DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIAversusSUBODH SINGH & ORS.
- Citation
- 2011 INSC 239
- Decided
- 30 March 2011
- Disposal
- Appeal(s) allowed
- Bench
- R V RAVEENDRAN
Holding
The one‑year period for the award is measured from the official gazette publication of the declaration, and the award can be validly made within eighteen months without a written justification, with additional compensation payable for the delay.
Summary
The Dedicated Freight Corridor Corporation acquired land for a special railway project under the Railways Act, 1989. After a gazette notification of acquisition on 16‑Dec‑2008, a public notice was published in newspapers on 20‑Feb‑2009 and the compensation award was made on 8‑Feb‑2010. The landowner challenged the award, arguing that the one‑year period for making the award under s.20F(2) should be counted from the newspaper notice, and that the award was invalid because the authority did not record reasons for delay as required by the first proviso. The Supreme Court held that "publication" under s.20F(2) means the official gazette publication of the declaration, not newspaper notices, and that the authority may make the award within eighteen months without a written justification, though additional compensation is payable for the delay. Consequently, the acquisition did not lapse, the High Court judgment was set aside, and the appeal was allowed with an order for extra compensation to the landowner.
Issues considered
- Whether the one‑year period for making the award under s.20F(2) of the Railways Act, 1989 is to be reckoned from the gazette publication of the declaration under s.20E(1) or from subsequent newspaper publication.
- Whether an award made within six months after the expiry of the one‑year period is valid under the first proviso of s.20F(2) when the competent authority has not recorded reasons in writing for the delay.
Legislation cited
- Railways Act, 1989s. 20A, s. 20E, s. 20F, s. 20J
Subjects
Judgment
[2011] 3 S.C.R. 1160
A DEDICATED FREIGHT CORRIDOR CORPORATION OF
INDIA
v.
SUBODH SINGH & ORS.
(Civil Appeal No. 2794 of 2011)
B MARCH 30, 2011
[R.V. RAVEENDRAN AND A.K. PATNAIK, JJ.]
Railways Act, 1989:
c
s.20F(2) - Time period for making the award -
Commencement of - Held: Period of one year. stipulated ul
s.20F(2) for making the award, has to be reckoned from the
date of publication of the declaration uls.20E(1) in the official
D gazette - Land acquisition - Compensation.
s.20E(1) - Publication of notification under -
Requirement for- Held: s.20E requires the notification to be
published only in the official gazette - The section does not
require the notification of declaration to be published in any
E newspaper or by any other mode.
s.20F(2), first proviso - Award by competent authority
within six months after the expiry of one year from the date of
publication of the declaration - Validity of - Held: If the
F competent authority is satisfied that the award could not be
made within a period of one year due to unavoidable
circumstances, which are to.be recorded in writing, he could
make the award within eighteen months - The requirement
regarding recording of reasons is not mandatory - In the
G instant case, the competent authority while passing award
proc1~eded under bona fide impression that the notification of
declc.iration u/s.20E(1) was required to be published not only
in the official gazette, but also in the form of a public notice
in two newspapers and that the latter of the two dates of
H 1160
DEDICATED FREIGHT CORRIDOR CORPORATION 1161
OF INDIA v. SUBODH SINGH
publication would be the date of commencement of the period A
of one year, uls.20F(2) - As a consequence, he applied the
principle that when publication is required to be made by more
than one mode, the date of publication by the last of the
. prescribed modes is the date of publication - On the facts of
the case and on harmonious reading of the provision of s. 20F, B
the said reasoning in the award is treated ~s the reason for
the delay in making the award - The acquisition did not,
therefore. lapse - However, having regard to the second
proviso to s.20F(2), the land owners are entitled to additional
compensation for the delay in making of the award at a rate c
not less than 5% of the value of the award for each month of
delay.
Several anomalies in the provisions of Chapter VIA -
Discussed - Need for legislation - Legislation.
D
The land belonging to the first respondent along with
others was acquired for the purpose of special railway
project. The acquisition was under Chapter IVA of the
Railways Act, 1989. A notification dated 10.6.2008 under
Section 20A(1) of the Act was published in official gazette E
on 10.6.2008. This was followed by a declaration dated
12.12.2008 un~er Section 20E(1) of the Act published in
official gazette on 16.12.2008 declaring that the lands
mentioned therein should be acquired for the purpose
mentioned in the notification under Section 20A(1) of the F
Act. A public notice referring to the two notifications and
inviting claims from all the persons interested in tfle lands
was published by the competent authority. in two
newspaper on 20.2'.2009. Thereafter, the competent
authority passed the order on 8.2.2010 determining the G
compensation payable under Section 20F(1) of the Act.
The first respondent filed writ petition for quashing the
award dated 8.2.2010 and for a declaration that the entire
acquisition proceedings stood lapsed under Section
20F(2) of the Act, as the award was not made within one H
1162 SUPREME COURT REPORTS [2011] 3 S.C.R.
A year from the date of publication of the date of declaration
dated 12.12.2008. The High Court allowed the writ petition
and quashed the award dated 8.2.2010 and declared that
the acquisition proceedings stood lapsed.
