Created byFuzzy Cloud

Supreme Court of India

NUTTAKI SESHARATNAMversusSUB-COLLECTOR, LAND ACQUISTION VIJAYAWADA AND ORS.

Citation
1991 INSC 280
Decided
31 October 1991
Disposal
Appeal(s) allowed

Holding

The appellant's statement was only an offer, not an accepted contract, and the acquisition was illegal because the locality publication was not made within the mandatory forty‑day period.

Summary

The appellant owned about two acres of land in Ramavarappadu village, Andhra Pradesh, and the State sought to acquire 1.89 acres for public purpose. A notification under Section 4(1) of the Land Acquisition Act, 1894 was published in the Gazette on 9 February 1976, but the substance of the notification was not published in the locality until 2 April 1978, exceeding the statutory 40‑day period mandated by the Act as amended by the Andhra Pradesh Amendment Act, 1983. The appellant offered to consent to the acquisition only if lump‑sum compensation was paid; this offer was never accepted by the Land Acquisition Officer and was withdrawn before any award. The High Court dismissed the appellant’s writ petition on the ground that his statement amounted to consent, but the Supreme Court held that the statement was merely an offer, not a contract, and that the appellant could withdraw it. The Court further held that non‑compliance with the 40‑day locality publication requirement renders the acquisition void. Consequently, the appeal was allowed, the acquisition declared bad in law, and any possession taken was to be returned to the appellant.

Issues considered

  • Whether the appellant's statement of willingness to accept acquisition subject to lump‑sum compensation creates a binding contract that bars a challenge to the acquisition.
  • Whether failure to publish the substance of the notification in the locality within forty days of Gazette publication, as required by Section 4(1) of the Land Acquisition Act (as amended), invalidates the acquisition.
  • Whether the urgency clause under Section 17(4) of the Act can dispense with the statutory locality publication requirement.

Legislation cited

Subjects

land acquisitioncontract offerstatutory compliancenotification publicationSection 4(1)Andhra Pradesh Amendment Actacquisition invalidwithdrawal of offer

Judgment

     116                 SUPREME COURT REPORTS              (1991) SUPP. 2 S.C.R.


A   in law to no more than an offer in terms of the Contract Act. The
    said offer was never accepted by the Land Acquisition Officer to
    whom it was made. Leave alone, making the award of lump-sum
    compensation, no award at all was made by the said officer award-
    ing compensation to the appellant till the aforesaid offer w.as with-
    drawn by the appellant or even tm the writ petition was filed. Till
B   the offer was accepted there was no contract between the parties
    and the appellant was entitled to withdraw bis offer. There was
    nothing inequitable or improper in withdrawing the offer, as the
    appellant was in no way bound to keep the offer open indefinitely.              r
    [117 G-H, 118-A)

C         2. The acquisition of the appellant's land is bad in law be-
    cause the substance of the Notification was not published in the
    locality within forty days of the publication of the Notification in
    the Government Gazette. The time-limit of forty days for such pub-
    lication in the locality has been made mandatory by section 4(1) of
    the 1894 Act as amended by the Andhra Pradesh (Amendment) Act,
D   1983. Such non-compliance renders acquisition bad in law. (118-C)

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1720 of
    1986.

         From the Judgment and Order dated 5.7.1985 of the Andhra Pradesh
E   High Court in Writ Appeal No. 577of1985.

            B. Kanta Rao for the Appellant.

            K. Madhava Reddy and G. Prabhakar for the Respondents.

F          The Judgment of the Court was delivered by

         KANIA, J. This is an appeal by Special Leave from the judgment of
    a Division Bench of the Andhra Pradesh High Court dismissing the Writ
    Appeal No.577of1985 filed in that Court.                                        •
                                                                                    •
G           Very few facts are necessary for the disposal of this appeal.

