Bombay High Court
PEERSHAHA SHIRBLI CHIESTI TRUST THROUGH ITS TRUSTEESversusTHE STATE OF MAHARASHTRA AND OTHERS
- Disposal
- DISPOSED OFF
Holding
The order directing payment of the enhanced compensation to the Waqf Board and Nazrana to the Tahsildar is unsustainable and is quashed.
Summary
The Peersaha Shirbli Chieti Trust, a Waqf trust, owned 2.59 hectares of land that was acquired for a national highway. Initial compensation was paid to the trust, and after an arbitrator enhanced the amount, the Sub‑Divisional Officer, acting on guidance from the Maharashtra State Waqf Board, ordered that the enhanced compensation be transferred to the Waqf Board and that a Nazrana amount be paid to the Tahsildar of Sangamner. The trust challenged the order, arguing that the Waqf Board has only supervisory jurisdiction over Waqf properties and is not entitled to receive compensation, and that there was no legal basis for directing Nazrana to the Tahsildar. The Court examined Section 3H(3) of the National Highways Act, 1956 and the provisions of the Waqf Act, 1995, and held that the compensation must be paid to the person entitled – the trust – and that no statutory provision empowers the authority to divert the money to the Waqf Board or to the Tahsildar. Consequently, the order dated 28 January 2019 was quashed. The writ petition was allowed, setting aside the impugned order.
Issues considered
- Whether the National Highways Authority can direct the transfer of enhanced compensation for acquired Waqf land to the Maharashtra State Waqf Board.
- Whether the direction to pay Nazrana to the Tahsildar is legally justified under the National Highways Act and the Waqf Act.
Legislation cited
- Maharashtra State Waqf Act, 1995
- National Highways Act, 1956 — s. 3H(3)
Subjects
- Waqf property
- Land acquisition
- Compensation
- Nazrana
- Jurisdiction
- National Highways Act
- Waqf Act
- Quashing order
Judgment
2026:BHC-AUG:19172
1 of 4 51-WP.1839.2019
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
51 WRIT PETITION NO. 1839 OF 2019
PEERSHAHA SHIRBLI CHIESTI TRUST THROUGH ITS TRUSTEES
1. SHAIKH BABU MAKKHAN MUJAWAR AND OTHERS
VERSUS
THE STATE OF MAHARASHTRA AND OTHERS
...
Mr. Amol K. Gawali, Advocate for the Petitioners.
Mr. D. R. Korde, AGP for Respondent-State.
Mr. N. E. Deshmukh, Advocate for Respondent No.2.
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 23rd APRIL, 2026
P.C.:-
1. Heard learned Advocates for the respective parties.
2. By the present petition, the Petitioners challenge the order
dated 28.01.2019 passed by the Competent Authority, National
Highways Authority and Sub-Divisional Officer, Sangamner in
Desk/4/LAQ/117/2019, whereby it was directed that an amount of
Rs.67,51,831/- be paid to the Tahsildar, Sangamner towards Nazrana
and further that an amount of Rs.5,86,09,151/- be transferred to the
Maharashtra State Waqf Board by the Petitioner-Trust.
3. Learned Advocate for the Petitioners submits that the
Petitioner-Trust is registered under the Waqf Act, 1995, since the year
2008 and is in possession of land admeasuring 2 Hectares 59 Ares out
of Survey No.69. The said land was acquired for the purposes of the
2 of 4 51-WP.1839.2019
National Highway and compensation was initially awarded and paid to
the Petitioners. Thereafter, upon a reference, the Arbitrator enhanced
the compensation.
4. It is submitted that Respondent No.3, instead of disbursing
the enhanced compensation to the Petitioners, sought guidance from
the Waqf Board. The Waqf Board, by communication dated 26.04.2018,
advised that the compensation amount be transferred to it. Acting upon
the said communication, Respondent No.3 passed the impugned order
directing transfer of the amounts to the Waqf Board and towards
Nazrana.
5. Learned Advocate for the Petitioners contends that such
action is wholly without jurisdiction. It is submitted that the Waqf
Board exercises only supervisory control over Waqf properties and is
not entitled to receive compensation payable to the Trust. It is further
contended that there was no legal basis for directing payment of
Nazrana to the Tahsildar, Sangamner. The impugned order, therefore, is
unsustainable in law.
6. Per contra, learned Advocate for Respondent No.2 supports
the impugned order and submits that since the property is a Waqf
property, the Waqf Board is entitled to exercise control, and the
transfer of compensation to the Board was justified to prevent possible
misuse.
3 of 4 51-WP.1839.2019
7. Learned AGP for the State submits that since the land is
Waqf/Inam land, the direction to deposit Nazrana with the Tahsildar is
proper and supports the impugned order to that extent.
8. Having considered the submissions and perused the record, it
is not in dispute that the land in question was in possession of the
Petitioner-Trust and that compensation, at the initial stage, was paid to
the Petitioners. It is only after enhancement of compensation that
Respondent No.3 sought guidance from the Waqf Board and, based on
such guidance, passed the impugned order.
9. Upon consideration of the relevant provisions, including
Section 3H(3) of the National Highways Act, 1956 and the provisions
of the Waqf Act, it is evident that the Waqf Board exercises supervisory
jurisdiction over Waqf properties but is not the competent authority to
receive compensation payable to the Trust in respect of acquired land.
The compensation is required to be paid to the person interested, i.e.,
the entity in possession and entitled thereto.
10. In the absence of any statutory provision empowering the
Competent Authority to transfer such compensation to the Waqf Board,
the impugned direction cannot be sustained. Similarly, no justification
is made out for directing payment of Nazrana to the Tahsildar in the
facts of the present case.
11. In view of the above, the impugned order dated 28.01.2019
4 of 4 51-WP.1839.2019
passed by the Competent Authority and Sub-Divisional Officer,
Sangamner, cannot be sustained and deserves to be quashed and set
aside.
12. Hence, the writ petition is allowed in terms of prayer clauses
(a) and (b). The order dated 28.01.2019 passed by the Competent
Authority, National Highways Authority and Sub-Divisional Officer,
Sangamner in Desk/4/LAQ/117/2019 is hereby quashed and set aside.
(SIDDHESHWAR S. THOMBRE, J.)
Tauseef
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