Bombay High Court
SUNIL SUDHIR THITEversusNATIONAL HIGHWAY AUTHORITY OF INDIA THROUGH PROJECT DIRECTOR AND ANOTHER
- Disposal
- DISPOSED OFF
Holding
The reference court’s condition requiring a bank guarantee for withdrawal of 50% of the compensation is unjustified and is quashed.
Summary
The petitioner, Sunil Sudhir Thite, owned 4,200 sq. m. of land acquired by the National Highways Authority of India for NH‑361. A civil court declared him the sole owner and directed the acquiring authority to deposit the compensation award. The reference court, however, allowed withdrawal of the amount only on the condition that the petitioner furnish a bank guarantee for 50% of the sum and an undertaking for the balance. The petitioner challenged this condition, arguing that no stay of the award existed and that the reference court had no legal basis to impose such restrictions. The High Court found no stay order pending in the appeal filed by Respondent No.2 and held that the reference court’s condition was unjustified. Consequently, the High Court quashed the condition, ordered the petitioner to give an undertaking for possible future variations, and disposed of the writ petition.
Issues considered
- The reference court’s authority to impose a bank‑guarantee condition on withdrawal of compensation when the award is not stayed.
- Whether a stay of disbursement is required pending the filing of an appeal by an interested party.
- Whether the conditions imposed by the reference court are consistent with the National Highways Act, 1956 and procedural law.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order VII Rule 11
- National Highways Act, 1956 — s. 3H(4)
Subjects
- land acquisition
- compensation
- bank guarantee
- stay of disbursement
- National Highway Authority of India
- Section 3H(4)
- civil procedure
- quashing order
- writ petition
Judgment
2026:BHC-AUG:41837
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
928 WRIT PETITION NO. 11679 OF 2024
SUNIL SUDHIR THITE
VERSUS
NATIONAL HIGHWAY AUTHORITY OF INDIA THROUGH
PROJECT DIRECTOR AND ANOTHER
...
Mr. G. K. Naik Thigle, Advocate for the Petitioner
Mr. R. K. Ingole, AGP for Respondent/State
…
CORAM : AJIT B. KADETHANKAR, J.
DATED : 8th September 2026
P.C. :-
. Mr. G. K. Thigale, learned Advocate for the petitioner
would submit that the petitioner's land admeasuring 4,200
square meters, comprising Gat No.73/2, situated at Mouje
Bhandari, Taluka and District Dharashiv was acquired by the
National Highways Authority of India for construction of
National Highway No.361. In accordance with the provisions
of law, the final award came to be declared.
2. Respondent No.2 raised an objection before the
competent authority claiming his alleged interest in the
subject matter land. Accordingly, invoking the provisions of
Section 3H(4) of the National Highways Act, 1956, the
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competent authority referred the matter to the Civil Court.
Consequently, the proceedings culminated in Land Acquisition
Reference No.11 of 2018.
3. The learned Civil Court heard the parties extensively
and upon considering the evidence on record, vide judgment
and order dated 08.07.2022, declared that the petitioner is
the only owner and interested person in respect of the land
admeasuring 4,200 square meters bearing Gat No.73/2,
situated at Mauje Bhandari, Taluka and District Dharashiv. It
was further declared that the petitioner is the only person
entitled to receive the compensation. The acquiring body was
accordingly directed to deposit the award amount before the
Court.
4. It is further submitted that pursuant to the said
judgment and award, the amount came to be deposited by the
acquiring body before the Reference Court. The petitioner
accordingly filed an application before the Reference Court
seeking permission to withdraw the said amount.
5. It appears that Respondent No.2 raised an objection on
06.08.2022, intimating the Court about his intention to prefer
an appeal before this Court against the judgment and award
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passed by the Reference Court, and requested that withdrawal
of the amount be stayed till expiry of the period of limitation
for filing the appeal.
6. It is pertinent to note that the judgment and award
came to be passed on 08.07.2022, whereas the application for
withdrawal was filed on 06.08.2022. On 11.08.2022, the
Reference Court passed the following order:
“Perused the application and report of As and
writ section. Perused the say filed by Adv B R
Mane for Ashok somvanshi. The application has
been moved by Sunil thite for claiming the
amount of compensation as per award passed
in land reference.
As such the 50% amount of compensation be
given to Mr. Sunil thite and after obtaining the
bank guarantee or solvent surety to the extent
of that amount. remaining amount of
compensation be paid to Mr. Sunil thite by
obtaining surety bond of requisite stamp paper
and undertaking stating therein that he and his
legal heirs shall be bound by the decision
higher court before whom the decision in LAR
no 11/2018 is challenged.”
7. Mr. Thigale, learned Advocate for the petitioner submits
that the Reference Court permitted withdrawal of the award
amount by the petitioner; however, imposed a condition
requiring the petitioner to furnish a bank guarantee in respect
of 50% of the amount. The remaining 50% was permitted to
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be withdrawn upon furnishing an undertaking. Needless to
state, the said 50% amount which was permitted to be
withdrawn upon furnishing an undertaking is already
withdrawn by the petitioner.
