AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Disposition
Attorney(S)
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Disposition
Attorney(S)
Judges
Acts
Smart Summary

Factual and Procedural Background

The petitioners are agriculturists and owners of land bearing Gut No.80/1 (1 Hectare 38 Are plus 0.24 barren) at village Holhaveli, Taluka Jamner, District Jalgaon. They entered into an agreement to sell the land to Shri Jayprakash Jadhav and issued a public notice dated 29.06.2017. When the petitioners and the purchaser approached the Sub-Registrar, Jamner (respondent no.08), for execution of the sale deed, the Sub-Registrar refused to register the sale citing restrictions on sale and purchase transactions in the area.

The petitioners learned that respondent no.02 had declared village Kasbe Jamner to be an industrial area, issuing a notice in exercise of powers under the Maharashtra Industrial Development Act, 1961 ("MID Act"). In consequence, respondent no.05 issued directions on 01.07.2017 to the Tahsildar and the Sub-Registrar notifying restrictions of sale and purchase in view of a preliminary notification under Section 32(2) of the MID Act.

The petitioners applied to the Sub-Registrar on 12.07.2017 requesting registration, asserting that registration cannot be restricted until the stage of Section 32(1) of the MID Act and that they had already received consideration under the agreement to sell. No action was taken on that application, and the petitioners made further applications on 19.07.2017 to the District Collector (respondent no.05) and the Land Acquisition Officer (respondent no.06). When relief was not granted, the petitioners instituted the present writ petition seeking (i) quashing of the letter dated 01.07.2017 issued by respondent no.05 and (ii) a direction to respondent no.08 to register the sale deed in view of their application dated 12.07.2017.

Legal Issues Presented

  1. Whether, in the facts of this case, registration of a sale deed is barred by steps taken under the MID Act (in particular notifications under Section 32(2) and earlier notifications) even though the petitioners contend that registration cannot be restricted until publication under Section 32(1).
  2. Whether any legal right is created in favour of the purchaser or the seller by entering into an agreement to sell after the relevant acquisition/notification process had been initiated (i.e., whether such transactions can create enforceable rights once acquisition notifications have been issued).

Arguments of the Parties

Petitioners' Arguments

  • Although a notification under Section 32(2) of the MID Act was issued, that does not prohibit sale transactions; registration cannot be restricted until the notification under Section 32(1) has been published.
  • Relying on earlier decisions of this Court (Writ Petition No. 3800 of 2008; Writ Petition No. 5992 of 2008; Writ Petition No. 6300 of 2008), they argued that where the notification required under Section 32(1) has not been published, there is no bar on registration of the document.

Respondents' Arguments (as represented in the opinion)

