The judgments in this article focus on the law pertaining to acquisition of land by the government under the Land Acquisition Act. This act lays down the law and elaborate procedures to be followed by the government for acquisition of land for public purposes, including detailed provisions on the aspect of compensation, rehabilitation and resettlement of land owners and the remedies available to affected parties under law. This act was promulgated to streamline the process of land acquisition in the country and ensure that the land owners affected by government acquisition are adequately compensated based on standardised methods of computation and to minimize disputes.
The judgments discussed in this article settle the following issues under the Land Acquisition Act:
What circumstances justify use of Section 17 (4) notification to acquire land
Relevant factors while determining market value of land for compensation
Computation of developmental costs
Release of land under Section 48 upon lapse of proceedings under Section 24(2)
Retrospective applicability of the 2013 act and whether land acquisition proceedings lapse due to state’s failure to deposit money
The Supreme Court in a landmark judgment on the power accorded to the government to take immediate possession of land under Section 17 of the act, stated that this urgency clause can only be invoked in exceptional circumstances necessitating such urgency. The Court held that the requirement of hearing grievances and objections under Section 5A of the act cannot be avoided without proper reasoning. Therefore, if the government fails to justify the urgency necessitating the use of Section 17(4), the notification can be quashed by the court.
In another judgment, the Supreme Court held that depending upon the facts and circumstances of each case, a sum varying between 20% to 75% of the price of developed plots can be deduced as developmental costs while computing the compensation to be awarded against land acquisition. The court stated that these charges are deducted to cater for the expenditure that the development authority would incur in carrying out development of the undeveloped land into a developed layout.
In a key judgment, the Supreme Court held that in case the land acquisition proceedings lapse by virtue of Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, the land owners would not be entitled to seek any form of release of land under Section 48 of the Land Acquisition Act, 1894. The court stated that Section 48 of the act of 1894 does not accord any right to a landowner to seek withdrawal from land acquisition from the government.
In regard to the guidelines governing the computation of compensation, the Supreme Court has stated that the proximity of the land earmarked for acquisition to developed areas is an integral factor while determining the market value for the purpose of compensation.
In a landmark judgment, the Supreme Court settled the interpretation of Section 24 of the Act stating that the land acquisition proceedings once commenced under the act would not automatically lapse due to the state’s failure to deposit money in the land owner’s account, especially if the compensation has already been deposited in the treasury. In a separate judgment, the court also stated that the notification of the 2013 act meant that the automatic lapse of proceedings under the act of 1894 after a period of two years would no longer apply.
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.1267 OF 2012
HAMID ALI KHAN (D) THROUGH LRS. & ANR .... APPELLANT(S)
VERSUS
STATE OF U.P. & ORS. ...RESPONDENT(S)
JUDGMENT
K.M. JOSEPH, J.
1. The original appellants who stand substituted by their legal representatives unsuccessfully challenged notifications dated 11.4.2008 and 9.4.2009 issued under the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”). By virtue of the first notification the powers under Section 4 and 17(4) of the Act came to be invoked in regard to the property of the appellants. The Division Bench by the impugned judgment dismissed the writ petition.
2. A notification under Section 4(1) of the Act dated 8.10.2004 coupled with notification under 17(4)
REPORTABLE
1
was issued in regard to 52.361 hectares of land for the construction of a residential colony under the name of Bulandshhar Khurja Development Authority, Bulandshehar. Plot No.881 and 914 belonging to appellants children were included. The appellants did not raise any objection as the requirement of Section 5A of the Act stood dispensed with. Declaration under Section 6 of the Act was published on 7.10.2005. It is the specific case of the appellants that despite the urgency clause being invoked, the possession was taken only in January 2006. The award was passed on 29.4.2009 only for plot 914 (belonging to the children of appellants). In regard to plot No. 881 which was also acquired, the compensation was not paid, it was averred. It is stated that till date on the spot neither any construction under the residential scheme has been started nor it ‘appears to be’ in the near future. The writ petition it must be remembered was filed in the year 2009. Even the allotment process, it is averred, was not started in regard to 52.81 hectares. Writ petitioners-appellants alleged that they were running a cattle market in ……
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The judgments in this article discuss the law pertaining to acquisition of land by the government under the Land Acquisition Act. This act lays down the elaborate procedures which have to be complied by the government while seeking to acquire privately owned land. The judgments discuss the judicial interpretation of numerous provisions of the act and provide clarity on the issues which plague the land acquisition process in India. The courts have elaborated the provisions related to not just the land acquisition act of 1894 but also the new act of 2013.
Land acquisition is a highly technical process with strict procedures and timelines envisaged under the act for the numerous steps leading up to actual acquisition. There are numerous stages where disputes arise between the government and the land owners and for any average citizen it is important to gain a better understanding of this law to protect your rights and interests, which is only possible through the help of a trained legal expert. Therefore, in case a person is wrangled up in the process of acquisition of his/her land, the first step one must take is engage a civil lawyer so that their rights are protected and they receive the fair compensation that is due in law.
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