The questions which arose for consideration in the
8
Instant appeal were whether the period of one year,
stipulated under section 20F(2) of the Railways Act, 1989
for making the award, has to be reckoned from the date
of publication of the declaration under section 20E(1) of
the Act in the official gazette or from the date of any
C subsequent publicatfon of the declaration in newspapers
and whether an award made within six months after the
expiry of one year from the date of publication of the
declaration, is valid under the first proviso to section
20F(2) of the Act, even if reasons are not recorded by the
D competent authority in writing to show that he was
satisfied that the delay had been caused due to
unavoidable circumstances.
Allowing the appeal, the Court
E
HELD: 1.1. Sub-section (1) of section 20E of the
Railways Act, 1989 provides that the central government
shall, on receipt of the report of the competent authority,
declare by notification that the land should be acquired
for the purpose mentioned in section 20A(1 ). Sub-section
F (2) of section 20E of the Act provides that on the
publication of such declaration by notification, by the
central government, under sub-section (1), the lands ·
shali vest absolutely in the central government free from
all encumbrances. Section 20E thus require~ the
G notification to be published only in the official gazette. The
section does. not require the notification of declaration to
be pulblished in any newspaper or by any other mode.
Section 20A(4) relating to preliminary notification requires
that in addition to publication of a notification by the
H
DEDICATED FREIGHT CORRIDOR CORPORATION 1163
OF INDIA v. SUBODH SINGH
central government, of the declaration of its intention to A
acquire any land, the competent authority shall cause the
suostance of the notification to be published in two local
newspapers, one of which will be in a vernacular
language. Section 20F(4) of the Act requires that before
proceeding to determine the compensation, the B
competent authority shall give a public notice in two local
newspapers inviting claims. Thus, wherever newspaper
publication is required, it has been specifically provided
by the legislature. The absence of a similar provision in
section 20E for publication in newspapers, makes it clear c
that the publication of the declaration under section
20E(1) is complete when it is published in the official
gazette. The publication of the notification under section
20E(1 ), or its substance, in any newspaper, is not,
therefore, a requirement under the Act. Even if it is
0
published in any newspaper., such publication will be ·
only for general information and will not serve any
purpose under the Act. [Para 6] [1176~F-H; 1177-A-C)
1.2. In the instant case, public notice dated 20.2.2009
published in the newspapers was not a publication of the E
notification of declaration under section 20E(1) of the Act,
but was a public notice required to be issued under sub-
section (4) of section 20F by the competent authority
inviting claims, after the publication of a notification under
Section 20E(1) of the Act. Even if the public notice in the F
_ newspapers dated 20.2.2009, was to be regarded as
publication of the declaration under section 20E(1) of the
Act, it would not be of any relevance to calculate the
period of one year under section 20F(2) of the Act. [Para
7] [1177 ·D·F] G
2.1. Sub-section (2) of section 20F of the Act requires .·
the competent authority to make an award wi~hill ·~ period.
of one year from the date of publication· of the declaration
and provides that if no award is made within that period, H
1164 SUPREME COURT REPORTS [2011] 3 S.C.R.
A the entire proceedings for acquisition of land shall lapse.
The term "publication" in section 20F(2) refers to
publication of the declaration in the official gazette. In this
case, the declaration under section 20E(1) was made by
notlfication dated 12.12.2008 which was published in the
s official gazette on 16.12.2008. Therefore, the award ought
to have been made within one year from 16.12.2008, The
award made on 8.2.2010, was clearly beyond one year
from the date of publication of the declaration. If the
benefit of additional period of six months under the first
c proviso to section 20F(2) is taken, the award made on
8.2.2010 would be in time and the acquisition
proceedings would not lapse. The proviso enables the
competent authority to make the award within an
extended period of six months if he is satisfied that the
delay had been caused due to unavoidable
D circumstances and reasons therefor are recorded In
writing. In this case, admittedly, the competent authority
has not recorded any reasons In writing to hold that the
delay was due to unavoidable circumstances. [Paras 8,
E 9) [1178-B-G]
2.2. In view of the inconsistencies and ambiguities in
section 20F of the Act, the provisions of the section are
to be read harmoniously. The effect of such harmonious
reading would be that the award has to be made within
F one year from the date of publication of the declaration.
If the competent authority is satisfied that the award could
not be made within a period of one year due to
unavoidable circumstances, which are to be recorded in
writing, he could make the award within eighteen months.
