Sunday, 26 May 2013

Handing over of possession in land acquisition case




Once the land is acquired after following due legal process, 
it is of no consequence that the owner who accepts the compensation does not 

remain present to actually hand over possession of the land so acquired to the 
Land Acquisition Officer.  The proceeding cannot be vitiated for the neglect or 
the fault of the owner who accepts the acquisition proceeding by the acceptance 
of compensation.  Any rights thereafter created by such owner in favour of any 

other party would be vitiated.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

CHAMBER SUMMONS NO. 735 OF 2012 
IN 
SUIT NO. 5172 OF 2000 
                                                 
Umesh Jashbhai Patel & Ors.
Vs.
Harishankar Ramchandra Mhatre & Ors.
And
Municipal Corporation of Greater Mumbai

:  MRS. ROSHAN DALVI, J.
:  4   JANUARY, 2013.


Citation;2013(2)ALL M R 582

     

ORDER
This Suit is filed by 5 plaintiffs claiming to have purchased the suit 
1.
property from defendant No.1 who was stated to be the then owner of the suit 
properties.  The suit property is stated to be an open plot of land.  The plaintiff  
has sued for a number of reliefs from (a) to (t) being for declaration that certain 
agreement, conveyance, lease deed, powers of attorney between the plaintiffs 
and defendant No.1 are valid and subsisting and that certain agreement, sale 
deed, powers of attorney between defendant No.1 and defendant Nos.4 to 9 are 
null and void and not binding on the plaintiffs and for order for cancellation 
and impounding of those documents.   The suit is also for declaration that a 
certain consent terms filed in another Court and is void and not binding on the 
plaintiffs and for prosecution of defendant Nos.4 to 10 for perjury with regard 
to those documents.  The incidental reliefs are for executing the documents in 

favour of the plaintiffs by defendant Nos.1, 2 & 3 or the officer of the Court and 
for necessary injunctions against all the defendants against the transfer as also 
against entering upon and carrying on construction on the suit property and for 
mesne profits.
2.
Whereas the  plaintiffs claimed to have  executed agreements and 
conveyance   as   also   a   lease   deed   with   defendant   No.1,   2   &   3,   similar   such 
agreements are stated to have been executed by defendant No.1 in favour of 
defendant Nos.4 to 9 and thereafter in favour of defendant No.10.  The plaint is 
stated to be reconstructed as the original plaint is stated to be lost/misplaced. 

None of the documents relied upon by the plaintiffs is shown to be annexed to 
the   reconstructed   plaint.     Defendant   No.   1,   defendant   No.10   and   defendant 
3.
contesting defendant in the suit.
Nos.4 to 9 have filed separate written statements.  Defendant No.10 is the real 
Defendant Nos.1 to 3, who are the owners of the suit property, have 
not contested the suit at all as they have sold the suit property to the plaintiff as  
also   defendant   Nos.4   to   9   who   in   turn   have   sold   the   suit   property   to   the 
developer, defendant No.10 who is the main contesting defendant.
4.
The   applicant/MMC   has   taken   out   this   Chamber   Summons   for 
being made a party­defendant in the suit and for demolition of the GI sheet 
compound wall on the suit property and for an order to take a portion of the 
development plan road (DP  Road) shown in  the  Development Plan  (DP) for 
development of 18.30 mtrs DP road inter alia on the suit plot of land.  The DP 
road is shown to be running on a part of the suit plot of the land across its  
middle under CTS No. 14(part)/14E.
5.
It is the case of the MMC that the DP road was shown in the DP 
pursuant   to   which   the   required   lands   were   acquired   by   the   Government   on 

behalf of the Municipal Corporation of Greater Mumbai (MMC) and an award 
came to be passed and possession of those lands came to be given by the Special 
Land Acquisition Officer (SLAO) under the Land Acquisition Act, 1894 (LAA) to 
the   MMC   upon   the   MMC   depositing   the   requisite   amount   of   compensation 
determined for the acquisition of suit plot of land as the acquiring body.   It is 
the   case   of   the   MMC   that   the   requisite   procedure   was   followed   under   the 
Maharashtra Regional Town Planning Act, (MRTP) 1966 for the demarcation of 
the DP road on the DP which came to be final.  It is also its case that upon the 
acquisition proceeding being undertaken as per the procedure established by 
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law   and   the   award   being   passed   and   possession   being   handed   over   by   the 
Government to the MMC, the land vested in the MMC.  The MMC requires part 
of   the   suit   land   where   the   DP   road   is   demarcated   for   the   purpose   of 
construction of the DP road and hence claims that it is a necessary party to the 
suit and has applied for the mandatory reliefs of demolition of the compound 
6.
wall to take a portion of the suit property for the construction of such DP road.
It is the case of the plaintiffs as well as defendant No.10 that these 
parties were in possession of the suit property.  Receiver was appointed and the 
possession   has   not   been   handed   over   to   the   MMC   so  that   the   land   has   not 
vested in the  MMC.   It is argued on behalf of the plaintiffs that though the 
owner was to hand over possession, the possession received does not show the 
signature of the owner showing the handing over of the possession despite the 
claim of the MMC that compensation was paid to the owner.  It is also the case 
of the parties to the suit that they have not been paid compensation and hence 
would not have handed over possession.
7.
It must be borne in mind that the suit plot is stated to be an open 
plot of land.   The aerial photographs of the suit plot produced by the MMC 
shows   essentially   an   open   plot   of   land   on   the   fringes   of   which   certain 
unauthorized hutments are erected.  The photographs of the suit plot produced 

