Land Acquisition Condition of Constructing a House Within One Year Found Arbitrary and Unreasonable - Quash Cancellation of Allotment: Bombay High Court

In a recent judgment, the High Court has ruled against the arbitrary imposition of a condition that required a petitioner to construct a house within one year of land allotment, calling it “arbitrary and unreasonable.” The case centered around the cancellation of the allotment of Plot No.82, measuring 2500 sq.ft., due to non-compliance with this contentious condition.

The petitioner had been entitled to 8000 sq.ft. of land under the Maharashtra Resettlement of Project Displaced Persons Act, 1976, following the acquisition of their land for the Ujjani Dam Project. However, the petitioner’s appeal arose from the cancellation of allotment based on a complaint by Respondent No.5, alleging non-construction of a house within the stipulated time.

The court’s observation was clear: “Imposing a condition to foist on the Petitioner to undertake construction within one year of the allotment would be, on the face of it, an arbitrary and unreasonable condition.” The judgment emphasized the need to consider the reasonableness of such conditions, especially in cases of rehabilitation allotments.

Furthermore, the court invoked the doctrine of legitimate expectation, stating that the petitioner was entitled to the balance allotment of 1500 sq.ft. of land as the Respondent-State admitted this entitlement but failed to provide justification for withholding it.

In its final order, the High Court quashed the cancellation of the allotment of Plot No.82 and directed the State-Respondent to allot the balance 1500 sq.ft. plot area to the petitioner within 12 weeks.

This judgment serves as an important precedent highlighting the need for fairness and reasonableness in imposing conditions on land allotments, particularly in cases involving rehabilitation and displacement.

Date of Decision: 30 October 2023.

Manik Chandru Deokar VS State of Maharashtra