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Civil Property & InheritanceSupreme Court of India

Nagpur Improvement Trust v. Sheela Ramchandra Tikhe (Dead) Through LRs.

Civil Appeal · 2018 INSC 1028Decided 31 Oct 2018
Civil Appeal No. 10853 of 2018
Justice A.K. Sikri · Justice Ashok Bhushan

Background

Nagpur Improvement Trust had acquired 44.61 acres of the respondent's land in 1953 for a drainage/sewerage scheme, paying compensation. The respondent later applied for re-allotment of the land, and in 1982 the Trust allotted her only 24 acres (not the full 44.61 acres) on a revised premium, which she accepted, took possession of, and was eventually leased in 1989. She then sued the Trust for re-allotment of the remaining 20.61 acres, claiming the acquisition had never genuinely been needed for the Trust's scheme, and the trial court and the first appellate/High Court proceedings eventually went in her favour, decreeing that she be allotted the balance land.

Decision Breakdown

The Supreme Court held that once the respondent accepted the 1982 allotment letter offering only 24 acres on revised terms, took possession of that land, and operated under the resulting lease without protest for years, she could not later turn around and claim an entitlement to the remaining 20.61 acres on the same original application: the acceptance of a partial allotment superseded her earlier request for the whole parcel. The Court found no material to show the Trust had acted arbitrarily or in bad faith in allotting only 24 acres, and held the plaintiff was not entitled to the decree granted by the trial court and affirmed by the High Court. It set aside the High Court's judgment and dismissed the suit in its entirety, while noting it did not need to separately decide the limitation question raised by the appellate court since the claim failed on merits regardless.

Lesson Learnt

When a person accepts a government or statutory authority's offer on specific, reduced terms and acts on that acceptance (taking possession, paying dues, entering a lease), they generally cannot later revive and enforce their original, larger demand as if the acceptance never happened.

Nagpur Improvement Trust v. Sheela Ramchandra Tikhe (Dead) Through LRs. – Legal Case Shots | LegalAware