Authority: High Court of Judicature at Bombay

Order Date: 07 September 2026 (pronounced)

Case Overview

  • Petitioners (originally Mrs. Evelyn Paul Pereira and others, now represented by Chirag Shashikant Shah, Kailas Dewal, Yash Dewal, Ashwin Kulkarni) seek compensation for 6,900 sq m of land (CTS No.1917, Old Survey No.37) in Village Bhayander, Mumbai, which has been in possession of respondent No.7 – Mahanagar Telephone Nigam Limited (MTNL) since 17 April 1989.
  • The land was notified for acquisition under the Land Acquisition Act, 1894 on 10 Nov 1982 and declared on 28 Nov 1985. Parallel proceedings under the Urban Land (Ceiling and Regulation) Act, 1976 (ULC Act) declared the land surplus in 1984, later reversed and re‑reversed between 1990‑1991.
  • MTNL deposited Rs 9,13,996 with the Special Land Acquisition Officer (SLAO) in 1987 as compensation; the amount was refunded on 10 Dec 1999 after deduction of Rs 5,212 for charges.
  • Numerous suits and appellate orders (Regular Civil Suit No.1050 of 1985, appellate authority dismissal on 23 Mar 1992, Writ Petition No.3891 of 1992, Court order on 04 Feb 2003) resulted in the competent authority confirming on 21 Oct 2003 that the land was not surplus under the ULC Act.
  • Petitioners filed the present writ petition on 6 May 2005 seeking either (a) initiation of acquisition proceedings under the LA Act, or (b) restoration of vacant possession after demolition of MTNL structures.
  • Respondents argued delay, laches, waiver, and that the 2013 Act could not be invoked. The Court rejected these arguments, noting that the 2003 order remained final and that the petitioners’ claim was not barred by delay.
  • The Court held that the petitioners’ right to compensation under Article 300A was violated and that restoration of possession was impractical.

Final Outcome

  • The Court directs the Special Land Acquisition Officer (respondent No.6) to determine the quantum of compensation for the 6,900 sq m land, fixing 06 May 2005 as the reference date for market‑value determination, to be calculated under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
  • The compensation shall include all statutory benefits under the 2013 Act.
  • The Special Land Acquisition Officer must commence the determination forthwith and complete it within six months of the order.
  • Within one week of the determination, the officer shall notify MTNL, which must deposit the compensation amount with the SLAO within two weeks; the SLAO shall disburse it to the petitioners within one week of receipt.
  • The Rs 5 lakhs deposited by MTNL in the Court on 21 July 2006, together with accrued interest, shall be paid to the petitioners within two weeks of the order and adjusted against the final compensation.
  • The Collector (respondent No.5) shall determine rental compensation for the period 17 April 1989 to 05 May 2005 as per State policy, to be completed within eight weeks and communicated to MTNL, which must pay the amount within two weeks.
  • All directions are to be complied with within the time‑frames specified; the interim application (No.15159 of 2024) is disposed of and the rule is made absolute.

Topics: Land Acquisition, Compensation