LexLords NRI Legal Services By NRI Legal Services LexLords

NRI legal services - https://lexlords.com/careers/. It is therefore, clear that under the statutory scheme, the Collector must be armed with the amount of compensation payable to persons interested as soon as the award is made. It is only after these steps have been taken that the Collector may take possession of the land, which shall thereupon vest absolutely in the Government free from all encumbrances. Such persons have to be paid the sum mentioned in the award, it being well settled that the award is only an offer which may be accepted or rejected by the claimants.

The position of the Gajendragad estate which had been recognised by the British Government as a saranjam and which had been declared by the Bombay High Court in 1868 to be partible, was re-examined in 1891 and Government passed a Resolution in 1891 that "the whole of the Gajendragad estate was a saranjam continuable as hereditary in the fullest sense of the word. Now, this argument is clearly incorrect.

But except in such cases, the declaration of the Government is not subject to judicial review. 1(d) of the Concession Agreement. In appropriate cases, where such power is exercised mala fide or for collateral purposes or the purported action is dehors the Act, irrational or otherwise unreasonable or the so-called purpose is no public purpose at all and fraud on statute is apparent, a writ court can undoubtedly interfere.

It is primarily for the State to decide whether there exists public purpose or not. " In 1932 by another Resolution Government formally resumed the grant and NRI Legal Services re-granted it to the plaintiff who belonged to the first branch of the family of the original grantee with a direction that it should be entered in his sole name in the accounts of the Collector. It is only in a situation where the persons interested refuse consent to receive monies payable, or there be no person competent to alienate the land, or if there be any dispute as to title to receive compensation or its apportionment, is the Collector to deposit the amount of compensation in the reference court.

The Act further makes it clear, on a reading of Section 34, that where such compensation is neither paid or deposited on or before taking possession of the land, interest is payable at the rate of 9 per cent per annum for one year and 15 per cent per annum thereafter. In other words, a writ court, while exercising powers under Articles 32, 226 or 136 of the Constitution, cannot substitute its own judgment for the judgment of the Government as to what constitutes public purpose.

The appellants invited our attention to Clause 4. The plaintiff instituted a suit impleading NRI Legal Services the representatives of the other two branches as defendants 1 and 2, and the Province of Bombay as the 3rd defendant, alleging that the Resolution of 1936 was ultra vires and praying (A) for a declaration (i) that the defendants 1 and 2 had no right to go behind the Resolution of 1932 under which the plaintiff was recog- nised as the sole saranjamdar and that the assignments held by defendants were held by them as mere potgi holders, (ii) that the plaintiff had the sole right to all privileges appertaining to the post of saranjamdar, and (iii) that the Government had no right to change the Resolution of 1932, and (B) for restraining the defendants 1 and 2 from doing any acts in contravention of the aforesaid right of the plaintiff.

Special Land Acquisition Officer[1995] INSC 777; , (1996) 1 SCC 731 at para 3, this Court held: This statutory scheme has been adverted to in some of the decisions of this Court. The entire amount of compensation is to be paid by State agency (APIIC) which also works as nodal agency for execution of the project. Undoubtedly, the decision of the State is not beyond judicial scrutiny. If accepted, whether under protest or otherwise, it is the duty of the Collector to make payment as soon as possible after making the award.

We must, at this stage, take into account the argument that the whole compensation is coming wholly from the Company and not from the Government or from YEIDA. On that basis, it was argued that the Company has paid the compensation cost and, therefore, the acquisition is clearly covered under Part VII of the Act, and there may be no public purpose if the acquisition is made for the Company and it is the Company who has to shell out the whole compensation.

It is continuable to all male legitimate descendants of the holder at the time of the British con- quest. The other two branches felt aggrieved and in 1936 Government passed anoth- er Resolution which confirmed the Resolution of 1891 and modified the Resolution of 1932, by declaring that the portions of the 403 estate held by the branches shall be entered as de facto shares and that each share shall be continuable hereditarily as if it were a separate saranjam estate.

Whether it is exercised mala fide or collaterally or de hors of the Act and no public purpose would be served, court can interfere. (emphasis supplied) Thus this Court has laid down that when the entire compensation is to be paid by APIIC, it is for the State to decide whether there exists a public purpose or not, though the decision of the State is not beyond judicial scrutiny. This is because a person becomes divested of both possession and title to his property without compensation having been paid or deposited, as the case may be.