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CITATION(2010) 1 SCC 512


In the landmark case of Urban Improvement Trust, Bikaner v. Mohan Lal, (2010) 1 SCC 51, The Supreme Court of India addressed the issue of unwarranted litigation by government authorities. The dispute centered on Mohan Lal, a plot allottee, and the Urban Improvement Trust (UIT), a statutory body responsible for Bikaner city’s development. Without Mohan Lal’s consent or compensation, the UIT laid a road through his allotted plot. Mohan Lal sought redressal from the District Consumer Forum, which directed the UIT to provide an alternative plot and compensation. The UIT appealed to the State Consumer Commission, which upheld the Forum’s decision. The UIT then filed a Special Leave Petition in the Supreme Court. The Supreme Court dismissed the UIT’s petition, and held that the UIT’s actions were unjustified. This case serves  a precedent for government authorities’ conduct and highlights their responsibility to act fairly and justly.


In the above case, Mohan Lal was allotted a plot of land by the Urban Improvement Trust (UIT), a statutory body responsible for the development of Bikaner city. In 1998, the UIT allotted an adjacent strip of land to Mohan Lal and delivered possession. In 2002, without Mohan Lal’s consent or notice, the UIT laid a road through the plot. The layout map prepared and made available by the Trust in the year 2002 did not show the existence of Mohan Lal’s plot or its 

adjoining strip. Mohan Lal complained to the UIT officers about their actions but received no response. Mohan Lal approached the District Consumer Forum in 2005, seeking restoration of the plot or allotment of an alternative site and compensation. The District Consumer Forum directed the UIT to refund the allotment price paid with interest at 9% per annum. The State Consumer Commission allowed Mohan Lal’s appeal and directed the UIT to allot an alternative plot and pay compensation of Rs. 5,000/-. The National Consumer Commission dismissed the revision petition filed by the UIT. The UIT filed a Special Leave Petition in the Supreme Court to challenge the National Consumer Commission’s order.


  • Whether the Urban Improvement Trust (UIT) was justified in laying a road through Mohan Lal’s plot without his consent or compensation.
  • Whether the UIT’s actions were in accordance with the principles of natural justice.
  • Whether the UIT acted as a model litigant in this case.


The Trust challenged the relief granted, on three technical grounds: 

1. As the respondent was negligent in protecting his possession and did not protest or complain when the Trust laid the road in his plot, he is not entitled to any relief. 

2.  The action of the Trust, even if it was an illegal encroachment, did not amount to `deficiency in service’ and therefore the respondent could not invoke the jurisdiction of the forum under the 

Consumer Protection Act, 1986.

 3. The complaint was barred by limitation as it was filed beyond two years from the occurrence of the cause of action, and the respondent did not show sufficient cause for condonation of delay.

4. The UIT contended that it had acted in the public interest by laying the road, as it was necessary to improve the infrastructure of the area.


1. The respondent contended The Urban Improvement Trust (UIT) acted without legal authority when it laid the road through Mohan Lal’s plot without his consent or compensation. The UIT failed to follow the proper legal procedures for acquiring land through compulsory acquisition, rendering its actions an unlawful encroachment upon Mohan Lal’s property rights.

2. The UIT’s actions violated the principles of natural justice. Mohan Lal was not given an opportunity to be heard before the UIT decided to lay the road through his plot. This denial of a fair hearing deprived Mohan Lal of his fundamental right to defend his property rights.

3. The UIT’s justification that the road construction served the public interest is unfounded. The road did not improve the infrastructure of the area and, instead, caused inconvenience to Mohan Lal and other residents. The UIT failed to demonstrate any genuine public benefit arising from this action.

4. The respondent contended that there was lack of consent, Mohan Lal never consented to the UIT  laying the road through his property. There was no explicit or implicit agreement between Mohan Lal and the UIT regarding the encroachment.


In the landmark case of Urban Improvement Trust, Bikaner v. Mohan Lal, the Supreme Court of India ruled in favor of Mohan Lal, the respondent, upholding his right to  property and condemning the unwarranted actions of the Urban Improvement Trust (UIT). The Supreme Court held that the UIT’s decision to lay a road through Mohan Lal’s plot without his consent or compensation was unjustified and in violation of his fundamental rights. The Court emphasized that the UIT had failed to follow proper legal procedures, consider alternative options, and provide adequate compensation to Mohan Lal. Moreover, the Court rebuked the UIT for its history of engaging in unwarranted litigation, stating that government authorities must act as model litigants and refrain from unnecessary legal disputes. The Court’s decision served as a strong reminder to government bodies to respect the rights of citizens and act with fairness and accountability.


In conclusion, the case of Urban Improvement Trust, Bikaner v. Mohan Lal, is a crucial legal precedent as well as a landmark case, where the Supreme Court of India upheld the fundamental rights of Mohan Lal, a landowner, against the unjustified encroachment upon his property by the Urban Improvement Trust (UIT). The Court ruled that the UIT’s actions were arbitrary, in violation of natural justice principles, and lacked genuine public interest considerations. The Court’s decision emphasized the importance of property rights, fair hearing, and responsible government conduct. It served as a strong reminder that government authorities must act with integrity and respect the rights of individuals. The case stands as a testament to the Supreme Court’s commitment to upholding justice and protecting individual liberties.




Written by Suhani Wadhwa an intern under legal vdihiya.

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