Details

2018 LawText (BOM) (07) 46

WRIT PETITION NO. 10129 OF 2015

2018-07-13

K.K.Tated, B.P.Colabawalla

2018:BHC-AS:18747-DB

Uday Warunjikar, Pushpalata N. Diwan

Mr Ashok Narayan Lande

State of Maharashtra through Special Land Acquisition Officer, Special Zone No.2, Pimpri Pune

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

Nature of Litigation

Writ petition under Article 226 of Constitution of India challenging acquisition award and notice under Land Acquisition Act, 1894.

Remedy Sought

Petitioner sought setting aside of award dated 24 September 2015 and notice under Section 12(2) read with Section 16 of old Land Acquisition Act, claiming acquisition proceedings lapsed.

Filing Reason

Petitioner alleged that acquisition proceedings initiated under MRTP Act had lapsed because award was made after the new 2013 Act came into force and that Section 24(2) applied, and that old Act could not be invoked.

Issues

Whether Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 applies to acquisitions initiated under the Maharashtra Regional Town Planning Act, 1966. Whether the acquisition proceedings and award under the Land Acquisition Act, 1894 stood lapsed because the award was made after the commencement of the new Act. Whether the award dated 24 September 2015 was validly passed under the old Land Acquisition Act when the new Act was in force.

Submissions/Arguments

Petitioner argued that Section 24(2) of the 2013 Act caused the entire acquisition proceedings to lapse because the award was not made five years before the new Act and the old Act stood repealed. Petitioner contended that notices under Section 9(3) & (4) issued in 2005 were not taken to logical conclusion before the new Act came into force, and hence acquisition lapsed; and no award could be passed under the old Act after its repeal. Petitioner further argued that the award was a composite award under both old and new Acts, which was impermissible. Respondent defended the acquisition, asserting that proceedings were validly continued under the saving provision of the new Act and the General Clauses Act, and that compensation was correctly calculated as per Section 24(1)(a).

Ratio Decidendi

Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, requires that an award under Section 11 of the old Land Acquisition Act must have been made five years or more prior to the commencement of the new Act for acquisition proceedings to lapse; it does not apply to acquisitions under the MRTP Act. Further, Section 114(2) of the 2013 Act read with Section 6 of the General Clauses Act, 1897, saves and continues proceedings initiated under the repealed Land Acquisition Act, 1894, allowing awards to be made under that Act, with compensation to be determined under the new Act per Section 24(1)(a).

Judgment Excerpts

Section 24(2), on an ex-facie reading, has absolutely no application to the facts of the present case. the award in the present case was made on 24th September, 2015. It was not an award that was made / published five years prior to coming into force of the New Land Acquisition Act. Section 24(2) of the New Land Acquisition Act will apply only if the acquisition proceedings are “initiated” under the old Land Acquisition Act and would not apply if they are initiated under Sections 125 to 127 of the MRTP Act. proceedings that have been initiated under the old Land Acquisition Act are to be continued and completed under the provisions of the said Act. the exception carved out in Section 24(1)(a) is that where acquisition proceedings have commenced under the old Land Acquisition Act and no award has been made under Section 11 of the said Act, then compensation would still have to be calculated as per the provisions of the New Land Acquisition Act.

Procedural History

The acquisition was initiated by resolution for school purpose under MRTP Act; notification dated 23 December 2004 under Section 126(4) of MRTP Act read with Section 6 of Land Acquisition Act, 1894, published in Gazette on 6 January 2005. Notices under Section 9(3)&(4) issued on 6 April 2005. Award under Section 11 of Land Acquisition Act made on 24 September 2015. Notice under Section 12(2) read with Section 16 issued on same date, fixing possession date 14 October 2015. Petitioner filed writ petition challenging the award and notice.

Acts & Sections

  • The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(1)(a), 24(2), 114(2)
  • Land Acquisition Act, 1894: 6, 9(3), 9(4), 11, 12(2), 16
  • Maharashtra Regional Town Planning Act, 1966: 125, 126(4), 127
  • General Clauses Act, 1897: 6
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court Rejects Challenge to Land Acquisition Award Under MRTP Act; Section 24(2) of New Land Acquisition Act Held Inapplicable. Acquisition Proceeding Saved by Section 114 of 2013 Act and Section 6 of General Clauses Act, Compensation Determined ...
Related Judgement
High Court High Court of Karnataka Acquits Appellants in CBI Corruption Case Due to Lack of Evidence. Conviction for Criminal Conspiracy, Cheating, Forgery, and Corruption Set Aside as Prosecution Failed to Prove Guilt Beyond Reasonable Doubt.