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Supreme Court of India

ALIGARH DEVELOPMENT AUTHORITYversusMEGH SINGH & ORS.

Citation
2016 INSC 383
Decided
5 May 2016
Disposal
Disposed off

Holding

If no award has been passed, the acquisition proceedings do not lapse under Section 24 of the 2013 Act; they must continue with an award and compensation determined under the 2013 Act.

Summary

The Aligarh Development Authority (ADA) initiated acquisition of land belonging to Megh Singh under the Land Acquisition Act, 1894, invoking the emergency clause and taking possession, but no award was ever passed. Megh Singh challenged the acquisition, and the Allahabad High Court quashed the acquisition on the ground that, under Section 24 of the 2013 Fair Compensation Act, the proceedings had lapsed after four years without an award. On appeal, the Supreme Court held that Section 24 only deems proceedings lapsed when an award has been made and either compensation or possession is not effected within five years; where no award has been passed, the acquisition can continue, with compensation to be determined under the 2013 Act. The Court rejected the authority's claim that depositing 80% of compensation with the officer satisfied the owner’s right to payment, emphasizing that compensation must be paid directly to the owner. Consequently, the Supreme Court set aside the High Court order and directed the ADA to pass an award and pay full compensation under the 2013 Act within six months, with the appeal disposed.

Issues considered

  • Whether land acquisition proceedings initiated under the 1894 Act lapse under Section 24 of the 2013 Fair Compensation Act when no award has been passed.
  • Whether the deposit of compensation with the Special Land Acquisition Officer satisfies the statutory requirement of compensation payment.
  • Whether the High Court was correct in holding that the acquisition proceedings had lapsed.

Legislation cited

Subjects

land acquisitionemergency clauseaward lapseSection 24compensationFair Compensation ActAligarh Development AuthorityMegh Singhstatutory lapse

Judgment

                         [2016] 2 S.C.R. 759



            ALIGARH DEVELOPMENT AUTHORITY                                  A
                                  v.
                       MEGH SINGH & ORS.
                   (CiviIAppealNo. 4821 of2016)
                            MAY 05, 2016                                   B

[KURIAN JOSEPH AND ROHINTON FALi NARIMAN, JJ.)
      Land Acquisition Act, 1894: ss../(}J, 6, 17 - Acquisition of land
- According to appellant-authority, possession of land was taken
and part of compensation was deposited with the Special Land
Acquisition Officer - Respondent no.1-land Oll'ner.filed ll'rit petition
                                                                           c
challenging the acquisition - High Court allowed the writ petition
on the ground that after invoking emergency clause, no mrard was
passed even after expiry of four years - Plea of la11d u\l'ner that
acquisition proceedings lapsed in view of operation of s.24 of 2013
Act since neither compensation has been paid to the owner nor              D
possession has been taken by LA Officer - Held: In the instant
case, since the award has not been passed, there is no occasion of
lapse of proceedings - Land acquisition proceedings would co11tinue
but with the rider that the award will have to be passed and
compensation determined under the provisions of 2013 Act - Having
                                                                           E
regard to the factual matrix of the residential colony having been
set up, which fact is not controverted also, it cannot be said that
there ll'as an urgency for the acquisition - Therefore, the approach
made by the High Court is not correct - Appellant and the
Acquisitioning Authority are directed to complete the acquisition
 proceedings by passing an award under the provisions of the 2013          F
 Act - Fair Compensation and Transparency i11 Land Acquisitio11.
 Rehabilitation and Resettlement Act, 2013 - s.24.
     Disposing of the appeal, the Court
     HELD : Section 24 of the 2013 Act envisages mainly two
situations; i) where the land acquisition proceedings had already          G
been initiated under the 1894 Act but no award was passed till
the date the new Act came into force and (ii) where the Award
has been passed but neither the owner has been dispossessed
nor has he been paid the compensation. Under the first, where
                                                                           H
                                  759
760           SUPREME COURT REPORTS                       (2016] 2 S.C.R.


