The Supreme Court opined that if a temporary acquisition is allowed for a long time, then the same would lose its relevance. The temporary acquisition cannot be permitted to continue for 20-25 years. The act of continuing temporary acquisition for so many years would be violative of Article 300A of the Constitution of India. Hence, in the present case, the Respondent was directed to complete the process of permanent acquisition by April 2023. 

Brief Facts:

The present appeal has been filed against the order of the Gujarat High Court vide which the writ petition of the Appellants (landowner) for quashing the temporary acquisition proceedings was dismissed. 

Brief Background:

The Appellant had purchased the land which is the subject matter of the suit vide a registered sale deed. Since 1996, the said land has been under temporary acquisition by Oil and Natural Gas Corporation Ltd. (“ONGC”). 

The land is situated in Ahmedabad and the price has increased substantially. The rent paid to the Appellant was Rs. 24/- per square meter per annum for temporary acquisition. 

The writ petition preferred by the Appellant was dismissed as the Respondents claimed to initiate the process for permanent acquisition of the land. However, no steps were taken in this regard. 

Contentions of the Appellants:

It was contended that the continuation of temporary acquisition for almost 25 years by paying meagre rent would be absurd and arbitrary. It was argued that the same violates Article 300A of the Constitution of India. 

It was submitted that even after claiming to take steps for permanent acquisition, no step has been taken by ONGC.  Further, land prices have gone up due to the development of the area where the land is situated. It was contended that the Appellants were unable to use the land and get market price due to the temporary acquisition for 25 years. 

Contentions of the Respondents:

It was submitted that the ONGC had acquired the land for oil exploration and production activities temporarily. The rent paid was revised from time to time by the Committee consisting of the Collector, Town Planning Officer, Deputy Collector etc. and the same was accepted by the Appellants voluntarily. 

It was further contended that the ONGC wished to continue with the process of permanent land acquisition, however, due to the notification issued under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the “2013 Act”) about the said land, more time is required to make process in conformity with the 2013 Act. 

Observations of the Court:

It was noted that when the land was purchased by the Appellants, it was under temporary acquisition by ONGC.  However, if the temporary acquisition has been going on for a long period of time, the same can be questioned by the owner of the land. 

The Bench opined that if such a temporary acquisition is allowed for a long time, then the same would lose its relevance. The temporary acquisition cannot be permitted to continue for 20-25 years. The act of continuing temporary acquisition for so many years would be violative of Article 300A of the Constitution of India. 

The decision of the Court:

The Apex Court directed the Respondent to act as per the order of the High Court vide which the Respondent was directed to complete the temporary acquisition proceedings on or before April 2023. Accordingly, the appeal was disposed of. 

Case Title: Manubhai Sendhabhai Bharwad & Anr. V. Oil and Natural Gas Corporate Ltd. & Ors. 

Coram: Hon’ble Mr. Justice MR Shah, Hon’ble Mr. Justice MM Sundresh

Case No: Civil Appeal arising from SLP (Civil No. 13885/ 2022) 

Citation2023 Latest Caselaw 61 SC

Advocate for Appellants: Adv. Jatin Zaveri 

Advocates for Respondents: Advs. Vaibhav Manu Srivastava, Deepanwita Priyanka 

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Priyanshi Aggarwal