G The requirement regarding recording of reasons is not
mandatory. The acquisition proceedings will stand
eclipsed at the end of one year from the date of
publication if no award is made within one year. If no
award is made within eighteen months, the proceedings
H for acquisitions would lapse. If the award is made within
DEDICATED FREIGHT CORRIDOR CORPORATION 1165
OF INDIA v. SUBODH SINGH
eighteen months, the acquisition will emerge out of the A
eclipse and will not lapse. But additional compensation
will become payable for the period beyond one year, as
provided in the second proviso to section 20F(2). If the
reasons are not recorded or if the reasons are not
satisfactory, the additional compensation under the B
second proviso can be at a rate higher than the minimum
of 5% per month stipulated in the second proviso to
section 20F(2). The award dated 8.2.2010 by the
competent authority proceeded on the basis that the
notification of declaration under section 20E(1) of the Act c
has to be published not only in the official gazette, but
a!so in the form of a public notice in two newspapers and
that the latter of the two dates of publication would be the
date of commencement of the period of one year, under
section 20F(2) of the Act. It is evident from the award that
0
.the competent authority proceeded under the bonafide
impression that publication of the public notice under
section 20F(4) in the two newspapers on 20.2.2009
referring to the declaration under section 20E(1 ),
subsequent to the date of gazette publication (16.12.2008) E
is also part of the process of publication of the
declaration under section 20E(1 ). As a consequence, he
applied the principle that when publication is required to
be made by more than one mode, the date of publication
by the last of the prescribed modes is the date of
publication. He, therefore, assumed that the date of F
publication of the public notice in the two newspapers
dated 20.2.2009 to be the date of publication .of declaration
for the purposes of section 20E(1) and 20F(2) of the Act
and that consequently the award was made within one
year fro1;• such date. On the facts of the case and on a G
harmonious "'"'llding of the provision of section 20F of the
Act, the said reasoning in the award can be treated as the
rea.son for the delay in making the award. The acquisition
did not, therefore, lapse. However, having regard to the
second proviso to section 20F(2/, the land owners H
1166 SUPREME COURT REPORTS [2011] 3 S.C.R.
A (described as "entitled persons") would be entitled to
additional compensation for the delay in making of the
awal'd at a rate not less than 5% of the value of the award
for each month of delay. [Paras 10, 11] [1178-H; 1179-A·
H; 1180-D-H; 1181-A]
B
Certain anomalies in the provisions of Chapter VIA of the
Act.
3.1. Several apparent anomalies in Chapter IVA of the
Act, in particular in section 20F, require the attention of
C the law makers.
(i) Sub-section (2) of section 20F provides tha. if no
award is made within one year from the date. -~
publication of the declaration, the entire proc" 0 aings
D
for the acquisition shall lapse. The first proviso to
sub-section (2) provides that the competent authority
may, after the expiry of the period of one year, if he
is satisfied that the delay has been caused due to
unavoidable circumstances and for reasons to be
recorded in writing, make an award within an
E extended period of six months. This means that
when an award is not made within one year from the
date of publication of the declaration, the
proceedings for acquisition would lapse, but if within
six months of such lapsing, the competent authority
F makes an award after recording reasons for the
delay, what stood lapsed would stand revived. But
if the acquisition proceedings had already lapsed at
the end of one year, mere making of an award
thereafter cannot revive the acquisition proceedings,
G in the absence of any provision in the Act providing
for revival of the lapsed acquisition.
(ii) Sub-section (2) of section 20F requires the award
to be made by the competent authority and the first
H proviso requires the competent authority to record
DEDICATED·FREIGHT CORRIDOR CORPORATION 1167
OF INDIA v. SUBODH SINGH
th~ reasons for the delay. What. are "unavoidabl,e A
circumstances" leading to the delay which would
·enable 01e competent authority to make an award
beyond one year, would invariably lead to litigations
as to whether there were unavoidable
circumstances, whenever the award is made beyor)d B
one year. As the consequence of making an award
beyond one year but within eighteen months,
involving payment of additional compensation, is set
out in the second proviso to section 20F(2), there is
no need for requiring the competent authority to c
record reasons in writing showing that the delay was
due to unavoidable circumstances.
(iii) The second proviso to section 20F(2) requires
payment of additional compensation for the delay in
making of the award, at the rate of not less than five D
percent of the value of the award, for each month of
delay. This vests unguided discretion in the
/
competent authority or the arbitrator to award
additional compensation at any higher rate and gives
room for unnecessary litigation at the instance of E
"entitled persons" claiming higher percentages as
additional compensation. It is necessary to consider
whether specifying a fixed monthly rate of increase
would serve the ends of justice better instead of
indicating a minimum rate per month. F
(iv) Sub-section (1) of section 20F refers to an "order"
of the competent authority determining the amount
to be paid for the land acquired. Sub-section (2) refers
to the competent authority making an "award". It is G
r."t clear whether the award by the· competent
auth .... ity is consequential to the order that is made
under sub-section (1) of section 20F or whether the
order under sub~section (1) is itself the award
referred to in sub-section (2) of section 20F. H
1168 SUPREME COURT REPORTS [2011] 3 S.C.R.
A Confusion can be avoided by using only one of the
words -'order' or 'award' - to refer to the decision of
the competent authority determining compensation,
at all places.
(v) Sub-section (4) of section 20F provides that before
B
determining the amount under sub-section (1) or
sub-section (3), the competent authority shall give a
public notice inviting claims from all persons
interested in land to be acquired. The issue of such
public notice under section 20F(4) is after the
c publication of notification of declaration under
section 20E(1 ). Sub-section (2) of section 2CS::
provides that on publication of the declaration, the
land vests in the central government. If the land has
already vested in the government on publication- of
D the declaration under section 20E(1 ), the question of
issuing a public notice thereafter, inviting claims
under s,ection 20F(4) from persons interested in the
lands "to be acquired' does not arise. The words "to
be acquired" may have to be replaced by the words
E "acquired".
(vi) If the land has already vested absolutely in the
Central Government on publication of declaration of
acquisition in the Official Gazette under section
F 20E(1 ), it is not clear how the proceedings for
acquisition could lapse if the award is not made
within one year or even 18 months. This Court while
dealing with other enactments relating to acquisition
has held that acquisition would not lapse as
consequence of not making the award within the
G
specified time, if the land had already vested in the
government and the Act does not provide for re-
vesting in the land owner.
