Acquisition of land under Section 3-D of the National Highways Act extinguishes the owner's rights upon notification, and related lease agreements become void.

JUDGMENT :

MILIND N. JADHAV, J.

1. Heard Mr. Chamboowala, learned Advocate for Applicant and Mr. Deshmukh, learned Advocate for Respondent.

2. The principal question for determination in the present Second Appeal raised by Appellant is :- "Whether on the date of publication of declaration / notification under Section 3 -D of the National Highways Act, 1956 (for short "the said Act") the land acquired would vest in the Central Government from all encumbrances and completely extinguish the right of the owner of the said land. Once this question is answered all other consequential issues, inter alia, relating to possession, receipt of compensation will stand answered accordingly.

3. Some brief facts relevant for the purpose of adjudication of aforementioned question of law raised by Appellant are as follows:-

3.1. Appellant is the original Defendant. Respondent is the original Plaintiff. Parties shall be referred to as "Plaintiff" and "Defendant" for the sake of convenience. Plaintiff is / was owner of the suit property admeasuring 12R out of area of 48R comprised in land bearing Survey No. 217/1 situated at Village Ghoti Budruk, Tal. Igatpuri, Dist. Nashik, hereinafter referred to as the "suit property".

3.2. On 24.12.2008 Plaintiff executed a lease agreement with Defendant-Company for a period of 3 years and handed over possession of the suit property to Defendant. In lieu thereof Defendant was to pay monthly rental compensation of Rs. 18,000/- to Plaintiff. Principal terms and conditions of the lease agreement were to the effect that the suit property was leased to Defendant for construction of administrative building and other structures for operation of Toll Plaza and necessary permission and expenses were to be borne by the Defendant. In Clause (4) of the lease agreement it was stated that suit property was proposed to be acquired by the National Highway Authority of India (for short "NHAI") for construction of highway and therefore if so acquired then Plaintiff shall retain right to accept the entire compensation from the Statutory Authorities being owner of the suit property. In clause (6) it was stated that once so acquired the Plaintiff will not claim the lease rental from Defendant on and from the date he receives the compensation from NHAI for acquisition. In this background pursuant to execution of lease agreement and during its tenure Notification under Section 3 - D dated 12.01.2010 was issued by Central Government for acquisition of the suit property. All steps prior to issuance of Notification under -D were admittedly complied with. There is no dispute about these facts.

3.3. According to Defendant on 12.01.2020 Plaintiff's name was deleted from the revenue record of the suit property and name of NHAI was mutated therein. Defendant has placed possession receipt dated 19.04.2010 on record wherein name of the Plaintiff is not reflected. Defendant has relied upon letter dated 21.04.2010 issued by Collector to Plaintiff notifying the above fact. Statutory Award under Section 11 of the said LAND ACQUISITION ACT , 1894 was declared on 02.12.2010 since procedure for acquisition under the LAND ACQUISITION ACT is followed. On 07.02.2011 letter was issued by NHAI to Tahsildar, Igatpuri intimating deposit of compensation amount of R. 1.10 crore (approximately) under the Award in respect of acquisition of the suit property as also other land. The tenure of the lease agreement was from 24.12.2008 to 23.11.2011. After acquisition to