In Brief
The Union of India challenged a High Court judgment that had reversed a trial court decree seeking to overturn a 1989 compensation award in land acquisition proceedings. The issue was whether respondents fraudulently obtained compensation rights to 87% of acquired land by claiming a lease from Gaon Sabha (village council). The Supreme Court dismissed the appeal, holding that fraud must be specifically pleaded and proved with cogent evidence. Since every stage of the lease—proposal, approval by the Deputy Director of Panchayat, auction, and bid acceptance—was officially documented and approved, the allegation of collusion lacked merit. The court also affirmed that Section 53A of the Transfer of Property Act protects lessees' rights even without a formal registered deed, where possession and cultivation are established.
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