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[Cites 7, Cited by 2]

Gujarat High Court

Patel Mohanlal Ishwarbhai Thro Poa ... vs State Of Gujarat & 2 on 14 August, 2015

Author: Jayant Patel

Bench: Jayant Patel, S.G.Shah

                   C/SCA/1865/2013                                             ORDER




                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                   SPECIAL CIVIL APPLICATION  NO. 1865 of 2013
                                       With 
                   SPECIAL CIVIL APPLICATION NO. 12425 of 2015
                                       With 
                        CIVIL APPLICATION NO. 8171 of 2015
                                       In    
                     MISC. CIVIL APPLICATION NO. 1162 of 2015
                                       With 
                     MISC. CIVIL APPLICATION NO. 1162 of 2015
                                       In    
                    SPECIAL CIVIL APPLICATION NO. 1865 of 2013
                                       With 
                     MISC. CIVIL APPLICATION NO. 3185 of 2014
                                       In    
                        CIVIL APPLICATION NO. 11999 of 2014
         ==========================================================
         PATEL MOHANLAL ISHWARBHAI THRO POA HASMUKHBHAI G PATEL  & 
                             2....Petitioner(s)
                                   Versus
                  STATE OF GUJARAT  &  2....Respondent(s)
         ==========================================================
         Appearance:
         MR JV VAGHELA, ADVOCATE for the Petitioner(s) No. 1 ­ 3
         GOVERNMENT PLEADER for the Respondent(s) No. 1
         MR RITURAJ M MEENA, ADVOCATE for the Respondent(s) No. 3
         RULE SERVED for the Respondent(s) No. 1 ­ 3
         ==========================================================

                   CORAM: HONOURABLE THE ACTING CHIEF JUSTICE  MR. 
                          JAYANT PATEL
                          and
                          HONOURABLE MR.JUSTICE S.G.SHAH
          
                                     Date : 14/08/2015
          
                                        ORAL ORDER

(PER:HONOURABLE THE ACTING CHIEF JUSTICE  MR. JAYANT PATEL)

1. As   all   applications   and   main   Special   Civil  Applications   are   interconnected,   they   are   being  considered simultaneously. 

2. We have heard Mr. Shelat for Mr.Vaghela for the  original petitioners (hereinafter referred to as  Page 1 of 14 HC-NIC Page 1 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER the   "land   owners")   and   we   have   also   heard   Mr.  Meena, learned counsel for ONGC and its officers  (hereinafter referred to as "ONGC").

3. We   may   record   that   initially,   the   land   in  question was taken over with the consent of the  owners on rental basis by ONGC for the purpose of  excavation   of   the   oil   by   way   of   temporary  acquisition.     However,   thereafter,   the   said  position continued beyond the outer limit of the  temporary   acquisition.     Therefore,   the   owner   of  the land preferred SCA No.1865/13 for the relief  inter alia to declare the action of the ONGC in  retaining   the   oil   well   and   machinery   over   the  land   in   question   as   illegal   and   it   was   prayed  that   the   ONGC   be   directed   to   remove   their   oil  wells,   pipes,   etc.   from   the   land   in   question.  This   Court,   after   hearing   both   the   sides,   on  30.04.2013, passed the following order ­ "1. We   have   heard   Mr.Shelat,   learned  Counsel   appearing   with   Mr.Vaghela   for   the  petitioners,   Mr.Rakesh   Patel,   learned   AGP  for   respondents   No.1   and   2   and   Mr.Meena,  learned Counsel for respondent No.3 ONGC.

