High Court of Judicature at Bombay Allows Writ Petition in Part and Directs Extension of Liberalised Compensation Policy to Cooperative Landowners. Distinction Between Landowners Based on Protest Held Arbitrary and Violative of Article 14; Possession Taken After Enactment of Right to Fair Compensation Act, 2013.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, twenty individuals engaged in agriculture and agricultural labour from Kelpani village, challenged the denial of enhanced compensation under a 2015 government resolution, having earlier opted for a lower compensation package under a 2012 policy. Their land was being acquired for a forest project, and they had cooperated with the state administration by not opposing the acquisition. In 2012, the state government offered Rs. 10,00,000 per family as compensation; the gram sabha passed a resolution accepting this, and individual options were submitted after January 1, 2014, when the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, came into force. Another group of landowners protested, and to facilitate acquisition, the state issued a new policy on October 12, 2015, providing compensation as per the 2013 Act, which was significantly higher. Possession of all lands was taken only after the 2013 Act, and the petitioners were being paid less than half of what the protesting landowners received. The petitioners contended that the distinction based on cooperation versus protest was discriminatory and that they should receive the same enhanced compensation. The state argued that the petitioners had voluntarily chosen the 2012 policy and that the change was necessitated by the unforeseen enactment of the 2013 Act. The core legal issue was whether such classification among landowners was reasonable under Article 14 of the Constitution. The High Court held that protest cannot be a 'reasonable differentia' and that cooperative landowners cannot be punished for their bona fides. The court found the state's classification unsustainable and directed the respondents to extend the benefits of the October 12, 2015, liberalised policy to the petitioners within six months, while partially allowing the writ petition and making the rule absolute to that extent.

Headnote

A) Constitutional Law - Article 14 - Reasonable Classification - Land Acquisition - Constitution of India, Article 14 - The court held that distinguishing between landowners based solely on whether they cooperated or protested against acquisition is not a reasonable differentia and violates the right to equality, as cooperative landowners cannot be penalized for their bona fides; protest cannot form a valid basis for classification (Paras 9-10).

B) Land Acquisition - Compensation - Government Policy - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The court directed that the benefit of the more liberalised compensation policy under Government Resolution dated 12.10.2015, formulated in consonance with the 2013 Act, must be extended to petitioners who had earlier opted for a less beneficial 2012 policy, because possession was taken after the 2013 Act came into force and they had cooperated, and the distinction between those who protested and those who cooperated is arbitrary and unsustainable (Paras 9-10).

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Issue of Consideration

Whether cooperative land owners who opted for compensation under a prior policy are entitled to the benefit of a subsequent more beneficial policy when possession is taken after the enactment of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013?

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Final Decision

The writ petition is partly allowed. The respondents are directed to extend the benefit of compensation in terms of the liberalised policy contained in Government Resolution dated 12.10.2015 to the petitioners within a period of six months from the date of the order. Petitioners shall continue to cooperate with the acquisition process. No order as to costs.

Law Points

  • Legal points not extracted
  • reasonable classification
  • no discrimination on basis of protest
  • right to fair compensation
  • government policy change
  • acquisition after 2013 Act
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Case Details

2026 LawText (BOM) (06) 238

WRIT PETITION NO.1694 OF 2017

2018-09-25

B.P. Dharmadhikari, M.G. Giratkar

Citation not available

D.R. Khapre, N.R. Patil

Datta s/o Vaijanath Andhale, Angad s/o Bhagwan Latpate, Bhagwat s/o Pandurang Andhale, Gangadhar s/o Dhondiram Munde, Laxman s/o Mukunda Nagargoje, Manik s/o Vitthal Sonone, Bhanudas s/o Laxman Andhale, Maroti s/o Sopan Deokate, Vinayak s/o Pundlik Munde, Vaijnath s/o Ganpat Holambe, Balaji s/o Narayan Holambe, Sambhaji s/o Kondhaliram Latpate, Vishwanath s/o Rambhau Karad, Namdeo s/o Santram Andhale, Kashinath s/o Kisan Andhale, Vasanta s/o Gopal Palode, Shivram s/o Govind Nagargoje, Tukaram s/o Tulshiram Andhale, Rambhau s/o Nivrutti Nagargoje, Sayasrao s/o Madhavrao Nagargoje

State of Maharashtra, through Secretary to Ministry of Revenue & Forest Department, Deputy Conservator of Forests, Melghat Tiger Project, Divisional Commissioner, Amravati Division, Collector, Amravati, Tahsildar, Melghat, Dharni, Kelpani, Tahsildar, Akot, Gram Panchayat, Kelpani, through Sarpanch

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India seeking a direction to respondents to extend benefits of a more beneficial compensation policy for land acquisition.

Remedy Sought

Petitioners sought direction that respondents provide compensation as per Government Resolution dated 12.10.2015 instead of the earlier 2012 policy, thereby granting them higher compensation on par with other landowners who had protested.

Filing Reason

The petitioners, who had earlier opted for a fixed sum of Rs. 10,00,000 per family under a 2012 policy, later discovered that a 2015 policy offered more than double the compensation under the new Right to Fair Compensation Act, 2013, and they were denied this benefit while protesters received it.

Previous Decisions

The gram sabha passed a resolution on 26.1.2013 opting for the 2012 compensation package; individual options were exercised by petitioners after 1.1.2014. No judicial orders were passed prior to this writ petition.

Issues

Whether the classification between landowners who cooperated with the acquisition and those who protested is reasonable and non-discriminatory under Article 14 of the Constitution? Whether the petitioners are entitled to the benefit of compensation under the more favourable Government Resolution dated 12.10.2015, given that possession was taken after the enforcement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013?

Submissions/Arguments

Petitioners argued that their options exercised in 2014-15 were made in ignorance of the 2013 Act, possession was taken after the Act came into force, and denying the 2015 policy benefits while granting them to protesters created an unreasonable and hostile classification. Respondents contended that the petitioners voluntarily opted for the 2012 policy through a gram sabha resolution, and the policy change was due to the unforeseen enactment of the 2013 Act, making distinct treatment of two classes justified.

Ratio Decidendi

Cooperative landowners cannot be penalized for their bona fide cooperation with the state; protest or opposition to acquisition cannot constitute a 'reasonable differentia' for classification under Article 14. When possession is taken after the enforcement of the Right to Fair Compensation Act, 2013, and a subsequent policy grants higher benefits, the benefit must be extended to all who lose land, irrespective of earlier options, to avoid arbitrary discrimination.

Judgment Excerpts

Protest, opposition cannot be seen as '' reasonable differentia '' and can not form a basis for classification amongst land owners. The liberalised benefit which enabled the respondents to complete acquisition also needs to be extended to the petitioners.

Procedural History

Writ petition filed directly in the High Court under Article 226 of the Constitution. Heard finally with consent of parties by issuing Rule and making it returnable forthwith.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013:
  • Constitution of India: Article 14
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