Manubhai Sendhabhai Bharwad & Anr. vs Oil and Natural Gas Corporation Ltd. & Ors.
Background
A plot of about 10,034 sq. metres at Village Vastral, now within Ahmedabad city, has been under "temporary" acquisition by ONGC for oil exploration since 1996. Manubhai Bharwad bought the land in 2005 and has been receiving rent of just Rs. 24 (later Rs. 30) per square metre per year, while a neighbouring metro-rail body pays Rs. 1,000 per square metre per month for similar land. In 2016-17 ONGC assured the Gujarat High Court it would acquire the land permanently, but nothing concrete happened; a second writ petition in 2022 was dismissed, though the High Court gave ONGC 12 months (until 26 April 2023) to complete permanent acquisition and asked it to consider paying rent at Rs. 1,000 per sq. m. per month from 2005.
Decision Breakdown
The Supreme Court disposed of the appeal with directions. It held that Section 35 of the 1894 Act contemplates temporary occupation for a term not exceeding three years, and continuing a "temporary" acquisition for 25-26 years defeats the very meaning of the word. It is arbitrary, unreasonable and infringes the landowner's right to use and deal with property guaranteed under Article 300A. Since the High Court had already issued a mandamus requiring ONGC to complete permanent acquisition by 26 April 2023, the Court directed ONGC to comply with that order (especially para 7(ii)), warning that "necessary consequence shall follow" if it did not. On rent, the Court noted the High Court's direction to consider Rs. 1,000 per sq. m. per month and added that the landowners may also seek a reference to the civil court through the Collector under Section 34 of the 1894 Act if dissatisfied with the compensation.
Lesson Learnt
The government or a public corporation cannot keep private land under "temporary" acquisition for decades on token rent: a temporary taking must genuinely be temporary, and prolonged occupation without permanent acquisition and fair compensation violates the constitutional right to property.