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Civil Property & InheritanceSupreme Court of India

The State of Maharashtra & Ors. v. M/s Moti Ratan Estate & Anr.

Civil Appeal · 2019 INSC 998Decided 4 Sept 2019
Civil Appeal No. 6996 of 2019
Justice Arun Mishra · Justice M.R. Shah · Justice Ajay Rastogi

Background

The State of Maharashtra had issued a notification in 2012 to acquire land in village Asarjan, Nanded, for a public project, followed by a declaration in 2013. Various affected landowners filed writ petitions challenging the acquisition, and the High Court granted interim stays, including a stay on declaring the final award in some connected petitions and a stay on dispossession in the lead petition. The Bombay High Court (Aurangabad Bench) later quashed the entire acquisition on the technical ground that the final award under Section 11 had not been passed within the two-year statutory period from the Section 6 declaration, prompting the State's appeal.

Decision Breakdown

The Supreme Court held that where a court stay, whether staying the award itself or staying dispossession, prevents the authorities from completing acquisition proceedings for the same land, project and notification, the period during which that stay operates must be excluded when calculating the two-year statutory deadline under Section 11A. Since stays were in force covering the relevant period here, excluding that time meant the award was validly passed within the permitted period, so the acquisition had not lapsed. The Court found the High Court had committed a clear error in not excluding the stay period, allowed all the connected appeals, quashed the High Court's judgments, and dismissed the original writ petitions, with no order as to costs.

Lesson Learnt

When a court itself stays an acquisition process, even by just restraining the government from taking possession or declaring an award, the time during which that stay operates does not count against the government's statutory deadline to complete the acquisition; the acquisition does not "lapse" by default during a judicially-imposed delay.

The State of Maharashtra & Ors. v. M/s Moti Ratan Estate & Anr. – Legal Case Shots | LegalAware