(vii) Section 201 of the Act provides that though the
H
DEDICATED FREIGHT CORRIDOR CORPORATION 1169
OF INDIA v. SUBODH SINGH
land vests in the central government on publication A
of the declaration under section 20E(1 ), the
competent authority can demand the surrender or
delivery of possession only after the compensation
is determined under section 20F and is deposited
under sect.ion 20H. Howev.er section 20J provides s
that once the land vests in the central government
":-' puoiication of a declaration under section 20E(2),
it sh,all be lawful for any persons authorized by the
central government "to enter and do· other act
necessary upon the land for carrying out the · c
building, maintenance, management or operation of
the special railway project or part thereof or any work
connected therewith". In other words section 20-J
enables the central government to enter upon
possession of the land on publication of the
0
_ declaration under section 20E, even before the
award is made, and carry on the activities connected
with the special railway project for which the land'
was acquired. The provisions of section 20J apart
from being badly worded, are contrary to provisions
of section 201. Section 20J would lead to deprivation E
of ,possession of the land to the land owner without
even determining or offering any compensation. This
requires to be examined and corrected. Further, there
is no indication as to what should happen if the
central government or person authorized by it starts F
executing the special railway project in the acquired
land under section 20 J and thereafter, the acquisition
lapses on account of the award not being made
within the time frame mentioned in section 20F(2).
[Para 12] [1181-A-H; 1182-A-H; 1183-A-H; 1184-A-D] G
3.2. These anomalies are likely to give room for
considerable avoidable litigation, in regard to
acquisitions under Chapter IVA of the Act. These
anomalies may also defeat the very legislative intent to H
11 '70 SUPREME COURT REPORTS (2011] 3 S.C.R.
A provide a progressive form of land acquisition when
compared to the provisions of Land Acquisition Act, 1894
and, therefore, require the attention of law makers. [Para
12) [1184-E]
B . Satendra Prasad Jain vs. State of U.P.1993 (4) SCC 369
Awadh Bihari Yadav vs. State of Bihar 1995 (6) SCC 31 UP
Jal Nigam, Lucknow vs. Katra Properties (P) Ltd. 1996 (3) SCC
124 Allahabad Development Authority vs. Nasiruzzaman
1996 (6) SCC 424; Ginnar Traders (3) vs. State of
Maharashtra 2011 (3) SCC 1 - relied on.
c
Case Law Reference:
1993 (4) sec 369 relied on Para 12
1995 (6) sec 31 relied on Para 12
D
1996 (3) sec 124 relied on Para 12
1996 (6) sec 424 relied on Para 12
2011 (3) sec 1 relied on Para 12
E CIVIL APPELLATE JURISDICTION : Civil Appeal No.
2794 of 2011.
From the Judgment & Order dated 12.5.2010 of the High
Court of Judicature at Allahabad in WP (C) No. 14945 of 2010.
F
Gopal Subramanium, SG, Atul Chitale, Suchitra Atul
, Chitale, Sunaina Dutta, Nishtha Kumar, Snigdha Pandey for the
Appellant.
S.B. Upadhyay, Aftab Sharma, Deep Kumar Sharma and
G Aftab Ali Khan for the Resp!)ndents.,
The Judgment of the Court was delivered by
R.V.RAVEENDRAN, J. 1. Leave granted.
H
DEDICATED FREIGHT CORRIDOR CORPORATION 1171
OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.]
2. The first· respondent was the owner of lands bearing A
Gata Nos.106, 118, 119, 123, 126 and 145 in village Kakrahi,
District Auraiya, Uttar Pradesh. The said lands, among others,
were acquired for a special railway project, that is, the
Dedicated Freight Corridor at Kanpur (Rural), Auraiya and
Etava Dist;·;cts. The acquisition was under chapter IVA of the · e
Railways Act, 1989 ('Act' for short) which dealt with land
.,,~qu1:.;iions for special railway projects. A notification dated
10.6.2008 (gazetted on 10.6.2008) under section 20A{1) of the
Act was published by the Central Government declaring its
intention to acquire lands in question for execution of a special c
railway project. This was followed by a declaration dated
12.12.2008 (gazetted on 16.12.2008) under section 20E(1) of
the Act declaring that the lands mentioned therein should be
acquired for the purpose mentioned in the notification under
section 20A( 1) of the Act. On such declaration, the land vested D
absolutely in the Central Government free from encumbrances,
in view of the vesting provision in section 20E(2) of the Act. A
public notice referring to the notifications dated 10.6.2008 and
12.2.2008 under section 20A(1) and 20E(1) of the Act and
inviting claims from all persons interested in the lands was
published by the competent authority in two newspapers (Amar E
Ujala and Dainik Jagran) dated 20.2.2009. Thereafter an order
dated 8.2.2010 was made by the competent authority
determining the compensation payable,· under section 20F(1)
of the Act.
