Case: THE STATE OF MAHARASHTRA Vs. M/S MOTI RATAN ESTATE

3.1 For the sake of convenience, the facts in the appeal arising out of special leave petition No. 23921/2018 arising out of the impugned judgment and order dated 24.03.2017 passed by the High Court in Writ Petition No. 7867/2012 are considered as the facts in other two appeals are identical.That the acquired land in question is situated within the local limits of village Asarjan, Taluka and District Nanded. That the notification under Section 4 of the Act was issued and published in the Official Gazette on 01.03.2012. The same was published at Village Chawdi Asarjan by beating of drums on 12.04.2012. That thereafter notification under Section 6 of the Act was published on 07.02.2013 and the notification under Section 6 of the Act was published at Village Chawdi Asarjan by beating of drums onThat the original land owners challenged the acquisition and the notification under Section 4 of the Act dated 01.03.2012 by filing Writ Petition No. 7867 of 2012 on 09.05.2012. That vide order dated 11.10.2013, the High Court directed that the possession of the original writ petitioners shall not be disturbed. The other land owners, whose lands were acquired for the very project and under the very Section 4 notification dated 01.03.2012, also challenged the acquisition proceedings and Section 4 notification with respect to their lands by filing Writ Petition Nos. 3051/2013 and 3159/2013. In those writ petitions also the High Court granted stay to the acquisition proceedings vide order dated 12.11.2013. It appears that by order dated 20.11.2013, the High Court in Writ Petition Nos. 3051/2013 and 3159/2013 modified the earlier interim order and directed that till the next date, final award shall not be declared. However, the State was permitted to move an application seeking leave of the Court to declare the award, if the award is ready. That the aforesaid two writ petitions came to be disposed of vide order dated 08.01.2014. However, the High Court continued the interim order dated 20.11.2013 by 12 weeks. The 12 weeks period got over on 02.04.2014. That thereafter the award under Section 11 of the Act was passed on 08.05.2015 with respect to the acquired lands in question, i.e., in the case of Writ Petition No. 7867/2012. At this stage, it is required to be noted that the acquisition was challenged on number of grounds. However, at the time of hearing of Writ Petition No. 7867/2012, it was submitted that the entire acquisition has been lapsed as the award was not declared within a period of two years from the date of publication of the declaration under Section 6 of the Act. It was submitted on behalf of the State that in view of the pending proceedings challenging the acquisition as well as in view of the interim stay granted by the High Court directing that the possession of the acquired land shall not be disturbed and in view of the specific stay order granted in Writ Petition Nos. 3051/2013 and 3159/2013 restraining the State from declaring final award, the period during which stay was operating is required to be excluded and if such period is excluded, in that case, the award was declared within a period of two years and therefore there is no question of lapsing the acquisition proceedings. However, by the impugned judgment and order, the High Court has set aside the acquisition proceedings solely on the ground that the acquisition has lapsed as the award under Section 11 of the Act has not been declared within a period of two years from the date of publication of the declaration under Section 6 of the Act. It is required to be noted that so far as challenge to the acquisition on other grounds is concerned, the High Court held against the original writ petitioners. However, set aside the acquisition solely on the ground that the award under Section 11 of the Act has not been declared within a period of two years from the date of declaration under Section 6 of theFeeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court in quashing and setting aside the acquisition, the State has preferred the present appeal. So far as other two appeals are concerned, the original writ petitioners subsequently challenged the acquisition in the year 2016 after the declaration of the award under Section 11 of the Act challenging the acquisition proceedings also on the ground that as the award has not been declared within a period of two years from the date of declaration under Section 6 of the Act the acquisition proceedings have been lapsed. Accepting the submission on behalf of the original writ petitioners, by the impugned common judgment and order, the High Court has quashed and set aside the acquisition proceedings considering Section 11A of the Act and on the ground that the acquisition proceedings have been lapsed as the award under Section 11 of the Act has not been declared within a period of two years from the date of declaration under Section 6 of the Act. Hence, these appeals by grant of special leave petitions.