by the plaintiffs also show essentially an open plot of land strewn with garbage, 
Copy   of   the   development   plan   shows   the   DP   road   horizontally 
8.
parked vehicles and on a part of which are some hutments.
running across inter alia the suit property.
9.
In   view   of   the   objections   to   the   Chamber   Summons   the 
requirements of the process of law under the MRTP Act for demarcation of the 
DP road and the LAA for acquiring the property on which the DP road is to be 
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10.
constructed are required to be seen.
Chapter III of the MRTP Act deals with the preparation, publication, 
submission and sanction of the DPs.  
11.
Chapter VII of the MRTP Act deals with acquisition of land required 
inter alia for a DP  The land required for a DP is deemed to be needed for a 

public purpose, the acquisition of which is to be made after publication of the 
DP   upon   reservation   of   the   public   purpose   by   the   appropriate   authority   to 
acquire the land upon making an application to the State Government for such 
purpose under the LAA for it to vest in the MMC as the Planning Authority.  The  
relevant parts of the relevant sections of the MRTP Act run thus:
21. Development Plan.­ (1) ............ every Planning Authority shall  
carry out a survey, prepare an existing land­use map and prepare a  
draft development plan  for the area within its jurisdiction, publish a  
notice   in   the   Official   Gazette  and   in   such   other   manner   as   may   be  
prescribed stating that the draft development plan has been prepared  
and submit the plan to the State Government for sanction.......
(B)
PROCEDURE TO BE FOLLOWED IN PREPARING AND  
SANCTIONING DEVELOPMENT PLANS.
23. Declaration of intention to prepare Development plan.­ (1)  
A Planning Authority shall, by a resolution  make a declaration  of its  
intention to prepare a Development plan; and shall despatch a copy of  
such resolution with a copy of a plan showing only the boundary of the  

entire   area   proposed   to   be   included   in   the   Development   plan   to   the  
State Government...........
The Planning Authority or the said Officer, as the case may be, shall  
also  publish  a notice of such declaration in the  Official Gazette, and 
also in one or more local newspapers in the prescribed manner, inviting  
suggestions or objections  from the public within a period of not less  
than   sixty   days   from   the   publication   of   the   notice   in   the   Official  
Gazette.
(2) A copy of the aforesaid plan shall be open to the inspection of the  
public   at   all   reasonable   hours   at   the   head   office   of   the   Planning  
Authority and Local Authority. 
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26. [Preparation   and   publication   of   notice]   of   draft  
Development plan.­ (1) .................. a Planning Authority or the said  
officer shall, prepare a draft development plan and publish a notice in 
the, Official Gazette and in such other manner as may be determined by  
it stating that the Development plan has been prepared.   The notice  
shall state the name of the place where a copy thereof shall be available  
for   inspection   by   the   public   and   that   copies   thereof   or   extracts  
therefrom certified to be correct shall be available for sale to the public  
at a reasonable price, and inviting] objections and suggestions within a  
period of sixty days from the date of notice in the Official Gazette.........
(2) [The   notice   shall   also   state   that   copies   of   the   following  
particulars in relation to the Draft Development plan are also available  
for inspection by the public and copies thereof, or extracts therefrom  
certified to be correct.........
(i)
..............
(ii) maps, charts and a report explaining the provisions of 
the draft Development plan;
(ii­a) map showing the planning units or sectors undesirable 
till the Development Plan is revised;...........
28. Objections   to   draft   Development   plan.­(1)   ..........   if  any  
person communicates  in writing to the Planning Authority or the said  
officer any suggestions or objection relating to the draft Development  
plan, the Planning Authority or the said officer may, after considering  
the report of the Planning Committee under sub­section (2) and the  
suggestions or objections received by it or him,  modify or change  the  
plan in such manner as it or he thinks fit.
(2) The Planning Authority or the said Officer shall  forward  
all   objections   and   suggestions  received   by   it   to   a   Planning  
Committee...........
.........   having   special   knowledge   or   practical   experience   of  

matters   relating   to   town   and   country   planning   or   environment   or  
relating to both for consideration and report.
(3) The Planning Committee, shall on receipt of objections and  
suggestions, make such inquiry as it may consider necessary, and give a  
reasonable  opportunity   of  being   heard   to   any   person   including  
representatives   of   Government   departments   who   may   have   filed   any  
objections or made any suggestions in respect of the draft Development  
plan,   and   after   considering   the   same,   the   Planning   Committee   shall  
submit its report to the Planning Authority..........
The draft Development Plan so modified shall be published in the  
Official Gazette and in such other manner as may be prescribed, not less  
than   one   month   prior   to   the   submission   of   the   same   to   the   State  
government for sanction.

