IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MILIND N.JADHAV
Mumbai Nasik Express Way Limited – Appellant
Versus
Trambak Parbat Chavan – Respondent
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 th

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.
Interest on enhanced compensation under the National Highways Act is payable from the date of notification under Section 3-D, affirming the government's immediate vesting of land.
Once land is acquired and vests in the state, compensation obligations persist and cannot be negated by later claims of non-utilization.
Lapse of land acquisition proceeding – After acquisition of land and passing of award, land vests in State free from all encumbrances – Vesting of land with State is with possession – Any person reta....
The court established that failure to notify landowners and to take possession in accordance with the law invalidates the land acquisition process.
Mistaken inclusion of land in acquisition notifications does not automatically grant ownership, and compensation requires assessed possession under relevant laws.
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