2. It   is   an   admitted   position   that   the  temporary   acquisition   of   the   land   in  question   has   expired   long   back.   Once   the  temporary   acquisition   has   come   to   an   end,   unless   there   is   any   Notification   under  Section   4   of   the   Land   Acquisition   Act   (hereinafter   referred   to   as   the   Act)   with   urgency applied under Section 17 of the Act,  it   is   obligatory   on   the   part   of   the   Body,   who   had   occupied   the   land   under   temporary  acquisition   to   vacate   the  property   of   the  Page 2 of 14 HC-NIC Page 2 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER citizen.   In   the   present   case,   after   the   expiry   of   the   temporary   acquisition   under  Section   35   of   the   Act,   Notification   under  Section   4   of   the   Act   was   published   on   6.8.2009   and   Notification   under   Section   6  was published on 4.3.2010, but the pertinent   aspect is that there is no urgency declared  under Section 17 of the Act and even after   the expiry of two years from the date of the   last   publication   of   Notification   under  Section 6 of the Act, the award has not been   declared   within   two   years   therefrom.   The  Special Land Acquisition Officer, as per the   letter dated 17.4.2013, has communicated in  writing   to   ONGC   that   the   proceedings   under  Section 11 of the Act have lapsed and fresh   proceedings   after   approval   will   be  initiated.

3. The   aforesaid   prima   facie   shows   the  manner   and   mode   in   which   the   proceedings  under   the   Act   have   been   pursued   by   the   Special Land Acquisition Officer as well as  the   concerned   authority   of   the   State  Government   in   undertaking   the   process   of  acquisition   under   the   Act.   However,   so   far  as   respondent   No.3   and   its   officers   are   concerned,   the   have   also   not   pursued   the  matter well in time in order to see that the   process   under   Section   11   of   the   Act   for   passing   award   could   be   completed   well   in  time.

4. Be   that   as   it   may,   the   fact   remains   that as on today, the proceedings under the  Act   have   lapsed.   Consequently,   there   could   be   no   authority   on   the   part   of   respondent  No.3   to  continue   to  occupy  the  property  of  the   citizen.   It   is   hardly   required   to   be  stated that as per the provisions of Article  300A of the Constitution, no citizen can be  deprived of the property without due process   of law. As on today, there is no authority   in   law   shown   to   this   Court   by   the   learned   Counsel appearing for respondents, which may  support the authority of respondent No.3 to  Page 3 of 14 HC-NIC Page 3 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER continue   to   occupy   the   property   of   the  petitioners.

5. It   was   submitted   by   Mr.Meena,   learned  Counsel   for   respondent   No.3   that   the   well  over the land is already dug and there are   pipes   inside   the   oil­well   having   value   of  crores   of   rupees   and,   therefore,   even   if  this Court is inclined to issue prohibitory  direction, some reasonable time may be given   to respondent No.3 to vacate the same or in  alternative,   till   lawful   authority   is  conferred   upon   ONGC   to   continue   to   occupy   the land. As on today, there is no authority   and   respondent   No.3   is   also   not   in   a  position   to   show   any   authority   under   the  law,   permitting   occupation   of   the   property  in   question.   However,   keeping   in   view   the  aspect that the oil­well exists as stated by  respondent   No.3   and   there   may   be   material  lying inside the oil­well, a reasonable time   may   be   required   to   be   given,   but   with   the   observations   that   for   the   unauthorized  occupation   by   respondent   No.3   after   the  expiry   of   the   period   of   temporary  acquisition till today, they may be required   to   pay   compensation,   may   be   rental   or  otherwise  at  a  later  stage.  The  total   area  under   acquisition   is   admeasuring   14616   sq.  mtrs.,   located   at   Koteshwar   Taluka,  Gandhinagar   and   taking   into   consideration,  lease rent as mentioned in the documents at  Annexure­B   at   Rs.1,85,000/­   per   year,   the  approximate   amount   of   compensation   deserves  to   be   deposited   by   ONGC   in   the   event   the  ONGC   is  desirous   to  continue   to  occupy  the  land   for   some   time,   so   as   to   stop   its   activities   or   otherwise   to   get   the   lawful  authority for such purpose.

6. Hence, Rule.

7. By   ad­interim   order,   it   is   directed  that   within   a   period   of   one   month   from   today, ONGC shall remove all its belongings  over   the   land   in   question   and   shall   Page 4 of 14 HC-NIC Page 4 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER discontinue   to   utilize   the   land   after   the  expiry of the period of one month with the   further   directions   that   the   amount   of  Rs.50,000/­   shall   be   deposited   by   way   of  compensation   of   the   petitioners   with   this  Court. It is also observed that it would be  lawful   on   the   part   of   the   petitioners   to  prohibit the officers or agents or servants  of ONGC from entering the land in question.