30. Submission   of   draft   Development   Plan.­  (1)   The   Planning  
Authority or as the case may be, the said Officer shall submit the draft  
Development Plan to the State Government for sanction within a period  
of   twelve   months   [from   the   date   of   publication   of   the   notice   in   the  
Official Gazette, regarding its preparation] under section 26.
31. Sanction   to   draft   Development   plan.­  (1)   Subject   to   the  
provisions of this section, and not later than  one year from date of  
receipt of such plan from the Planning Authority, or as the case may be,  
from the said Officer, the State Government may, after consulting the  
Director   of   Town   Planning   by   notification   in   the   Official   Gazette  
sanction the draft Development plan submitted to it for the whole area,  
or   separately   for   any   part   thereof,   either   without   modification,   or  
subject to such modifications as it may consider proper........
43. Restrictions on development of land.­ After the date on which  
the declaration of intention to prepare a Development plan for any area  
is   published   in   the   Official   Gazette   [or   after   the   date   on   which   a  
notification specifying any undeveloped area as a notified area, or any  
area designated as a site for a new town, is published in the Official  
Gazette,]  no person shall  institute or  change the use  of any land or  
carry out any development of land without the permission in writing of  
the Planning Authority.
125. Compulsory   acquisition   of   land   needed   for   purposes   of  
Regional Plan, Development plan or town planning scheme, etc. ­  
Any   land   required,   reserved   or   designated   in   a   Regional   plan,  
Development plan  or town planning scheme  for a   public purpose  or  
purposes including plans for any area of comprehensive development or  

for   any   new   town   shall   be  deemed   to   be   land   needed   for   a   public  
purpose  within the meaning of the Land Acquisition Act, 1894 (I of  
1894).

126. Acquisition of land required for public purposes specified in  
plans.­ (1) When after the publication of a draft Development plan,  
any land is required or reserved for any of the public purposes specified  
in   any   plan   or   scheme   under   this   Act   at   any   time   the   Planning  
Authority,   Development   Authority,   or   as   the   case   may   be,   any  
Appropriate Authority may acquire the land,­.......
(a)
.........
(b)
........
(c)
by making an application to the State Government for 
acquiring such land under the Land Acquisition Act, 
1894,
and   the   land   (together   with   the   amenity,   if   any,   so   developed   or  
constructed) so acquired under the Land Acquisition Act, 1894,  shall  
vest in the Planning Authority.
(2) On   receipt   of   such   application,   if   the   State   Government   is  
satisfied   that   the   land   specified   in   the   application   is   needed   for   the  
public purpose ...........
.......... it may make a  declaration  to that effect in the Official  
Gazette, in the manner provided  in section 6  of the Land Acquisition  
Act, 1894 (1 of 1894), in respect of the said land. ...........
(3) On   publication   of   a   declaration   under   the   said   section   6,   the  
Collector   shall   proceed   to   take  order   for   the   acquisition  of   the   land  
under the said Act; and the  provisions of that Act shall apply  to the  
acquisition of the said land, .............
12.
Hence the preparation, submission and sanction of the DP is to be 
as   per   procedure   established   under   Chapter   III   of   the   MRTP     The   Planning 
.
Authority is required to make a declaration of its intention to prepare a DP by a 
resolution with a copy of the plan showing the boundary of the proposed area 
to be included in the DP to the State Government and public notice of such 
declaration in the Official Gazette and newspaper and invite suggestions and 
objections from the public thereof and keep the plan open for inspection of the 
public.
13.
Thereafter  the   Planning  Authority   is  required  to  survey  the  land 

and prepare a draft development plan.  It has to publish a notice in the Official 
The Planning Authority is thereafter required to publish a notice in 
14.
Gazette and submit it to the State Government for sanction.
the   Official   Gazette   inviting   the   objections   and   suggestions   to   the   draft 
development plan and offer for inspection of the public inter alia the map of the 
draft development plan.
15.
If   any   person   makes   suggestions   or   objections,   the   Planning 
Authority   is   required   to   forward   them   to   the   Planning   Committee   who   may 

make such inquiry upon giving reasonable opportunity of being heard to the 
objector  and   submit  a  report   to  the  Planning  Authority  who   may  modify   or 
modified in the Official Gazette.
The Planning Authority is then required to submit the DP to the 
16.
change   the   DP   upon   such   suggestions   or   objections   and   publish   the   DP   so 
State Government for sanction.
17.
The State Government may sanction the draft DP with or without 
modification as it may consider proper.
18.
Hence when once the process of sanction of the draft development 
plan is submitted to the State Government and the DP is sanctioned, it being for 
a public purpose under Section 125 of the MRTP  none can challenge the DP


