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Patna High Court

Lali Lal Sharan @ Mithlesh SharanversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The court held that the petitioner is entitled to compensation and the respondents must issue a reasoned order and pay the compensation as per the RFCTLARR Act, 2013.

Summary

The petitioner, a Sevait/Mahanth of a temple, claimed raiyati rights over 0.80 acre of land (S.P. No.29, Khata No.68) that was acquired for the NTPC Barh project but for which no compensation was paid. Earlier, a Bihar Land Ceiling Act order confirmed the land was not surplus and it was mutated in his name with rent receipts. Despite a prior court direction to approach the Collector for compensation, the petitioner’s 2010 application remained unacted upon, causing financial hardship. The High Court examined principles of reasoned administrative action, the applicability of Article 300A, and the necessity of compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. It held that the respondents acted without jurisdiction by failing to pay compensation and ordered the Collector to issue a reasoned order and pay compensation based on prevailing market value within one week. The writ petition was consequently disposed.

Issues considered

  • The respondents' failure to pay compensation constitutes an act beyond their jurisdiction.
  • Whether the petitioner is entitled to compensation under the RFCTLARR Act, 2013.
  • Whether the High Court can entertain the writ petition under Article 226 despite the existence of alternative statutory remedies.
  • Interpretation of Article 300A of the Constitution concerning the right to property and the implied obligation to pay compensation.

Legislation cited

Subjects

  • land acquisition
  • compensation
  • right to property
  • Article 300A
  • writ jurisdiction
  • reasoned order
  • NTPC
  • Bihar
  • raiayat rights

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.17395 of 2021
     ======================================================
     Lali Lal Sharan @ Mithlesh Sharan Son of Ram Lakhan Das, resident of
     Village-Pandarak, Police Station-Pandarak, District-Patna.

                                                           ... ... Petitioner/s
                                    Versus
1.   The State of Bihar through the Principal Secretary, Revenue and Land
     Reforms Department, Government of Bihar, Patna.
2.   The Collector-cum-District Magistrate, Patna.
3.   The District Land Acquisition Officer, Patna.
4.   National Thermal Power Corporation through the Managing Director,
     N.T.P.C., New Delhi.
5.   The Project Manager, N.T.P.C. Project, Barh, Patna.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :       Mr.Manish Kumar No2
     For the Respondent/s   :       Mr.Rishi Raj Sinha (Sc19)
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
     ORAL JUDGMENT
      Date : 02-02-2026
                  Heard learned counsel appearing on behalf of the

      petitioner and learned counsel for the State.

                  2. Petitioner has inter alia prayed for following reliefs

      in the paragraphs No.1 of the writ petition:-

                                   “That the present writ application is being filed
                      for        appropriate        writ/writs,        order/orders,
                      direction/directions to the respondent Authorities
                      particularly the respondent no.3 District Land Acquisition
                      Officer, Patna to pay adequate payment to the petitioner in
                      view of the fact that land bearing plot no.29 appertaining to
                      khata No.68 has been acquired for N.T.P.C. Project at Barh
                      with the interest as same has been acquired much earlier
                      but no compensation amount has been paid to the petitioner
                      and/or for any other relief or reliefs to which the petitioner
                      may be found entitled to in course of hearing of this writ
                      application.”
                  3. Brief facts of the case are that the petitioner is the

      Sevait/Mahanth of Lalji Bhagwan Thakurwari at Pandarak,
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         District Patna, and claims raiyati rights over land appertaining to

         S.P. No. 29, Khata No. 68, measuring 0.80 acre, situated at

         Mauza Mamrakhabad, Thana No. 11, P.S. Pandarak, District

         Patna, recorded in the name of the Thakurwari. The said land

         was acquired for construction of a rail siding for the NTPC,

         Barh project, but no compensation has been paid to the

         petitioner on the ground that the land was allegedly declared

         surplus. However, in Ceiling Case No. 1/8 of 1974-75/1984-84

         under the Bihar Land Ceiling Act, the Additional Collector,

         Patna, by order dated 26.03.1984, held that the land was not

         surplus and dropped the proceeding, whereafter the land was

         mutated in the petitioner’s name and rent receipts were issued.

         The petitioner claims title and possession through a registered

         sale deed dated 14.04.1949 and asserts that the revenue records

         have consistently stood in his favour without dispute from any

         quarter. Earlier, the then Sevait, Mahanth Ram Lakhan Das,

         filed C.W.J.C. No. 7937 of 2020, in which this Court, by order

         dated 10.05.2020, directed the petitioner to approach the

         Collector, Patna, who was to verify whether the petitioner was a

         raiyat in possession prior to acquisition and, if so satisfied, to

         ensure payment of compensation. Pursuant thereto, the

         petitioner approached the Collector in L.A. Case No. 02/2008-
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         09 seeking payment, but despite the Court’s direction and

         repeated steps taken by the petitioner, no compensation has been

         released till date. Owing to non-payment, the petitioner, as

         Sevait of the temple, is facing acute financial hardship in

         managing daily religious activities, Puja and distribution of

         prasad, and developmental works of the Thakurwari have also

         come to a standstill.

