Disposed

Kanubhai Babubhai Punjiram Patel v. State of Gujarat

Gujarat HC28 Jun 2018SCA/2235/2018

Case brief

AI extract

What is this about?

The High Court addressed a complaint by landowners regarding non-compliance with a 2016 order requiring ONGC to pay revised rent and compensation. Finding acquisition proceedings were advancing, the Court directed ONGC to pay the entire outstanding rent (at the revised rate) and compensation immediately, along with interest.

What did the court decide?

ONGC directed to pay entire outstanding rent and compensation by 31.7.2018 with 9% interest, liable to revert to 15% if not paid.

Kanubhai Babubhai Punjiram Patel Vs State of Gujarat — Land Acquisition | Gujarat HC (2018)

¶1

C/SCA/2235/2018 ORDER

¶2

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

¶3

R/SPECIAL CIVIL APPLICATION NO. 2235 of 2018

¶4

==========================================================

¶5

KANUBHAI BABUBHAI PUNJIRAM PATEL

¶6

Versus

¶7

STATE OF GUJARAT

¶8

==========================================================

¶9

Appearance:

¶10

MR HD VASAVADA(974) for the PETITIONER(s) No. 1,10,11,12,13,2,3,4,5,6,7,8,9 MS MANSHI A MACWAN(3861) for the PETITIONER(s) No. 1,10,11,12,13,2,3,4,5,6,7,8,9

¶11

ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP(99) for the RESPONDENT(s) No. 1 MS KJ BRAHMBHATT(202) for the RESPONDENT(s) No. 3,4 NOTICE SERVED BY DS(5) for the RESPONDENT(s) No. 1,2

¶12

==========================================================

¶13

CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI

¶14

and

¶15

HONOURABLE MR.JUSTICE B.N. KARIA

¶16

Date : 28/06/2018

¶17

ORAL ORDER

¶18

(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

¶19

The petitioners are the owners of the lands which the ONGC desires to acquire for its purpose. ONGC is in possession of such lands since long paying rent for its possession. The present petitioner and other landowners had approached this Court by filing Special Civil Application No.7993/2015 and connected petitions raising several issues. This Court disposed of the petitions by common judgment dated 2.3.2016 giving the following directions :

¶20

“16. In view of this clear mistaken belief of fact on part of both sides, it would simply not be possible to direct the

¶21

Page 1 of 5

¶22

C/SCA/2235/2018 ORDER

¶23

ONGC to make such deposits when the entire acquisition proceedings have been now undertaken under the Act of 2013. This Act also contains the provision for pre-deposit but, the stage has now been shifted under Section 19 of the new Act. The ONGC would be required to make the deposit in terms of second proviso to Sub-section (2) of Section 19. Sub section (2) of Section 19 provides that the Collector shall publish a summary of the Rehabilitation and Resettlement Scheme along with declaration referred to in sub section (1). Second proviso to sub section (2) of Section 19 provides that no declaration under this sub section shall be made unless the Requiring Body deposits an amount, in full or part, as may be prescribed by the appropriate Government towards the cost of acquisition of the land. The third proviso provides that the Requiring Body shall deposit the amount promptly so as to enable the appropriate Government to publish a declaration within a period of twelve months from the date of publication of preliminary notification under Section 11. It can thus be seen that the stage for ONGC to deposit appropriate amount with the State Government would now arise only at the stage of Section 19 of the Act of 2013. The quantification of amount is left to the appropriate Government. Further proviso requires the Requiring Body to make such deposit promptly. Under the circumstances, the ONGC cannot be bound by its earlier agreement with the Government, instead, statutorily, it is duty bound to make payments in terms of sub section (2) of Section 19 of the Act of 2013. Though it is already stated so before us by the counsel for ONGC, we direct that the ONGC shall file undertaking before this Court latest by 31.03.2016 that such payment would be made to the Government as soon as demanded. The Government of Gujarat may further require the ONGC to execute an agreement to this effect, if so desired. These directions are issued in order to ensure smooth progress in the acquisition proceedings initiated by the Government.

¶24

17.Last issue required to be addressed is regarding interregnum rent to be paid by the ONGC to the land owners. We have noticed that since year 2007 or there about, the ONGC is occupying the land by paying periodic yearly rent which is fixed per sq.mtr basis. When the question of assessment of rent comes, one can either apply

¶25

Page 2 of 5

¶26

C/SCA/2235/2018 ORDER

¶27

the formula of reasonable return of investment or, yield method. If one looks purely at the lands as agriculture lands, the current return of rent would perhaps far exceed the agriculture yield. However, if one looks at the current market value and rewards the land owners by a reasonable return on such market value, the current rent would definitely fall way short of the expectation. We wonder whether for a reasonable return on investment method, we can apply formula of current market value of the land.

