SHIV KUMAR & ANR.versusUNION OF INDIA & ORS.
- Citation
- 2019 INSC 1142
- Decided
- 14 October 2019
- Disposal
- Dismissed
- Bench
- ARUN MISHRA
Holding
A purchaser who acquires land after a Section 4 notification under the 1894 Act has no right to invoke Section 24 of the 2013 Act; the sale is void and the purchaser cannot claim compensation or a declaration that the acquisition has lapsed.
Summary
The petitioners purchased land in Delhi after a Section 4 notification under the Land Acquisition Act, 1894 had been issued, and later sought a declaration under Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 that the acquisition had lapsed. The Court examined whether a post‑notification purchaser could be treated as an "affected family" or "landowner" under the 2013 Act and whether the sale was void. Relying on a long line of precedents, the Court held that any transaction after a Section 4 notification is void against the State and confers no title, thus the purchaser cannot invoke Section 24 or claim higher compensation. The proviso to Section 24(2) was interpreted to benefit only those recorded as owners at the time of the notification. Consequently, the petitioners had no locus standi to challenge the acquisition, and the appeal was dismissed.
Issues considered
- Whether a purchaser who acquires land after a Section 4 notification under the Land Acquisition Act, 1894 can invoke Section 24 of the 2013 Act to claim that the acquisition has lapsed.
- Whether such a purchaser qualifies as an "affected family" or "landowner" under the 2013 Act.
- Whether a sale deed executed after a Section 4 notification is void and can confer any rights of compensation or resettlement.
- Whether the decision in Government (NCT of Delhi) v. Manav Dharam Trust should be overruled as per incuriam.
Legislation cited
- Indian Succession Act, 1925s. 69, s. 70
- Land Acquisition Act, 1894s. 16, s. 17, s. 4, s. 48, s. 6
- Powers of Attorney Act, 1882
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013s. 11(4), s. 24(1), s. 24(2), s. 3(c), s. 3(r), s. 3(x)
Subjects
Judgment
[2019] 13 S.C.R. 695 695
SHIV KUMAR & ANR. A
v.
UNION OF INDIA & ORS.
(Civil Appeal No. 8003 of 2019)
B
OCTOBER 14, 2019
[ARUN MISHRA, M. R. SHAH AND B. R. GAVAI, JJ.]
Land Acquisition Act, 1894: s.4 – Whether a purchaser of
the property after issuance of notification under s.4 of the Act of
1894, can invoke the provisions contained in s.24 of the Act of C
2013 – Held: An incumbent, who has purchased the land after s.4
notification, has no right to question the acquisition – The Act of
2013 intends to benefit landowners mentioned in the notification
under s.4 and not such purchasers who purchase the land after it
has been vested in the State – Such purchasers do not have right
D
to receive the higher compensation under the provisions contained
in the Act of 2013 – Proviso to s.24(2) makes it clear that in case
compensation concerning the majority of landholding has not been
deposited, then recorded owner(s) at the time of issuance of
notification under s.4 of the Act of 1894 shall have the right to
receive the compensation – A transaction effected after s.4 E
notification is illegal and void – Such void transactions are not
validated under the Act of 2013 – Thus, the Act of 2013 does not
confer any right on purchaser whose sale is ab initio void – Right
to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 – s.24(2) and its proviso.
F
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: ss.3(c), 3(r)
– Affected family, land owner – Meaning of – Discussed.
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: s.24(2) – G
Who can claim declaration/rights under s.24(2) for the restoration
of land or lapse of acquisition – Held: It cannot be by a person
with no title in the land – A person cannot enforce and ripe fruits
based on a void transaction to start claiming title and possession
of the land by seeking a declaration under s.24 of the Act of 2013;
H
695
696 SUPREME COURT REPORTS [2019] 13 S.C.R.
A it will amount to conferment of benefit never contemplated by the
law – The provision of the Act of 2013 cannot be said to be enabling
or authorizing a purchaser after s.4 Notification to question
proceeding taken under the Act of 1894 of taking possession –
What cannot be done directly cannot be permitted in an indirect
manner – Land Acquisition Act, 1894 – s.4.
B
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: s.24(2) –
Subsequent purchasers cannot be termed to be affected persons
within the provisions of Act of 2013 – Thus, no right can be claimed
based on a transfer made by way of execution of Power of
C Attorney, Will, etc., as it does not create any interest in immovable
property.
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: Object of
the Act – Held: The provisions of the Act of 2013 aim at the
D acquisition of land with least disturbance to the landowners and
other affected families and to provide just and fair compensation
to affected families whose land has been acquired or proposed to
be acquired or are affected and to make adequate provisions for
such affected persons for their rehabilitation and resettlement –
E The provisions of Act of 2013 aim at ousting all inter-meddlers from
the fray by ensuring payment in the bank account of landholders
under s.77 of the Act – The intendment of the Act of 2013 is to
benefit farmers etc. – Subsequent purchasers cannot be said to be
landowners entitled to restoration of land and cannot be termed
to be affected persons within the provisions of Act of 2013.
F
Dismissing the appeal, the Court
HELD: 1. An incumbent, who has purchased the land after
section 4 notification, has no right to question the acquisition.
The Act of 2013 intend to benefit landowners mentioned in the
G notification under Section 4, not for the benefit of such
purchasers who purchase the land after it has been vested in
the State. Sub-section 4 of Section 11 of the Act of 2013, which
is akin to section 4 of the Act of 1894, contains a prohibition
that no person shall make any transaction or cause any
transaction of land or create any encumbrance on land from the
H date of publication of such notification. Without seeking
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 697
exemption from the Collector, there is a total prohibition on any A
transaction of land. Whereas the legal position under the Act of
1894 was that a transaction effected after section 4 notification
was illegal and void. [Paras 6, 8, 9] [703-F; 709-A-B]
Government (NCT of Delhi) v. Manav Dharam Trust
& Anr. (2017) 6 SCC 751 : [2017] 4 SCR 232 – B
overruled.