Similarly none can change the use of the land or carry out any development of 
the land under the development plan after the date on which an intention to 
develop   the   land   as   a   DP   as   published   in   the   Official   Gazette   without   the 
permission of the Planning Authority, the MMC.
19.
When a land is needed for a public purpose the procedure under 
the LAA would have to be followed for the acquisition of the land by declaration 
in the Official Gazette under Section 6 of the LAA and the process of acquisition 

being followed under the LAA.  The relevant parts of the relevant sections of the 
LAA runs thus:
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6.
Declaration that land is required for a public purpose.­ (1)..
.............. [when the] [appropriate Government] is satisfied that any  
particular land is needed for a public purpose, a declaration shall be  
made   to   that   effect   under   the   signature   of   a   Secretary   to   such  
Government   or   of   some   officer   duly   authorised   to   certify   its  
orders...........
(2) [Every   declaration]   shall   be   published   in   the  Official   Gazette, 
[and in two daily  newspapers  circulating in the locality in which the  
land is situate of which at least one shall be in the regional language,  
and   the   Collector   shall   cause  public   notice  of   the   substance   of   such  
declaration to be given at convenient places in the said locality (the last  
of the date of such publication and the giving of such public notice,  
being   hereinafter   referred   to   as   the  date   of   publication  of   the  
declaration),   and   such   declaration   shall   state]   the   district   or   other  
territorial division in which the land is situate, the purpose for which it  
is needed, its approximate area, and where a plan shall have been made  
of the land, the place where such plan may be inspected.
(3) The said declaration shall be conclusive evidence that the land is  
needed for a public purpose as the case may be; and, after making such  
declaration the [appropriate Government] may acquire the land in a  
manner hereinafter appearing.
7.
After declaration, Collector to take order for acquisition.­  
Whenever   any   land   shall   have   been   so   declared   to   be   needed   for   a  
public   purpose,   the   [appropriate   Government]   or   some   officer  
authorised by the [appropriate Government] in this behalf, shall direct  
the Collector to take order for the acquisition of the land.
8.
Land   to   be   marked   out,   measured   and   planned.­   The  
Collector  shall  thereupon cause the land  (unless  it has  been already  
marked out under section 4), to be marked out.  He shall also cause it  
to be measured, and (if no plan has been made thereof), a plan to be  
made of the same.
9.
Notice to persons interested.­ (1) The Collector shall then cause  
public notice to be given at convenient places on or near the land to be  
taken, stating that the Government intends to take possession of the  
land, and that claims to compensation for all interests in such land may  
be made to him.
(2) Such notice shall state the particulars of the land so needed, and  

shall  require all persons interested in the land to appear personally or  
by  agent before the Collector  at a time and place therein mentioned  
(such   time   not   being   earlier   than   fifteen   days   after   the   date   of  
publication of the notice), and to state the nature of their respective  
interests in the land and the amount and particulars of their claims to  
compensation   for   such   interests,   and   their   objections   (if   any)   to   the  
measurements made under section 8.   The Collector may in any case  
require such statement to be made in writing and signed by the party or  
his agent.
(3) The   Collector   shall  also   serve  notice   to  the  same   effect   on  the  
occupier (if any) of such land and on all such persons known or believed  
to be interested therein, or to be entitled to act for persons so interested,  
as reside or have agents authorised to receive service on their behalf,  
within the revenue district in which the land is situate.
(4) In case any person so interested resides elsewhere, and has no  
such agent the notice shall be sent to him by post in a letter addressed  
to him at his last known residence address or place of business.......

11. Enquiry and award by Collector. ­ [(1)] On the day so fixed,  
or   any   other   day   to   which   the   enquiry   has   been   adjourned,   the  
Collector shall proceed to enquire into the objections (if any) which any  
person interested has stated pursuant to a notice given under section 9  
to the measurements made under section 8, and into the value of the  
land   and   [at   the   date   of   the   publication   of   the   notification   under  
section   4,   sub­section   (1)],   and   into   the   respective   interests   of   the  
persons claiming the compensation, and  shall make an award  under  
his hand of­
(i)
the true area of the land;
(ii) the compensation which in his opinion should be allowed  
for the land; and
(iii) the apportionment of the said compensation among all the  
persons known or believed to be interested in the land, of whom,  
or of whose claims, he has information, whether or not they have  
respectively appeared before him:...........
12. Award of Collector when to be final.­ (1) Such award shall be  
filed in the Collector's office and shall, except as hereinafter provided, be 
final and conclusive evidence, as between the Collector and the persons  
interested, whether they have respectively appeared before the Collector  
or not, of the true area and value of the land, and apportionment of the  
compensation among the persons interested.
(2) The Collector shall give immediate notice of his award to such of  
the   persons   interested   as   are   not   present   personally   or   by   their  

representatives when the award is made.
16. Power to take possession.­  When the Collector  has made an  
award under  section 11, he may  take possession  of the  land,  which  
shall   thereupon  vest   absolutely   in   the   Government,   free   from   all  
encumbrances.
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18. Reference   to   Court.­   (1)   Any   person   interested   who   has   not  
accepted the award may, by written application to the Collector, require  
that the matter be referred by the Collector for the determination of the  
Court, whether his objection be to the measurement of the land, the  
amount of the compensation, the persons to whom it is payable, or the  
apportionment of the compensation among the persons interested.
(2) The application shall state the grounds on which objection  
to the award is taken:
Provided that every such application shall be made,­
(a) ............... within six weeks from the date of the Collector's  
award.
20.
This process of law for acquisition is under Part II of the LAA.  The 
land is to be declared to be required for public purpose.  Hence, for acquiring 
any   land   for   construction   of   the   DP   road,   the   first   requirement   is   for   the 
Government to publish a preliminary notification about need to use the land for 
public purpose in the Official Gazette as well as newspapers and to give public 
notice   at   convenient   places   in   the   locality   and   then   to   publish   the   required 
declaration.   The date of the publication of the preliminary notification shows 
the intention of using the land for public purpose and the publication of the 
declaration conclusively proves the public purpose.
21.
Thereafter the Collector is required to take an order of acquisition 
as required under Section 126(3) of the MRTP Act.
22. The land would then be marked, measured and planned.
23. Notice   is   required   to   be   given   to   the   interested   persons   at 
convenient places near the land to state the nature of their interest in the land, 
the claims made by them to compensation for such interest and the objections, 

