Mouchak Agro LLP gets relief as Gauhati High Court keeps land possession order in abeyance

In a significant ruling that underscores the importance of statutory appeal rights, the Gauhati High Court has directed the Assam government to first decide the pending appeal of Mouchak Agro LLP before taking possession of over 211 bighas of land. Justice Manish Choudhury, hearing a writ petition, held that the right of appeal under Section 3(3) of the Assam Land (Requisition and Acquisition) Act, 1964 is a substantive right that cannot be rendered illusory.

A Land Requisition and a Pending Appeal

The dispute concerns a parcel of land measuring 211 Bighas 1 Katha 19 Lessas at Rajabali Bagan in the Morangi Revenue Circle of Golaghat district. On May 6, 2026, the District Commissioner, Golaghat, acting as a person authorised by the State Government, passed an order under Section 3(1) of the 1964 Act requisitioning the land for setting up an Industrial Estate of Numuligarh Refinery Limited.

Mouchak Agro LLP, which claims to be the owner in occupation of the land, challenged this order before the State Government on May 29, 2026, under Section 3(3) of the Act. The company contended that the purpose for which the requisition order was passed did not fall within the scope and ambit of Section 3(1). While this appeal remained pending, the District Commissioner issued a further order on July 28, 2026, under Section 4(1) of the Act, directing Mouchak Agro to surrender or deliver possession within ten days.

"A Substantive Right Cannot Be Illusory"

The High Court noted that the appeal under Section 3(3) had not yet been decided by the State Government. The State itself confirmed this when the matter came up for hearing. Justice Choudhury observed that the statute provides a right of appeal to a person affected by a requisition order, and such a right must be meaningful.

"If a statute provides such a right to appeal, such right to appeal is not to be illusory . A right to appeal under Section 3[3] is a substantive right afforded to a landowner or a person interested in the land sought to be requisitioned."

The Court also drew a clear distinction between requisition and acquisition. While acquisition involves transfer of title and is permanent, requisition is temporary and only involves taking possession, with the title remaining with the owner.

"Whereas acquisition involves an element of permanency and finality involving a transfer of title ; the concept of requisition is merely to take over the domain or control over the property without acquiring the rights of ownership and it is ordinarily understood that requisition by its very nature is of temporary duration ."

Balancing the Equities

The Court was of the view that if possession was taken before the appeal was decided, and the nature and character of the land was changed, it could impact the petitioner's rights even if the appeal was subsequently decided in its favour. To balance the equities, the Court directed that the order dated July 28, 2026 under Section 4(1) be kept in abeyance until the State Government disposes of the pending appeal.

"The Court is the considered view that if the Authorised Officer on the basis of the Order passed under Section 4[1] of the 1964 Act takes over possession under Section 4[1] of the 1964 Act before the appeal is decided and changes the nature and character of the parcel of land then the right of the petitioner is going to be impacted, even if the Order to be passed by the State Government in the appeal comes subsequently in favour of the appellant."

Directions and Final Order

The Gauhati High Court disposed of the writ petition with the following directions:

  1. The State Government shall dispose of the appeal filed by Mouchak Agro LLP on May 29, 2026, as expeditiously as possible, after affording an opportunity of hearing to the appellant.
  2. The order dated July 28, 2026 under Section 4(1) shall remain in abeyance and will abide by the decision taken by the State Government in the appeal.
  3. The parties shall maintain status quo with respect to the parcel of land till the appeal is decided.

The Court made no order as to costs.

The ruling reaffirms the principle that statutory appeal rights must be given effect to before coercive action is taken, and that landowners cannot be deprived of possession without the appellate process being exhausted.