U.P. Jal Nigam, Lucknow through its Chairman & Anr.
v. Kalra Properties (P) Ltd., Lucknow & Ors. (1996)
3 SCC 124 : [1996] 1 SCR 683 ; Sneh Prabha (Smt.)
& Ors. v. State of U.P. & Anr. (1996) 7 SCC 426 : C
[1995] 5 Suppl. SCR 264 ; Meera Sahni v. Lieutenant
Governor of Delhi & Ors. (2008) 9 SCC 177 : [2008]
10 SCR 1012 ; V. Chandrasekaran & Anr.
v. Administrative Officer & Ors. (2012) 12 SCC 133 :
[2012] 10 SCR 603 ; Rajasthan State Industrial
Development and Investment Corpn. v. Subhash Sindhi D
Cooperative Housing Society, Jaipur & Ors. (2013) 5
SCC 427 : [2015] 5 SCR 365 ; Rajasthan Housing
Board v. New Pink City Nirman Sahkari Samiti
Ltd. & Anr. (2015) 7 SCC 601 : [2015] 5 SCR 365 ;
M. Venkatesh & Ors. v. Commissioner, Bangalore E
Development Authority, etc. (2015) 17 SCC 1 : [2015]
11 SCR 454 – referred to.
2. The ‘affected family’ has been defined under section 3(c)
of the 2013 Act. The affected family includes landowners for
whose benefit land is held before the acquisition. A person F
acquiring interest after section 11 notification cannot be said to
be included in the “affected family” at all. Landowner as defined
in Section 3(r) is a person who is recorded as the owner of land
or building. A purchaser after section 11 cannot be said to be a
landowner within the purview of section 3(r). [Paras 10, 12] [709-
G; 710-F; 711-B-F] G
3.1 Section 24(2) provides that in case the award has been
passed five years or more prior to the commencement of the
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 have lapsed. In the instant case, there is H
698 SUPREME COURT REPORTS [2019] 13 S.C.R.
A nothing to doubt that actual physical possession had been taken
in 2000. Thus, Section 24(2) is not attracted in the case. Even
otherwise, proviso to Section 24(2) does not recognize a
purchaser after Section 4 notification inasmuch as it provides that
where an award has been made, and the compensation in respect
of a majority of land holdings has not been deposited in the
B
account of the beneficiaries, then, all beneficiaries specified in
the notification for acquisition issued under the Act of 1894, shall
be entitled to compensation under the provisions of the Act of
2013. The proviso makes it clear that in case of compensation
concerning the majority of landholding has not been deposited,
C then recorded owner(s) at the time of issuance of notification
under section 4 of the Act of 1894 shall have the right to receive
the compensation. Purchasers after section 4 notification have
not been given the right to receive the higher compensation
under the provisions contained in the Act of 2013. [Paras 16,
17] [713-D-F-H; 714-A ]
D
3.2 The Act of 2013 presupposes that a person is required
to be rehabilitated and resettled. Such a person who has
purchased after section 4 notification as sale deed is void under
the Act of 1894, cannot claim rehabilitation and resettlement as
per policy envisaged under the Act of 2013, as his land has not
E been acquired, but he has purchased a property which has
already been acquired by the State Government, he cannot claim
even higher compensation, as per proviso to section 24(2) under
the Act of 2013. Given that, the transaction of sale, effected after
section 4 notification, is void, is ineffective to transfer the land,
F such incumbents cannot invoke the provisions of section 24. As
the sale transaction did not clothe them with the title when the
purchase was made; they cannot claim ‘possession’ and challenge
the acquisition as having lapsed under section 24 by questioning
the legality or regularity of proceedings of taking over of
possession under the Act of 1894. It would be unfair and unjust
G and against the policy of the law to permit such a person to claim
resettlement or claim the land back as envisaged under the Act
of 2013. When he has not been deprived of his livelihood but is
a purchaser under a void transaction, the outcome of exploitative
tactics played upon poor farmers who were unable to defend
H themselves. Thus, under the provisions of Section 24 of the Act
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 699
of 2013, challenge to acquisition proceeding of the taking over A
of possession under the Act of 1894 cannot be made, based on
a void transaction nor declaration can be sought under section
24(2) by such incumbents to obtain the land. The Act of 2013
does not confer any right on purchaser whose sale is ab initio
void. Such void transactions are not validated under the Act of
B
2013. No rights are conferred by the provisions contained in
the 2013 Act on such a purchaser as against the State. ‘Void is,
ab initio,’ a nullity, is inoperative, and a person cannot claim the
land or declaration once no title has been conferred upon him
to claim that the land should be given back to him. A person
cannot enforce and ripe fruits based on a void transaction to start C
claiming title and possession of the land by seeking a declaration
under Section 24 of the Act of 2013; it will amount to conferment
of benefit never contemplated by the law. [Paras 18-21] [714-B-
C-E-H; 715-A-D]
4. The provisions of the Act of 2013 aimed at the D
acquisition of land with least disturbance to the landowners and
other affected families and to provide just and fair compensation
to affected families whose land has been acquired or proposed
to be acquired or are affected and to make adequate provisions
for such affected persons for their rehabilitation and
resettlement. The intendment of Act of 2013 is to benefit farmers E
etc. Subsequent purchasers cannot be said to be landowners
entitled to restoration of land and cannot be termed to be
affected persons within the provisions of Act of 2013. It is not
open to them to claim that the proceedings have lapsed under
Section 24(2). Apart from that the claims have been made on F
transactions based on the power of attorneys, agreements, etc.;
as such also they are not entitled to any indulgence and cannot
invoke provisions of section 24(2) of the 2013 Act. No right can
be claimed based on a transfer made by way of execution of
Power of Attorney, Will, etc., as it does not create any interest
in immovable property. [Paras 22, 23, 24] [715-F-H; 716-A; 718- G
E]
Suraj Lamp and Industries Pvt. Ltd. through Director
v. State of Haryana & Anr.; Mamleshwar Prasad v.