F
3. The first respondent filed W.P.No.14945/2010 for
quashing the award dated 8.2.2010 and for a declaration that
the entire acquisition proceedings stood lapsed under section
20F(2) of the Act, as the award was not made within one year
from the date of publication of the date of declaration dated G
12.12.2008. A Division bench of the High Court allowed the said
writ petition by the impugned order dated 12.5.2010. It quashed
the award dated 8.2.2010 and declared that the acquisition
proceedings stood lapsed. The said decision was based on
the following findings recorded by the division bench : H
1172 SUPREME COURT REPORTS (2011] 3 S.C.R.
A (a) The award was made beyond one year from the
date of publication of the declaration under seGtion
20E(1) of the Act. ·
(b) The benefit of the first proviso to section 20F(2) of
the Act which enabled the competent authority to
B
make the award within an extended period of six
months (after the expiry of one year specified in
section 20F(2) of the Act) was not available to save
the acquisition, as the competent authority failed to
record in writing any reason to show that he was
c satisfied that the delay was caused due to
unavoidable circumstances.
Q.uestions for consideration
D 4. Feeling aggrieved the appellant has filed this appeal.
The appellant contends that the award was validly made within
one year from the date qf declaration under section 20E(1) of
the Act, as it was made within one year from 20.2.2009, the
date on which public notice of the said notification dated
12.12.2008 was published in the newspapers. According to the
E
appellant, where the publication is made in the official gazette
and the newspapers, the last of the dates of such publication
shall be the date of publication of the declaration. It is
alternatively contended that as the award was made within 18
months of the date of publication of the declaration, the
F acquisition did not lapse. On the contentions urged the following
questions arise for consideration :
(i) Whether the period of one year, stipulated under
section 20F(2) of the Act, for making the award,
G has to be reckoned from the date of publication of
the declaration under section 20E(1) of the Act in
' . the official gazette or from the date of any
subsequent publication of the declaration in-
newspapers?
H
- DEOICATED'FREIGfft CORRIDOR CORPORATION 1173
OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.]
(ii) •Whether an award made within six months after the A
expiry of one year from the date of publication of
the declaration, is valid under the first proviso to
section 20F(2) of the Act, even if reasons are not
recorded by the competent authority in writing to
show that he was satisfied that the delay had been B
caused due to unavoidable circumstances?
The relevant legal provisions
5. A reference to the relevant provisions will be necessary
to provide answers to these questions. Chapter IVA was C
inserted in the Act by Amendment Act 11 of 2008 with effect
from 31.1.2008. The said chapter is a self contained code in
regard to land acquisitions for special railway projects.
5.1) Sub-section 20A relates to power to acquire land 0
and reads thus :
"20A. Power to acquire lafld, etc.: (1) Where the Centr~t
Government is satisfied that for a public purpose any land
is required for execution of a special railway project, it may,
by notification, declare its intention to acquire such land. E
(2) Every notification under sub-section (1), shall give a
brief description of the land and of the special railway
project for which the land is intended to be acquired.
F
(3) The State Government or the Union Territory, as the
case may be, shall for the purposes of this section, provide
the details of the land records to the competent authority,
whenever required.
(4) The competent authority shall cause the substance of G
the notification to be published. in two local newspapers,
one of which shall be in avernacular language.
5.2. "Special railway project" is defined in section 2(37A)
of the Act and means a project, notified as such by the central H
1174 SUPREME COURT REPORTS (2011) 3 S.C.R.
A government from time to time, for providing national
infrastructure for a public purpose in a specified time-frame,
covering one or more states or the union territories. Clauses
(7A) and (26) of section 2 of the Act define "competent authority"
and notification as under :
B
"2(7A). 'competent authority' means any person authorized
by the Central Government, by notification, to perform the
functions of the competent authority for such area as may
be specified in the notification.
c 2(26). 'notification' means a notification published in the
Official Gazette."
5.3. Section 208 deals with power to enter for survey etc.
Section 20C relates to evaluation of damages during survey,
0 measurement etc. Section 200 provides for hearing of
objections to the acquisition.
5.4. Section 20E deals with declaration of acquisition and
the same is extracted below :
E "20£. Declaration of acquisition : (1) Where no objection
under subs-section (1) of section 200 has been made to
the competent authority within the period specified therein
or where the competent authority has disallowed the
objections under sub-section (2) of that section, the
F competent authority shall, as soon as may be, submit a
report accordingly to the Central Government and on
receipt of such report, the Central Government shall
declare, by notification, that the land should be acquired
for the purpose mentioned in sub-section (1) of section
G 20A.
(2) On the publication of the declaration under sub-section
(1 ), the land shall vest absolutely in the Central Government
free from all encumbrances.
H
DEDICATED FRE=J,GHT CORRIDOR CORPORATION 1175
OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.]
(3) Where in respect of any land, a notification has been A
published under sub-section (1) of section 20A for its
acquisition, but no declaration under sub-section (1) of this
section has been published within a period of one year
from the date of publication of that notification, the said
notification shall cee!se to have any effect : s
Provided that in computing the said period of one year,
the period during which any action or proceedings to be
taken in pursuance of the notification issued under sub-
section (1) of section 20A is stayed by an order of a court C
shall be excluded.
(4) A declaration made by the Central Government under
sub- section (1) shall not be called in question in any court
or by any other authority."
D
5.5. Section 20F deals with determination of amount
. payable as compensation. Sub-sections 1, 2 and 4 which
are relevant for our purpose are extracted below :
"20F. Determination of amount payable at compensation
- (1) Where any land is acquired under this Act, there shall E-
be paid an amount which shall be determined by an order
of the competent authority.
