Bombay High Court
COMMUNIDADE OF MARGAO, REP. BY ITS ATTORNEY CELESTINO ARTHUR BARRETO E NORONHAversusTHE COMPETENT AUTHORITY OF LAND ACQUISITION (CALA) AND 2 ORS
- Disposal
- Dismissed
Holding
The Court held that the refund order is not ultra vires and dismissed the petition, as the 2013 Act does not apply to acquisitions under the 1956 Act and the petitioner had no entitlement to the compensation.
Summary
The Communidade of Margao challenged a September 2024 order by the Competent Authority of Land Acquisition (CALA) that directed it to refund Rs.67,05,076 received as compensation under an award dated 31 October 2018 for land acquired for National Highway NH‑17 under the National Highways Act, 1956. The petitioner argued that the 2013 Right to Fair Compensation Act could not be invoked for an acquisition governed by the 1956 Act and that CALA lacked jurisdiction to modify the award. The respondents contended that the award merely held the compensation in revenue deposit pending production of tenancy documents and that the petitioner had no entitlement because the land had already been transferred to respondent No.3 under the Agricultural Tenancy Act, 1964. The Court held that Section 105(1) of the 2013 Act excludes its provisions for acquisitions under the 1956 Act, rendering Section 31(2) and Section 33 inapplicable, and that the petitioner's claim to the compensation was untenable. Consequently, the Court dismissed the writ petition, finding no basis for interference with the refund order.
Issues considered
- Whether Section 31(2) and Section 33 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 can be applied to an award made under the National Highways Act, 1956.
- Whether the Competent Authority under the 1956 Act has jurisdiction to direct refund of compensation or to correct the award after it becomes functus officio.
- Whether the petitioner had a legal right to retain the compensation amount given the land's ownership had passed to respondent No.3 under the Agricultural Tenancy Act, 1964.
- Whether the High Court can entertain a writ petition challenging the refund order under Article 226 of the Constitution.
Legislation cited
- Agricultural Tenancy Act, 1964
- National Highways Act, 1956 — s. 3(A), 3(E)
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 — s. 105(1), 31(2), 33
Subjects
- land acquisition
- compensation refund
- National Highway
- Right to Fair Compensation Act
- writ jurisdiction
- correction of award
- functus officio
- tenancy rights
- equity
Judgment
2026:BHC-GOA:1810
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IN THE HIGH COURT OF BOMBAY AT GOA
WRIT PETITION NO.141 OF 2025
Communidade of Margao,
Represented by its Attorney,
Mr. Celestino Arthur Barreto e Norohna,
son of Mr. Luis Noronha, 64 years of age,
Married, businessman,
Having its Office at Old Market, Margao, Taluka Salcete,
Goa, 403601 ...PETITIONER
VERSUS
1. The Competent Authority of Land
Acquisition (CALA),
PWD (Cell), Altinho, Panaji Goa.
2. The State of Goa,
through its Chief Secretary,
Government of Goa,
Secretariat, Porvorim,
Bardez Goa.
3. Miguel Rosario Cardozo,
son of late Domingos Rosario Cardozo,
aged 60 years, businessman,
Resident of House No.6001/A, Revora,
Navelim, Salcete-Goa, 403707 ...RESPONDENTS
…
Mr. Sudin Usgaonkar, Senior Advocate with Ms. Divya Parab,
Advocates for Petitioner.
Mr. Deep Shirodkar, Additional Government Advocate for Respondent
Nos.1 and 2.
Mr. C. A. Countinho, Senior Advocate with Mr. I. Shantimano,
Advocates for Respondent No.3.
…
CORAM : S. G. CHAPALGAONKAR, J.
DATED : 7th SEPTEMBER, 2026.
JUDGMENT:-
1. Rule. Rule made returnable forthwith. With consent of parties,
matter is heard finally at admission stage.
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2. The petitioner impugns order dated 19.09.2024 passed by
respondent no.1/Competent Authority of Land Acquisition (hereinafter
referred to as ‘CALA’), PWD Cell, Altinho, Panaji, Goa in Proceeding
No.SLAO/NH-17/PWD/F.7/2023-24/01, thereby directing petitioner to
refund of Rs.67,05,076/- compensation amount received by petitioner
vide Award dated 31.10.2018.