Kanahaiya Lal, (1975) 2 SCC 232 ; A.R. Anutulay v.
R.S.Nayak (1988) 2 SCC 602 : [1975] 3 SCR 834 ; H
700 SUPREME COURT REPORTS [2019] 13 S.C.R.
A State of Uttar Pradesh v. Synthetics and Chemicals Ltd.
(1991) 4 SCC 139 ; State of B. Shama Rao v. Union
Territory of Pondicherry AIR 1967 SC 1480 ;
Municipal Corporation of Delhi v. Gurnam Kaur
(1989) 1 SCC 101 : [1988] 2 Suppl. SCR 929 ;
Narmada Bachao Andolan (III) v. State of Madhya
B
Pradesh, AIR 2011 SC 1989 : [2011] 6 SCR 443 ;
Hyder Consulting (UK) Ltd. v. State of Odisha (2015)
2 SCC 189 : [2014] 14 SCR 1029 ; Sant Lal Gupta v.
Modern Coop. Societies Ltd. [2010] 13 SCC 336 :
[2010] 13 SCR 621 ; Vineeta Sharma v. Rakesh
C Sharma (2019) 6 SCC 162 – referred to.
Case Law Reference
[2017] 4 SCR 232 overruled Para 3
[1996] 1 SCR 683 referred to Para 6 (a)
D
[1995] 5 Suppl. SCR 264 referred to Para 6 (b)
[2008] 10 SCR1012 referred to Para 6 (c)
[2012] 10 SCR 603 referred to Para 6 (d)
E [2015] 5 SCR 365 referred to Para 6(g)
[2015] 11 SCR 454 referred to Para 6(f)
[2015] 5 SCR 365 referred to Para 24
(1975) 2 SCC 232 referred to Para 26
F [1975] 3 SCR 834 referred to Para 26
(1991) 4 SCC 139 referred to Para 26
AIR 1967 SC 1480 referred to Para 26
[1988] 2 Suppl. SCR 929 referred to Para 26
G
[2011] 6 SCR 443 referred to Para 26
[2014] 14 SCR 1029 referred to Para 26
[2010] 13 SCR 621 referred to Para 26
H (2019) 6 SCC 162 referred to Para 26
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 701
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8003 A
of 2019.
From the Judgment and Order dated 18.01.2019 of the Division
Bench of the High Court of Delhi at New Delhi in Writ Petition (C)
No. 92 of 2018.
S. N. Bhatm B. S. Mathur and Rajat Mathur, Advs. for the B
Appellants.
K. M. Natraj, ASG and Debashish Rout, Advs. for the
Respondents.
The Judgment of the Court was delivered by
C
ARUN MISHRA, J.
1. The question involved in the matter is whether a purchaser of
the property after issuance of notification under section 4 of the Land
Acquisition Act, 1894 (for short, “the 1894 Act”), can invoke the
provisions contained in section 24 of the Right to Fair Compensation D
and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (for short, “the Act of 2013”).
2. Notification No.F.10(29)/96/L&B/LA/11394, dated 27.10.1999,
was issued for the acquisition of the land situated in the revenue estate
of Village Pansali, Delhi, for the public purpose of the Rohini Residential E
Scheme under planned development of Delhi. It was followed by the
declaration under section 6 issued on 3.4.2000. Possession was taken
on 12.5.2000. Subsequently, the petitioners purchased the land on
5.7.2001 by way of Registered Sale Deed executed by one Satya Narain,
the Power of Attorney holder of original owners. The purchasers then
participated in the proceedings for the determination of compensation F
under sections 9 and 10 of the 1894 Act. The award was passed on
3.4.2002. In the meanwhile, an unauthorized colony came up with the
name of Deep Vihar, Pansali, Pooth Kalan, Delhi. The petitioners
claimed that they continued in the actual physical possession of the land
even after passing of the award on 17.09.2008 and the same formed
G
part of the unauthorized colony. The Government of NCT of Delhi
provisionally regularised the colony. The Act of 2013 came in force from
1.1.2014. The respondents never took the actual physical possession
of the land; as such, the acquisition has lapsed. The purchasers/
petitioners filed a writ petition at the High Court of Delhi. A Division
Bench of the High Court has dismissed the writ application. H
702 SUPREME COURT REPORTS [2019] 13 S.C.R.
A 3. Learned counsel appearing on behalf of the purchasers
submitted that the High Court has erred in rejecting the writ application
on the ground that the purchasers after issuance of notification under
section 4 of the 1894 Act cannot question the land acquisition. The
decision runs contrary to the dictum laid down by this Court in
Government (NCT of Delhi) v. Manav Dharam Trust & Anr. (2017)
B
6 SCC 751. Learned counsel further submitted that the High Court has
also erred in dismissing the writ application on the ground that petitioners
have admitted that the property is part of the unauthorized colony of
Deep Vihar.
4. Shri K.M. Natraj learned Additional Solicitor General has
C
supported the impugned judgment and order and submitted that the
purchase made after the notification issued under section 4 of the 1894
Act and declaration under section 6 is void. The purchasers had acquired
no right, and they cannot question the land acquisition, nor they can
invoke the provisions contained in section 24 of the Act of 2013. It was
D further submitted that decision in Manav Dharam Trust (supra) is per
incuriam because of a large number of decisions of this Court holding
that sale made after issuance of notification under section 4 is void.