Reasoning:
7.5 On considering catena of decisions of this Court, referred to hereinabove, the following propositions of law can be culled) when the scheme of the acquisition is one, interim stay granted in respect of one pocket of land would operate even with respect to other pockets of land and in such a situation the authorities are justified in not proceeding with the acquisition proceedings and therefore the acquisition proceedings would notinterim order of stay granted in respect of one of the land owners would have a complete restraint for the authorities to proceedwhen the stay has been granted in one matter and where the scheme was one, the authorities were justified to stay theirthe extended meaning of the words ?stay of the action or proceedings under Section 11A of the Act? would mean that any interim effective order passed by the court which may come in the way of the authorities to proceedExplanation to Section 11A of the Act is in the widest possible terms and there is no warrant for limiting the action or proceedings, referred to in the explanation, to actions or proceedings preceding the making of the award under Section 11 of the Act and therefore the period of injunction obtained by the land holders staying the acquisition and authorities from taking possession of the land has to be excluded in computing the period of twoNow so far as submission on behalf of the original writ petitioners that when subsequently the award was declared, the lands with respect to Writ Petition Nos. 3051/2013 and 3159/2013 were excluded and therefore the decision of this Court in the case of Raj Kumar Gandhi (supra) shall not be applicable has no substance. Merely because to avoid contempt proceedings and/or in view of the stay granted in the aforesaid two writ petitions which was continued subsequently till the representations are considered, the authorities excluded the lands for which writ petitions were filed, it cannot be said that the period during which the stay was operating in Writ Petition Nos. 3051/2013 and 3159/2013 shall not be excluded. The words ?stay of the action or proceedings under Section 11A of the Act? would mean that any order of stay in one or the other matter if passed by Court of law, which either prohibits or prevents the State authorities from passing of an award, such a period of stay of action/proceedings deserves to be excluded while computing the statutory period of two years in passing of an award by the authority under Section 11 of the Act. Even otherwise, as observed hereinabove, there was already a stay of possession in Writ Petition No. 7867/2012 and therefore even otherwise the authorities were justified in not proceeding further with the acquisition proceedings.Applying the aforesaid principles of law to the facts of the case on hand and considering the fact that there was a stay granted by the High Court in writ petition Nos. 3051/2013 and 3159/2013 against declaring the final award and the said writ petitions were with respect to the lands acquired of the very village under the very notification and for the very project and there was stay of possession in writ petition no. 7867/2012 during the pendency of the said petition, the period during which the aforesaid stay/s was/were operative is to be excluded and if the said period is excluded, in that case, the acquisition proceedings would not lapse, considering explanation to Section 11A of the Act. Under the circumstances, the High Court has erred in quashing and setting aside the acquisition proceedings on the ground that the same have lapsed as the award was not declared within a period of two years from the date of declaration under Section 6 of the Act. The High Court has committed a grave error in not excluding the period of interim stay granted by it in writ petition nos. 3051/2013 and 3159/2013. As observed hereinabove, even grant of interim stay of possession would also save lapsing of theNow so far as the appeal arising out of the impugned judgment and order passed by the High Court in Writ Petition No. 7867/2012 is concerned, immediately on publication of the notification under Section 4 of the Act, the original writ petitioners challenged the acquisition proceedings including the notification under Section 4 of the Act. The High Court passed the interim order directing that the possession of the original writ petitioners shall not be disturbed. Simultaneously, the other land owners whose lands were acquired under the very same notification and of the very village Asarjan and acquired for the very project also challenged the acquisition proceedings by filing Writ Petition Nos. 3051/2013 and 3159/2013. The High Court granted stay to the acquisition proceedings on 12.11.2013 which subsequently came to be modified and it was directed that the final award shall not be declared. Other two writ petitions being Writ Petition Nos. 10894/2016 and 9088/2016 were filed after the award was declared under Section 11 of the Act challenging the acquisition proceedings on the ground that the same have been lapsed under Section 11A of the Act as the award has not been declared within a period of two years. The State authorities pleaded for extension of time during which the stay was operating in writ petition nos. 3051/2013 and 3159/2013. It has not been accepted by the High Court on the ground that the stay of the acquisition proceedings was granted not relating to the writ petitioners but was with respect to the other landIt is true that there is no bar to have more than one declaration under Section 6 or the award under Section 11 of the Act in reference to the self-same acquisition proceedings initiated under Section 4 followed with Section 6 of the Act but if there is a stay of the proceedings by a Court of law in any of the matter, that certainly prevents the authorities in taking its decision to complete the acquisition proceedings within the statutory period as mandated by law in passing of award within two years from the date of declaration under Section 6 of theIn meeting out a complex situation, the conclusion which emerges is that if there is any stay over the action or proceeding by a Court of law, in one or the other matter arising from the self- same acquisition proceedings in reference to Section 4 followed with Section 6 of the Act, the authorities are said to be justified in the given facts and circumstances to stay their hands and await the decision of the Court and such a period during which there is a stay over the action or proceeding by a Court of law in a matter, that has to be excluded for all practical purposes, in computing the statutory period of two years in passing of an award under Section 11 of the Act.