A the award had not been passed, the acquisition proceedings could
  continue; but the compensation will have to be determined under
  the scheme of 2013 Act. Under the second category, there is a
  statutory lapse of the proceedings. There is also an incidental
  third situation, where award under the 1894 Act had already been
B passed prior to coming into force of the 2013 Act, but payment is
  yet to be made and possession is yet to be taken. In that case,
  the further proceedings after the award could continue under the
  old Act of 1894; but if either payment or possession has not taken
  effect in five years prior to the 2013 Act, then proceedings will
  lapse. In the case in hand, since admittedly the award has not
c been passed, there arises no question of lapse. The land
  acquisition proceedings would continue but with the rider that
  the award will have to be passed and compensation determined
  under the provisions of 2013 Act. In that view of the matter, it is
  not necessary to go into various other aspects. Having regard to
  the factual matrix of the residential colony having been set up,
0
  which fact is not controverted also, it cannot be said that there
  was an urgency for the acquisition. Therefore, the approach made
  by the High Court is not correct. However, the stand of the
  Authority that it had deposited 80% of the compensation with
  the land acquisition officers and hence it was for the owner to
E collect the money, cannot be appreciated. That is a matter
  between the Requisitioning Authority and the Acquisitioning
  Authority. There is no question of 'come and get' the
  compensation while compulsorily acquiring the land; the approach
  required under law is 'go and give'. In this case, no award has
   been passed and the land value has not been given to the owner.
F
  The impugned order is hence set aside. The appellant and the
  Acquisitioning Authority are directed to complete the acquisition
   proceedings by passing an award under the provisions of the 2013
  Act. [Paras 6, 7, 8] [762--G-H, 763-A-E]
           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4821 of
 0    2016.
          From the Judgment and Order dated 21.10.2010 in CMWP No.
      57925 of2008 passed by the High Court of Judicature at Allahabad.
          Kavin Gulati, Sr. Adv., Rajeev Dubey, Roh it Sthelekar, Kamlendra
 H    Mishra fortheAppellant.
    ALIGARH DEVELOPMENT AUTHORITY v. MEGH SINGH                                      761


     Dinesh Kumar Garg, Dhananjay Garg, Deepak Mishra, Gunnam                         A
 Venkateswara Rao, Ms. Chandan Ramamurthi for the Respondents.
       The Judgment of the Court was delivered by
       KURIAN, J. I. Leave granted.
       2. The appellant-Aligarh Development Authority took steps for                  B
  acquisition ofland belonging to the respondent No. I as per Notification
  issued under Section 4(1) of the Land Acquisition Act, 1894 (For short
  '1894 Act') on 09.08.2004. Simultaneously emergency cJause was also
  invoked under the provisions of Section 17 followed by Section 6
  declaration dated 03.08.2005. According to the appellant possession of
  the land was taken and part of the compensation was deposited with                  c
· the Special Land Acquisition Officer.
       3. The respondent No.I challenged the acquisition on various
 grounds and the High Court of Judicature at Allahabad by the impugned
 Judgment dated 21.10.2010 allowed the writ petition and quashed the
 Notification dated 09.08.2004 and the declaration dated 03.08.2005.                  D
 Among other reasons, the main reason for taking such a view is that
 after invoking emergency clause, no award was passed even after the
 expiry of four years. Thus aggrieved, the Requisitioning Authority -
 Aligarh Development Authority is before this Court. When the matter
 was pending before this Court, the land owner non-applicant filed                     E
 l.A.No.3/2015 contendlhg that respondent No. I is entitled to a declaration
 that acquisition proceedings have lapsed in view ofthe operation of Section
 24 of the Right to Fair Compensation and Transparency in Land
 Acquisition, Rehabilitation and Resettlement Act, 2013 (For short '2013
 Act'), since neither compensation has been paid to the own~r .nor
 possession has been taken by the Land Acquisition Collector.                          F
         4. The appellant-Authority has filed reply to the affidavit stating
·· that the compensation has been deposited with the Land Acquisition
   Collector. As far as the possession is concerned, it is stated in the affidavit
   that the land has already been taken in possession and a 'full- fledged
   and complete residential colony has been developed'.                               G
      5. ltis however an admitted position that no Award either under
 the 1894 Act or under the 2013 Act has been passed in respect of the
 land of respondent No.I: Section 24 of the 2013 Act reads as follows:
         "24. Land acquisition process under Act No. I of 1894 shall be
                                                                                      H
"762          SUPREME COURT REPORTS                           [2016] 2 S.C.R.


