IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH
Avinash G. Gharote, Abhay J. Mantri
Dilip Manikrao Dhande – Appellant
Versus
Union Of India Through its Secretary, Ministry of Petroleum and Natural Gas Having office At- GAIL Bhawan, 16, Bhikaji Cama Place R.K. Puram, New Delhi – Respondent
Based on the provided legal document, here are the key points regarding the judgment:
Case Details * Court: High Court of Judicature at Bombay, Nagpur Bench. * Bench: Avinash G. Gharote, Abhay J. Mantri, JJ. * Parties: Dilip Manikrao Dhande and ors. (Petitioners) vs. Union Of India Through its Secretary, Ministry of Petroleum and Natural Gas and ors. (Respondents). * Petitions: Writ Petition Nos. 404, 1419, 2504, and 761 of 2024. * Date Decided: 01-04-2025. * Outcome: Petitions dismissed; Section 10(4) of the PMP Act upheld as constitutional.
Core Legal Issues * Constitutional Validity of Section 10(4): The petitioners challenged the constitutionality of Section 10(4) of the Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (PMP Act), arguing that the compensation cap of 10% of the market value is arbitrary, oppressive, and violates property rights under Article 300-A of the Constitution. (!) (!) * Applicability of RFCTLARR Act, 2013: The petitioners contended that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) should apply to acquisitions under the PMP Act to ensure "just and fair compensation," arguing that the deprivation of land use is akin to land acquisition. (!) (!) (!) * Comparison with National Highways Act: The petitioners argued that Section 6(2) of the PMP Act and Section 3-D(2) of the National Highways Act, 1956 are pari materia (similar in nature), implying that the compensation provisions of the NH Act should apply to the PMP Act. (!) (!)
Court's Reasoning and Findings * Precedent on Constitutional Validity: The Court held that the Apex Court in Laljibhai Kadvabhai Savaliya & Ors. Vs. State of Gujarat had already considered and negatived the constitutional validity challenges (except regarding the appointment of the competent authority). Therefore, re-agitating these issues was impermissible. (!) (!) (!) (!) * Nature of Acquisition (Land vs. Right of User): The Court distinguished the PMP Act from the NH Act. Under the NH Act, the "land" itself vests in the government, whereas under the PMP Act, only the "right of user" to lay and maintain pipelines in the subsoil vests, while title and possession remain with the landowner. Thus, the provisions are not pari materia. (!) (!) (!) (!) * Reasonableness of Compensation: The Court found the compensation scheme reasonable. Section 10 provides compensation for actual damage/loss (Sections 4, 7, 8) in addition to an extra 10% of the market value specifically for the acquisition of the right of user. This dual structure was deemed adequate and not illusory. (!) (!) * Inapplicability of RFCTLARR Act: * Section 105(1) of the RFCTLARR Act explicitly states its provisions do not apply to enactments in the Fourth Schedule (which includes the PMP Act) unless the Central Government issues a specific notification under Section 105(3). * No such notification under Section 105(3) was issued within the mandatory one-year timeframe. * A notification issued under Section 113 (Power to remove difficulties) dated 28.08.2015 was held invalid as it could not substitute the mandatory notification under Section 105(3) which had lapsed due to time. (!) (!) (!) (!) (!) (!) * Equality and Classification: The Court rejected the plea of arbitrariness, stating that the classification between acquiring "land" (NH Act) and acquiring "right of user" (PMP Act) is based on a real and substantial distinction, satisfying the principle of equality. (!)
Final Decision * The petitions challenging the constitutional validity of Section 10(4) of the PMP Act are dismissed. * The Court affirmed that the compensation provisions are reasonable, do not violate Article 300-A, and the RFCTLARR Act is not applicable to the PMP Act in the absence of a valid Section 105(3) notification. (!) (!)
JUDGMENT :
AVINASH G. GHAROTE, J.
Heard.
2. Rule. Rule made returnable forthwith. Heard finally, with the consent of the learned Counsels appearing for the rival parties.
3. The Petition challenges the constitutional validity of Section 10(4) of the Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (hereinafter referred to as the “PMP Act 1962” for short) on the ground that it is arbitrary, oppressive, unjust, unfair and also amounts to violation of the rights of the citizens such as the Petitioners, to hold the property in terms of Article 300-A of the Constitution of India.
4. Mr. Kumar, learned Counsel for the Petitioners in Writ Petition No.404/2024, submits that coming into force of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the “RFCTLARR Act” for short) was a revolutionary action on the part of the Union, in combining all the provisions regarding compensation, rehabilitation and resettlement, which were not existing earlier in point of time, and relating them to the market value of the land. He further submits, that though the State may acquire land, the sa
The court upheld the constitutionality of Section 10(4) of the PMP Act, affirming that compensation provisions are reasonable and do not violate property rights under Article 300-A.
Point of law: Thus, we have a scenario where, on the one hand, invocation of urgency provisions under Section 17 of the Act and dispensing with the right to file objection under Section 5A of the Act....
Point of law: The provisions of Section 5 and 6 of PMP Act would categorically show that the legislature attached much importance to the objections of the owner of the land in respect of acquisition ....
The right of user under the Petroleum Act can vest in multiple entities, and landowners are entitled to compensation for damages despite prior vesting.
when a statutory forum is created by law for redressal of grievances, a writ petition under Article 226 of the Constitution should not ordinarily be entertained ignoring the statutory prescription, m....
State legislation cannot provide lesser compensation than that guaranteed under parliamentary law, rendering it repugnant and unconstitutional.
Exemption under Section 96 of the RFCTLARR Act applies to compensation received for land acquired under the National Highways Act, 1956, establishing equitable treatment under tax laws.
The availability of a statutory remedy under the Petroleum and Mineral Pipelines [Acquisition of Right of User in Land] Act, 1962 for redressal of grievances regarding compensation for land acquisiti....
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