3. The petitioner contends that in June-July 2017 vide Notification
issued under Sub-section (1) of Section 3(A) of National Highways Act,
1956 (hereinafter referred to as ‘Act of 1956’), Land Acquisition
Proceeding was initiated in respect of land bearing Survey No.76/1 Part,
89/6 Part, 212/7 Part, 76/5, 72/7 Part, 212/7 Part, 72/9 Part, 199/4 Part,
72/10 Part, 189/1 Part, 199/1 Part, 187/1 Part, 188 Part, 199/20 Part for
purpose of National Highway No.NH-17 (New NH-66). On
31.10.2018, Award No.SLAO-NH17-PWD/7/2018-2019 came to be
passed acquiring area of 1300 sq. mtrs. forming part of 77/7 of village
Navalim, Salcete Taluka belonging to petitioner. The requisite public
notices were issued under Section 3(A) of Act of 1956 to persons
believed to be interested in land calling upon them to appear before
Land Acquisition Officer in person or through agent or legal practitioner
to state nature of respective interest in such land and amount. The
compensation amount in respect of acquired land was worked out to
Rs.3,60,54,206/-. The Award dated 31.10.2018 states that as per Survey
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Report and Form-I and XIV, petitioner is one of the occupant alongwith
one tenant in Survey No.72/7 and compensation would be paid after
production of tenancy order issued by respective Mamlatdar. Since
none appeared for hearing before Competent Authority, entire amount of
compensation was kept as revenue deposit for its disbursement on
production of legal document.
4. The petitioner received total sum of Rs.67,05,076/- as per Award
passed by CALA. On 11.09.2023, on representation made by
respondent no.3 seeking release of entire compensation amount,
impugned order came to be passed directing petitioner to refund
compensation amount, which is received by him purportedly in exercise
of powers under Section 31(2) of Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013 (hereinafter referred to as ‘Act of 2013’).
5. Mr. Sudin Usgaonkar, learned Senior Advocate appearing for
petitioner would submit that provisions of Act of 2013 do not apply to
acquisition under Act of 1956, particularly in absence of Notification as
contemplated by provisions of Sub-Section (3) of Section 105 of Act of
2013. He invites attention of this Court to Section 105(1) of Act of
2013, which stipulates that provisions of Act of 2013 would not to apply
to enactments relating to Land Acquisition specified in Fourth Schedule.
He points out that Act of 1956 is enlisted at Serial No.7 in Fourth
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Schedule. Relying upon observations of Division Bench of this Court
in case of Bhupendera Singh Vs. Competent Authority and ors 1, and
Sangita Natwarlal Karwa and Another Vs. State of Maharashtra and
Others2, he submits that Competent Authority constituted under Section
3-A of Act of 1956 has no jurisdiction to make any correction or pass
order in the nature of correction of an Award or for that matter amend
Award, once Award has been passed and Authority becomes functus
officio. In light of aforesaid well settled legal position, impugned
communication directing petitioner to refund amount received under
Award is ultra vires and liable to be quashed and set aside.
6. Per contra, Mr. C. A. Coutinho, learned Senior Advocate
appearing for respondent no.3 submits that this is not case of correction
or modification of Award passed by Competent Authority. By inviting
attention of this Court to contents of Award, he submits that Award itself
records that as per survey report and Form-I and XIV, Communidade of
Margaon and tenant is occupant in said survey numbers. The tenant
would be paid after production of tenancy order issued by respective
Mamlatdar. The entire amount of compensation shall be kept as
revenue deposit and shall be paid on production of legal documents. As
such, Award nowhere determines entitlement of either tenant or
occupant to receive compensation, hence, petitioner cannot rest his case
1. (2020) 2 Bom. CR 296
2. (2023) 4 Mh.L.J. 450
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relying upon preposition of law espoused in case of Bhupendera Singh
or Sangita Natwarlal Karwa and Another (supra), which lays down
that Competent Authority under Act of 1956 cannot resort to provision
of Section 33 of Act of 2013 for correction of Award.
7. Mr. Deep Shirodkar, learned Additional Government Advocate
for respondent nos.1 and 2 submits that even assuming that impugned
communication/order is illegal, Writ jurisdiction can only be exercised
when such exercise is essential to achieve ends of justice and not
otherwise. In present case, petitioner had no right to receive
compensation in wake of grant of purchase certificate in favour of
respondent no.3/Tenant as to acquired land. The petitioner could not
have put forth any claim on compensation amount in exclusion of
Tenant’s right and withdraw compensation amount under Award. In this
backdrop, there is no reason to invoke Writ jurisdiction and consider
prayers in this petition.
8. Having considered submissions advanced by learned Advocates
appearing for respective parties, it can be observed that there is no
dispute as to preposition of law that provisions of Section 33 of Act of
2013 cannot be extended to correct Award declared under provisions of
Act of 1956. However, Mr. Usgaonkar, learned Senior Advocate
appearing for petitioner submits that order impugned could not have
been passed by CALA directing refund of compensation amount
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received by petitioner/land holder resorting to Section 33 of Act of
2013.
9. Perusal of Award dated 31.10.2018 passed by Special Land
Acquisition Officer/CALA shows that petitioner or respondent were
absent for hearing under Section 3(E) of Act. Eventually, right to
receive compensation by occupant or tenant of acquired land has not
been finally adjudicated. The specific observations appearing in Award
so far as it relates to Survey No.72/7 reads thus:
“As per survey report and Form I and XIV Communidade of
Margao is one of the occupant and there is one tenant in all
the said survey Nos. The tenant will be paid after the
production of Tenancy Order issued by the respective
Mamlatdar. At the time of hearing under section 3E of the Act
none of the occupants as well as the tenants remained absent.