5. It is crystal clear that for seeking the relief under section 24,
the proceedings for taking possession under Act of 1894 have been put
E into question as illusory one, and possession continues with appellants.
The decision in Manav Dharam Trust (supra) has been mainly relied
upon by the learned counsel appearing on behalf of the purchasers/
petitioners in which a Division Bench opined that subsequent purchasers
are affected by the acquisition. Therefore, they are entitled to seek a
declaration of the lapse of acquisition under the Act of 2013. It has
F
further opined that since declaration is sought, the challenge is not to
the acquisition proceedings. Because of the operation of section 24(2)
of the 2013 Act, the ratio of the various cases decided by this Court
under the Act of 1894, has no application to such situations. It has
observed thus:
G
“21. All the decisions cited by the learned Senior Counsel
appearing for the appellants, no doubt, have categorically held
that the subsequent purchasers do not have locus standi to
challenge the acquisition proceedings. However, in the present
case, the challenge is not to the acquisition proceedings; it is only
H for a declaration that the acquisition proceedings have lapsed
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 703
[ARUN MISHRA, J.]
because of the operation of Section 24(2) of the 2013 Act, and A
therefore, the ratio in those cases has no application to these
cases.
22. It is one thing to say that there is a challenge to the legality
or propriety or validity of the acquisition proceedings and yet
another thing to say that by virtue of the operation of subsequent B
legislation, the acquisition proceedings have lapsed.
23. In all the decisions cited by the learned Senior Counsel for
the appellants, which we have referred to above, this Court has
protected the rights of the subsequent purchaser to claim
compensation, being a person interested in the compensation, C
despite holding that they have no locus standi to challenge the
acquisition proceedings.
28. Thus, the subsequent purchaser, the assignee, the successor
in interest, the power-of-attorney holder, etc., are all persons who
are interested in compensation/landowners/affected persons in D
terms of the 2013 Act and such persons are entitled to file a case
for a declaration that the land acquisition proceedings have lapsed
by virtue of operation of Section 24(2) of the 2013 Act. It is a
declaration qua the land wherein indisputably they have an
interest, and they are affected by such acquisition. For such a
declaration, it cannot be said that the respondent-writ petitioners E
do not have any locus standi.”
6. First, we advert to the legal position concerning the purchases
made on 5.7.2001, made after notification under Section 4 had been
issued under the Act of 1894. Law is well settled in this regard by a
catena of decisions of this Court that an incumbent, who has purchased F
the land after section 4 notification, has no right to question the
acquisition.
6 (a). In U.P. Jal Nigam, Lucknow through its Chairman &
Anr. v. Kalra Properties (P) Ltd., Lucknow & Ors. (1996) 3 SCC
124 it was observed : G
“3. …...That apart, since M/s. Kalra Properties, the respondent
had purchased the land after the notification under Section 4(1)
was published, its sale is void against the State, and it acquired
no right, title, or interest in the land. Consequently, it is settled
law that it cannot challenge the validity of the notification or the H
704 SUPREME COURT REPORTS [2019] 13 S.C.R.
A regularity in taking possession of the land before the publication
of the declaration under Section 6 was published.”
6(b). In Sneh Prabha (Smt.) & Ors. v. State of U.P. & Anr.
(1996) 7 SCC 426 it has been laid down that subsequent purchaser
cannot take advantage of land policy. It was observed:
B
“5. Though at first blush, we were inclined to agree with the
appellant but on a deeper probe, we find that the appellant is not
entitled to the benefit of the Land Policy. It is settled law that
any person who purchases land after the publication of the
notification under Section 4(1), does so at his/her peril. The object
C of publication of the notification under Section 4(1) is notice to
everyone that the land is needed or is likely to be needed for a
public purpose, and the acquisition proceedings point out an
impediment to anyone to encumber the land acquired thereunder.
It authorizes the designated officer to enter upon the land to do
D preliminaries, etc. Therefore, any alienation of land after the
publication of the notification under Section 4(1) does not bind
the Government or the beneficiary under the acquisition. On
taking possession of the land, all rights, titles, and interests in land
stand vested in the State, under Section 16 of the Act, free from
all encumbrances, and thereby, absolute title in the land is
E
acquired thereunder. If any subsequent purchaser acquires land,
his/her only right would be subject to the provisions of the Act
and/ or to receive compensation for the land. In a recent
judgment, this Court in Union of India v. Shri Shivkumar Bhargava
and Ors. [1995] 1 SCR 354 considered the controversy and held
F that a person who purchases land subsequent to the notification
is not entitled to an alternative site. It is seen that the Land Policy
expressly conferred that right only on that person whose land
was acquired. In other words, the person must be the owner of
the land on the date on which notification under Section 4(1) was
G published. By necessary implication, the subsequent purchaser
was elbowed out from the policy and became disentitled to the
benefit of the Land Policy.”
6(c). In Meera Sahni v. Lieutenant Governor of Delhi & Ors.
(2008) 9 SCC 177, the Court had relied upon the decision described
H above and observed thus:
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 705
[ARUN MISHRA, J.]
“21. In view of the aforesaid decisions, it is by now well-settled A
law that under the Land Acquisition Act, the subsequent purchaser
cannot challenge the acquisition proceedings and that he would
be only entitled to get the compensation.”