(2) The competent authority shall make an award under this
section within a period of one year from the date of the F
publication of the declaration and if no award is made
within that period, the entire proceedings for the acquisition
of the land shall lapse :
Provided that the competent authority may, after the expiry
of the period of limitation, if he is satisfied that the delay G
has been caused due to unavoidable cirr.umstances, and
for the reasons to be recorded in writing, he may make
the award within an extended period of six months.
Provided further that where an award is made within the H
1176 SUPREME COURT REPORTS [2011] 3 S.C.R.
A extended period, the entitled person shall, in the interest
of justice, be paid an additional compensation for the delay
in making of the award, every month for the period so
extended, at the rate of not less than five per cent of the
value of the award, for each month of such delay.
B
xxx xxx xxx
(4) Before proceeding to determine the amount under sub-
section (1) or sub-section (3), as the case may be, the
competent authority shall give a public notice published in
C two local newspapers, one of which shall be in a vernacular
language inviting claims from all persons interested in the
land to be acquired.·
xxx xxx xxx
D Re : Question (i)
6. Sub-section (1) of section 20E of the Act provides that
the central government shall, on receipt of the report of the
competent authority, declare by notification that the land should
E be acquired for the purpose mentioned in section 20A(1 ). Sub-
section (2) of section 20E of the Act provides that on the
publication of such declaration by notification, by the central
government, under sub-section (1), the lands shall vest
absolutely in the central government free from all
F encumbrances. Clause (26) of section 2 defines "notification"
as a notification published in the official gazette. Section 20E
thus requires the notification to be published only in the official
gazette. The section does not require the notification of
declaration to be published in any newspaper or by any other
G mode. By way of contrast, we ·may refer to section 20A(4)
relating to preliminary notification and 20F(4) relating to public
notice inviting claims before making the award of the Act.
Section 20A(4) requires that in addition to publication of a
notification by the central government, of the declaration of its
H intention to acquire any land, tne competent authority shall
DEDICATED FREIGHT CORRIDOR CORPORATION 1177
OF iNDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.)
cause the substance of the notification to be published in two A
'local° newspapers one of which will be in a vernacular language.
'Section 20F(4) of the Act requires that before proceeding to
determine the compensation, the competent authority shall give
a public notice in two local newspapers inviting claims.
Wherever newspaper publication is required, it has been B
specifically provided by the legislature. The absence of a similar
provision in section 20E for publication in newspapers, makes
it clear that the ·publication of the declaration under section
20E(1) is complete when it is published in the official gazette.
The publication of the notification under section 20E(1 ), or its c
substance, in any. newspaper, is not therefore a requirement .
under the Act. Even if it is published in any newspaper, such
publication will be only for general information and will not serve
any purpose under the Act.
7. The appellant submits that a public notice under section D
20F(4) of the Act was published in two.newspapers on
20.2.2009 notifying t~ public about the· declaration under
section 20E(1) and inviting claims from persons interested and
consequently, the period of one year should be reckoned from
20.2.2009 and not from 1.6.12.2008 (date on which the E
notification was .gazetted). According to appellant, if the date
of publication in the newspapers (20.2.2009) is taken into
account; the award made on 8.2.2010 would satisfy the
requirement of making the award within one year stipulated in
section 20F(2) of the Act. We find no merit in this contention. F
The public notice dated 20.2.2009 published in the newspapers
was not a publication of the notification of declaration under
section 20E(1) of the Act, but a public notice required to be
issued under sub-section (4) of section 20F by the competent
authority inviting claims, after the publication of a notification G
under Section 20E(1) of the Act. Even if the pubtic notice in the
newspapers dated 20.2.2009, is to be regarded as .publication
of the declaration under section 20E(1) of the Act, it would not
be of any relevance to calculate the period of one year under
section 20F(2) of the Act. As noticed above what is relevant H
1178 SUPREME COURT REPORTS [2011] 3 S.C.R.
A for the purpose of reckoning the period of one year is the date
of publication of notification of declaration under section 20E(1)
of the Act: in the official gazette and nothing else.
Re : question (Ii))
B 8. Sub-section {2) of section 20F of the Act requires the
competent authority to make an award within a period of one
year from the date of publication of the declaration and provides
that if no award is made within that period, the entire
proceedings for acquisition of land shall lapse. The term
C "publication" in section 20F(2) refers to publication of the
declaration in the official gazette. In this case, the declaration
under section 20E(1) was made by a notification dated
12.12.2008 which was published in the official gazette on
16.12.2008. Therefore the award ought to have been made
D within one year from 16.12.2008. The award made on
8.2.2010, was clearly beyond one year from the date of
publication of the declaration. If the benefit of additional period
of six months under the first proviso to section 20F(2) is taken,
the award made on 8.2.2010 would be in time and the
E acquisition proceedings would not lapse. The question is
whether it is permissible to do so on the facts of this case.
9. Though sub-section (2) of section 20F provides that if
the award is not made by the competent authority within one
F year from the date of publication of the declaration, the entire
proceedings for acquisition of land shall lapse, the proviso
thereto enables the competent authority to make the award
within an extended period of six months if he is satisfied that
· the delay had been caused due to unavoidable circumstances
and reasons therefor are recorded in writing. In this case
G admittedly the competent authority has not recorded any
reasons in writing to hold that the delay was due to unavoidable
circumstances.