  • Respondent counsel pointed out that notification under Section 32(1) of the MID Act was in fact issued on 11.03.2016 and that subsequent notifications (including those on 04.11.2016 and 03.07.2017) included lands from village Holhaveli.
  • It was contended that earlier decisions — including the Division Bench decision in Avadhut Rokdoba Shinde & others v. State of Maharashtra & others [2014(2) Bom.C.R.830] and several Supreme Court authorities — establish that notifications under provisions of the MID Act analogous to Section 4 of the Land Acquisition Act operate to prevent transfers that would bind the Government, and that purchasers of small pieces of plots after notification do not acquire legal entitlement to challenge acquisition proceedings.
  • Counsel relied on Supreme Court decisions (e.g., Meera Sahni; V. Chandrasekaran; Government (NCT of Delhi) v. Manav Dharam Trust) holding that transfers effected after the issuance of acquisition notifications are void as against the Government and therefore respondents were justified in refusing registration.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Writ Petition No. 3800 of 2008; Writ Petition No. 5992 of 2008; Writ Petition No. 6300 of 2008 (this Court) Held that where the notification required under Section 32(1) of the MID Act has not been published, there is no bar on registration of documents. The court noted the petitioners relied on these decisions but concluded that, in view of subsequent Supreme Court authorities, reliance on these High Court decisions was devoid of merit in the present case.
Avadhut Rokdoba Shinde & others v. State of Maharashtra & others [2014(2) Bom.C.R.830] Held that notification under Section 1(3) read with Section 30 of the MID Act is comparable to notification under Section 4 of the Land Acquisition Act; purchasers of small pieces of plots after such notification do not have legal entitlement to challenge acquisition proceedings. The court relied on this Division Bench decision to support the proposition that notification under relevant MID Act provisions does not confer rights on purchasers and that such purchasers cannot challenge acquisition proceedings.
Gurmukh Singh v. State of Haryana (J.T. (1995)8 S.C. 208) One of the Supreme Court decisions taken note of in support of the principle limiting the entitlement of purchasers after notification. Referenced as part of the line of authorities which the court considered in concluding that purchasers do not acquire enforceable rights post-notification.
Yadu Nandan Garg v. State of Rajasthan, 1996(1) S.C.C.334 Supreme Court authority relevant to the effect of acquisition notifications on subsequent transactions. Taken into account by the court as part of the judicial line showing that transfers after notification may not bind the Government.
Sneh Prabha v. State of U.P., 1996(7) S.C.C.426 Supreme Court authority cited among earlier decisions addressing acquisition-notification effects. Considered by the court within the cluster of precedents supporting the respondents' position.
U.P. Jal Nigam v. Kalra Properties (P) Ltd., (1996)3 S.C.C.124 Supreme Court authority cited in the context of acquisition proceedings and consequences for transactions. Referred to by the court as part of the precedent base relied upon by respondents.
Mohmadbhai s/o. Miyabhai & others v. State of Maharashtra & others, 2000(1) Bom.C.R. 841; 2000(1) Mh.L.J. 729 High Court authority noted with other judgments on acquisition and post-notification transactions. Noted by the court among authorities supporting respondents' contention that post-notification transfers do not create enforceable rights against the Government.
Meera Sahni v. Lieutenant Governor of Delhi & others, (2008) 9 SCC 177 Held that once notification under Section 4 of the Land Acquisition Act is issued, any transfer made after that notification would be void and not binding on the Government. The court relied on this Supreme Court pronouncement to support the proposition that transfers after initiation of acquisition proceedings are void as against the Government.
V. Chandrasekaran & another v. Administrative Officer & others, (2012) 12 SCC 133 Affirmed that transactions after issuance of acquisition notifications may be void vis-à-vis the Government. The court held that the ratio in V. Chandrasekaran applies to the present facts and supports refusal to register post-notification transactions.
Government (NCT of Delhi) v. Manav Dharam Trust & another, (2017) 6 SCC 751 Reiterated the principle that transactions after initiation of acquisition proceedings are void and not binding on the Government; took note of Rajasthan State Industrial Development & Investment Corporation v. Subhash Sindhi Co-op. Housing Society (2013) 5 SCC 427. The court relied on this recent Apex Court pronouncement to conclude that post-notification transactions are void and so authorities were justified in refusing registration.
Rajasthan State Industrial Development and Investment Corporation v. Subhash Sindhi Co-op. Housing Society, (2013) 5 SCC 427 Supreme Court authority noted in Manav Dharam Trust dealing with consequences of acquisition proceedings on transactions. Referenced by the court (through Manav Dharam Trust) as part of the chain of reasoning that post-initiation transactions are void.

Court's Reasoning and Analysis

The court heard counsel for the parties and reviewed the documents. It noted as an uncontested fact that a notice under Section 32(1) of the MID Act had been issued on 11.03.2016 and that subsequent steps and notifications followed. The petitioners nonetheless entered into an agreement of sale after the issuance of the notification.

The core analytical question identified by the court was whether any right is created in favour of the purchaser or the seller by entering into a transaction after the relevant notification/steps under the MID Act have been taken. The court examined prior Division Bench and Supreme Court decisions which treat certain MID Act notifications as being comparable to notifications under Section 4 of the Land Acquisition Act and which establish that transfers after the issuance of such notifications may be void as against the Government.

Applying that body of precedent (including the Division Bench decision in Avadhut Rokdoba Shinde and Supreme Court authorities such as Meera Sahni, V. Chandrasekaran and Government (NCT of Delhi) v. Manav Dharam Trust), the court reasoned that once notifications under the MID Act equivalent to Section 4 notifications have been issued, subsequent procedural steps under Section 32 will not create enforceable rights in favour of purchasers or sellers. The court therefore found that transactions entered into after commencement of acquisition proceedings are void as against the Government and that Government authorities were justified in rejecting the petitioners' request for registration.

The court further observed that the petitioners' reliance on certain earlier decisions of this Court (the 2008 writ petitions) was misplaced in light of the clarified position in the cited Supreme Court authorities and the Division Bench decision.

Holding and Implications

Final Disposition: The Writ Petition is hereby rejected.

Direct effect on the parties: The petitioners' prayer to quash the letter dated 01.07.2017 and to direct respondent no.08 to register the sale deed was refused; the court upheld the view that registration could be refused in the circumstances where acquisition/notification proceedings had been initiated and earlier notifications had been promulgated.

Broader implication: The court applied existing Division Bench and Supreme Court authorities to conclude that post-notification transactions are void as against the Government. The opinion implements those precedents to the facts at hand and does not purport to create a new legal principle beyond the cited authorities.