6(d). In V. Chandrasekaran & Anr. v. Administrative Officer
& Ors. (2012) 12 SCC 133, the Court has considered various decisions B
and opined that the purchaser after Section 4 notification could not
challenge land acquisition on any ground whatsoever. The Court
observed:
“15. The issue of maintainability of the writ petitions by the person
who purchases the land subsequent to a notification being issued C
under Section 4 of the Act has been considered by this Court
time and again. In Leela Ram v. Union of India AIR 1975 SC
2112, this Court held that anyone who deals with the land
subsequent to a Section 4 notification being issued, does so, at
his own peril. In Sneh Prabha v. State of Uttar Pradesh AIR
1996 SC 540, this Court held that a Section 4 notification gives D
a notice to the public at large that the land in respect to which it
has been issued, is needed for a public purpose, and it further
points out that there will be “an impediment to anyone to
encumber the land acquired thereunder.” The alienation after that
does not bind the State or the beneficiary under the acquisition.
E
The purchaser is entitled only to receive compensation. While
deciding the said case, reliance was placed on an earlier judgment
of this Court in Union of India v. Shiv Kumar Bhargava and Ors.
(1995) 2 SCC 427.
18. In view of the above, the law on the issue can be summarized
to the effect that a person who purchases land subsequent to F
the issuance of a Section 4 notification with respect to it, is not
competent to challenge the validity of the acquisition proceedings
on any ground whatsoever, for the reason that the sale deed
executed in his favour does not confer upon him, any title and at
the most he can claim compensation on the basis of his vendor’s G
title.”
(emphasis supplied)
6(e). In Rajasthan State Industrial Development and
Investment Corpn. v. Subhash Sindhi Cooperative Housing Society,
Jaipur & Ors. (2013) 5 SCC 427, it is laid down: H
706 SUPREME COURT REPORTS [2019] 13 S.C.R.
A “13. There can be no quarrel with respect to the settled legal
proposition that a purchaser, subsequent to the issuance of a
Section 4 Notification in respect of the land, cannot challenge
the acquisition proceedings, and can only claim compensation as
the sale transaction in such a situation is Void qua the
Government. Any such encumbrance created by the owner, or
B
any transfer of the land in question that is made after the issuance
of such a notification would be deemed to be void and would
not be binding on the Government. (Vide: Gian Chand v. Gopala
and Ors. (1995) 2 SCC 528; Yadu Nandan Garg v. State of
Rajasthan and Ors. AIR 1996 SC 520; Jaipur Development
C Authority v. Mahavir Housing Coop. Society, Jaipur, and Ors.
(1996) 11 SCC 229; Secretary, Jaipur Development Authority,
Jaipur v. Daulat Mal Jain and Ors. (1997) 1 SCC 35; Meera
Sahni v. Lieutenant Governor of Delhi and Ors. (2008) 9 SCC
177; Har Narain (Dead) by L.Rs. v. Mam Chand (Dead) by
L.Rs. and Ors. (2010) 13 SCC 128; and V. Chandrasekaran and
D
Anr. v. The Administrative Officer and Ors. JT 2012 (9) SC
260).”
(emphasis supplied)
6(f). A Three-Judge Bench in Rajasthan Housing Board v. New
E Pink City Nirman Sahkari Samiti Ltd. & Anr., (2015) 7 SCC 601, in
the context of section 4 as well as section 42 of the Rajasthan Tenancy
Act which also prohibited the transactions from being entered into with
SC/ST persons, has observed:
“33. The other decision relied upon by the Society is V.
F Chandrasekaran and Anr. v. Administrative Officer and Ors.
2012 (12) SCC 133] wherein this Court laid down thus:
17. In Ajay Kishan Singhal v. Union of India: AIR 1996 SC 2677;
Mahavir and Anr. v. Rural Institute, Amravati and Anr. (1995) 5
SCC 335; Gian Chand v. Gopala and Ors. (1995) 2 SCC 528;
G and Meera Sahni v. Lieutenant Governor of Delhi and Ors. (2008)
9 SCC 177, this Court categorically held that a person who
purchases land after the publication of a Section 4 notification
with respect to it, is not entitled to challenge the proceedings for
the reason, that his title is void and he can at best claim
compensation on the basis of vendor’s title. In view of this, the
H sale of land after issuance of a Section 4 notification is void, and
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 707
[ARUN MISHRA, J.]
the purchaser cannot challenge the acquisition proceedings. (See A
also: Tika Ram v. the State of U.P. (2009) 10 SCC 689).
18. In view of the above, the law on the issue can be summarized
to the effect that a person who purchases land subsequent to
the issuance of a Section 4 notification with respect to it, is not
competent to challenge the validity of the acquisition proceedings B
on any ground whatsoever, for the reason that the sale deed
executed in his favour does not confer upon him, any title and at
the most he can claim compensation on the basis of his vendor’s
title.
34. Reliance has been placed on Dossibai Nanabhoy Jeejeebhoy C
v. P.M. Bharucha 1958 (60) Bom.LR 1208] so as to contend that
the ‘person interested’ in the land under Section 9 of the Land
Acquisition Act would include a person who claims interest in
compensation to be paid on account of acquisition of land ad the
interest contemplated Under Section 9 is not restricted to legal D
or proprietary estate or interest in the land but such interest as
will sustain a claim to apportionment, is the owner of the land.
In our opinion, the decision is of no avail. The instant transaction
being void as per Section 42 of the Rajasthan Tenancy Act, and
the property was inalienable to non-SC. Obviously, the logical
corollary has to be taken that no right in apportionment to E
compensation can be claimed by the Society.”
