Madhya Pradesh High Court
J.K. Lakshmi Cement Ltd. vs Madhya Pradessh Metro Rail Corporation ... on 29 May, 2025
Author: Vishal Dhagat
Bench: Vishal Dhagat
NEUTRAL CITATION NO. 2025:MPHC-JBP:25207
1 WP-13286-2021
IN THE HIGH COURT OF MADHYA
PRADESH
AT JABALPUR
BEFORE
HON'BLE SHRI JUSTICE VISHAL DHAGAT
WRIT PETITION No. 13286 of 2021
J.K. LAKSHMI CEMENT LTD.
Versus
MADHYA PRADESSH METRO RAIL CORPORATION LTD.
(MPMRCL) AND OTHERS
Appearance:
Shri Ravish Agrawal - Senior Advocate with Shri Sankalp Kochar -
Advocate and Shri Siddhant Kochar - Advocate for petitioner.
Shri Anvesh Shrivastava - Advocate for respondent No.1.
Shri Prashant Singh - Advocate General with Shri Amit Seth -
Additional Advocate General for State.
Reserved on 20/02/2025
Passed on 29/05/2025
ORDER
Petitioner has filed this petition under Article 226 of Constitution of India making a prayer to issue restraint order not to dispossess petitioner company and demolish structure standing over the disputed land. Prayer is also made to acquire the land of petitioner in accordance with law and to commence execution of Metro Railways Project after determination and payment of compensation for leased land. Prayer is also made to produce Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 2 WP-13286-2021 Gazette notification published in compliance of provisions of Metro Railways (Construction of Works) Act, 1978.
2. Learned senior counsel Shri Ravish Agrawal appearing for petitioner alongwith Shri Sankalp Kochar - Advocate submitted that petitioner was granted 99 years lease in respect of 20.31 acres of land. Said lease is renewed upto 03/05/2068. Another lease was granted of adjoining area measuring 5.52 acres for period of 99 years. Both lease are subsisting and are valid. Petitioner is lessee in respect of 25.83 acres of land. Respondent has commenced construction of Metro Railways Project in an area 78.01 meters X 200 meters equivalent 15602 sq. meter i.e. 3.92 acres. No notice about acquisition was given to petitioner, nor any information was furnished to petitioner. Petitioner ought to have been issued notice as required under Section 21(1) and 22 of Metro Railways (Construction of Works) Act, 1978. Action taken is without complying with provision of Metro Railways (Construction of Works) Act, 1978 as well as Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013. It is submitted that respondent is public corporation and instrumentalities of State and cannot be permitted to act on their whim and fancy. Action taken for testing and working of design and construction etc. are contrary to Article 14 and 300 A of Constitution Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 3 WP-13286-2021 of India and principles of natural justice of petitioner has also been violated. It is submitted that land in question was granted to petitioner company by Nawab of Bhopal for construction of Card Board factory. Lease in respect of 20.31 acres of land is valid till 03/05/2068 and lease in respect of adjoining 5.20 acres is also subsisting and valid till 2070. It is submitted by learned senior counsel that with passage of time, land which was allotted to petitioner by lease has come in middle of town. Due to said changed circumstances, Pollution Control Board has not granted permission for running factory for manufacturing of straw boards. Further Department of Town and Country Planning has changed the land use to recreational and educational in respect of leased land. Due to said reasons petitioner company was forced to close their factory. Permission to close the factory was obtained on 30/09/2002 from State Government, Department of Labour in accordance with law and after grant of permission, factory was closed on 09/11/2002. It is submitted that after closing of factory lease granted to petitioner was cancelled by State Government, which is under challenged in Writ Petition No.20092/2015. Respondent No.2 has issued notice to petitioner regarding violation of conditions of lease. Tehsildar has issued notice to petitioner to vacate the land in question. Said notice was challenged in Writ Petition. Said action is challenged by filing Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 4 WP-13286-2021 of Writ Petition No.17426/2010 before this Court. In aforesaid cases direction has been issued to respondent authorities not to dispossess the petitioner. Stay order passed by this Court was not followed, therefore, petitioner was forced to file Contempt Petition before this Court bearing Conc. No.1844/2012 and Conc. No.2080/2015, which are also pending for consideration. Learned senior counsel submitted that petitioner was informed by CF Testing and Co. Pvt. Ltd., Kolkata that it has been given a contract for soil testing of land through which Metro Rail of Bhopal shall be passing. It is submitted that as per Section 21 of Metro Railways (Construction of Works) Act, 1978 Central Government may issue notification directing no construction works be made within distance of 20 meters of either side