                     4. Learned counsel appearing on behalf of              the

         petitioner seeks to avail appropriate remedy in accordance with

         law for the relief as sought for in the present writ petition, for

         which the petitioner has already filed a detailed application

         before     the    District     Magistrate-cum-Collector,   Patna   on

         24.05.2010 and since then, no action has been taken on the

         application of the petitioner.

                     5. This Court is aware of the inaction on part of the

         revenue authorities mainly Bara Babu and Chhota Babu ( UDC

         and LDC) of the Collector’s office who at times intentionally

         don’t place the application of the aggrieved person for being

         adjudicated. Present is one case, on account of inaction of the

         Collectors, who were posted at the relevant time to till date have

         not been able to have control over their subordinates and the

         office staffs, petitioner has been forced after 10 years to file
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         writ petition before this Court and the same is pending since the

         year 2021. The petitioner is aggrieved for determination of fair

         compensation, for which he had already filed his application in

         the year 2010 before the District Magistrate-cum-Collector and

         no information has been given in the counter affidavit filed on

         behalf of the Collector, as to why, the Collector has not taken

         any action on the application filed by the petitioner.

                     6. The authorities of the State Government are

         required to abide by the rule of law. It is indeed unthinkable that

         in   a    democracy        governed       by   the   rule   of   law   the

         executive/Government or any of its officers who possess

         arbitrary power over the interests of the individual act of their

         own wishes. Every action of the executive Government must be

         informed with reason and should be free from arbitrariness. That

         is the very essence of the rule of law and its bare minimal

         requirement. And to the application of this principle it makes no

         difference whether the exercise of the power involves

         affectation of some right or denial of some privilege.

                     8. It is also well settled principle of law that every

         administrative action in want of reason is not sustainable as has

         been held by the Apex Court in the case of Kranti Associates

         (P) Ltd. v. Masood Ahmed Khan reported in (2010) 9 SCC 496.
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         The relevant paragraph is reproduced hereinbelow:

                                             “47. Summarising the above discussion,

                                 this Court holds:

                                                 (a) In India the judicial trend has
                                         always been to record reasons, even in
                                         administrative decisions, if such decisions
                                         affect anyone prejudicially.
                                                 (b) A quasi-judicial authority must
                                         record reasons in support of its conclusions.
                                                 (c) Insistence on recording of reasons
                                         is meant to serve the wider principle of
                                         justice that justice must not only be done it
                                         must also appear to be done as well.
                                                 (d) Recording of reasons also
                                         operates as a valid restraint on any possible
                                         arbitrary exercise of judicial and quasi-
                                         judicial or even administrative power.
                                                 (e) Reasons reassure that discretion
                                         has been exercised by the decision-maker on
                                         relevant grounds and by disregarding
                                         extraneous considerations.
                                                 (f) Reasons have virtually become as
                                         indispensable a component of a decision-
                                         making process as observing principles of
                                         natural justice by judicial, quasi-judicial and
                                         even by administrative bodies.
                                                 (e) Reasons facilitate the process of
                                         judicial review by superior courts.
                                                 (h) The ongoing judicial trend in all
                                         countries committed to rule of law and
                                         constitutional governance is in favour of
                                         reasoned decisions based on relevant facts.
                                         This is virtually the lifeblood of judicial
                                         decision-making justifying the principle that
                                         reason is the soul of justice.
                                                 (i) Judicial or even quasi-judicial
                                         opinions these days can be as different as the
                                         judges and authorities who deliver them. All
                                         these decisions serve one common purpose
                                         which is to demonstrate by reason that the
                                         relevant factors have been objectively
                                         considered. This is important for sustaining
                                         the litigants‟ faith in the justice delivery
                                         system.
                                                 (j) Insistence on reason is a
                                         requirement for both judicial accountability
                                         and transparency.
                                                 (k) If a judge or a quasi-judicial
                                         authority is not candid enough about his/her
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                                         decision-making process then it is impossible
                                         to know whether the person deciding is
                                         faithful to the doctrine of precedent or to
                                         principles of incrementalism.
                                                 (l) Reasons in support of decisions
                                         must be cogent, clear and succinct. A
                                         pretence of reasons or “rubber-stamp
                                         reasons” is not to be equated with a valid
                                         decision-making process.
                                                 (m) It cannot be doubted that
                                         transparency is the sine qua non of restraint
                                         on abuse of judicial powers. Transparency in
                                         decision-making not only makes the judges
                                         and decision-makers less prone to errors but
                                         also makes them subject to broader scrutiny.
                                         (See David Shapiro in Defence of Judicial
                                         Candor32).
                                                 (n) Since the requirement to record
                                         reasons emanates from the broad doctrine of
                                         fairness in decision-making, the said
                                         requirement is now virtually a component of
                                         human rights and was considered part of
                                         Strasbourg Jurisprudence. See Ruiz Torija
                                         vs. Spain33 EHRR, at 562 para 29 and Anya
                                         v. University of Oxford34, wherein the Court
                                         referred to Article 6 of the European
                                         Convention of Human Rights which requires,
                                         “adequate and intelligent reasons must be
                                         given for judicial decisions.”
                                                 (o) In all common law jurisdictions
                                         judgments play a vital role in setting up
                                         precedents for the future. Therefore, for
                                         development of law, requirement of giving
                                         reasons for the decision is of the essence and
                                         is virtually a part of “due process”.