8. S.   O.   to   8.7.2013  for   reporting  compliance and further orders."

4. The aforesaid order was carried before the Apex  Court   in   the   proceedings   of   SLP   (C)   Nos.22893­ 22894/13 wherein interim stay order was initiall  granted,   but   subsequently,   the   said   SLPs   were  withdrawn   with   a   liberty   to   file   appropriate  review   petition.   Thereafter,   the   review  application has been filed by ONGC.   Thereafter,  vide order dated 16.10.2014 in Civil Application  No.11999/14 with MCA (St) No.3079/14, this Court  had passed the following order ­ "1. We have heard Mr. Mihir Joshi with Mr.  Meena for the applicant, Mr. JV Vaghela for  respondents   no.1   to   3­original   petitioners  and Mr. Antani, learned AGP for respondents  no.4 and 5.

2. As such, there is a delay of 503 days  in   preferring   review   application   coupled  with the aspect that the review application  has been filed as per the observations made  in the order passed by the Apex Court in the  SLP, wherein SLP was withdrawn with a view  to file review application.

3. Two   principal   contentions   have   been  raised, one is that there is huge reservoir  of   oil   below   the   land   in   question   and   if  Page 5 of 14 HC-NIC Page 5 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER ONGC   is   compelled   to   vacate   the   land,   the  reservoir may go waste and the possibilities   of   some   blast   or   damage   to   the   nearby   agricultural   land   by   spreading   over   of   the   oil etc. cannot be ruled out. The another is   that   even   after   the   original   petitioners  purchased the land in the year 2003, one Mr.   Dave Pradyuman, petitioner no.3 has realised  some rent whereas original petitioners no.1  and   2   have   not   realised   the   rental   amount  and the details are on page 54 at Annexure­ E. It is an admitted position that there is  no   agreement,   but   the   contention   is   sought   to be raised on the implied permission. 

4. As   per   the   order   passed   by   this   Court  on 30.04.2013, it was found that there is no   authority to continue over the land and the  ONGC should vacate the land in question. It  was   submitted   that   therefore   the   present  review application and also the application  for condonation of delay.

5. It   is   undisputed   position   that   there  are   no   acquisition   proceedings   undertaken  for   acquiring   of   the   land.   The   rental  compensation   is   also   not   accepted   by  majority   of   the   petitioners   and   further   in   absence   of   any   agreement   or   in   absence   of  any   conclusion   of   the   land   acquisition  proceedings   by   awarding   and   vesting   of   the   land, ONGC  will have no power or authority  to   continue.   However,   as   the   ground   of  wastage   of   the   oil   reservoir   or   damage   to  the nearby area is contended, the Court may  consider   the   aspects   but   at   that   time,   we  need to keep in mind the rights of the owner  of   the   land   in   the   property   and   the   deprivation   of   the   enjoyment   of   the  property.   If   the   acquisition   is   to   take  place or in any case compensation is to be  paid as  per The Right to Fair Compensation  and   Trtansparency   in   Land   Acquisition,  Rehabilitiation   and   Resettlement   Act,   2013,  the compensation may be in any case as per  the Jantri valuation plus 100% solatium and  Page 6 of 14 HC-NIC Page 6 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER interest etc.

