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2025 Supreme(Guj) 1276

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J., D.N.RAY, J.
Bholabhai Ramjibhai Patel Huf & Ors. - Appellants 
Versus
State Of Gujarat & Ors. - Respondents 
R/Special Civil Application No. 8022 of 2023
Decided on : 22-07-2025

Advocates Appeared:
For the Appellant : MR PUSHPADATTA VYAS
For the Respondent: DECEASED LITIGANT, MR SANJAY UDHWANI, ASST.GOVERNMENT PLEADER, MR SK PATEL for MR ADITYA S PATEL, MR BS PATEL, SR.ADV. with MR UMANG H OZA

Disbursement of compensation under contested land ownership violates statutory provisions; authorities must ensure compliance amidst ongoing litigation involving ownership disputes.

Headnote:(A) National Highways Act, 1956 - Sections 3H(3) and (4) - Disbursement of compensation - Petitioners contest the illegal disbursement of compensation for land acquired for highway purposes while asserting rightful ownership. The Court noted prior litigation where original owners challenged the sale deed, with evidence of improper disbursement to later purchasers. (Paras 3, 9, 14, 18)

(B) Legal Principle - Rights of property holders and roles of land acquisition authorities in compensation disbursement are critical during contested ownership claims. (Para 4)

(C) Findings of Court - The Court required a detailed affidavit from the Special Land Acquisition Officer concerning the disbursement process amidst litigations disputing ownership. (Paras 17, 18)

Facts of the case:
The petitioners, purchasers of land, allege wrongful disbursement to later purchasers despite established ownership through prior sale deed. (Paras 1-4)

Findings of Court:
The illegality of the disbursement process by the Special Land Acquisition Officer was highlighted, necessitating further examination of compensation protocols. (Para 18)

Issues: The primary issues addressed concern ownership rights, unauthorized disbursement of compensation amidst ongoing litigation, and transparency of land acquisition procedures. (Paras 5, 18)

Ratio Decidendi: The court emphasized adherence to statutory provisions regarding compensation processes for contested lands, mandating thorough review of authority actions amid disputes. (Paras 18)

Result: Matter tagged with related petitions for further hearing.

Table of Content
1. dispute over land ownership and compensation (Para 1 , 2 , 3 , 4 , 5 , 6)
2. controversy about compensation distribution (Para 8 , 9 , 10 , 15 , 16)
3. court's questioning of procedural validity (Para 11 , 12 , 13 , 14 , 17 , 18)
4. further proceedings scheduled (Para 19 , 20)

ORDER :

SUNITA AGARWAL, C.J.

1. Having heard learned advocate for the petitioners in the present petition, we may note that in order to inquire into the allegations made herein, the records of Special Civil Application No. 9666 of 2019 and Special Civil Application No. 11961 of 2021 have been summoned. We may note that the present petition has been filed by the purchasers of the land in question, namely the Old Revenue Survey No.528/5 (Block No.961), Village Sherkhi, District Vadodara, admeasuring 1-10-29 hectares from the original owners, who are impleaded as respondent Nos.5 to 14 herein, vide registered sale deed bearing No.9272 dated 15.09.2005. The contention of the petitioners herein is that the petitioners are rightful owners of the land in question to whom possession was delivered with the registration of the sale deed in the office of the Sub-Registrar, Vadodara-Gorwa.

2. However, the original owners, namely the respondent Nos.5 to 14 filed a Special Civil Suit No.441 of 2006 challenging the registered sale deed before the Civil Court, Vadodara, which was ultimately dismissed vide judgement and order dated 07.01.2020 passed by the competent Court. There is a categorical statement that there was no interim stay or any relief against the petitioners in the said suit and the title and possession of the petitioners remained undisturbed throughout.

3. The dispute in the present petition is about disbursement of the compensation for acquisition of a portion of the land in question for an area of 0-62-19 sq.meters (Block No.961) (Survey No.528/5 paiki), for the Vadodara-Mumbai Expressway under the NATIONAL HIGHWAYS ACT , 1956. The contention in the writ petition is that inspite of there being clear ownership with the petitioners herein, taking benefit of the pendency of the Civil Suit, the respondent Nos.3 and 4, who are the subsequent purchasers of a sale deed dated 28.01.2014 (30.01.2014) bearing No.117, have succeeded in getting disbursement of the compensation amount in connivance with the original owners, namely the respondent Nos.5 to 14 herein.

4. The petitioners having come to know about the land acquisition award in LAQ/Compensation Case No.13/2013 dated 05.09.2017 moved an application seeking for disbursement of compensation and filed a written objection about the claim of the original owners before the respondent authority dated 16.02.2018, which was received in the office of the respondent No.2 herein, namely the Special Land Acquisition Officer, Vadodara on 20.02.2018. It is contended that the details of ownership of the petitioners over the land in question by virtue of the sale deed dated 15.09.2005 was brought before the Special Land Acquisition Officer. However, the Special Land Acquisition Officer had illegally passed an order dated 30.04.2018, behind the back of the petitioners without considering the objections raised by the petitioners dated 16.02.2018, to disburse the compensation amount in favour of the private respondent Nos.3 to 4, to whom no right, title or interest in the land in question by virtue of the sale deed dated 28.01.2014, could accrue.

5. It is further contended that the petitioners herein have also filed a Civil Suit No.67 of 2018 seeking for injunction against the subsequent transferees, namely the respondent Nos.3 and 4 herein, wherein an interim injunction of status quo with respect to the land in question has been passed which is operating as on date. The Civil Suit No.67 of 2018 is pending before the competent Court.

6. It is an admitted fact of the matter that the Special Civil Suit No.441 of 2006 has been dismissed by the competent Court on 07.01.2020 and a regular First Appeal No.85 of 2021 filed

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