8. Mr. Thigale was at pains to submit that there was no
justification for the Reference Court to impose such a stringent
condition upon the petitioner particularly when the same
Court had already arrived at a determined conclusion that the
petitioner was the only person entitled to receive the
compensation awarded in respect of the acquired land.
9. He would submit that the condition imposed by the
Reference Court is contrary to the settled principles of law and
procedure. He would fairly submit that Respondent No.2 has
preferred First Appeal No.2916 of 2022 before this Court
which is pending. He would candidly submit that in the said
First Appeal, this Court has not passed any preventive order.
10. In these circumstances, learned Advocate for the
petitioner would submit that the condition imposed by the
Reference Court permitting withdrawal of 50% of the
compensation upon furnishing a bank guarantee is not only
harsh one but cannot be sustained in law.
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11. It is submitted that Respondent No.2 had merely prayed
that disbursement of the amount be stayed till the limitation
period of the first appeal. However, the Reference Court
applied its mind even beyond the request by Respondent No.2
and levied impugned restrictions upon the petitioner.
12. On query, Mr. Thigale submits that it is true that there
was a suit between the petitioner and Respondent No.2.
However, under the orders passed by this Court, both matters
were directed to be decided together. Subsequently, the said
suit came to be disposed of under Order VII Rule 11 of the
Code of Civil Procedure, 1908. He would submit that the
plaint came to be rejected under the said provision and, to his
knowledge, the said order is not challenged by Respondent
No.2.
13. May it be, it is his submission at bar that till this date,
there is no restrictive order of this Court staying the operation
of the judgment and award passed by the Reference Court. In
view of the above, learned Advocate for the petitioner prays
that the present petition be allowed and the restrictions
imposed by the Reference Court vide order dated 11.08.2022
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be quashed and set aside.
14. Pursuant to the notice issued by this Court, notice was
served on Respondent No.2 as is evident from the record
placed before me by the Registry. It appears that Respondent
No.2 namely Mahadev was served with the notice along with
a copy of the petition on 29.04.2025. However, nobody
appeared on behalf of Respondent No.2.
15. I also find an endorsement on the Farad Sheet dated
05.08.2026 indicating that fresh notice was served upon
Respondent No.2. This Court recorded the non-appearance of
Respondent No.2 on 31.07.2026. The entire position was
thereafter recorded by this Court and it was observed that, in
the event Respondent No.2 failed to appear on the next date,
the petition would be heard finally.
16. Thereafter, the matter was listed on 07.09.2026. Again,
nobody appeared on behalf of Respondent No.2. The matter
was therefore kept on today.
17. Today, when the matter is called out, nobody appears
on behalf of Respondent No.2. In view of the above, I proceed
to consider the present petition on its merits.
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18. From the record placed before me, I find that the
learned Civil Judge, Senior Division, Osmanabad, in Land
Acquisition Reference No.11 of 2018, has categorically
declared that the petitioner is the only owner of the subject
matter property and is the only person entitled to receive the
compensation arising out of the acquisition.
19. There is nothing on record before me to indicate that
the said judgment and award is stayed by this Court in the
first appeal preferred by Respondent No.2.
20. The application filed by Respondent No.2 before the
Reference Court seeking stay of disbursement of the deposited
amount was also only for the appeal period. The Reference
Court however, permitted withdrawal of 50% of the amount
upon furnishing a bank guarantee and imposed a condition
requiring the petitioner to furnish an undertaking for
withdrawal of the remaining 50% of the compensation.
21. The Reference Court has not referred any provision of
law to impose such restrictions. Once the Reference Court had
arrived at a determined conclusion that the petitioner was the
only person entitled to receive the compensation awarded
under the judgment and award, the further condition or
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restriction imposed upon the petitioner cannot be said to be
justified.
22. In the absence of any stay to the judgment and award
passed by the Reference Court, and particularly when the
petitioner is already declared to be the person entitled to
receive the compensation, the condition of furnishing a bank
guarantee for withdrawal of 50% of the compensation cannot
be sustained.
23. In view of the above discussion, I find that the
petitioner has made out a successful case for interference by
this Court. Hence, I deem it appropriate to pass the following
order :
ORDER
I. The Writ Petition is allowed.
II. The order dated 11.08.2022 passed by the
learned Reference Court is quashed and set aside
to the extent it imposes a condition upon the
petitioner to furnish a bank guarantee for
withdrawal of 50% of the compensation amount.
III. The petitioner shall furnish an undertaking
to the satisfaction of the learned Registrar of the
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Reference Court that, in the event the judgment
and award passed by the Reference Court is
varied, modified or set aside in the proceedings
arising therefrom, the petitioner shall abide by
such order and shall redeposit such amount as may
become payable pursuant to such order.
IV. The Writ Petition stands disposed of.
( AJIT B. KADETHANKAR, J. )
PRW
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