Featured image for Supreme Court Judgment dated 24-09-2019 in case of petitioner name State of Goa & Anr. vs Dr. Alvaro Alberto Mousinho de
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Land Conversion Charges: Supreme Court Rules on Applicable Rates

The case of State of Goa & Anr. vs. Dr. Alvaro Alberto Mousinho de Noronha Ferreira revolves around the issue of determining the applicable rate for land conversion charges under the Goa Land Revenue Code. The Supreme Court, in its judgment on September 24, 2019, ruled that land conversion charges should be calculated based on the rates applicable on the date when the decision to grant conversion was made, not the date of application.

Background of the Case

The respondent, Dr. Alvaro Alberto Mousinho de Noronha Ferreira, along with his family members, applied for conversion of 16,014 square meters of agricultural land into non-agricultural land on March 8, 2013. The application was acknowledged by the Deputy Collector on April 29, 2013, and inspections and reports followed.

On May 22, 2013, the Goa Land Revenue Code (Amendment) Act, 2013 was enacted, increasing conversion charges substantially. The Deputy Collector informed the respondent on September 19, 2013, that the new, higher rates would apply.

The respondent paid the higher amount under protest and later filed a writ petition before the Bombay High Court, seeking a refund of the excess charges. The High Court ruled in his favor, directing the State to refund the difference with 8% interest.

Legal Issues and Arguments

Arguments by the Appellants (State of Goa):

  • Under Section 32(6) of the Goa Land Revenue Code, conversion charges are payable when the final decision is made, not when the application is submitted.
  • The law in force at the time of granting the conversion (not at the time of application) determines the applicable rate.
  • The respondent voluntarily agreed to pay the revised charges and submitted an affidavit waiving any right to claim a refund.

Arguments by the Respondent:

  • The application was submitted before the amendment, and the delay in processing was not the respondent’s fault.
  • The applicable conversion fee should be based on the rates prevailing at the time of application, not when the final decision was made.
  • The affidavit agreeing to pay the charges was obtained under coercion.

Supreme Court’s Observations

The Supreme Court analyzed the provisions of the Goa Land Revenue Code, particularly Section 32, which states:

“When the land is permitted to be used for a non-agricultural purpose, a sanad shall be granted to the holder thereof in the prescribed form, on payment of fees as per the prevailing rates.”

The Court ruled:

“The question of payment of conversion fees arises only when a decision is taken to grant a sanad. Therefore, the relevant date for fixing the conversion charges is the date on which the decision is taken to grant the sanad.”

Regarding the respondent’s claim of coercion in signing the affidavit, the Court found:

“There is no evidence of undue pressure or coercion. The respondent voluntarily agreed to pay the higher charges and waived any right to claim a refund.”

Key Rulings and Conclusion

The Supreme Court set aside the High Court’s order and ruled:

  • The conversion charges should be calculated based on the date when the government decided to grant conversion, not when the application was made.
  • The respondent was not entitled to a refund of the excess charges.
  • The affidavit agreeing to pay the charges was legally binding.
  • The appeal by the State of Goa was allowed, and the writ petition filed by the respondent was dismissed.

This judgment clarifies that changes in statutory rates apply to land conversion applications pending decision and that applicants cannot claim old rates based on application dates.


Petitioner Name: State of Goa & Anr..
Respondent Name: Dr. Alvaro Alberto Mousinho de Noronha Ferreira.
Judgment By: Justice Deepak Gupta, Justice Aniruddha Bose.
Place Of Incident: Goa.
Judgment Date: 24-09-2019.

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