¶28

18.However, in the present proceedings, we are not inclined to take final decision on such issues. This is for the reason that, we expect the land acquisition proceedings to be over within a couple of years. As noted, the Government has given time of six months to the Social Impact Assessment Study Team to submit its report from the date of the notification dated 18.01.2016. Once this report is submitted, the statue envisages a maximum of 11 months between Section 7 stage and publication of preliminary notification under Section11. Thereafter also, as per Section 25, the final report would have to be passed within twelve months from the publication of the declaration under Section 19, failing which, the acquisition would lapse. Thus, these stages would have to be completed within time frame provided under the statute. The petitioners have voluntarily handed over possession of their lands to the ONGC by accepting rent, which was mutually fixed at the relevant time. In the interregnum period of couple of years, therefore, we would not like to drastically change this rent formula. Nevertheless, we notice that the rent revision was granted on 01.10.2014. Currently, therefore, this petitioners are receiving rent at the rate of Rs. 18/- per sq.mtr per annum( in some cases, it is at the rate of Rs. 20/- per mtr per annum).

¶29

Considering facts of the case, therefore, w.e.f. 01.01.2016, the ONGC shall pay rent to the petitioners at the rate of Rs. 25 per sq.mtr per annum which will operate till 31.12.2017 and would thereafter be revisable. If the land acquisition proceedings are not completed by the end of the year 2018, it would be open for the petitioners to file fresh proceedings for such relief, as may be advised.”

¶30

Page 3 of 5

¶31

C/SCA/2235/2018 ORDER

¶32

Effectively therefore, the Court revised the rent being paid by ONGC to landowners from Rs.18/- per sq. mtr per annum to Rs.25/- per sq.mtr. per annum for the period between 1.1.2016 to 31.12.2017 after which it would be revisable. Further, if till the end of year 2018 the land acquisition proceedings is not completed, the petitioners would have liberty to file fresh proceedings.

¶33

The petitioners have complained that directions contained in such judgment are not complied with and prayed that same be done.

¶34

Having heard the learned advocates for the parties and having perused the documents on record what emerges is that proceedings for acquisition of lands under the Right to Fair Compensation and Resettlement Act, 2013 are at advance stage. ONGC has already deposited 80% of the compensation assessed by the Government for such acquisition which is already released in favour of those claimants, as stated by learned AGP, who approached for such purpose to the State authority. He clarified that few of the claimants have not yet approached and if they do come, their portion of compensation will also be released. He further submitted that awards will be passed shortly.

¶35

It can thus be seen that the acquisition proceedings are time-wise on track. As stated by learned AGP, if any of the claimants have not received compensation awarded so far, they may approach the competent authority who shall after proper verification do the needful.

¶36

Page 4 of 5

¶37

C/SCA/2235/2018 ORDER

¶38

Learned counsel for the ONGC however, clarified that full rent as per the judgment of this Court dated 2.3.2016 has not been paid, same shall be done shortly. It is not clear whether the entire amount of rent payable as per the revised rate is not paid or revised component of the rent remains outstanding. Be that as it may, judgment was passed as far back as on 2.3.2016. Two years have passed since then. There can be no excuse on part of ONGC for not paying the amount as directed by the Court. Such amount is otherwise also not insignificant. ONGC shall therefore, pay entire amount along with simple interest at the rate of 9% per annum from the date of judgment till actual payment. This shall be done latest by 31.7.2018. If by such date, these amounts are not released in favour of the claimants, unpaid amount shall invite interest at the rate of 15% for the entire period till it is actually paid.

¶39

Petition is disposed of.

¶40

(AKIL KURESHI, J)

¶41

(B.N. KARIA, J)

¶42

raghu

¶43

Page 5 of 5

Kanubhai Babubhai Punjiram Patel v. State of Gujarat

Case brief

What is this about?

What did the court decide?

Kanubhai Babubhai Punjiram Patel v. State of Gujarat

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Messrs Bloom Dekor Limited Vs Union of India

Bajrang Lal Sharma Vs Union of India

Shri Rasiklal S Marida Vs Assets Reconstruction Company (India) Ltd.

Maulikkumar Shaileshbhai Pandya Vs Ashaben Maulikkumar Pandya

Mehta Tubes Limited, Vs Union of India

Vasant K Himsu Vs Union of India