10. In view of the inconsistencies and ambiguities in section
H 20F of the Act, (enumerated in para 12 below), it becomes
DEDICATED FREIGHT CORRIDOR CORPORATION 1179
OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.]
necessary to read the provisions of the section harmoaiously. A
The effect of such harmonious reading will be as under :
(a) The award has to be made within one year from the
date of publication of the declaration.
(b) If the competent authority is satisfied that the award B
could not be made within a period of one year due
to unavoidable circumstances, which are to be
recorded in writing, he could make the award within
eighteen months .. The requirement regarding
recording of reasons is not mandatory. c
(c) The acquisition proceedings will stand eclipsed at
the end of one year from the date of publication if
no award is made within one year. If no award is
made within eighteen months, the proceedings for
D
acquisitions would lapse.
(d) If the award is made within eighteen months, the
'. acquisition will emerge out of the eclipse and will
not lapse. But additional compensation will become
payable for the period beyond one year, as E
provided in the second proviso to section 20F(2).
If the reasons are not recorded or if the reasons are
not satisfactory, the additional compensation under
the second proviso can be at a rate higher than the
minimum of 5% per month stipulated in the second F
proviso to section 20F(2).
11. The award dated 8.2.201 O by the coryipeteot authority
proceeds on the basis that the notification of declaration under
section 20E(1) of the Act has to be published not only in tlie
official gazette, but also in the form of a public notice in two G
newspapers and that the latter of the two dates of publication
would be the date of commencement of the period of one year,
under section 20F(2) of the Act. This is evident from the
following observations in the said award dated 8.2.201 Oof the
competent authority: H
1180 SUPREME COURT REPORTS [2011] 3 S.C.R.
A "Thereafter, the proposal for the isStJance of the notification
for the acquisition of tand under section 20E of Indian
Railways Act and report of the competent officer has been
presented before the Central Government. The Central
Government issued notification through Gazette No.
B Ka.Aa.2903 {A) dated 12.12.2008 for the acquisition 9f
total 1.2180 hectare land in village Kakahari. The
publication of above mentioned notifica"tion has been
issued in two daily newspapers Amar Ujjala and Dainik
Jagran under the amended provisions of section 20E(4)
c of the Indian Railways Act 1989 on 20.2.2009."
(emphasis supplied)
It is evident from the award that the competent authority
proceeded under the bona fide impression that publication of
o the public notice under ~ection 20F(4) in the·two newspapers
(Amar Uja/a and Dainik Jagran) on 20.2.2009 referring to the
declaration under section 20E{1), subsequent to the date of
gazette publication (16.12.2008) is also part of the process of
publication of the declaration under section 20E(1 ). As a
E consequence, he applied the principle that when publication is
required to be made by more than one mode, the date of
publication by the last of the prescribed modes is the date of
publication. He therefore assumed that the date of publication
of the public notice in the two newspapers dated 20.2.2009 to
F be the date of publication of declaration for the purposes of
section 20E(1) and 20F{2) of the Act and that consequently the
award was made within one year from such date. On the facts
of the case and on a harmonious reading of the provision of
section 20F of the Act, the aforesaid reasoning in the award
can be treated as the reason for the delay in making the award.
G .The acquisition did not, therefore, lapse. However, having
regard to the second proviso to section 20F(2), the land owners
(described as "entitled persons") will be entitled to additional
compensation for the delay in making of the award at a rate
not less than 5% of the value of the award for each month of
H
DEDICATED FREIGHT CORRIDOR CORPORATION 1181
. OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN,·J.] ~
·cielay. A
. .
'certain anomalies.in the provisjons of Chapter VIA of
2
the ·
Act . .. •
12. Before parUl1g we may refer to several apparent
anomalies noticed ib Chapter IVA of the Act,· in particular tn B
section 20F, which requites the attention-of the law makers. As
neither the validity of Chapter.VIA of the Act nor the, validity of
any provision therein is under challenge in this appeal, but as
we have faced difficulties in the application of section 20F, we
are referring to some of the anomalies in the provisions of c
Chapter IVA, without pronouncing upo,n ·the. validity of the .
provision. . .
(i) Sub-section (2) of section 20F provides that if.no award
is made within one year from the date of publication·of the
· declaration, the entire proceedings for\ the acquisition shall D
lapse. The first proviso to sub-section 't.2) provides that the
competent authority may, after the expiry\Of the period of one
year, if he is satisfied that the delay has been caused "due ~o
unavoidable circumstances and for reasons to be recorded in
writing, make an award within an extended period of six · E
months. This means that when an award is not made within one
year from the date of publication of the declaration, the
proceedings for acquisition would lapse, but if within six months
of such lapsing, the competent authority makes an award after
recording reasons for the delay, what stood lapsed would stand F
revived. But if the acquisition proceedings had already lapsed
at the end of one year, mere making of an award thereafter
cannot revive the acquisition proceedings, in the absence of
any provision in the Act providing for revival of the lapsed
acquisition. . G
(ii) Sul:. :Jction (2) of section 20F requires the award to
be made by the competent authority and the first proviso
requires the competent authority to record the reasons for the
delay. What are "unavoidable circumstances" leading to the
delay which would enable the competent authority to make an H
1182 SUPREME COURT REPORTS [2011) 3 S.C.R.
A award beyond one year, would invariably lead to litigations as
to whether there were unavoidable circumstances, whenever
the award is made beyond one year. As the consequence of
making an award beyond one year but within eighteen months,
involving payment of additional compensation, is set out in the
s second proviso to section 20F(2), there is no need for requiring
the cvmpetent authority to record reasons in writing showing
that the delay was due to unavoidable circumstances.
