Supreme Court of India

SAVITRI DEVIversusSTATE OF HARYANA AND ORS.

Citation: 1996 INSC 232
Decided: 12 February 1996
Disposal: Disposed off
Bench: K RAMASWAMYG B PATTANAIK

Holding

Once acquisition under the Land Acquisition Act becomes final, the former owner's title is divested and entitlement to a plot is not automatic; it is subject to the conditions specified in the government policy and must be sought through an application to the competent authority.

Summary

The appellant, Savitri Devi, challenged the State of Haryana after her land was acquired under the Land Acquisition Act, 1894 for residential and commercial purposes. Although compensation had been paid and the acquisition became final, the land remained unused, and she sought a plot in lieu of her loss under a government policy. The Supreme Court examined whether an oustee is automatically entitled to such allotment once acquisition is complete. It held that the former owner’s title is divested upon final acquisition and entitlement to a plot is not automatic; it is contingent upon satisfying the specific conditions laid down in the policy, such as filing an affidavit, not owning other property, and meeting ownership and acquisition thresholds. Accordingly, the appellant must apply to the competent authority, and the appeal was dismissed without costs.

Issues considered

Whether an oustee is automatically entitled to allotment of land when the acquired land is not utilized for the intended public purpose.
Whether the conditions prescribed in the government policy are mandatory for entitlement to a plot in lieu of acquisition.
Effect of a final acquisition under the Land Acquisition Act on the pre‑existing title and rights of the former owner.

Legislation cited

Land Acquisition Act, 1894s. 11, s. 4(1)

Subjects

Land AcquisitionCompensationAllotment of landOustee rightsPublic purposeGovernment policySection 4(1) Land Acquisition ActSection 11 Land Acquisition Act

Judgment

SAVITRI DEVI A
v.
STATE OF HARYANA AND ORS.

FEBRUARY 12, 1996

[K. RAMASWAMY AND G.B. PATTANAIK, JJ.] B

Land Acquisition Act, 1894 :·

Sections 4(1), I I-Award-Compensation paid-Became finat-Pre-ex-
isting 1ight, title and interest held by the erstwhile owner ceases to exist and is C
divested-Vested in the State and the beneficiary free from all encumbran-
ces-Merely because land is not utilised after acquisition, the erstwhile holders
of land not automatically entitled to the allotment-Subject to the guidelines
their claim would be considered-Entitled to file an application before the
competent authority who would consider and dispose it of according to roles.
D
State of U.P. v. Pista Devi, AIR (1986) SC 2025, referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3794 of
1996.

From the Judgment and Order dated 31.5.94 of the Punjab & E
Haryana High Court in C.W.P. No. 1597 o f 1991.

Neeraj Kumar Jain and Ms. Abha R. Sharma for the Appellant.

The following Order of the Court was delivered :
F
Leave granted.

This appeal by special leave arises from the order made by the
Division Bench of the high Court of Punjab & Haryana on May 31, 1994
in WP No. 1597/91. The contention of the appellant is that since her land
was acquired for the public purpose, namely, residential and commercial G
purpose, the land not having been utilised for the said purpose, she is
entitled to the allotment of the land as per the policy of the Government
in Annexure 3 appended to the SLP paper book. Admittedly, the notifica-
tion under Section 4(1) of the Land Acquisition Act was published on
August 20, 1980 acquiring a large extent of land. The Award came to be H
477
\
+
478 SUPREME COURT REPORTS [1996] 2 S.C.R.

A made under Section 11 on February 12, 1986 and the compensation was .
paid. It has become final. The appellant filed the writ petition for direction
for allotment of the land to her, a plot in lieu of the acquisition of her land
under the policy framed by the Government for allotting the plots to the
oustees and as per the guidelines laid down by this Court in State of U.P.
v. Pista Devi, AIR 1986 SC 2025.
B
Once the land is acquired and the acquisition has became final, the
pre-existing right, title, and interest held by the erstwhile owner ceases to
exist and is divested and stands vested in the State and the beneficiary free
from all encumbrances. The question is: whether the erstwhile holder is
C entitled to the allotment of the sites? The last paragraph of the policy
connotes that:

"An oustee could be offered a plot when he files affidavit to the
effect that he does not hold any house/shop/plot in that town,
/
moreover, he should be an owner of land proposed to be acquired
D for one year before the issue of notification under Section 4 of the
Land Acquisition Act, 1894 and 75% of his land must come under
acquisition."

On fulfilment of these conditions and then subject to the guidelines
laid down therein, the candidate would be entitled to be considere!i for
E allotment. Merely because the land is not utilised after the acquisition, they
are not automatically entitled to the allotment but subject to the guidelines,
their claim would be considered. The appellant is entitled to file an
application before the competent authority which would consider and
dispose it of according to rules.
F The appeal is disposed of with the above directions. No costs.

G.N. Appeal disposed of.

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