6. It   has   been   stated   at   bar   that   the   present   Jantri   valuation   of   the   land   in  question   is   about   Rs.4,000/­   to   Rs.5,000/­  sq. yard, though market value may be more.  The area involved is about 10,000 sq. yard.  The market value, if considered even as per  the   Jantri,   it   would   amount   to   Rs.4,000/­  and the interest at the rate of 10%, so as   to   consider   rental   amount   may   be   about  Rs.3.33 lakhs per month, yearly Rs.40 lakhs.   After   the   order   dated   30.04.2013,   the   fact   remains that ONGC has not vacated the land  and   has   come   out   with   the   present   review  application.   Therefore,   even   if   ONGC   is  desirous to continue to occupy the land, it  cannot   be   unconditional,   but   the   amount  equivalent   to   10%   interest   on   yearly   basis   should   be   made   available   to   the   original  land   owners   until   the   land   acquisition  proceedings,   if   any   are   initiated   and   concluded or until this Court passes further   order   after   examining   the   report   of   the  expert   on   the   aspects   of   reservoir   of   the  oil or probable damage to the nearby area.

7. Hence, notice returnable on 21.11.2014.  The operation of the order dated 30.04.2013  shall   remain   stayed   on   the   condition   that  the   applicant   deposits   with   this   Court   the   amount   of   Rs.60   lakhs   on   or   before  10.11.2014 and further continues to pay the  amount   at   the   rate   of   Rs.3.30   lakhs   per  month   from   November,   2014   onwards,  proportionately   1/3rd,   to   each   of   the  petitioners until further orders. After the  amount   is   deposited,   the   original  petitioners­respondents   no.1   to   3   herein  shall   be   at   the   liberty   to   withdraw   the  amount.   It   is   observed   that   if   there   is  failure   to   comply   with   the   condition,   the  interim   relief   shall   automatically   stand  vacated. The present order shall be subject  to   further   orders   which   may   be   passed   by  this   Court   in   the   present   application   as  Page 7 of 14 HC-NIC Page 7 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER well as the main review application."

It   further   appears   that   thereafter,   this   Court  considered the said aspect of review application  and on 21.11.2014, and following order was passed  ­ "Mr. Joshi, learned Senior Counsel appearing  with   Mr.Meena   seeks   time   to   produce   the  report   of   the   expert.   Mr.Joshi   submitted  that   by   stay   of   the   earlier   order,   the   officers   of   ONGC   are   in   dilemma   as   to   whether   they   would   be   in   a   position   to   utilise   the   land   for   extraction   of   oil   or  not   since   the   amount   is   ordered   to   be   deposited   by   this   Court   for   subsequent  period also.

As   such,   the   principal   direction   was   to  remove all belongings of ONGC from the land  in   question   and   discontinuation   of   the   use   was   a   consequential   direction.   Therefore,  when the order is stayed, it may mean that  ONGC   may   not   require   to   remove   all   its   belongings   over   the   land   by   vacating   the  land,   but   thereby   it   cannot   be   said   that  ONGC   will   be   in   a   position   to   utilise   the  land   for   extraction   of   oil   or   otherwise  since   the   possession   of   ONGC   as   per   the  order   dated   30.04.2013   is   found   to   be  unlawful. Since ONGC has contended that the  closure of oil well may adversely affect the   adjoining land owners and natural resources,  by   way   of   interim   measure,   stay   has   been  granted   of   the   earlier   order.   Such   would  mean that if the condition is complied with,   ONGC   may   not   require   to   remove   all   its   belongings, but the commercial activity over  the   land   is   not   permitted   until   the   Court  considers   the   main   aspect   in   the   review  application.

S.O. to 05.12.2014.

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5. Pending the said application, ONGC came out with  the contention that the calculation of the amount  of rental payment is on incorrect information and  therefore,   Civil   Application   No.8205/15   was  preferred   for   appropriate   direction   and   this  Court   on   24.07.2015,   had   passed   the   following  order ­ "1. The   applicant­original   respondent   has  preferred   the   present   application   for  appropriate   direction   for   refund   of   the  excess amount of Rs.20,70,234/­ with accrued  interest.

2. We have heard Mr. Mihir Joshi, learned  senior   counsel   with   Mr.   Meena,   learned  counsel   for   the   applicant,   Mr.   Shelat,  learned   counsel   with   Mr.Vaghela,   learned   counsel   for   respondents   no.1,   2   and   3   and  Mr. Patel, learned AGP for respondents no.4  & 5.