    SHAIKH KALIM SHAIKH MOHAMMAD AND ANOTHER v. THE STATE OF MAHARASHTRA AND OTHERS

    01. The petitioners have invoked the writ jurisdiction of this court in order to seek issuance of writ in the form of direction to quash the letter 01.07.2017 issued by respondent no.05 as well as to direct respondent no.08 to register sale deed of the (Judgment) (3) W.P. No. 10895 of 2017 land in view of the application dated 12.07.2017 made by them.

    02. The factual matrix leading to the petition are as under : (a) The petitioners are the agriculturists. They are the owners of land bearing Gut No.80/1 admeasuring 1 Hectare 38 Are plus 0.24 barren (Pot Kharab) situated at village Holhaveli, Taluka Jamner, District Jalgaon. The petitioners had decided to sell their land and, therefore, entered into an agreement of sale with one Shri Jayprakash Jadhav. They had also issued public notice in the newspaper dated 29.06.2017. The petitioners and the purchaser approached the office of respondent no.08 SubRegistrar, Jamner, for execution of the sale deed. However, the authority refused to execute the same stating that there are restrictions on the sale and purchase transaction in the said area. The petitioners, therefore, made enquiry and came to know that respondent no.02 has issued notice in exercise of powers conferred to it by Clause 9 of Section 2 of the Maharashtra Industrial (Judgment) (4) W.P. No. 10895 of 2017 Development Act, 1961 [For short, "MID Act"]. Respondent no.02 has declared village Kasbe Jamner to be an industrial area. (b) Further in view of the publication of the notification about the declaration, respondent no.05 has issued directions to the Tahsildar and the Sub Registrar, Jamner, on 01.07.2017 notifying the restrictions of transactions of sale and purchase in the said area in view of preliminary notification under Section 32(2) of the MID Act. Thereafter petitioners made an application to respondent no.08 SubRegistrar on 12.07.2017 stating that the petitioners have entered into an agreement to sell their agricultural land and they have received the consideration from the purchaser. They also contended that it is necessary to register a sale deed in pursuance to the agreement to sell and it was also pointed out that in view of various court orders, till the stage of Section 32(1) of the MID Act, the transaction of registration cannot be restricted. In that application, the petitioners had prayed for registration of the sale deed. Inspite of specific (Judgment) (5) W.P. No. 10895 of 2017 application to respondent no.08 SubRegistrar, no cognizance was taken and, therefore, application was made on 19.07.2017 to the respondent no.05 District Collector and also respondent no.06 Land Acquisition Officer. According to the petitioners, there is no bar on the registration of document till the date of issuance of notification under Section 32(1) of the MID Act. Hence, the petitioners have filed the present writ petition for issuance of necessary writ.

    03. Heard Mr. U.A. Bhadgaonkar, learned Counsel appearing for petitioners; Mr. S.G. Karlekar, learned Asst. Government Pleader appearing for respondents no.01, 05 to 09 and Mr. S.S. Dande, learned Counsel appearing for respondents no.02, 03 and 04. Perused the documents with the help of learned Counsel appearing for parties.

    04. It has been vehemently argued on behalf of the petitioners, that though the notification under Section 32(2) of the MID Act has been issued, it does not prohibit the transactions and till further step is taken under Section 32(1) of the Act, there is no bar (Judgment) (6) W.P. No. 10895 of 2017 for recording registration of the sale transactions. He relied on decision in Writ Petition No. 3800 of 2008 of this Court, dated 11.07.2008, wherein it has been held that when the notification as required under Section 32(1) of the Act has not yet been published; there is no bar on the registration of the document. Similar view was also taken in Writ Petition No. 5992 of 2008 and Writ Petition No. 6300 of 2008 on 21.10.2008.

    05. Per contra, it has been argued on behalf of respondent no.04, that the notification under Section 32(2) of the MID Act came to be issued on 11.03.2016. Various lands from village Holhaveli were included in the said notification. Subsequent notifications have also been issued on 04.11.2016 and 03.07.2017. He further submitted that the Division Bench of this Court in Avadhut Rokdoba Shinde & others Vs. The State of Maharashtra & others [2014(2) Bom.C.R.830] has held that the notification under Section 1(3) read with Section 30 of the MID Act is in the nature of notification under Section 4 of the Land Acquisition Act and further taking note of various judgments, namely (Gurmukh Singh (Judgment) (7) W.P. No. 10895 of 2017 Vs. State of Haryana), reported in J.T. (1995)8 S.C. 208, (Yadu Nandan Garg Vs. State of Rajasthan), reported in 1996(1) S.C.C.334, (Sneh Prabha Vs. State of U.P.), reported in 1996(7) S.C.C. 426, (U.P. Jal Nigam Vs. Kalra Properties (P) Ltd.), reported in (1996)3 S.C.C. 124 and (Mohmadbhai s/o. Miyabhai & others Vs. State of Maharashtra & others), reported in 2000(1) Bom.C.R. 841 (A.B.) : 2000(1) Mh.L.J. 729, it was held that the petitioners therein do not have any legal entitlement to challenge the acquisiton proceedings since petitioners are purchasers of small pieces of plots out of notified area after the date of issuance of notification under Section 1(3) read with Section

    31 of the MID Act.