24.
if any, and to make a written statement.
The collector would then inquire into the objections and pass the 
25.
necessary award.
The award of the Collector would become final, the notice of which 
is to be given by the Collector to the persons interested but not present. 
26.
Upon the collector having made the award, he would be entitled to 
take   possession   of   the   land,   which   shall   thereupon   vest   absolutely   in   the 
27.
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government, free from all encumbrances.
Any person interested who has not accepted the award may, within 
6 weeks require the Collector to refer the award for the determination of the 
Court   with   regard   to   any   objection   he   may   have   for   measurement   or 
28.
compensation.
The aforesaid is the procedure established by law for acquisition of 
land for a DP
.  Once that procedure is followed under the MRTP as also the LAA, 
there can be no legal objection to the development of the road which is a public 
purpose.   In such circumstances private  interest, if  any, must yield to public 
purpose.  The purpose of acquisition of land required for construction of a DP 
road is deemed to be a public purpose and must be clothed with the incidents of 
a public purpose from the fact of it being a part of the DP
.  Hence when a land is 
reserved for a DP
, its acquisition follows as a matter of course.  Once the process 
of acquisition is followed, the land can be used for nothing except that DP  It 

would accordingly vest in the Planning Authority, the MMC which would be 
enjoined to construct such road.  All that the Government has to do is to have 
the DP prepared, submitted and sanctioned and then to have the land acquired.
29.
It   is   not   disputed   that   the   procedure   under   the   MRTP   Act   was 
followed and the land falling under the draft DP and the sanctioned DP came to 

be so treated under the aforesaid provisions of the MRTP Act.  It is, therefore, 
undoubted   that   the   part   of   the   suit   land   was   reserved   for   a   DP   and   the 
procedure   under   the   MRTP   Act   was   followed.     Neither   the   plaintiff   nor   the 
defendants have raised any objection or made any suggestion for modification 
of the DP
.  The portion of the suit land to be used for the DP was required to be  
and was sought to be acquired as per the mandate contained in Section 126 of 
the MRTP Act.  It is not disputed that the award came to be passed and became 
final in respect of part of the suit land under Sections 11 & 12 of the LAA.  
All that is stated is that the possession of the land was not given to 
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30.
the SLAO by the original owner, defendant No.1.   The letter of possession is 
sought to be relied upon to show that the signature of the original owner is not 
put   thereon.     However   the   applicant   as   the   Planning   Authority   has   taken 
possession of the suit land from the SLAO.   Since the Collector is required to 
take possession of the land, it is argued that that should have been from the 
original   owner   or   the   parties   in   possession.     The   plaintiff   as   also   defendant 
No.10 claim to be in possession of the suit land which is an open plot of land.  It 
is for them to show that it was in their possession.  Mr. Pakale has rightly argued 
that since the suit land is an open plot of land, possession follows title.  The title 
is admittedly in defendant No.1 who is the original owner.  It, therefore, follows 
the possession of the suit land would be with defendant No.1 unless it is shown 
to be in the actual possession of either the plaintiffs or defendant No.10.   It 
would be for the plaintiff as also defendant No.10 to prove their title in the suit. 
Neither the plaintiffs nor the defendant No.10 has shown the Court its actual 
possession.  The photographs show a land which is merely open and encroached 
upon on some fringes.   Despite the agreements, conveyance or lease deeds of 
1980 in favour of the plaintiffs or defendant Nos.4 to 9 or thereafter defendant 
No.10 the suit land has not yet been developed or used.  The photographs of the 
parties are eloquent on this aspect.

31.
Mere  documents executed by private  parties in favour of certain 
persons and later others would not show possession having changed hands until 
the case of the parties is proved on evidence in the face of the DP road running 
through the suit  land  which  has been  acquired by  the  Government for  such 
purpose.
32.
It  may  be  mentioned that  the  plaintiffs as  also defendant  No.10 
who contend that they have sought to develop the land should have and are 
taken to have seen, investigated and inspected inter alia the DP remarks from 
the   Planning   Authority   at   the   time   of   the   commencement   in   development 
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alleged   by   them.     Mere   filing   of   the   suit   and   having   the   Court   Receiver 
appointed between private parties cannot prove or show possession of both such 
parties in the suit property.   The procedure established by the aforesaid laws 
having been undertaken cannot be undone.  Unless it is proved that possession 
was handed over to the plaintiffs or defendant Nos.4 to 9 by the original owner, 
defendant   No.1,   possession   must   be   deemed   to   be   continued   with   him. 
Defendant No.1 is not shown to have claimed possession or agitated for it upon 
or after the acquisition of the land.  Hence if defendant No.1, as the owner, does 
not complain about the DP running through his land and does not challenge the 
acquisition for the construction of the DP and does not physically hand over 
possession   but   yet   does   not   challenge   the   procedure,   the   possession   would 
naturally  be  taken  unopposed  by  the  SLAO/Collector and must be deemed 
to  have  been  so  done  thus  completing  the  process  under  Section  16 of 
the   LAA.     Consequently   upon   there   being   no   challenge   to   the   acquisition, 
possession having been  deemed to be  taken  by the  SLAO, the  land must  be 
taken to have vested absolutely in the Government on that date free from the 
encumbrances   of   the   parties   to   the   suit   who   also   allowed   it   to   be   taken 
unopposed.  Further the parties to the suit as the transferee of defendant No.1 
who was the owner and in possession prior to their transaction must be imputed 
knowledge   of   the   preparation,   publication   and   sanction   of   the   development 