of metro alignment and if there are any building on such land then to direct the owner or the person having control over such building to demolish it or to make alteration to such building as specified in notification. As per Section 2 compensation is to be paid to person who suffers any loss due to construction of Metro Rail. Section 25 of Metro Railways (Construction of Works) Act, 1978 lays down that Metro Railway administration shall pay compensation if any persons suffers damages, loss or injury due to construction of Metro Railways. Respondents are working on design and construction of elevated wire duct of length 6.225 KM between Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 5 WP-13286-2021 AHMS and Subhash Nagar. No notification has been issued, nor any document were made available to petitioner regarding acquisition of land or award of compensation. Petitioner was never informed and intimated about any such proceeding drawn by authorities, therefore, petitioner could not take necessary objections. Petitioner has issued notice to respondents not to proceed with construction of Metro Rail. Learned senior counsel submitted that rights under Article 300 A of Constitution of India is violated. No compensation has been paid. Procedure under Metro Railways (Construction of Works) Act, 1978 and under Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 is not complied with. Action of respondent is illegal and without jurisdiction. 4.45 acres of land belonging to petitioner company cannot be utilized for construction of railways without making of payment of compensation. Huge structures over one lac square feet are standing in the aforesaid land of petitioner and any encroachment and demolition will result in loss of several lac rupees and loss of rental income to petitioner. In view of same, aforesaid, reliefs are prayed for by the petitioner.
3. Learned Advocate General appearing for State submitted that lease in favour of petitioner has been cancelled by the State Government. Hon'ble High Court has only granted stay in respect of Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 6 WP-13286-2021 dispossession of petitioner. However, said order will not mean that rights of petitioner as land owner or lease holder as claimed by petitioner were available to him due to existence of interim order. It is denied that respondents should have adopted the Act of 2013 and should have adopted Metro Railways (Construction of Works) Act, 1978. It is submitted that implementation of provision of Metro Railways (Construction of Works) Act, 1978 is not mandatory in nature. Reliance is placed upon judgment passed by Apex Court in case of Shanta Talwar and Another Vs. Union of India and Others, (2011) 5 SCC 287 , wherein it has been held that legislature did not intended to do away applicability of Land Acquisition Act for purpose of acquisition of land for construction of metro railways and other works connected therewith, but it was obligatory by legislatire to invoke only the provisions of Metro Railways Act in case of acquisition of land for construction of metro railways or other works connected therewith. On basis of said judgment it was argued that provisions of Metro Railways (Construction of Works) Act, 1978 are only obligatory and not mandatory. Lease to petitioner was granted for non agricultural purposes and Nazul Nivartan Rules, 2000 for grant of renewal of lease is not applicable to petitioner company. Card board factory is no longer in operation and same has been closed. It is submitted that vide memorandum of understanding dated Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 7 WP-13286-2021 19/08/2019 answering respondent entered into an agreement with Central Government in which clause 12.1 provides that all proceedings relating to land acquisition should be done by State Government. Petitioner has made publication of notice in News Paper in compliance with provision under Chapter 3 of Metro Railways (Construction of Works) Act, 1978 relating to acquisition of rights. Reliance is placed on judgment passed by Apex Court in case of Indar Prashad vs. Union of India, (1994) 5 SCC 239, wherein it has been held that owner Government is not enjoined to acquire its own interest in the land. It is argued that land in question belongs to ownership of Government and acquisition cannot be done per se. Compensation has already been paid to revenue authorities and petitioner is only praying for relief of compensation. Apex Court has further held in case of National High Speed Rail Corporation Limited vs. Montecarlo Ltd., (2022) 6 SCC 401 that entertaining the Writ petition and granting stay may delay the execution of mega projects and it may seriously impede the execution of projects of public importance and disables the state or its agencies or instrumentalities from discharging the Constitutional and legal obligations towards the citizens. In view of aforesaid submissions learned Advocate General has made a prayer for dismissal of petition.
Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 8 WP-13286-2021
4. On considering the arguments of both the parties it appeared to Court that mediation may be possible between the parties. Petitioner is praying for award of compensation for use of his land for construction of Metro Railways Project, therefore, matter was sent for mediation before Former Judge of this High Court. Matter was taken up for mediation, but due to adamant attitude of parties mediation efforts failed and case was sent back before this Court to be decided on merits.
5. Heard learned counsel for the parties.
6. On going through facts of the case it is found that perpetual lease has been granted in favour of petitioner. Petitioner has already applied for changing land use before authorities, which has been dismissed.
7. This Court has dealt with similar issue in case of Nerbudda Valley Refrigerated Projects Co. Ltd. Vs. State of Madhya Pradesh and Others in Writ Petition No.16778/2024 which was decided vide order dated 17/05/2025. Relevant paragraphs of order is quoted as under :-
7. Payment of compensation and damages is to be made as per the Metro Railways (Construction of Works) Act, 1978. Central Government is required to publish notification declaring its intention to acquire the land, building, street, road or passage, right of user or right in nature of easement. On publication of Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 9 WP-13286-2021 notification under Section 7 of aforesaid Act gives right to Metro Rail Administration, Officer or employee to enter upon the land and to do survey and take level of the land, building, street, to dig or bore into the sub-soil, to set out the intended work, to mark such levels, boundaries or lines by placing marks and cutting trenches and to do other necessary acts.
Care shall be taken not to cause any injury or damage to any land, building, street, road etc. while carrying out the activities. Objections are invited under Section 9 of the Act of 1978.
Thereafter, declaration of acquisition is to be made under Section 10. On publication of declaration under Section 10(1), the land, building, street, road or passage or right of user or right in nature of easement shall vest absolutely in Central Government free from all encumbrances. After vesting of land in favour of State Government under Section 10(2), competent authority by giving notice in writing to land owner direct him to give possession within period of 60 days from service of notice and on failure, competent authority may apply to take forceful possession. Amount of compensation is to be determined under Section 13 and amount determined shall be deposited by the Central Government with competent authority. On going through the aforesaid provision of law, it is found that right over the land or right of user or right in nature of easement vest absolutely in favour of Central Government free from all encumbrances after publication of declaration under Section 10(1).
8. It has been stated in reply that no injunction can be granted in view of provision of Section 39 of the Act of 1978. Section 39 bars jurisdiction for filing suit or application for injunction. However, there is no bar in exercise of power under Article 226 of the Constitution of India to pass restraint order against respondents. Metro Rail Project has been approved by Government of India, Ministry of Urban Development and operational rights on land has also been provided to respondents Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 10 WP-13286-2021 before actual transfer of land. Office memorandum dated 27.01.2015 is placed on record by respondents. However, respondents had failed to bring on record any notification issued by Central Government under the Act of 1978. Ground raised by respondents that acquisition of land is not required as ownership right is with the State Government and respondents is merely having right to enjoy the land in question cannot be given stamp of approval. It has been held in arbitration case and in also in reference case (supra) that lease is permanent in nature. It is perpetual with a clause of renewal, therefore, respondents will be deprived of their rights to enjoy the land as same is used for construction of Metro Rail Project, therefore, respondents are entitled to compensation and acquisition of land is to be done by respondents in accordance with law.
9. Article 300-A of the Constitution of India lays down that no person shall be deprived of property save by authority of law, which is quoted as under:-
"300-A. Persons not to be deprived of property save by authority of law- No person shall be deprived of his property save by authority of law."
10. Payment of compensation for acquisition of land is to be made under Metro Railways (Operation and Maintenance) Act, 2002.