6(g). In M. Venkatesh & Ors. v. Commissioner, Bangalore
Development Authority, etc. (2015) 17 SCC 1, a three-Judge Bench
has opined:
F
“16. That brings us to the question of whether Prabhaudas Patel
and other respondents in SLP (C) No. 12016 of 2013 were
entitled to any relief from the Court. These respondents claim
to have purchased the suit property in terms of a sale deed dated
22-8-1990, i.e., long after the issuance of the preliminary
Notification published in July 1984. The legal position about the G
validity of any such sale, post-issuance of preliminary notification,
is fairly well settled by a long line of the decisions of this Court.
The sale in such cases is void and non-est in the eye of the law
giving to the vendee the limited right to claim compensation and
no more. Reference may in this regard be made to the decision H
708 SUPREME COURT REPORTS [2019] 13 S.C.R.
A of this Court in U.P. Jal Nigam v. Kalra Properties (P) Ltd,
wherein this Court said: (SCC pp. 126-27, para 3)
“3. … It is settled law that after the notification under Section
4(1) is published in the gazette, any encumbrance created by the
owner does not bind the Government, and the purchaser does
B not acquire any title to the property. In this case, Notification
under Section 4(1) was published on 24-3-1973; possession of
the land admittedly was taken on 5-7-1973, and the pumping
station house was constructed. No doubt, declaration under
Section 6 was published later on 8-7-1973. Admittedly power
under Section 17(4) was exercised dispensing with the inquiry
C under Section 5-A and on service of the notice under Section 9
possession was taken, since urgency was acute viz. pumping
station house was to be constructed to drain out floodwater.
Consequently, the land stood vested in the State under Section
17(2) free from all encumbrances. It is further settled law that
D once possession is taken, by operation of Section 17(2), the land
vests in the State free from all encumbrances unless a notification
under Section 48(1) is published in the gazette withdrawing from
the acquisition. Section 11-A, as amended by Act 68 of 1984,
therefore, does not apply, and the acquisition does not lapse. The
notification under Section 4(1) and the declaration under Section
E 6, therefore, remain valid. There is no other provision under the
Act to have the acquired land divested, unless, as stated earlier,
notification under Section 48(1) was published, and the possession
is surrendered pursuant thereto. That apart, since M/s Kalra
Properties, the respondent had purchased the land after the
notification under Section 4(1) was published, its sale is void
F
against the State, and it acquired no right, title, or interest in the
land. Consequently, it is settled law that it cannot challenge the
validity of the notification or the regularity in taking possession
of the land before the publication of the declaration under Section
6 was published.
G (emphasis supplied)”
7. It has been laid down that the purchasers on any ground
whatsoever cannot question proceedings for taking possession. A
purchaser after Section 4 notification does not acquire any right in the
land as the sale is ab initio void and has no right to claim land under
H the Policy.
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 709
[ARUN MISHRA, J.]
8. When we ponder as to beneficial provisions of the Act of 2013, A
they also intend to benefit landowners mentioned in the notification under
Section 4, not for the benefit of such purchasers who purchase the land
after it has been vested in the State.
9. Sub-section 4 of Section 11 of the Act of 2013, which is akin
to section 4 of the Act of 1894, contains a prohibition that no person B
shall make any transaction or cause any transaction of land or create
any encumbrance on land from the date of publication of such
notification. Section 11(4) is extracted hereunder:
“11. Publication of preliminary notification and power of
officers thereupon.– C
xxxxx
(4) No person shall make any transaction or cause any transaction
of land specified in the preliminary notification or create any
encumbrances on such land from the date of publication of such
notification till such time as the proceedings under this Chapter D
are completed:
Provided that the Collector may, on the application made by the
owner of the land so notified, exempt in special circumstances
to be recorded in writing, such owner from the operation of this
subsection:
E
Provided further that any loss or injury suffered by any person
due to his wilful violation of this provision shall not be made up
by the Collector.”
Without seeking exemption from the Collector, there is a total
prohibition on any transaction of land. Whereas the legal position under F
the Act of 1894 was that a transaction effected after section 4
notification was illegal and void.
10. When we consider other provisions, the ‘affected family’ has
been defined under section 3(c) of the 2013 Act. The definition reads
as under:
G
“3. Definitions.–In this Act, unless the context otherwise
requires,—
(c) “affected family” includes—
(i) a family whose land or other immovable property has been
acquired; H
710 SUPREME COURT REPORTS [2019] 13 S.C.R.
A (ii) a family which does not own any land but a member or
members of such family may be agricultural labourers,
tenants including any form of tenancy or holding of usufruct
right, share-croppers or artisans or who may be working in
the affected area for three years prior to the acquisition of
the land, whose primary source of livelihood stand affected
B by the acquisition of land;
(iii) the Scheduled Tribes and other traditional forest dwellers
who have lost any of their forest rights recognized under
the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 (2 of 2007) due
C to acquisition of land;
(iv) family whose primary source of livelihood for three years
prior to the acquisition of the land is dependent on forests
or water bodies and includes gatherers of forest produce,
hunters, fisherfolk and boatmen, and such livelihood is
D affected due to acquisition of land;
(v) a member of the family who has been assigned land by the
State Government or the Central Government under any of
its schemes and such land is under acquisition;
(vi) a family residing on any land in the urban areas for
E preceding three years or more prior to the acquisition of the
land or whose primary source of livelihood for three years
prior to the acquisition of the land is affected by the
acquisition of such land;”
The affected family includes landowners for whose benefit land
F is held before the acquisition. A person acquiring interest after section
11 notification cannot be said to be included in the “affected family” at
all.
11. Definition of ‘family’ is in section 3(m), it is extracted
hereunder:
G
“3. Definition.–In this Act, unless the context otherwise
requires,—
…..
(m) “family” includes a person, his or her spouse, minor children,
H minor brothers and minor sisters dependent on him: Provided that
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 711
[ARUN MISHRA, J.]
widows, divorcees, and women deserted by families shall be A
considered separate families;
Explanation.—An adult of either gender with or without spouse
or children or dependents shall be considered as a separate family
for the purposes of this Act.”