plan as also the declaration of the State Government to acquire the land for 
construction of the DP road as per the DP
.
33.
In view of the contention on behalf of the defendant Nos.1 to 3 as 
also defendant No.10 claiming to be in continuous possession of the acquired 
premises and claiming that such possession was not taken from them, the Court 
deemed   it   fit   to   call   for   and   go   through   the   papers   and   proceedings   of 
acquisition.  It is important to note that under Section 12 of the LAA the award 
filed in the Collector’s office would be final and conclusive evidence between 
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the Collector and all the persons interested whether or not they appeared before 
the   Collector  with   regard   to  the   area  as   also  the   value   of   the   land   and   the 
interested persons.
The papers of the acquisition were produced before this Court.  The 
34.
compensation   paid   so   that   the   Collector   can   take   possession   from   such 
initial notification under Section 126(1) of the MRTP Act read with Section 6 of 
the LAA is published in the Official Gazette dated 15 th  September, 1981.   The 
papers and proceedings of the award passed under Section 11 of the LAA with 
regard to the said notification show inter alia the suit land under CTS No. 14 
(part) admeasuring 1239 sq. mtrs. owned by defendant No.1 and acquired for 
56 ft. wide D.P
. Road.   The proceedings show that after the publication of the 
aforesaid   notification,   a   general   notice   under   Section   9   of   the   LAA   was 
published   on   the   office   board   of   the   Additional   Collector,   BSD,   Tahasildar, 
Borivali in the Talathi’s office and on the site.  Individual notices under Section 
9 of the LAA were served on the owners.  The owners of the land verified the  
City Survey records.  The records were enumerated showing inter alia the suit 
land   of   the   above   measurement   against   the   name   of   defendant   No.1.     The 
claims   of   the   parties   were   also   mentioned   in   the   acquisition   proceeding. 
Consequently the claim of defendant No.1 for the suit land was Rs.450/­ per sq. 
mtrs.   and/or   FSI   benefit.     Instances   cited   by   the   land   owners   have   been 

enumerated.     The   papers   further   show   that   taking   the   instances   into 
consideration the SLAO, BSD accepted the valuation inter alia of the suit land at 
the rate of Rs.190/­ per sq. mtrs.  The suit land is shown in the award for such 
purpose at serial No.1.
35.
The   award   further   mentions   that   possession   of   the   land   under 
acquisition would be taken after declaration of the award and same would be 
handed over to the acquiring body.   The SLAO worked out the details of the 
valuation inter alia for the suit land at the rate of Rs.190/­ per sq. mtrs. for 
1239 sq. mtrs. of the land acquired under CTS No. 14 part at Rs.2,35,410/­ 
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adding thereto 30% solatium of Rs.70,623/­ and 12% component under Section 
23(1)/Section 15(a) of the amended LAA of Rs.1,38,782.25 at a total amount of 
Rs.4,44,815/­.  Consequently in the Award declared for total 7,987.4 sq. mtrs. 
of   land   for   total   consideration   of   Rs.25,75,230/­.     Compensation   of 
36.
Rs.4,44,815/­ is shown against the name of defendant No.1.
The   papers   of   acquisition   further   show   a   Power   of   Attorney 
executed by defendant No.1 on 13 th  August, 1982 signed by defendant No.1 
before a Notary Public and identified by his attorneys appointing the plaintiff as 
the   partner   of   M/s.   Geometrical   Tools   Manufacturing   Co.   (India)   as   his 
Constituted Attorney.   A panchnama prepared on 16.09.1986 shows inter alia 
the suit land against defendant No.1.   The papers of acquisition further show 
the panchnama made by 5 panchas on 19.09.1986 showing that the owners of 
the land mentioned therein were not present and in their absence their officer 
took possession of their land and handed them over to the Junior Engineer of 
the MMC (which was the acquiring body).   Inter alia is the land of defendant 
No.1, he not being present.
37.
However   thereafter   defendant   No.1   through   his   Constituted 
Attorney, plaintiff No.1 herein has accepted the cheque for the compensation 
amount of the suit land under CTS No. 14 part admeasuring 1239 sq. mtrs. 