                     9. The law in this regard has been reiterated by the

         Apex Court in the Case of M/s Magadh Sugar & Energy Ltd.

         Versus The State of Bihar & Ors. reported in LL 2021 SC 495,

         paragraphs no. 19 and 28 would be relevant in this regard,

         which is as under:-

                                     “ 19. While a High Court would normally not
                         exercise its writ jurisdiction under Article 226 of the
                         Constitution if an effective and efficacious alternate remedy
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                         is available, the existence of an alternate remedy does not
                         by itself bar the High Court from exercising its jurisdiction
                         in certain contingencies. This principle has been
                         crystallized by this Court in Whirpool Corporation v.
                         Registrar of Trademarks, Mumbai19 and Harbanslal Sahni
                         v. Indian Oil Corporation Ltd20. Recently, in Radha
                         Krishan Industries v. State of Himachal Pradesh & Ors21 a
                         two judge Bench of this Court of which one of us was a part
                         of (Justice DY Chandrachud) has summarized the
                         principles governing the exercise of writ jurisdiction by the
                         High Court in the presence of an alternate remedy. This
                         Court has observed:
                                       “28. The principles of law which emerge are
                         that: (i) The power under Article 226 of the Constitution to
                         issue writs can be exercised not only for the enforcement of
                         fundamental rights, but for any other purpose as well; (ii)
                         The High Court has the discretion not to entertain a writ
                         petition. One of the restrictions placed on the power of the
                         High Court is where an effective alternate remedy is
                         available to the aggrieved person; (iii) Exceptions to the
                         rule of alternate remedy arise where (a) the writ petition
                         has been filed for the enforcement of a fundamental right
                         protected by Part III of the Constitution; (b) there has been
                         a violation of the principles of natural justice; (c) the order
                         or proceedings are wholly without jurisdiction; or (d) the
                         vires of a legislation is challenged; (iv) An alternate remedy
                         by itself does not divest the High Court of its powers under
                         Article 226 of the Constitution in an appropriate case
                         though ordinarily, a writ petition should not be entertained
                         when an efficacious alternate remedy is provided by law;
                         (v) When a right is created by a statute, which itself
                         prescribes the remedy or procedure for enforcing the right
                         or liability, resort must be had to that particular statutory
                         remedy before invoking the discretionary remedy under
                         Article 226 of the Constitution. This rule of exhaustion of
                         statutory remedies is a rule of policy, convenience and
                         discretion; and (vi) In cases where there are disputed
                         questions of fact, the High Court may decide to decline
                         jurisdiction in a writ petition. However, if the High Court is
                         objectively of the view that the nature of the controversy
                         requires the exercise of its writ jurisdiction, such a view
                         would not readily be interfered with.” (emphasis supplied)

                         10. Now question arises whether this Court can

         exercise its jurisdiction under Article 226 of the Constitution of

         India in the facts of the present writ petition in case respondents

         have acted without jurisdiction. Law in this regard is well
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         settled by the Apex Court in the case of                           Assistant

         Commissioner of State Tax v. M/s Commercial Steel Limited

         (Civil Appeal No. 5121 of 2021). In State of HP v. Gujarat

         Ambuja Cement Ltd & Anr., reported in (2005) SCC 6 499 this

         Court has held that a writ petition is maintainable before the

         High Court if the taxing authorities have acted beyond the scope

         of their jurisdiction. This Court observed:

                         “23. Where under a statute there is an allegation of
                         infringement of fundamental rights or when on the
                         undisputed facts the taxing authorities are shown to have
                         assumed jurisdiction which they do not possess can be the
                         grounds on which the writ petitions can be entertained. But
                         normally, the High Court should not entertain writ petitions
                         unless it is shown that there is something more in a case,
                         something going to the root of the jurisdiction of the officer,
                         something which would show that it would be a case of
                         palpable injustice to the writ petitioner to force him to
                         adopt the remedies provided by the statute. It was noted by
                         this Court in L. Hirday Narain v. ITO [(1970) 2 SCC 355:
                         AIR 1971 SC 33] that if the High Court had entertained a
                         petition despite availability of alternative remedy and heard
                         the parties on merits it would be ordinarily unjustifiable for
                         the High Court to dismiss the same on the ground of non-
                         exhaustion of statutory remedies; unless the High Court
                         finds that factual disputes are involved and it would not be
                         desirable to deal with them in a writ petition.”