12. The definition of ‘landowner’ is in section 3(r), the same is B
extracted hereunder:
“3. Definition.–In this Act, unless the context otherwise
requires,—
….. C
(r) “landowner” includes any person,— (i) whose name is
recorded as the owner of the land or building or part thereof, in
the records of the authority concerned; or
(ii) any person who is granted forest rights under the Scheduled
Tribes and Other Traditional Forest Dwellers (Recognition of D
Forest Rights) Act, 2006 (2 of 2007) or under any other law for
the time being in force; or
(iii) who is entitled to be granted Patta rights on the land under
any law of the State including assigned lands; or (iv) any person
who has been declared as such by an order of the court or E
Authority;”
Landowner is a person who is recoded as the owner of land or
building. The record of date of issuance of preliminary notification under
section 11 is relevant. A purchaser after section 11 cannot be said to
be a landowner within the purview of section 3(r). F
13. Person interested is defined in section 3(x) thus :
“3. Definition.–In this Act, unless the context otherwise
requires,—
(x) “person interested” means— G
(i) all persons claiming an interest in compensation to be
made on account of the acquisition of land under this
Act;
(ii) the Scheduled Tribes and other traditional forest dwellers,
who have lost any forest rights recognized under the H
712 SUPREME COURT REPORTS [2019] 13 S.C.R.
A Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 (2 of 2007);
(iii) a person interested in an easement affecting the land;
(iv) persons having tenancy rights under the relevant State laws
including share-croppers by whatever name they may be
B
called; and
(v) any person whose primary source of livelihood is likely to
be adversely affected;”
14. A rehabilitation and resettlement scheme has to be prepared
C under Section 16. Section 17 deals with the review of such a scheme.
An approved scheme to be made public under Section 18. Section 19
deals with the publication of declaration and summary of rehabilitation
and resettlement scheme. After inquiry, Award is passed by the Collector
under Section 23. The Collector is required to consider, among other
things, the interest of the person claiming the compensation,
D
rehabilitation, and resettlement while making an award.
15. Section 24 of the Act of 2013, which deals with land
acquisition made under the Act of 1894, is also relevant. The same is
extracted hereunder:
E “24. Land acquisition process under Act No. 1 of 1894
shall be deemed to have lapsed in certain cases – (1)
Notwithstanding anything contained in this Act, in any case of
land acquisition proceedings initiated under the Land Acquisition
Act, 1894,—
F (a) where no award under section 11 of the said Land
Acquisition Act has been made, then, all provisions of this
Act relating to the determination of compensation shall
apply; or
(b) where an award under said section 11 has been made, then
G such proceedings shall continue under the provisions of the
said Land Acquisition Act, as if the said Act has not been
repealed.
(2) Notwithstanding anything contained in sub-section (1), in case
of land acquisition proceedings initiated under the Land
H Acquisition Act, 1894 (1 of 1894), where an award under the
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 713
[ARUN MISHRA, J.]
said section 11 has been made five years or more prior to the A
commencement 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 have lapsed and the
appropriate Government, if it so chooses, shall initiate the
proceedings of such land acquisition afresh in accordance with
B
the provisions of this Act:
Provided that where an award has been made, and compensation
in respect of a majority of land holdings 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 accordance C
with the provisions of this Act.”
(emphasis supplied)
16. Section 24 (2) provides that in case the award has been
passed five years or more prior to the commencement of the Act, but D
the physical possession of the land has not been taken, or the
compensation has not been paid, the said proceedings shall be deemed
to have lapsed. It is not the case set up that compensation had not been
paid to purchasers/owners. The only case set up is that physical
possession has not been taken and proceedings of taking over possession
have been questioned to take advantage of provisions under Section E
24(2) of the Act of 2013. Whereas, averment in the writ petition itself
indicates that possession had been taken over in the year 2000 and that
unauthorized colonies have come up in the area. Thus, it is clear that
possession, if any, is illegal, and in fact, the actual physical possession
had been taken, and re-entering in possession in an unauthorized manner F
can confer no right. There is nothing to doubt that actual physical
possession had been taken in 2000. Thus, Section 24(2) is not attracted
in the case.
17. Even otherwise, proviso to Section 24(2) does not recognize
a purchaser after Section 4 notification inasmuch as it provides that G
where an award has been made, and the compensation in respect of a
majority of land holdings has not been deposited in the account of the
beneficiaries, then, all beneficiaries specified in the notification for
acquisition issued under the Act of 1894, shall be entitled to
compensation under the provisions of the Act of 2013. The proviso
makes it clear that in case of compensation concerning the majority of H
714 SUPREME COURT REPORTS [2019] 13 S.C.R.
A landholding has not been deposited, then recorded owner(s) at the time
of issuance of notification under section 4 of the Act of 1894 shall have
the right to receive the compensation. Purchasers after section 4
notification have not been given the right to receive the higher
compensation under the provisions contained in the act of 2013
B 18. The Act of 2013 presupposes that a person is required to be
rehabilitated and resettled. Such a person who has purchased after
section 4 notification as sale deed is void under the Act of 1894, cannot
claim rehabilitation and resettlement as per policy envisaged under the
Act of 2013, as his land has not been acquired, but he has purchased
a property which has already been acquired by the State Government,
C he cannot claim even higher compensation, as per proviso to section
24(2) under the Act of 2013. An original landowner cannot be deprived
of higher value under the Act of 2013, which higher compensation was
not so contemplated when the void transaction of sale had been entered,
and right is conferred under proviso to Section 24(2) on recorded owners
D under Act of 1894. We have come across instances in which after
notifications under section 4 were issued and, the property was
purchased at throwaway prices by the builders and unscrupulous
persons, such purchases are void and confer no right even to claim
higher compensation under Section 24(2) of the Act of 2013 as it is to
be given to the owner as mentioned in the notification.