The entire amount of compensation shall be kept as Revenue
Deposit and shall be paid on production of legal document.
The entire amount of compensation shall be kept as Revenue
Deposit and shall be paid on production of legal documents.”
10. The plain reading of aforesaid paragraphs depicts that Award
merely refers to Form-I and XIV, wherein petitioner is shown as one of
the occupant alongwith their tenant. The right of tenant to receive
compensation was postponed till production of legal documents and
entire amount of compensation was kept as revenue deposit. It appears
that, petitioner claimed 50% of compensation amount by filing
application with Land Acquisition Officer without notice to respondent
no.3/tenant or without informing Land Acquisition Officer regarding
purchase of land by tenant under Agriculture Tenancy Act. Eventually,
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petitioner secured withdrawal of Rs.67,05,076/- i.e. 50% of
compensation amount behind back of respondent no.3.
11. Undisputedly, respondent no.3 approached respondent no.1 for
release of compensation amount in capacity of owner on the basis of
purchase certificate dated 29.11.1993 issued in Tenancy Case
No.TNC/JM-II/PUR/NAVELIM/66/1993, which depicts confirmation
of ownership upon him. The petitioner did not dispute aforesaid
position. Apparently, petitioner had no right to receive compensation
amount against acquisition of land Survey No.72/7, which is declared in
favour of respondent no.3 under Agricultural Tenancy Act, 1964 and
culminated into his ownership vide purchase certificate dated
29.11.1993.
12. The aforesaid factual backdrop in unequivocal terms shows that
petitioner has wrongfully withdrawn compensation amount payable to
respondent no.3 without disclosing rights conferred upon tenant vide
purchase certificate dated 29.11.1993. The terms of Land Acquisition
Award passed by CALA nowhere confers any right upon petitioner to
receive compensation being erstwhile owner, which extinguished atleast
upon grant of purchase certificate in favour of respondent no.3 that too
much before passing of Award. The impugned order directing petitioner
to refund amount wrongfully received by him would not in any manner
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amount to modification, correction or review of Award in terms of
Section 33 of Act of 2013.
13. Although it is argued that impugned order has been passed
referring to Section 31(2) of Act of 2013, such exercise in any manner
does not appear to be in nature of correction of Award. On other hand,
order clarifies that petitioner is directed to refund amount in reference to
paragraph no.34 of Award, which reads thus:
“34. The interested parties who may receive the compensation
under the award are given to understand that they will be liable
under the proviso of section 31(2) of the said Act, to refund the
said compensation or a portion therefore in the event of any
other person being adjudged to be lawfully enttile thereto.”
14. Even it is assumed for sake of argument that impugned order
would amount to correction of Award and direction to refund amount by
CALA is not in consonance with powers conferred under Act of 1956,
this Court finds that in facts of case there is no justification for
interfering in order impugned, particularly in exercise of Writ
jurisdiction of this Court. In case of Bharatiya Seva Samaj Trust and
Another Vs. Yogeshbhai Ambalal Patel and ors.,3 Supreme Court
observed in paragraph no.14 as under:
“14. It is a settled legal proposition that the court should not
set aside the order which appears to be illegal, if its effect is to
revive another illegal order. It is for the reason that in such an
eventuality the illegality would perpetuate and it would put a
premium to the undeserving party/person.”
3 (2012) 9 SCC 310
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15. Recently in case of M. S. Sanjay Vs. Indian Bank and ors. 4,
Supreme Court observed in paragraph no.10 as under:
“10. It has been rightly observed that legal formulations cannot
be enforced divorced from the realities of the fact situation of
the case. While administering law it is to be tempered with
equity and if the equitable situation demands after setting right
the legal formulations not to take it to the logical end, the High
Court would be failing in its duty if it does not equitable
consideration and mould the final order in exercise of its
extraordinary jurisdiction. Any other approach would render
the High Court a normal Court of Appeal, which it is not. It is a
settled principle of law that the remedy under Article 226 of the
Constitution of India is discretionary in nature and in a given
case, even if some action or order challenged in the petition is
found to be illegal and invalid, the High Court while exercising
its extraordinary jurisdiction thereunder can refuse to upset it
with a view to doing substantial justice between the parties.”
16. Keeping in mind aforesaid exposition of law, this Court finds that
petitioner failed to make out any case for interfering in order impugned,
particularly in exercise of Writ jurisdiction under Article 226 or 227 of
Constitution of India. In result, Writ Petition sans merit. Hence,
dismissed.
17. Rule stands discharged.
(S. G. CHAPALGAONKAR)
JUDGE
Devendra/September-2026
4 2025 SCC OnLine SC 368
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