Bombay High CourtProperty and Real Estate LawAdministrative and Public Law

Invalid service of notice on non-owners prior to statute repeal precludes automatic vesting of private forest land.

The State of Maharashtra v. D. Dayabhai and Co. Pvt. Ltd. [2026:BHC-AS:9748-DB]

Invalid service of notice on non-owners prior to statute repeal precludes automatic vesting of private forest land.. The State of Maharashtra v. D. Dayabhai and Co. Pvt. Ltd. [2026:BHC-AS:9748-DB]. Bombay High Court. LawLens
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In brief

The question

1. Whether the subject land qualifies as a "private forest" under Section 2(f)(iii) of the 1975 Act based on a notice issued under Section 35(3) of the 1927 Act but served after the repeal of said section.

The court held

The Court dismissed the State's petition (WP 3205/2018), upholding the MRT order that the land is not a private forest.

It also directed

It allowed the Company's petition (WP 10024/2023).

The Court held that strict statutory compliance is a prerequisite for vesting and that a defective notice served on a stranger cannot divest a citizen of their property.

The TMC was directed to issue/allot the TDR/DRC against Park Reservation No. 4 (404,721.02 sq. mtrs.) to the Petitioner within 21 working days of the judgment's uploading.

01Facts

The dispute concerns land admeasuring approximately 193 acres in Survey No. 59/1, Manpada, Thane.

p. 19

The State claimed the land vested in it as "private forest" under the Maharashtra Private Forests (Acquisition) Act, 1975 ("1975 Act") based on a notice dated 29.08.1975 issued under Section 35(3) of the Indian Forest Act, 1927 ("1927 Act").

p. 20, 156

However, the notice was signed by a Forest Guard (Van-Rakshak) and addressed to "D. Dayabhai and Co." (a separate entity) rather than the actual owner, "D. Dahyabhai and Co. Pvt. Ltd."

p. 156, 174

Service was admittedly effected on 04.09.1975, after the 1927 Act provisions were repealed on 30.08.1975.

p. 156, 158

Procedurally, after decades of litigation and a remand from the Maharashtra Revenue Tribunal (MRT), the Sub-Divisional Officer (SDO) in 2004 held part of the land as forest and exempted other portions.

p. 22, 161

Both the State and the owner appealed to the MRT, which in 2017 declared the entire land as non-forest, holding the 1975 notice invalid.

p. 23, 168

Meanwhile, the Thane Municipal Corporation (TMC) acquired 104 acres of this land for public reservations but withheld Transferable Development Rights (TDR) certificates due to the Forest Department's objections.

p. 64, 180

02Issues

i.1. Whether the subject land qualifies as a "private forest" under Section 2(f)(iii) of the 1975 Act based on a notice issued under Section 35(3) of the 1927 Act but served after the repeal of said section.

p. 166 / para. 52

ii.2. Whether the notice dated 29.08.1975 was validly issued and served upon the true landowner to effectuate automatic vesting under Section 3 of the 1975 Act.

p. 184 / para. 84

iii.3. Whether the Petitioner-Company is entitled to statutory compensation (DRC/TDR) for land acquired by the Planning Authority (TMC) despite the pending forest claim.

p. 190 / para. 90

03Law Applied

The Court primarily applied Section 2(f)(iii) and Section 3 of the Maharashtra Private Forests (Acquisition) Act, 1975 regarding the definition and vesting of private forests.

p. 166

It relied on the precedent in *Godrej & Boyce Mfg. Co. Ltd. v. State of Maharashtra* (2014), which established that "issuance" of a notice under Section 35(3) of the 1927 Act must include "service" to allow the owner a right to object, and that only "pipeline" or "live" notices issued in close proximity to the appointed day (30.08.1975) are saved.

pp. 170-171, 202

The Court further applied *Rohan Vijay Nahar v. State of Maharashtra* (2025), holding that mutation entries cannot perfect an acquisition that lacks statutory predicates and that strict compliance with Section 35 of the 1927 Act (notice, hearing, and notification) is mandatory for vesting.

pp. 208-209

Article 300A of the Constitution was applied to protect the right to property and ensure compensation for land acquired for public purposes.

p. 183

Provisions in the judgment · 23 · Linked ones open on LawLens

Indian Forest Act, 1927 Section 26Section 34Section 35Section 36Section 37Section 38

Code of Civil Procedure, 1908 Section 144

Wild Life (Protection) Act, 1972 Section 35

Maharashtra Regional and Town Planning Act, 1966. Section 127

Bombay Tenancy and Agricultural Lands Act-1948 Section 70Section 74Section 32

Maharashtra Private Forests (Acquisition) Act, 1975 9 provisionsSection 2Section 3Section 4Section 5Section 6Section 7Section 18Section 21Section 24

Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961. Section 5

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Section 3

04Reasoning

The Court reasoned that for land to vest under Section 3 of the 1975 Act via Section 2(f)(iii), the Section 35(3) notice must be validly served on the true owner to satisfy natural justice.

p. 173

The notice dated 29.08.1975 was fatally defective as it was issued by an unauthorized Forest Guard, addressed to a non-owner entity, and served after the relevant law was repealed.

p. 186, 188

Following *Godrej & Boyce*, the Court held that while service needn't precede the appointed day for a "pipeline notice," the absence of proof of dispatch before 30.08.1975 and the service on a wrong addressee rendered the process dead.

p. 175, 189

Regarding the second petition, the Court found that the TMC had already taken physical possession of 104 acres for public projects like roads and tunnels based on a sanctioned Development Plan that the Forest Department never challenged.

pp. 178-180

Consequently, withholding the DRC (compensation) while retaining the land violated the Company's constitutional rights under Article 300A, especially since the MRT’s 2017 finding that the land was "non-forest" remained stayed by no higher court.

p. 183, 190

05Holding

The Court dismissed the State's petition (WP 3205/2018), upholding the MRT order that the land is not a private forest.

p. 189

It allowed the Company's petition (WP 10024/2023).

p. 190

The Court held that strict statutory compliance is a prerequisite for vesting and that a defective notice served on a stranger cannot divest a citizen of their property.

p. 188

The TMC was directed to issue/allot the TDR/DRC against Park Reservation No. 4 (404,721.02 sq. mtrs.) to the Petitioner within 21 working days of the judgment's uploading.

p. 191
Bombay High Court

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The State of Maharashtra v. D. Dayabhai and Co. Pvt. Ltd. [2026:BHC-AS:9748-DB]

Bombay High Court

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