3. The basis of the present application is   that   when   this   Court   passed   the   earlier   order   dated   16.10.2014   in   CA   No.11999/14,  the   jantri   valuation   was   stated   of   Rs.  4,000/­ and the Court further considered the   area   as  of  10,000/­  sq.  yard.  Whereas,  the  jantri  valuation  is  on  the  basis  of  square  metre.   It   is   stated   that   the   jantri   valuation   of   the   land   in   question   is  Rs.3,125/­ per sq. metre and the exact area  is   of   9813   sq.   metre.   At   Annexure­C,   the  detailed   calculation   has   been   given   and   as  per   the   said   document,   if   the   payment   is  adjusted, the applicant will be entitled to  get refund of Rs.20,70,234/­. 

4. However,   Mr.Shelat,   learned   counsel  appearing   for   the   private   respondents  submitted   that   the   last   cheque   received   is  of  March  2015   and  thereafter,  no  cheque  is  Page 9 of 14 HC-NIC Page 9 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER received. 

5. As   per   Mr.   Meena,   the   amount   has  already been paid uptil July 2015.

6. Under   the   circumstances,   the   applicant  will be at the liberty to get the adjustment   of   the   amount   which   has   remained   unpaid   pursuant   to   the   earlier   order   dated  16.10.2014   and   if   the   amount   is   already  paid,   the   adjustment   shall   be   made  accordingly in future rental payment or any  further   order   passed   by   this   Court.   The  calculation   shall   be   at   Rs.2,55,547/­   per  month. Thereafter, if any amount is further  to   be   refunded   by   the   private   respondents  no.1 to 3, the same may be adjusted in the  future   monthly   amount   of   Rs.2,55,547/­   per   month.

7. It   is   also   observed   that   the   earlier  order dated 16.10.2014 shall stand modified  to   the   aforesaid   extent   and   the   direction  given   for   monthly   rental   of   Rs.3,33,000/­  shall   stand   reduced   to   Rs.2,55,547/­   per  month  and  subject  to  the  adjustment  of  the  amount   already   paid   in   excess   as   observed  and directed hereinabove.

8. The   present   application   shall   stand  disposed of accordingly."

6. It may be recorded that simultaneously, ONGC also  preferred Civil Application No.8171/15 contending  that   the   acquisition   proceedings   are   already  undertaken and the draft award is also prepared  and therefore, the State be directed to complete  the acquisition proceedings within the time frame  and   it   was   also   prayed   that   the   interim   order  dated 16.10.2014 be modified and the exemption be  granted   to   the   Corporation   to   pay   the   rental  Page 10 of 14 HC-NIC Page 10 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER amount and ONGC be directed to explore oil on the  condition   that   the   amount   of   draft   award   is  deposited with this Court.  The copy of the draft  award   produced   by   the   ONGC   shows   that   the  compensation is assessed at Rs.8,34,20,000/­ for  the total area of land.

7. We would have considered the aspect of directing  the   State   to   complete   the   land   acquisition  proceedings   within   some   stipulated   time   limit,  however,   on   behalf   of   the   land   owners,   it   was  brought   to   our   notice   that   Special   Civil  Application No.12425/13 has been preferred by the  land   owners   challenging   the   acquisition  proceedings and there are various contentions to  be considered in the said matter and therefore,  this   Court   may   not   direct   the   land   acquisition  authority   to   conclude   the   acquisition  proceedings.

8. As  per  the  last  order  passed   by  this  Court,  as  Special   Civil   Application   No.1865/13   together  with   the   Review   Application   therein   as   well   as  Special Civil Application No.12425/13 were before  different   Benches   of   this   Court,   in   order   to  maintain   the   uniformity   in   the   orders   of   this  Court, it was observed that the matters be placed  before   one   Bench   of   this   Court.     Under   the  circumstances,   both   the   main   Special   Civil  Applications   are   listed   before   us   together   with  the review application.

