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LOONKARAN GANDHI (D) THR. LR. versus STATE OF MAHARASHTRA AND ORS.

Citation: [2023] 12 S.C.R. 159 · Decided: 06-09-2023 · Supreme Court of India · Bench: SURYA KANT · Disposal: Case Partly allowed

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Judgment (excerpt)

CASE DETAILS
LOONKARAN GANDHI (D) THR. LR.
v.
STATE OF MAHARASHTRA AND ORS.
(Civil Appeal No. 2644 of 2016)
SEPTEMBER 06, 2023
[SURYA KANT AND J.K. MAHESHWARI, JJ.]
HEADNOTES
Issues for consideration: Whether the impugned judgment of the 
High Court negating the plea of land owner seeking ‘lapse’ of the acquisition 
proceedings in terms of s. 11-A of the Land Acquisition Act is liable to be 
interfered with; whether decision of Nagpur Improvement Trust refusing to 
grant alternative plot, as directed by the High Court, requires interference; and 
what suitable relief could be granted to land owner on account of delay caused in 
determination of compensation despite time bound directions by the High Court.
Land Acquisition Act, 1894 – s. 11-A – Nagpur Improvement Trust 
Act, 1936 – Acquisition under the State Act-NIT Act with the aid of LA 
Act – Applicability of s. 11-A in the acquisition proceedings under the NIT 
Act – On facts, notifi cation issued u/s. 39 of the NIT Act in 1962, possession 
was taken in the year 1970 and the road was constructed, in the year 1986 
award passed in case of the other land owners and in 2013 an ex-parte award 
passed – Plea of lapsing of acquisition proceedings by the land owner:
Held: Provisions of s. 11-A of LA Act which provides for lapsing of the 
land acquisition proceedings, would not be applicable where acquisition was 
made under NIT Act – In view thereof, no error committed by the High Court in 
negating the plea of lapsing of acquisition proceedings as raised by land owner. 
[Paras 13 and 15]
Land Acquisition Act, 1894 – Nagpur Improvement Trust Act, 1936 
– Rejection of the request of the land owner for grant of alternate piece of 
land by the Nagpur Improvement Trust, as directed by the High Court – 
Interference with:
[2023] 12 S.C.R. 159 : 2023 INSC 818
159
SUPREME COURT REPORTS 
[2023] 12 S.C.R.
160
Held: By the impugned order passed by the High Court, directions 
were issued to NIT to consider the prayer for the grant of alternate land 
to the land owner – Said prayer was rejected by the NIT, inter-alia stating 
that grant of alternate land in lieu of compensation was not possible in the 
absence of any provisions in the Act – Said plea does not have any statutory 
backing under NIT Act, thus, refusal made by NIT does not warrant any 
interference – After the rejection of the representation to grant alternate 
land particularly in absence of any statutory backing, there is no inclination 
to entertain the said plea – Nonetheless, the said prayer was not seriously 
pressed by the land owner and prayer was confi ned to grant of adequate 
compensation. [Para 16]
Land Acquisition Act, 1894 – Nagpur Improvement Trust Act, 1936 
– Delay caused in determination of compensation despite time bound 
directions by the High Court – Publication of preliminary notifi cation 
in 1962, the possession of the subject land taken in 1970 and the road 
was constructed which is in public use since then – Award passed in 
1986, in the case of other land owners, discriminating the instant land 
owner wherein even after directions of the High Court in 2009 to pass 
an award, prayer for the grant of alternate plot was rejected by NIT, 
and ‘ex-parte’ award was passed in 2013 during pendency of the instant 
appeal and as such land owners could not get compensation of the land 
since last fi ve decades – Grant of suitable relief to the land owner:
Held: In view of the said chain of events, the delay cannot be attributed 
to the land owner – Value of the land which may be on the date of preliminary 
notifi cation cannot be equated on the date of passing of ‘ex-parte’ award 
– As per s. 48-A of LA Act, if the award is not passed within a period of 
two years from the date of fi nal notifi cation, compensation for the damages 
suff ered due to delay is to be determined as prescribed therein – Thus, to 
meet the ends of justice, it is appropriate to mould the relief – ‘Ex-parte’ 
award would not be given eff ect to – Land Acquisition Offi  cer to determine 
the compensation afresh taking the market value of the subject land as on the 
date of passing of ‘ex-parte’ award – Land owner also entitled to all other 
statutory benefi ts as per the provisions of the LA Act to be calculated from 
the date of preliminary notifi cation, as also be entitled to compensation for 
damages suff ered in view of delay. [Paras 21, 27, 34 and 35]
161
Land Acquisition Act, 1894 – Nagpur Improvement Trust Act, 
1936 – s. 67 – Award of

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