“Respondent’s Plea Smacked of Ulterior Motive”: Supreme Court Upholds Consent Terms in Land Acquisition Case

In a significant ruling on August 22^nd, 2023, the court upheld the consent terms in a land acquisition case, emphasizing the importance of adhering to the agreed terms between the parties. The judgment was delivered by J. [BELA M. TRIVEDI] and J. [DIPANKAR DATTA].

The case revolved around lands sought to be acquired by the respondent for the Agricultural Produce Market Committee under Section 6 of the Land Acquisition Act read with Section 126 of the Maharashtra Regional and Town Planning Act. The parties had arrived at consent terms to determine the market value of the lands, and the appellant was to hand over possession and be paid the amount determined under the Award.

However, the respondent later raised the issue of limitation before the Reference Court, a move that the court found to be “not tenable and highly unreasonable and improper.” The judgment stated that the respondent’s plea “smacked of ulterior motive,” and the issue of limitation under Section 18 of the Act was made insignificant by the consent terms and High Court’s directions.

The court also emphasized the doctrine of harmonious construction, stating that the consent terms should be read as a whole, and any ambiguity should be interpreted in a manner consistent with other clauses and the intent of the parties.

In a decisive conclusion, the High Court’s judgments and orders were set aside as erroneous, and the appeals were allowed. The ruling underscores the importance of adhering to consent terms and the principles of fair dealing in legal agreements, particularly in matters related to land acquisition.

Date of Decision: August 22nd, 2023

SHRI NASHIK PANCHAVATI PANJARPOL   TRUST & ORS.  vs THE CHAIRMAN & ANR.