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Pradyumna Mukund Kokil vs Nashik Municipal Corporation and Others

Not available · 2025 INSC 1236Decided 15 Oct 2025
Not available
Chief Justice B.R. Gavai · Justice Augustine George Masih

Background

In 1972, a Nashik municipal body reserved land for a school/roads and took possession of a 37-Are (3,700 sq. m.) strip without ever formally acquiring it, using it for road construction for decades while a 1978 acquisition notification covered only the remaining portion. The appellant bought the unacquired strip from the original owner in 2011 and, after prolonged litigation (including an earlier Supreme Court appeal and a contempt petition), finally forced the State to formally acquire the land in 2017, resulting in a compensation award later enhanced by a Reference Court to about Rs. 20.2 crores plus substantial rental/mesne-profit compensation for the decades of illegal occupation before formal acquisition. The Bombay High Court, on the Corporation's challenge, reduced the compensation, denied rental compensation almost entirely, made adverse personal observations against the appellant, and imposed Rs. 10 lakh in costs on him.

Decision Breakdown

The Supreme Court restored the Reference Court's enhanced compensation of roughly Rs. 20.2 crores (with interest at 9% for one year and 15% thereafter until payment), holding the High Court was wrong to cut it down. It denied the appellant's claim for rental compensation for the long period from 1972 up to his 2011 purchase (since he did not own the land during that period and could not claim compensation for a period predating his ownership), but held he was entitled to interest at 8% per annum on his own purchase price (as mesne profits/compensation) from the date he bought the land (29.07.2011) until possession was formally transferred to the Corporation (08.05.2017). The Court found the High Court's adverse personal observations against the appellant and the Rs. 10 lakh costs imposed on him were unjustified, since he was merely pursuing legal remedies available to him and had produced evidence to support his claims: these were expunged and the costs waived.

Lesson Learnt

A citizen who buys land already under long-term unauthorised government occupation, and then persistently pursues the legal process to force formal acquisition and compensation, is entitled to a fair enhanced award and compensation for the period of his own ownership, but not for periods before he acquired title; and courts should not penalise a litigant with costs or adverse remarks merely for pursuing statutory remedies in good faith.

Official source (sci.gov.in)View Judgment (PDF)

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