which came to be acquired.   A cheque for Rs.4,35,480/­ bearing No. 1176880 
dated 05.09.1986 came to be issued to defendant No.1 and was accepted by 
plaintiff  No.1  on   his  behalf  for   which   plaintiff   No.1  executed  the   receipt  on 
22.10.1986 as the Constituted Attorney of defendant No.1.
38.
Mr. Zaveri on behalf of Plaintiff Nos.1, 2 and 3 upon being shown a 
acquisition proceedings and upon taking instructions from Plaintiff No.1 who is 
present in Court fairly concedes that Plaintiff No.1 has indeed signed the receipt 
of the payment of compensation of Rs.4,35,000/­ on behalf of defendant No.1 
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as his Constituted Attorney.  Yet it is argued on behalf of the Plaintiff Nos.1, 2  
and   3   that   since   possession   was   not   taken   from   defendant   No.1   or   Plaintiff 
Nos.1, 2 and 3 the land did not vest in the government and could not have been 
given to the  MMC as the acquiring body.   The argument with regard to the 
possession   is   wholly   misconceived.     After   accepting   compensation   from   the 
government, the owner would have no interest in the land.  In this case Plaintiff 
No.1 has received compensation on behalf of the then owner, defendant No.1. 
Defendant   No.1   has   thereafter   transferred   the   land   to   defendant   No.10. 
Defendant No.1 was never in possession.   He had handed over possession to 
Plaintiff   Nos.1,   2   and   3   thereafter   purportedly   to   defendant   No.10.     Merely 
because   defendant   No.1   was   not   present,   neither   he   nor   his   CA   can   take 
advantage   of   the   fact   that   he   had   not   actually   hand   over   possession   to   the 
government.  
39.
Mr.   Zaveri   drew   my   attention   to   the   judgment   in   the   case   of 
Balwant Narayan Bhagde Vs. M.D. Bhagwat and Ors., AIR 1975 Supreme 
Court 1767, in which it is held that symbolic possession cannot be taken of any 
acquired   land   and   possession   that   kind   of   taking   over   possession   is   not 
contemplated under LAA.

40.
Mr. Zaveri also relied upon the judgments of this Court in the case 
of Fazalabhai Ibrahim Co. Ltd. Vs. Land Acquisition Officer, 2 Mh.L.J. 2012, 
in which also it has been held that when actual possession was not taken, the 
land   did   not   vest   in   the   government.     In   that   case   the   acquisition   as   also 
compensation fixed thereunder came to be challenged.  Part of the land which 
was sought to be acquired was actually not acquired.  Acquisition of land was 
not withdrawn.   That land was not released to the claimants.   However, the 
possession   letter   excluded   that   land.     Consequently   in   Paragraph   3   of   the 
judgment it is held that under those circumstances when actual possession was 
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not   taken   and   the   land   was   not   acquired,   that   land   did   not   vest   in   the  
government.   The case is, therefore, wholly distinguishable.   In that case the 
land was not acquired, award in that regard has not been passed and that land 
was   not   shown   in   the   possession   letter.     Such   land   cannot   vest   in   the 
government.   In  fact such land had to be  released to the  claimants and the 
41.
acquisition in respect thereof had to be withdrawn.
In this case possession of the land which was sought to be acquired 
for the construction of the DP road was taken under the possession letter relied 
upon by the applicant/MMC/acquiring body.   The possession letter under the 
panchnama shows the actual possession taken.  Such actual possession may be 
actually   handed   over   by   the   owner   or   the   occupant   of   the   land   or   may   be 
actually taken by the government in the absence of the owner or the occupant. 
Taking of the actual possession is unmistakable.  Such taking vests land in the 
government and the owner or the occupant thereafter cannot take advantage of 
his own absence at the time the possession of the land was sought by the SLAO.
42.
Hence   once   a   notification   is   published   in   the   official   gazette   it 
tantamounts to notice upon the persons interested in the property. Once that 
notice   is   given,   the   omission   to   give   notice   to   the   subsequent   owner   of   the 
property   does   not   vitiate   the   enquiry   and   consequently   the   acquisition 

proceedings.   [See  Nandatai   Vs.   State   of   Maharashtra,   (1996)   6   Supreme 
Court   Cases   407]  in   which   case   after   notice   was   given   to   the   owner,   his 
daughter­in­law who lived with the owner mutually divorced.   In the family 
settlement the daughter­in­law was given the property sought to be acquired. 
She claimed that she was not given notice.  In that case enquiry under Section 
5(A) of the Act was also to be undertaken.   Her claim was negatived as she 
became the owner subsequently.  It was held that the enquiry proceedings could 
not have been vitiated because she was not given notice again.
In the case of Balmokand Khatri Educational & Industrial Trust, 
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43.
Amritsar Vs. State of Punjab and Ors., (1996) 4 SCC 212, the mode of taking 
possession was considered thus: 
44.
It   is   now   well­settled   legal   position   that   it   is   difficult   to   take   physical  
possession   of   the   land   under   compulsory   acquisition.   The   normal   mode   of  
taking possession is drafting the panchnama in the presence of panchas and  
taking possession and giving delivery to the beneficiaries is the accepted mode  
of   taking   possession   of   the   land.     Subsequent   thereto,   the   retention   of  
possession would tantamount only to illegal or unlawful possession.  
In this case after the acquisition proceedings were completed by the 
SLAO, possession was handed over to the MMC as the acquiring authority so 
that the land vested in the MMC.   As defendant No.1 as also his Constituted 
Attorneys, plaintiff Nos.1 & 2 remained absent, physical possession was actually 
not   handed   over   by   defendant   No.1   as   the   owner.     Yet   his   retention   of 
possession itself become illegal and unlawful and consequently transfers by him 
suffered from the same malady.   Hence the acquisition proceedings which are 
conclusive evidence of what transpired show possession of the land acquired 
from   defendant   No.1   lawfully   taken   after   payment   of   lawful   consideration 
which was accepted by plaintiff No.1 on behalf of defendant No.1, the original 
owner.   The acquired land, therefore, vested in the Government free from all 
encumbrances of the plaintiffs or defendant No.10, it having been acquired for 
the applicant, MMC.