(ii.i) The second proviso to section 20F(2) requires
payment of additional compensation for the delay in making of
C the award, at the rate of not less than five percent of the value
of the award, for each month of delay. This vests unguided
discretion in the competent authority or the Arbitrator to award
additional compensation at any higher rate and gives routn for
unnecessary litigation at the instance of "entitle .. persons"
D claiming higher percentages as additional compensation. It is
necessary to consider whether specifying a fixed monthly rate
of increase would serve the ends of justice better instead of
indicating a minimum rate per month.
E (iv) Sub-section (1) of section 20F refers to an "ordet' of
the competent authority determining the amount to be paid for
the land acquired. Sub-section (2) refers to the competent
authority making an "award'. It is not clear whether the award
by the competent authority is consequential to the order that is
made under sub-section (1) of section 20F or whether the order
F under sub-section (1) is itself the award referred to in sub-
section (2) of section 20F. Confusion can be avoided by using
only one of the words -'order' or 'award' - to refer to the decision
of the competent authority determining compensation, at all
places.
G
(v) Sub-section (4) of section 20F provides that before
detem1ining the amount under sub-section (1) or sub-section
(3), the competent authority shall give a public notice inviting
claims from all persons interested in land to be acquired. The
H issue of such public notice under section 20F(4) is aft~r the
·DEDICATED FREIGHT CORRIDOR CORPORATION 1183
OF INDIA v. SUBODH SINGH [R.V. RAVEENDRAN, J.]
publication of notification of declaration under section 20E(1). A
Sub- section (2) of section 20E provides that on publication of
the declaration, the land vests in the central government. If the
land has already vested in the government on publication of
the declaration under section 20E(1), the question of issuing a
public notice thereafter, inviting claims under section 20F(4) s
from persons interested in the lands "to be acquired" does not
arise. The words "to be acquired" may have to be replaced by
the words "acquired". ·
(vi) If the land has already vested absolutely in the Central
Government on publication of declaration of acquisition in the C
Official Gazette under section 20E(1 ), it is not clear how the
proceedings for acquisition could lapse if the award is not
made within one year or even 18 months, This Court while
dealing with other enactments relating to acquisition has held
that acquisition would not lapse as consequence of not making D
the award within the specified time, if the Jand had already
vested in the government and the Act does not provide for re-
vesting in the land owner. [See : Satendra.Prasad Jain vs.
State of U.P. - 1993 (4) SCC 369, Awadh Bihari Yadav vs.
State of Bihar - 1995 (6) SCC 31, UP Jal Nigam, Lucknow E
VS. Katra Properties (P) Ltd. - 1996 (3) sec 124, Allahabad
Development Authority vs. Nasiruzzaman - 1996 (6) SCC 424
and Ginnar Traders (3) vs. State of Maharashtra - 2011 (3)
sec 11. ·
(vii) Section 20 I of the Act provides that though the land F
vests in the central government on publication of the declaration
under section 20E(1), the competent authority can demand the
surrender or delivery of possession only after the
compensation is determined under section 20F and is ·
deposited under section 20 H. However section 20 J provides G ·
that orv·f!:! the land vests in the central government on publication
of a declaration under section 20E(2), it shall be lawful for any
persons authorized by the central government "to enter and do
other act necessary upon the land for carrying out the building,
maintem;mce,. manc~gement or ({"".;ration of the special railway H
1184 SUPREME COURT REPORTS [2011] 3 S.C.R. ·
A project or part thereof or any work connected therewith". In
other words section 20-J enables the central government to
enter upon possession of the land on publication of the
declaration under section 20E, even before the award made,Is
and carry on the activities connected with the special railway
a project for which the land was acquired. The provisions of
section 20-J apart from being badly worded, are contrary· to
provisions of section 20-1. Section 20 J would lead to
deprivation of possession of the land to the land owner without
even determining or offering any compensation. This requires
C to be examined and corrected. Further, there is no indication
as to what should happen if the central government or person
authorized by it starts f!xecuting the special railway projE.::t in
the acquired land under section 20 J and thereafter, th,,
acquisiti<>n lapses on account of the award not being made
within the time frame mentioned in section 20F(2).
0
We have referred to these anomalies as they are likely to
give room for considerable avoiqable litigation, in regard to
acquisitions under Chapter IVA of the Act. These anomalies
may also defeat the very legislative intent to provide a
E progressive form of land acquisition when compared to the
provisions of Land Acquisition Act, 1894. Be that as it may.
Conclusion
13. In view of our finding that the acquisition has not lapsed,
F we allow this appeal, set aside the judgment of the High Court,
and dismiss the challenge to the acquisition. It is however made
clear that in view of the delay in making the award beyond one
year, the first respondent shall be entitled to additional
compensation as provided under the second proviso to section
G 20F(2) of the Act. Parties to bear their respective costs.
14. The Registry is directed to send copies of this order
.to the Law Commission of India and Ministry of Railways.
D.G. Appeal allowed.
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