IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S. SONAK, JITENDRA JAIN, JJ.
Bhaskar Mahipat Pavale - Appellant
Versus
Lalita Gajanan Chinchawade - Respondents
Writ Petition No.10482 of 2023 With Writ Petition No.10483 Of 2023
Decided on : 26-03-2025
(A) Maharashtra Industrial Development Act, 1961 - Section 35 - Disputes regarding apportionment of compensation - The Petitioner challenged the order of the Sub-Divisional Officer dismissing objections to compensation disbursement, seeking a mandamus for proper apportionment. The court determined that disputes over compensation apportionment must be referred to the appropriate authority, emphasizing that such matters are judicial in nature and should not be decided by the SDO. (Paras 4, 22, 35, 52, 56)
(B) Legal principles - The court reiterated that apportionment disputes should be resolved by judicial authorities, not administrative officers, and that the absence of an injunction does not negate claims to compensation. (Paras 43, 44, 51)
(C)
Findings of Court:
The SDO's order was set aside for failing to appropriately refer the dispute under Section 35, and the court directed the SDO to forward the compensation amount to the authority for proper apportionment. (Paras 55, 56)
(D)
Issues: The main issues included whether the SDO had jurisdiction over compensation apportionment disputes and the impact of the Petitioner’s lack of representation in revenue records. (Paras 10, 12, 43) (E)
Ratio Decidendi: The court held that apportionment of compensation is a judicial function best handled by the authority defined in the MIDC Act, and that the SDO's reliance on revenue records was misplaced. (Paras 35, 44) (F)
Result: The petitions were allowed, the SDO's order was set aside, and directions were issued for the authority to handle the compensation apportionment. (Paras 55, 60) (G) Parties: Petitioner and Respondents (multiple parties involved in the compensation dispute).
Order :
M. S. Sonak, J.
1. Heard learned counsel for the parties.
2. Rule in both these petitions. The rule is made returnable immediately at the request and with the consent of the learned counsel for the parties.
3. The learned counsel for the parties agree that a common judgment and order can dispose of both these petitions because common issues of law and fact arise. They point out that the only difference in the two petitions is the survey numbers of the properties acquired. They request that Writ Petition No.10482 of 2023 may be treated as the lead petition.
4. The Petitioner challenges order dated 24th July, 2023 made by Sub-Divisional Officer (SDO), Maval Mulshi, Sub-Division Pune in proceedings No. Land Acquisition/Objection/SR/1,3,6,8,21/23 dated 24th July, 2023. They seek a mandamus directing the Sub- Divisional Officer-Respondent No.27 (R-27) to deposit the compensation amount as determined in the award dated 27th February 2023 in the account of Civil Judge Junior Division at Vadgaon where Regular Civil Suit No.96 of 2019 is pending. Possibly, in the alternate, they seek similar relief of deposit of the compensation amount before the authority prescribed under Section 35 of the Maharashtra Industrial Development Act, 1961 (MIDC Act).
5. The Petitioner claims an interest in the property acquired under the award dated 27th February 2023. Accordingly, he filed his objections before R-27 regarding apportioning the compensation amount. By the impugned order dated 24th July 2023, R-27 has dismissed the Petitioner’s objection and directed the disbursement of the compensation amount to some of the Respondents in this petition upon such Respondents furnishing an indemnity bond. R-27 has thus declined the reference under Section 35 of the MIDC Act and insists on disbursing the compensation amount to some of the Respondents. Aggrieved by the impugned order dated 24th July 2023 and the insistence to disburse compensation, the Petitioner has instituted the present petition.
6. This petition was moved for urgent circulation on 22nd August 2023. A Co-ordinate Bench of (Coram: B. P. Colabawalla and M. M. Sathaye, JJ.) by way of interim relief restrained R-27 from disbursing the compensation amount to any of the parties under the award dated 27th February 2023 until further orders. This interim order continues to date.
7. Mr. Prathamesh Bhargude, learned counsel for the Petitioner, submitted that under Section 35 of the MIDC Act if any dispute arises as to apportionment of the compensation amount or as to the persons to whom the same or any part thereof is payable, the Collector-SDO may refer such a dispute to the decision of the authority as defined under Section 2(a-1) of the MIDC Act.
8. Mr. Prathamesh Bhargude submits that this provision is like the one contained in the National Highways Act, the Maharashtra Highways Act or even the Land Acquisition Act, which require the dispute of apportionment to be referred to the Court for adjudication. He relies upon Sojar @ Rukminibai w/o Hari Mule Vs. Krishnath @ Krishna s/o Gopal Tate and ors., 2025 SCC OnLine (Bom) 307 and upon Hon’ble Supreme Court judgment in the case of Vinod Kumar and ors. Vs. District Magistrate, Mau and ors., 2023 Live Law SC 511in support of his contentions.
9. Mr. Prathamesh Bhargude submits that in 2019, the Petitioner instituted a civil suit claiming an interest in the property, which is now the subject matter of acquisition and payment of compensation. He referred to the genealogy and tried to demonstrate how the Petitioner has right, title and interest in the property, which is now compulsorily acquired. He submitted that the SDO’s impugned order, to the extent it observes that the Petitioner has not produced any interim order from the pending suit, is quite perverse because such production or non-production cannot be the basis for disbursal of the compensation amount by the SDO to the other authorities, solely because the names of such other parties appeared in the
Disputes regarding compensation apportionment under the MIDC Act must be referred to a judicial authority, not decided by administrative officers, ensuring proper legal process is followed.
The competent authority under the National Highways Act lacks jurisdiction to decide apportionment disputes, which must be referred to the Principal Civil Court.
The competent authority under the National Highways Act lacks jurisdiction to apportion compensation and must refer such disputes to the Principal Civil Court.
(1) Acquisition of land – If any dispute arises as to apportionment of amount or any part thereof or to any person to whom same or any part thereof is payable, then, competent authority shall refer d....
The main legal principle established in the judgment is that disputes regarding apportionment of compensation under the National Highways Act should be referred to the principal civil court of origin....
The Land Acquisition Officer lacks jurisdiction to decide disputes over compensation apportionment, which must be referred to the Principal Civil Court for resolution.
Apportionment disputes under the Maharashtra Highways Act must be referred to the Principal Civil Court, and actions by the Land Acquisition Officer that violate this principle are ultra vires.
The Collector is statutorily obligated to refer disputes regarding compensation apportionment to the Court, and failure to do so renders any decision made without jurisdiction.
The Deputy Collector lacked jurisdiction to amend a finalized award under the Land Acquisition Act; disputes on compensation apportionment must be determined by a Civil Court based on the parties' ri....
The main legal point established in the judgment is that the authority's power to review orders and its jurisdiction under the relevant sections of the act were central to the court's decision.
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