The government acquired a large piece of land in the village, which belonged to Gaon Sabha, Luhar Heri, Delhi. The respondent, M/S K.C.Sharma And Co wanted to claim compensation on the ground that the land was given to them on lease by Gaon Sabha. They argued that land was given to them on the lease to remove the “shora” to make the land fit for cultivation. And they have spent a large amount for removal of shora” and cultivated the same for more than 30 years. Appellant argued that no lease deed was executed by Gram Sabha in favour of respondents, so it should not be treated as a lease. This matter was referred to the Civil Court under Sections 30 and 31 of the Land Acquisition Act, for apportionment of the amount of compensation.
In the aforesaid proceedings referred under Sections 30 and 31 of the Land Acquisition Act, the Civil Court has passed the decree, declaring that the respondents are entitled to compensation to the extent of 87% and remaining 13% is to be paid to the Panchayat/Gaon Sabha. It was also held that even though no lease agreement was executed respondent can take defense under section 53A of transfer of Property Act, 1882 according to which protection is given to the person who has acted on the basis of the contract of sale even without sale deed. So the respondents who cultivated the land for more than 30 years were put in the possession by the Panchayat, so the case was turned in the favour of the respondents.