{"id":328770,"date":"2024-08-16T10:00:01","date_gmt":"2024-08-16T04:30:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=328770"},"modified":"2024-08-21T16:49:33","modified_gmt":"2024-08-21T11:19:33","slug":"bombay-hc-interim-compensation-land-acquisition-owner-uncompensated-36-years-mhada","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/08\/16\/bombay-hc-interim-compensation-land-acquisition-owner-uncompensated-36-years-mhada\/","title":{"rendered":"Inside Bombay HC verdict ordering compensation to owner after 36 years since land acquisition by MHADA"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Bombay High Court<\/span>: In the instant petition, the Division Bench of <span style=\"font-weight: bold;\">M.S. Sonak*<\/span> and Kamal Khata, JJ., presided over a land-acquisition dispute, to finally dispose of the same, wherein the petitioner had not been compensated for the plot of land that was acquired by the respondent- State authorities in 1988-89, and had not compensated the petitioner for the said acquisition until the date of the order. The Court found that such uncompensated acquisition was a violation of the petitioner&#8217;s constitutional and human rights and directed the respondents to grant interim compensation to the petitioner, along with additional compensation for the violation of constitutional and human rights of the petitioner.<\/p>\n<p style=\"font-weight: bold;\">Background<\/p>\n<p style=\"margin-bottom: 3%;\">The petitioner was the owner of a plot of land (&#8220;said property&#8221;), that was acquired by the Maharashtra Housing and Area Development Authority (&#8220;MHADA&#8221;) in 1988-89, through an order issued by the Special Land Acquisition Officer (&#8220;SLAO&#8221;), MHADA. The grievance of the petitioner was since the acquisition (that was nearly 36 years ago), they had not been paid any compensation by the MHADA.<\/p>\n<p style=\"margin-bottom: 3%;\">The petition was first considered by a Division Bench of the instant Court in 2003, during which the Court said that an expropriated owner cannot be defeated of his right of compensation because of the deficiencies in the functioning of the office of SLAO. Thereafter, another Division Bench presided over the matter in 2003, wherein a rule was issued. However, none of the respondents bothered to file any further affidavits. Therefore, the matter was before the instant Division Bench for a final disposal.<\/p>\n<p style=\"font-weight: bold;\">Court&#8217;s analysis and decision<\/p>\n<p style=\"margin-bottom: 3%;\">The Court noted that despite the passing of 36 years since the acquisition of the said property, no records had been traced and no determination of the compensation amount payable to the petitioner had been made. The Court further noted that the respondents had not offered any justification for the inordinate and insensitive delay in compensating the petitioner for 36 years; such conduct was violative of Articles <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574870\" target=\"_blank\" rel=\"noopener\">14<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574949\" target=\"_blank\" rel=\"noopener\">21<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575115\" target=\"_blank\" rel=\"noopener\">300-A<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court, considering the larger public interest involved, chose not to interfere with the acquisition, or direct the restoration of possession to the petitioner, since the said property might have been utilised for the purpose for which it was acquired. However, the Court opined that the petitioner should be suitably compensated at the earliest. The SLAO concerned submitted that the case papers were misplaced, which the Court considered was an insensitive excuse, and the petitioner&#8217;s right to receive compensation for the acquisition of his property could not be defeated based on it. Therefore, the Court viewed this as a complete non-compliance with the directions issued by the Division Bench in 2003.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court opined that the MHADA must be directed to determine the compensation payable to the petitioner, however, until such determination is made, some interim directions would have to be issued, so that the petitioner was not left at the mercy of MHADA again.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court referred to <span style=\"font-style: italic;\">Tukaram Kana Joshi<\/span> v. <span style=\"font-style: italic;\">MIDC<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/x9PrYe0m\" target=\"_blank\" rel=\"noopener\">(2013) 1 SCC 353<\/a>, wherein the Supreme Court held that depriving the petitioners of their immovable properties was a clear violation of Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574949\" target=\"_blank\" rel=\"noopener\">21<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>, and further held that such conduct only breeds corruption and disrespect for governance. The Supreme Court also held that in a welfare State, &#8220;<span style=\"font-style: italic;\">statutory authorities are bound not only to pay adequate compensation, but there is also a legal obligation upon them to rehabilitate such persons.<\/span>&#8221; The Supreme Court also distinguished between &#8216;eminent domain&#8221; and &#8220;police power&#8221;, and stated that in certain circumstances, the State may have to operate police power to temporarily take possession of a citizen&#8217;s property; however, no absolute power has been vested in the State to acquire a citizen&#8217;s property without paying an adequate compensation. The Supreme Court referred to <span style=\"font-style: italic;\">K. Krishna Reddy<\/span> v. <span style=\"font-style: italic;\">Special Dy. Collector<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/UVEGL05H\" target=\"_blank\" rel=\"noopener\">(1988) 4 SCC 163<\/a>, wherein it was held that, &#8220;<span style=\"font-style: italic;\">with rising inflation, the delayed payment may lose all the charms and utility of compensation. In some cases, the delay may be detrimental to the interests of claimants.