Consequently  the  papers  and  proceedings  of  acquisition   showing 
45.
the award, which is final and conclusive evidence, shows that due legal process 
under the MRTP Act and LAA were followed and the compensation was granted 
to defendant No.1 and collected by plaintiff No.1.  It, therefore, does not matter 
that defendant No.1 or plaintiff Nos.1 to 3 or defendant No.10 were not present 
and had not handed over possession of the suit land part of which came to be 
lawfully acquired.  Once the land is acquired after following due legal process, 
it is of no consequence that the owner who accepts the compensation does not 
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remain present to actually hand over possession of the land so acquired to the 
Land Acquisition Officer.  The proceeding cannot be vitiated for the neglect or 
the fault of the owner who accepts the acquisition proceeding by the acceptance 
of compensation.  Any rights thereafter created by such owner in favour of any 
46.
other party would be vitiated.
In this case defendant No.1 through plaintiff No.1 himself accepted 
compensation.   Both these parties were not present at the time of possession 
had to be taken.  In their absence possession of the land was given by the SLAO 
to the acquiring body.   Plaintiff Nos.1 to 3 as also defendant No.1 who were 
parties to the initial transaction, for which declaration of the validity was sought 
in   the   suit,   were   concerned   with   and   actually   partook   in   the   acquisition 
proceeding.  Thereafter defendant No.1 has sought to sell the same land earlier 
owned   by   him   and   to   which   he   had   no   title   after   acquisition   to   defendant 
No.10.  The sale has no validity in law.  Such sale is effected by a party having 
no title.  Due diligence was required on the part of defendant No.10 at the time 
defendant   No.10   sought   to   purchase   the   suit   land   from   defendant   No.1.     If 
defendant No.10 has sought to purchase the property without those minimum 
requisites  of   ascertaining   the   title,   defendant   No.10   would   not   acquire   legal 
rights   thereto.     Possession   of   any   of   these   parties   thereafter   is   of   no 
consequence.     The   rights,   if   any,   of   the   original   plaintiff   No.4   would   follow 
                                                
plaintiff Nos.1, 2 & 3.
In   the   case   of  S.   Prabh   Singh   Dhillon   &   Ors.   Vs.   Hoshiarpur 
47.
Improvement   Trust   &   Ors.   (1996)   1   SCC   309  it   was   held   that   after   the 
possession   is   taken   if   the   owner   continues   in   possession   he   would   not   be 
entitled to interest on the compensation paid.  In that case also possession was 
taken   upon   the   award   much   as   in   this   case   under   the   letter   of   possession. 
Actual possession remained with the owner and interest was claimed.   It was 
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held that the owner was not entitled to such interest.
48.
Consequently   neither   plaintiff   Nos.1   to   3   not   plaintiff   No.4   nor 
defendant Nos.1 to 3 nor defendant Nos. 4 to 9, nor defendant No.10 can claim 
to be in possession of the acquired premises, nor claim any right, title or interest 
to the land so acquired.  The public purpose of making a 56' D.P
. Road cannot be 
frustrated   by   a   party   who   acquienced   in   the   acquisition   proceedings   by 
accepting compensation, nor by his subsequent transferees.
49.
50.
Hence Chamber Summons has to be made absolute as prayed.  
The   applicant/MMC   must,   therefore,   be   held   to   be   entitled   to 
demolish the GI sheet compound wall on the suit property and construct the DP 
road for public purpose.
51.
There is no objection to the MMC being made a party­ defendant in 
the suit.   It is seen to be a proper party to the suit a part of the suit property 
having vested in it.  
52.
Hence the Chamber Summons is made absolute in terms of prayer 
clauses   (a)   &   (b).     The   plaintiff   Nos.   1   to   3   shall   carry   out   the   necessary 
amendments within 2 weeks in the plaint and in the copies of the plaint served 

upon all the defendants including the newly added defendants as per the order 
in another Chamber Summons passed earlier.  All the defendants shall file their 
written statements within 30 days of the amendments being carried out in their 
copies or served upon them.   The MMC shall be entitled to demolish the GI 
sheet   compound   wall   on   the   suit   property   and   construct   the   DP   road   thus 
serving the public purpose.  
Chamber Summons is disposed of accordingly.
54. This order is stayed for 2 weeks.
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53. 
(ROSHAN DALVI, J.)

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