    06. Further reliance has been placed by the learned Counsel for respondent no.04, on the decision in Meera Sahni Vs. Lieutenant Governor of Delhi & others [(2008) 9 SCC 177] wherein the notifications under Land Acquisition Act were involved. It was held that with issuance of notification under Section 4 of the Land Acquisition Act, any encumbrance created by the owner or any transfer made after issuance of such notification would be deemed to be void and would not (Judgment) (8) W.P. No. 10895 of 2017 be binding on the government. Similar ratio has been laid down in V. Chandrasekaran & another Vs. Administrative Officer & others [(2012) 12 SCC 133]. Further, in a recent pronouncement, the Apex Court in Government (NCT of Delhi) Vs. Manav Dharam Trust & another ((2017)6 SCC 751], similar view has been reiterated. He, therefore, submitted that taking into consideration the ratio in catena of judgments would show that there was a restriction on sale and purchase transaction in the area where the agricultural land belonging to the petitioners is situated and, therefore, the respondents are justified in rejecting the request of the petitioners to register the transaction.

    07. The facts of the case reveal that the petitioners, who are owners of the agricultural land, are not disputing the fact that the notice under Section 32(1) of the MID Act was issued on 11.03.2016. It was specifically thereafter promulgated that there shall not be transactions in respect of the lands which have been notified. The purpose for the said notice was obvious and after the said notification was issued, the petitioners have entered into an agreement (Judgment) (9) W.P. No. 10895 of 2017 of sale. Under such circumstance, when the facts are so crystal clear, the point involved in the petition is whether any right is created in favour of either the purchaser or even the seller i.e. petitioners.

    08. Similar facts were before this Court in Avadhut Rokdoba Shinde & others (supra). Taking into consideration the earlier decisions of the Hon'ble Apex Court, the Division Bench of this Court has come to the conclusion that the petitioners therein, who were the buyers, do not have legal entitlement to challenge the acquisition proceedings since the petitioners are purchasers of small pieces of plots. It was held that the notification under Section 1(3) read with Section 30 of the MID Act, which is comparable with notification under Section 4 of the Land Acquisition Act, 1894, does not confer any such right. Though, in this case, the distinguishing factor is that the petitioners, who are the sellers, are not challenging the acquisition, but they want the agreement to sell to be executed definitely with an intention to create a right in favour of the prospective purchaser. (Judgment) (10) W.P. No. 10895 of 2017

    09. Once the notification issued under Section 1(3) read with Section 31 of the MID Act is equivalent to Section 4 of the Land Acquisition Act, further steps those are taken under Section 32 of the MID Act will not create any kind of right in favour of either the purchaser or the buyer. Therefore, the decision in V. Chandrasekaran's case (supra) would be applicable here.

    10. Further, the observations in Manav Dharam Trust's case (supra), wherein after taking note of the decision in Rajasthan State Industrial Development and Investment Corporation Vs. Subhash Sindhi Co-op. Housing Society [(2013) 5 SCC 427], it has been reiterated that such transactions after initiation of acquisition proceedings would be void and would not be binding on the Government. Therefore, when the transaction itself is void, then the Government authorities are justified in rejecting the prayer of the petitioners to register the document.

    11. The petitioners have relied on the decisions (Judgment) (11) W.P. No. 10895 of 2017 in Writ Petition No. 3800 of 2008, Writ Petition No. 5992 of 2008 and Writ Petition No. 6300 of 2008 of this Court. However, taking into consideration the legal position clarified by the Hon'ble Apex Court in

    V. Chandrasekaran's case (supra) and Manav Dharam Trust's case (supra), said reliance by the petitioners on the above said decisions of this Court is devoid of merit. We, therefore, proceed to pass the following order : Order The Writ Petition is hereby rejected. ( Smt. Vibha Kankanwadi ) ( R.M. Borde ) JUDGE JUDGE ........... puranik / WP10895.17

    Use AI to get other relevant cases.

    Comments

    SHAIKH KALIM SHAIKH MOHAMMAD AND ANOTHER v. THE STATE OF MAHARASHTRA AND OTHERS
    (Sep 25, 2017)