Though, Act of 1978 gives right of use and easementary right also to a Metro Rail Administration but such right is vested on publication of notification under Section 10(1) and thereafter, possession of land can also be taken. Right of operation by office memorandum of Government of India can only be granted when notification has been issued under Section 7 of the Act of 1978.
Respondents are unable to point out any notification which has been published under the Metro Railways (Operation and Maintenance) Act, 2002. In lease agreement also there is no Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 11 WP-13286-2021 condition that respondents can cancel the lease in violation of condition.
11. As per Section 111 of the Transfer of Property Act, 1882, lease of immovable property can be determined by efflux of time, or on happening of an event, by express surrender or implied surrender or by forfeiture. Lease can be determined under Section 111(g) by forfeiture in case lessee breaks an express condition which provides that on breach thereof, lessor may re-enter. Respondents had not taken any steps for determination of lease by forfeiture by issuing notice to petitioner that they had violated condition of lease. Lease was granted for purpose of food and refrigeration work. Now no work of refrigeration or food is being done over the lease land. Petitioners are earning rent from the building which has been constructed, therefore, only interest of petitioner is to get the compensation amount. Metro Rail Project is being constructed for public at large. Individual interest must surrender to the interest of public. Considering the same, no restraint order is passed against respondents in stopping the work of Metro Rail.
12. Petition is disposed off with direction to respondents authorities to give compensation and damages assessing the value of land and structure standing thereof in accordance with Act and make payment of same to petitioner.
Said exercise be completed in accordance with provision of the Metro Railways (Operation and Maintenance) Act, 2002.
8. In aforesaid case permanent and perpetual lease was granted in favour of petitioner. Government wants to use said leased land belonging to petitioner for construction of Metro Railway Project. Since, lease is perpetual in nature, therefore, compensation for land Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 12 WP-13286-2021 as well as damages is to be paid to petitioner. Since lease was perpetual in nature and there is a right for renewal of lease in favour of petitioner, therefore, it was held in said case that payment of compensation assessing value of land and damages to structure be paid to petitioner.
9. This case is also similar in nature. There is subsisting lease in favour of petitioner. Petitioner company is also having right of renewal of said lease for further periods. In view of same, petitioner is having right to use the land. If State Government wants to utilize part of said land which is leased to petitioner company, for construction of Metro Rail, then State Government is required to make payment for compensation of land and structure standing over it. State Government cannot deny its liability to pay compensation on ground that State Government is owner of land. However, question of acquisition of land is out of question as State Government is owner of leased land. Though, State Government is owner of land, but petitioner company is granted lease of land for period of 99 years. Lease is subsisting. Petitioner company is also having right for renewal of lease for further periods, therefore, State Government is not only required to make payment of compensation in respect of damages to structure standing over the land and also for the land which will be used by State Government for construction of Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 13 WP-13286-2021 Metro Railway. In connected Writ Petition No.20092/2015 it has been held that lease has wrongly been cancelled by State Government.
10. In view of aforesaid facts and circumstances of case, Writ Petition is disposed of with following directions :-
(i) State Government is at liberty to use the land for soil testing and for other purposes for making construction of Metro Rail Line.
(ii) State Government is also at liberty to take possession of land in question.
(iii) Stay, if any, granted in favour of petitioner company, stands vacated.
(iv) State Government is directed to make payment of compensation to petitioner in respect of land and structure standing over it.
(v) After lapse of lease by afflux of time, name of State Government be entered over said land in revenue records.
(vi) After payment of compensation amount lease so far as the land in question used for Metro Railway is concerned, will determine and other leased land will Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22 NEUTRAL CITATION NO. 2025:MPHC-JBP:25207 14 WP-13286-2021 remain unaffected subject to further orders which may be passed by State Government pursuant to directives issued in W. P.No.20092/2015 and W. P.No.17426/2010.
11. Writ aforesaid direction, petition is disposed off.
(VISHAL DHAGAT) V. JUDGE as Signature Not Verified Signed by: ANURAG SONI Signing time: 30-05-2025 10:22:22