<\/span>&#8221;<\/p>\n<p style=\"margin-bottom: 3%;\">The instant Court relied on <span style=\"font-style: italic;\">Dharnidhar Mishra<\/span> v. <span style=\"font-style: italic;\">State of Bihar<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/7MI5kyVz\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine SC 932<\/a>, wherein a citizen&#8217;s property was acquired, and no compensation was determined or paid for the same for more than 40 years. It was held by the Supreme Court in this case that at the time of the acquisition of the property concerned in that case, the right to property was a fundamental right guaranteed under Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575125\" target=\"_blank\" rel=\"noopener\">31<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>. However, through the Constitution (Forty-Fourth Amendment) Act, 1978, it continued to be a constitutional right under Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575115\" target=\"_blank\" rel=\"noopener\">300-A<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>. The Supreme Court stated, &#8220;<span style=\"font-style: italic;\">the obligation to pay compensation, though not expressly included in Article 300-A, can be inferred in that Article.<\/span>&#8221;<\/p>\n<p style=\"margin-bottom: 3%;\">In <span style=\"font-style: italic;\">Dharnidhar Mishra<\/span> (supra), it was further held by the Supreme Court, &#8220;<span style=\"font-style: italic;\">where properties were acquired without payment of just and fair compensation, the petition should not be rejected for delay and laches, as delay and laches cannot be raised in a case of continuing cause of action&#8230;where the demand of justice is so compelling, a constitutional court would exercise its jurisdiction with a view to promote justice and not defeat it.<\/span>&#8221;<\/p>\n<p style=\"margin-bottom: 3%;\">Applying the law laid down in the cases above, the Court concluded that the State and MHADA had violated the petitioner&#8217;s human and constitutional rights, by acquiring his property but not paying any compensation for the same. Therefore, the Court ordered the respondents to pay a sum of Rs. 25,00,000 to the petitioner as interim compensation towards the acquisition of his property; ordered MHADA to pay a sum of Rs. 5,00,000 to the petitioner for violating his constitutional and human rights, and further ordered MHADA to pay costs of Rs. 1,00,000 to the petitioner. All the sums were ordered to be paid within 15 days of from the date of the order.<\/p>\n<p style=\"margin-bottom: 3%;\">The SLAO was also directed to determine the net average monthly income actually derived from the said property, along with further instructions as to potential disagreements.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Yusuf Yunus Kantharia v. Bombay Housing and Area Development Authority, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/4Yu62kxD\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine Bom 2462<\/a>, decided on 01-08-2024<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Judgment authored by: Justice M.S. Sonak<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the petitioner<\/span>: Omprakash Pandey, Rahul Pandey, Pramila Pandey, Alok Singh, Advocates i\/b Pandey &amp; Co.<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the respondents<\/span>: Nishigandh Patil, AGP; P.G. Lad, Sayli Apte and Shreya Shah, Advocates<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India &nbsp;<a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/ebcwebstore\/images\/the-constitution-of-india-coat-pocket-edition-Gopal-Sankaranarayanan-ebc-front-cover.JPG\" alt=\"Constitution of India\" width=\"300\" height=\"200\" class=\"aligncenter size-large wp-image-294438\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">No justification was offered for inordinate and insensitive delay and not paying any compensation for almost 36 years. Such conduct amounts to virtual expropriation of a citizen&#8217;s property without the authority of law and without paying any compensation and violates Articles 14, 21 and 300-A of the Constitution.<\/p>\n","protected":false},"author":67011,"featured_media":314919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[72132,2569,72134,32667,9971,72135,2723,64222,72133,72130,38434,72131],"class_list":["post-328770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-36-years","tag-Bombay_High_Court","tag-bombay-housing-and-area-development-authority","tag-constitutional-law","tag-human-rights","tag-justice-m-s-sonak-justice-kamal-khata","tag-Land_Acquisition","tag-maharashtra-housing-and-area-development-authority","tag-mhada","tag-no-compensation-paid","tag-state-of-maharashtra","tag-uncompensated"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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High Court quashes condition imposed by MHADA citing Wednesbury Principles and Doctrine of Proportionality","author":"Arunima","date":"September 12, 2023","format":false,"excerpt":"In the words of Diplock LJ in Council of Civil Service Unions v Minister for the Civil Service, [1984] 3 WLR 1174, the Wednesbury principle, formulated by Lord Greene, is whether the decision is so outrageous in its defiance of law or logic that it cannot possibly be sustained.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"bombay high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/bombay-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/bombay-high-court.webp?resize=350%2C200&ssl=1 1x, 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Bombay HC directs Municipal Corporation to follow MRTP Act to acquire church\u2019s land reserved for public purposes","author":"Editor","date":"June 26, 2024","format":false,"excerpt":"The Court stated that until the Municipal Corporation resorted to appropriate procedure in law to acquire the disputed land, it should not disturb the peaceful possession of the Church in any manner whatsoever.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1 1x, 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crores compensation plea of a man whose illegally constructed house was demolished","author":"Editor","date":"February 27, 2025","format":false,"excerpt":"\u201cWe have seen the rise in slums and illegal constructions in the State of Maharashtra over a period of time and no action has been taken to raze them. It is this inaction by the state authorities that fuels the desires of the persons like petitioners.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":137711,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/06\/20\/trial-court-can-review-its-own-order-under-the-land-acquisition-act\/","url_meta":{"origin":328770,"position":5},"title":"Trial court can review its own order under the Land Acquisition Act","author":"Saba","date":"June 20, 2017","format":false,"excerpt":"Bombay High Court: A Single Judge Bench of the Court comprising Shalini Phansalkar Joshi, J. held that a trial court can review its own award to bring it in tune with the amended provisions of the Land Acquisition Act, 1984. 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