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9. The   aforesaid   situation   shows   that   on   the   one  hand,   the   acquisition   proceedings   are   not  concluded and on account of non­completion of the  acquisition   proceedings   and   the   expiry   of   the  period   of   temporary   acquisition,   this   Court  directed   the   ONGC   to   handover   the   possession,  which   of   course   is   stayed   pending   the   review  application   on   payment   of   the   rental   amount   as  ordered by this Court as per the above referred  order.     However,   the   fact   remains   that   the  possession of the land in question is not handed  over   by   ONGC   to   the   land   owners   and   it   also  appears   that   the   acquisition   proceedings   are  initiated but not concluded.   The contention of  the ONGC is that if oil is not permitted to be  extracted   within   reasonable   time,   ONGC   is   not  only made to make the payment for no work at all,  but   at   the   same   time,   there   may   be   other  complications of losing oil for all time to come.

10. Whereas,   Mr.   Shelat,   learned   counsel     appearing  for the land owners contended that if the land is  not acquired in accordance with law, the owners  will   have   a   right   to   enjoy   the   land   which   is  being deprived of.

11. Considering the facts and circumstances, we find  that as the proceedings are already initiated and  the   matter   is   already   at   the   stage   of   draft  award,   the   order   passed   in   main   SCA   No.1865/13  dated   30.04.2013   deserves   to   be   recalled,   but  such   recalling   of   the   order   if   is   made  Page 12 of 14 HC-NIC Page 12 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER unconditional, the land owners would be deprived  of their right to enjoy the property. At the same  time,   if   ONGC   is   desirous   to   utilise   the   land  until   the   Land   Acquisition   proceedings   are  concluded   by   extraction   of   the   oil,   the  reasonable   return   of   the   market   value   of   the  property   should   be   made   available   to   the   land  owners.   As it has been stated on behalf of the  ONGC  that  it  is  ready  to  deposit  the  amount  of  compensation as per the draft award, we find that  such   by   way   of   an   interim   measure   can   be  permitted   and   ONGC   may   be   permitted   to   extract  the oil by utilisation of the land in question.  At   the   same   time,   the   interest   on   the   amount  which may be deposited may be made available to  the owners of the land.

12. As out of the amount of Rs.8,34,20,000/­ for the  total land under acquisition of 12416 sq. mtr.,  the   land   of   the   petitioners   comprised   of   10016  sq.mtr.,   the   approximate   amount   of   compensation  for the land of the petitioners would be Rs.6.72  crore. Hence, the earlier order dated 30.04.2013  in   Special   Civil   Application   No.1865/13   is  reviewed and recalled on the condition that the  ONGC deposits the amount of Rs.6.72 crores with  this Court within eight weeks from today and upon  deposit of the said amount with this Court, ONGC  shall be at the liberty to use the land subject  to the compliance of other laws for excavation of  the oil.  However, until the amount is deposited,  the   interim   compensation   of   Rs.2,55,547/­   per  Page 13 of 14 HC-NIC Page 13 of 14 Created On Thu Aug 20 23:56:17 IST 2015 C/SCA/1865/2013 ORDER month   shall   continue   to   be   paid.     It   is   also  observed   that   if   the   aforesaid   amount   is   not  deposited, ONGC will have no authority to extract  the oil.  If the amount is so deposited, the same  shall   be   invested   by   the   office   in   the   Fixed  Deposit   Receipt   initially   for   a   period   of   two  years   or   until   further   orders   and   interest,   as  may  accrue   from  time  to  time,  shall  be  paid  to  the   owner   of   the   land   as   per   their   inter   se  share.

13. All   Misc.   Civil   Applications   as   well   as   Civil  Application   shall   stand   disposed   of   with   the  further   observation   that   the   aforesaid   interim  arrangement   as   per   the   order   shall   continue   to  remain in operation subject to any orders, which  may be passed by this Court in main Special Civil  Application   No.1865/13   with   Special   Civil  Application No.12425/15.

(JAYANT PATEL, ACJ.)  (S.G.SHAH, J.)  bjoy Page 14 of 14 HC-NIC Page 14 of 14 Created On Thu Aug 20 23:56:17 IST 2015