          The appellant is the owner of a plot comprising roughly 2 acres of
    land in Ramavarappadu village, Vijayawada Taluk, in the Krishna District
    in Andhra Pradesh. The Government of Andhra Pradesh sought to acquire
    about I acre and 89. cents out of the aforesaid land for a public purpose. A
H   Notification under section 4(1) of the Land Acquisition Act, 1894 (herein-
    after referred to as "the said Act") was published in the Government
             SESHARATANAM v. COLLECTOR LAND ACQUISITION [KANIA, J.]           117

       Gazette on February 9, 1976. The substance of the said notification was A

---    published in the locality where the land proposed to be acquired is situ-
       ated, on April 2; 1978, long after the period of 40 days within which it
       was required to be published as per the provisions of section 4(1) of the
       said Act as amended by the Andhra Pradesh (Amendment) Act, 1983, (Act
       9 of 1983). Enquiry under section SA of.the said Act was dispensed with
       invoking the urgency clause as per section 17(4) of the said Act. Notifica- B
       tion under section 6 was published on the same day as the publication of
       the notification under section 4(1) of the said Act. An inquiry was con-
       ducted regarding the fixation of compensation to be awarded to the appel-
       lant and others whose lands were acquired under the said notification. It
       appears that during the course of the said inquiry the ap~llant stated to
       the Land Acquisition Officer concerned that he was willing to agree to the   c
       land being acquired provided he was given compensation in a lump-sum.
       Probably, the reason was that ifthe compensation was awarded in a lump-
       sum without delay, the appellant might have been able to purchase some
       other land, as his holding was under the ceiling limit. The aforesaid facts
       have been found by the Trial Court and accepted by the High Court. On
       November 9, 1979, before any rward was made, the consent to the acqui- D
       sition of the land given by the appellant, as aforestated, was withdrawn by
       him and on May 14, 1981, the appellant filed a writ petition in the High
       Court questioning the validity of the land acquisition proceedings. The
       learned Single Judge befor~ whom the said .writ petition along with an-
       other writ petition came up for hearing held that the appellant had agreed
       to the acquisition of the said land on compensation being paid as aforestated, E
       and hence it was not open to the appellant to challenge the validity of the
       said notifications issued under section 4(1) and section 6 of the said Act.
       It was held by him that the withdrawal of the said representation or
       consent by the appellant did not in any manner assist him. The learned
~      Judge dismissed the writ petition filed by the appellant without going into
       the meri~ of the aforesaid petition on the aforesaid basis. This judgment F
       was upheld by the Division Bench of the High Court which dismissed the
       aforesaid writ appeal. It is the correctness of these decisions which is
       impugned before us.



..
....
             In our view, the learned Single Judge and the Division Bench of the
       High Court of Andhra Pradesh were, with respect, clearly in error in
       dismissing the respective writ petition and the appeal filed by the appel-
       lant on the ground that the appellant had stated that he was willing to
       accept the acquisition provided a lump-rum compensation was awarded to
                                                                                    G



       him. The statement of the appellant amounted in law to no more than.an
       offer in terms of the Contract Act. The said offer was never accepted by
       the Land Acquisition Officer to whom it was made. Leave alone, making        H
     118                 SUPREME COURT REPORTS               (1991) SUPP. 2 S.C.R.

A   the award of lump-sum compensation, no award at all was. made by the
    said officer awarding compensation tothe appellant till November 9, 1979,
    when the aforesaid offer was withdrawn by the appellant or even till the
    writ petition was filed. Till the offer was accepted there was no contract
    between the parties and the appellant was entitled to withdraw his offer.
    There was nothing inequitable or improper in withdrawing the offer, as
B   the appellant was in no way bound to keep the offer open indefinitely. The
    writ petition, therefore, ought not to have been dismissed on the ground of
    the appellant having made a statement or consented as aforestated before
    the Land Acquisition Officer.

           On the merits, it is clear that the acquisition of the land is bad in law
c because the substance of the notification under section 4(1) of the said Act                 [
    was not published in the locality within forty days of the publication of
    the notification in the Government Gazette. The time-limit of forty days
    for such publication in the locality has been made mandatory by section
    4(1) of the said Act as amended by the Andhra Pradesh (Amendment) Act.
    It is well-settled that such non-compliance renders acquisition bad in law.
D
          In the result, the appeal succeeds and Rule in the writ petition is
    made absolute. It is declared that the acquisition of the aforesaid land of
    the appellant is bad in law. If the possession has been taken, the ~e
    must be returned fu the appellant.

E          The appeal is allowed as aforestated with costs through.out.

    T.N.A.                                                      Appeal Allowed.




                                                                                           (
                                                                                       '   (
                                                                                           I
                                                                                           t
                                                                                           }


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "land acquisition"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.