                          11. It is also to be taken note of that Article 300A

         of the Constitution of India, which tends to safeguard the

         invaluable right to property.

                                 “300-A. Persons not to be deprived of property
                                 save by authority of law
                                 No person shall be deprived of his property save by
                                 authority of law.”
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                        12. The State cannot disposes a citizen of his

         property except in accordance with law and procedure

         prescribed. The obligation to pay compensation is not

         expressively included in Article 300-A of the Constitution of

         India can be inferred in that Article. The law in this regard is

         well settled by the Apex Court in case of Vidaya Devi Vs. The

         State of Himachal Pradesh & Ors. reported in 2020(2) SCC

         569, I find it proper to quote the para-12.1 and 12.2 of the said

         judgment, which are inter alia reproduced hereinafter;

                                 “12.1. The appellant was forcibly expropriated of her
                                 property in 1967, when the right to property was a
                                 fundamental right guaranteed by Article 31 in Part III of
                                 the Constitution. Article 31 guaranteed the right to
                                 private property [State of W.B. v. Subodh Gopal Bose,
                                 (1953) 2 SCC 688 , which could not be deprived without
                                 due process of law and upon just and fair compensation.
                                 12.2. The right to property ceased to be a fundamental
                                 right by the Constitution (Forty-Fourth Amendment) Act,
                                 1978, however, it continued to be a human right
                                 [Tukaram Kana Joshi v. MIDC, (2013) 1 SCC 353 in a
                                 welfare State, and a constitutional right under Article
                                 300-A of the Constitution. Article 300-A provides that no
                                 person shall be deprived of his property save by
                                 authority of law. The State cannot dispossess a citizen of
                                 his property except in accordance with the procedure
                                 established by law. The obligation to pay compensation,
                                 though not expressly included in Article 300-A, can be
                                 inferred in that Article. [K.T. Plantation (P) Ltd. v. State
                                 of Karnataka, (2011) 9 SCC 1”



                     13. The above proposition of law has again been

         reiterated by the Apex Court in the case of Dharnidhar Mishra

         (D) and Another vs. State of Bihar and Others, in Civil Appeal

         No. 6351 of 2024, reported in (2024) 10 Supreme Court Cases

         605, is relevant. The paragraph is reproduced as under:–
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                                     “ 16. The right to property ceased to be a
                         fundamental right by the Constitution (Forty-fourth
                         Amendment) Act, 1978, however, it continued to be a human
                         right in a welfare State, and a constitutional right under
                         Article 300-A of the Constitution. Article 300-A provides
                         that no person shall be deprived of his property save by
                         authority of law. The State cannot dispossess a citizen of his
                         property except in accordance with the procedure
                         established by law. The obligation to pay compensation,
                         though not expressly included in Article 300-A, can be
                         inferred in that Article. [See: K.T. Plantation (P) Ltd. v.
                         State of Karnataka [K.T. Plantation (P) Ltd. v. State of
                         Karnataka, (2011) 9 SCC 1.”


                     14. In such circumstances, when the question of right

         to property as per the provision of Article 300 A of the

         Constitution of India comes to the knowledge of this Court, this

         Court has no alternative than to direct the concerned authority to

         forthwith take action and see that the grievance of the petitioner

         is redressed well within a period of one week in accordance

         with law from the date of communication of this order. The

         Collector concerned is directed to communicate the compliance

         report by passing a reasoned order before the Additional Chief

         Secretary, Revenue and Land Reforms Department, as well as,

         to the concerned officer having jurisdiction of the NTPC.

                     15. In case, the petitioner is required to be

         compensated, the required amount of compensation should be

         paid to him, as per the provision of Right to Fair Compensation

         and Transparency in Land Acquisition, Rehabilitation and

         Resettlement Act, 2013 without further delay on the basis of the
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                      prevailing MVR existing in the area, where the alleged land,

                      which has been claimed by the petitioner is found to be

                      acquired.

                                  16. The writ petition is, accordingly, disposed of.




                                                 (Purnendu Singh, J)
Sanjay/-
AFR/NAFR                AFR
CAV DATE                NA
Uploading Date          12.02.2026
Transmission Date       NA


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