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2017 Supreme(Online)(Bom) 367

BOMBAY HIGH COURT
B.P. Dharmadhikari, V. M. Deshpande, JJ
Dayaram Bhondu Koche and Others v. State of Maharashtra and Others
W. P. No. 3447 of 2015



The proviso to S.24 of the 2013 Act applies to awards made within five years prior to the 2013 Act's commencement, entitling beneficiaries to compensation under the 2013 Act.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Provisions for compensation - Applicability to awards made under Land Acquisition Act, 1894 - Court determined that the proviso to S.24 of the 2013 Act applies to awards made within five years prior to 2013 Act’s commencement, entitling beneficiaries to compensation under the 2013 Act. (Paras 1, 2, 15)

(B) Legal interpretation - The court examined the conflict between the previous and current legislation regarding compensation, emphasizing the legislative intent to protect landholders while allowing fair compensation. (Paras 1 to 10)

(C) Binding precedent - Importance of adhering to the Supreme Court’s ruling in cases of overlapping statutory provisions concerning agricultural land acquisition. (Paras 11-15)

Facts of the case:
The reference concerned the applicability of the 2013 Act's compensation provisions to awards passed under the 1894 Act within five years prior to the 2013 Act's effectivity.

Findings of Court:
The court concluded that beneficiaries could claim compensation under the 2013 Act if compensation had not been adequately paid.

Issues: The principal query addressed was whether the proviso to S.24 of the 2013 Act applies to situational awards made under sub-section (1).

Ratio Decidendi: Legislative intent necessitates adherence to both the 1894 Act and the 2013 Act’s compensation applicability provisions without allowing lapsing of awards passed within five years preceding the 2013 Act.

Result: The reference was answered affirmatively.

Table of Content
1. disagreement with earlier precedent regarding compensation determination. (Para 1 , 2)
2. application of the 2013 act provisions to recent awards under the 1894 act. (Para 3 , 4 , 5 , 6)
3. interpretation of the supreme court’s guidance on application of the law. (Para 11 , 12 , 14 , 15)

1. The Division Bench of this Court (M/s B.P. Dharmadhikari & V. M. Deshpande, JJ.) has expressed its disagreement with the decision of another Division Bench of this Court rendered in the case of Shrikant Shankarrao Daulatkar & Ors. v. State of Maharashtra & Ors., reported in 2015 (4) ALL MR 845, in relation to the applicability of the provisions relating to determination of compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act , 2013 ("the 2013 Act") to the cases where in the land acquisition proceedings initiated under the Land Acquisition Act , 1894 ("the 1894 Act"), an award was passed within a period of five years prior to the commencement of the 2013 Act with effect from 1-1-2014. Hence, by an order dated 2-3-2016, the Division Bench directed the Registry to place this matter before Hon'ble the Chief Justice for consideration and reference to a Larger Bench. Accordingly, Hon'ble the Chief Justice has placed this matter before us for decision of the reference.

2. The Division Bench, which referred the matter, did not frame the question of law to be decided by the Larger Bench, except expressing its disagreement with the view taken by another Division Bench in the case of Shrikant Shankarrao Daulatkar & Ors. v. State of Maharashtra & Ors., cited supra. We heard the learned counsels appearing for the parties on 5-12-2016 on the correctness of the view taken in the aforesaid decision and thereafter passed an order as under, pronouncing the ultimate decision for the reasons to follow.
" The learned Judges of the Division Bench have not framed a question which is required to be considered by the Larger Bench. With the assistance of the learned counsel for the parties, we have framed the following question for answering the same.
"Whether proviso to S.24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act , 2013 is also applicable to the awards which are covered under Clause (b) of Sub-section (1) of S.24 of the 2013 Act?".
For the reasons to follow, we answer the question by holding that the proviso to S.24 of the 2013 Act is also applicable to the awards which are covered under clause (b) of Sub-section (1) of S.24 of the 2013 Act.
Resultantly, we hold that all such beneficiaries, whose names are specified in notification under S.4 of the Land Acquisition Act , 1894 and in case of which the awards have been passed within a period of five years prior to the date of commencement of the 2013 Act and wherein the compensation as construed by the Hon'ble Supreme Court in the case of Pune Municipal Corporation and Another vs. Harakchand Misrimal Solanki and others ; 2014 (3) SCC 183 , is not paid to the majority of the beneficiaries would also be entitled to the compensation as per the 2013 Act.
The petition be placed before the appropriate Bench for appropriate orders."





3. We are concerned with the cases where an award under S.11 of the 1894 Act was made within a period of five years prior to the date of commencement of the 2013 Act with effect from 1-1-2014, and we are not concerned with the cases where either no award was made or the award was made five years or more prior to the commencement of the 2013 Act. In the present case, the award was passed under S.11 of the 1894 Act on 17-11-2010, and the 2013 Act came into force with effect from 1-1-2014.

4. S.24 of the 2013 Act, being relevant, is reproduced below:
"24. Land acquisition process under Act No.1 of 1894 shall be deemed to have lapsed in certain cases. -
(1) Notwithstanding anything contained in this Act, in any case of land acquisition proceedings in

























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