 A         deemed to have lapsed in certain cases.- {I) Notwithstanding
           anything contained in this Act, in any case of land acquisition
           proceedings initiated under the Land Acquisition Act, 1894 ( 1 of
           1894),-
           a) Where no award under section 11 of the said Land Acquisition
 B         Act has been made, then, all provisions of this Act relating to the
           determination of compensation shall apply; or
           b) Wfiere an award under said section 11 has been made,
           then such proceedings shall continue under the provisions of
           the said Land Acquisition Act, as if the said Act has not been
 c         repealed.
           (2) Notwithstanding anything contained in sub-section (I), in case
           of land acquisition proceedings initiated under the Land Acquisition
           Act, 1894 (I of 1894),, where an award under the said section
           11 has ·been made five years or more prior to the commencemenl'
 D         of this Act but the physical possession of the land has not been
           taken or the compensation has not been paid the said
           proceedings shall be deemed to .ha..e lapsed and the
           appropriate Government, if it so chooses, shall initiate the
           proceedings of such land acquisition afresh in accordance with
           the provisions of this Act:
 E
           Provided that where an award has been made and compensation
           in respect of a majority of land holding has not been deposited
           in the account of the beneficiaries, then, all beneficiaries specified
           in the notification for acquisition under section 4 of the said
           Land Acquisition Act, shall be entitled to compensation in
  F        accordance with the provisions of this Act."
        6. Section 24 of the 2013 Act envisages mainly two situations; i)
   where the land acquisition proceedings had already been initiated under
   the 1894 Act but no award was passed till the date the new Act
   came into force. (ii) where the Award has been passed but neither the
 G owner has been dispossessed nor has he been paid the compensation.
   Under the first, where the award had not been passed, the acquisition
   proceedings could continue; but the compensation will have to be
   determined under the scheme of 2013 Act. Under the second category,
   there is a statutory lapse of the proceedings. There is also an
   incidental third situ_ation? where award under the 1894 Act had already
 H
   ALIGARH DEVELOPMENT AUTHORITY v. MEGH SINGH                                  763
                   [KURIAN, J.]

been passed prior to coming into force of the 2013 Act, but payment is           A
yet to be made and possession is yet to be taken. In that case, the
further proceedings after the award could continue under the old Act of
1894; but if either payment or possession has not taken effect in five
years prior to the 2013 Act, then proceedings will lapse.
       7. In the case before us, since admittedly the award has not been         B
 passed, there arises no question of lapse. The land acquisition
 proceedings would continue but with the rider that the award will have
 to be passed and compensation determined under the provisions of2013
 A<;t.
       8. In that view of the matter, it is not necessary to go into various     c
  other aspects. Having regard to the factual matrix of the residential
  colony having been set up,'which fact is not controverted also, it cannot
  be said that there was an urgency for the acquisition. Therefore, the
  approach made by the High Court is riot correct. However, the stand of
  the Authority that it had deposited 80% of the compensation with the
  land acquisition officers and hence it was for the owner to collect the        D
  money, cannot be appreciated. That is a matter between the Requisitioning
  Authority and theAcquisitioningAuthority. There is no question of'come
  and get' the compensation while compulsorily acquiring the land; the
  approach required under law is 'go and give'. In this case, no award has
  been passed and the land value has not been given to the owner. The            E
  impugned order is hence set aside. The appellant and the Acquisitioning
  Authority are directed to complete the acquisition proceedings by passing
  an award under the provisions of the 2013 Act. This shall be done within
  a period of six months and needless also 'to say that the entire
. compensation due to respondent No. I would be calculated in terms of
  the 2013 Act and the same shall either be deposited with the Land              F
  Acquisition Collector or disbursed to the respondent No. I within one
  month thereafter.
      9.    The appeal is disposed of as above. No costs.
 Devika Gujral                                            Appeal disposed of.
                                                                                 G


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