E
19. Given that, the transaction of sale, effected after section 4
notification, is void, is ineffective to transfer the land, such incumbents
cannot invoke the provisions of section 24. As the sale transaction did
not clothe them with the title when the purchase was made; they cannot
claim ‘possession’ and challenge the acquisition as having lapsed under
F section 24 by questioning the legality or regularity of proceedings of
taking over of possession under the Act of 1894. It would be unfair
and profoundly unjust and against the policy of the law to permit such
a person to claim resettlement or claim the land back as envisaged under
the Act of 2013. When he has not been deprived of his livelihood but
is a purchaser under a void transaction, the outcome of exploitative
G tactics played upon poor farmers who were unable to defend
themselves.
20. Thus, under the provisions of Section 24 of the Act of 2013,
challenge to acquisition proceeding of the taking over of possession
under the Act of 1894 cannot be made, based on a void transaction
H nor declaration can be sought under section 24(2) by such incumbents
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 715
[ARUN MISHRA, J.]
to obtain the land. The declaration that acquisition has lapsed under the A
Act of 2013 is to get the property back whereas, the transaction once
void, is always a void transaction, as no title can be a acquired in the
land as such no such declaration can be sought. It would not be legal,
just and equitable to give the land back to purchaser as land was not
capable of being sold which was in process of acquisition under the
Act of 1894. The Act of 2013 does not confer any right on purchaser B
whose sale is ab initio void. Such void transactions are not validated
under the Act of 2013. No rights are conferred by the provisions
contained in the 2013 Act on such a purchaser as against the State.
21. ‘Void is, ab initio,’ a nullity, is inoperative, and a person cannot
claim the land or declaration once no title has been conferred upon him C
to claim that the land should be given back to him. A person cannot
enforce and ripe fruits based on a void transaction to start claiming title
and possession of the land by seeking a declaration under Section 24
of the Act of 2013; it will amount to conferment of benefit never
contemplated by the law. The question is, who can claim declaration/ D
rights under section 24(2) for the restoration of land or lapse of
acquisition. It cannot be by a person with no title in the land. The
provision of the Act of 2013 cannot be said to be enabling or authorizing
a purchaser after Section 4 to question proceeding taken under the Act
of 1894 of taking possession as held in U.P. Jal Nigam (supra) which
is followed in M. Venkatesh (supra) and other decisions and E
consequently claim declaration under Section 24 of the Act of 2013.
What cannot be done directly cannot be permitted in an indirect method.
22. The provisions of the Act of 2013 aimed at the acquisition
of land with least disturbance to the landowners and other affected
families and to provide just and fair compensation to affected families F
whose land has been acquired or proposed to be acquired or are affected
and to make adequate provisions for such affected persons for their
rehabilitation and resettlement. The provisions of Act of 2013 aim at
ousting all inter-meddlers from the fray by ensuring payment in the bank
account of landholders under section 77 of the Act. G
23. The intendment of Act of 2013 is to benefit farmers etc.
Subsequent purchasers cannot be said to be landowners entitled to
restoration of land and cannot be termed to be affected persons within
the provisions of Act of 2013. It is not open to them to claim that the
proceedings have lapsed under Section 24(2). H
716 SUPREME COURT REPORTS [2019] 13 S.C.R.
A 24. Apart from that the claims have been made on transactions
based on the power of attorneys, agreements, etc.; as such also they
are not entitled to any indulgence and cannot invoke provisions of section
24(2) of the 2013 Act. The Court has considered the question of the
validity of transactions in the form of power of attorney in Suraj Lamp
and Industries Pvt. Ltd. through Director v. State of Haryana &
B
Anr. (2012) 1 SCC 656, and has held that no rights could be accrued
on such transactions as this is not a legal mode of transfer. This Court
has observed :
“20. A power of attorney is not an instrument of transfer in
regard to any right, title, or interest in an immovable property.
C The Power of Attorney is a creation of an agency whereby the
grantor authorizes the grantee to do the acts specified therein,
on behalf of the grantor, which when executed will be binding
on the grantor as if done by him (see Section 1A and Section 2
of the Powers of Attorney Act, 1882). It is revocable or
D terminable at any time unless it is made irrevocable in a manner
known to law. Even an irrevocable attorney does not have the
effect of transferring title to the grantee.
21. In-State of Rajasthan v. Basant Nehata 2005 (12) SCC 77
this Court held:
E “13. A grant of power of attorney is essentially governed by
Chapter X of the Contract Act. By reason of a deed of power
of attorney, an agent is formally appointed to act for the principal
in one transaction or a series of transactions or to manage the
affairs of the principal generally conferring necessary authority
F upon another person. A deed of power of attorney is executed
by the principal in favor of the agent. The agent derives a right
to use his name and all acts, deeds, and things are done by him
and subject to the limitations contained in the said deed, the same
shall be read as if done by the donor. A power of attorney is, as
is well known, a document of convenience.
G
Execution of a power of attorney in terms of the provisions of
the Contract Act as also the Powers-of-Attorney Act is valid. A
power of attorney, we have noticed hereinbefore, is executed by
the donor so as to enable the done to act on his behalf. Except
in cases where power of attorney is coupled with an interest, it
H is revocable. The done in exercise of his power under such
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 717
[ARUN MISHRA, J.]
power of attorney only acts in place of the donor subject, of A
course, to the powers granted to him by reason thereof. He
cannot use the power of attorney for his own benefit. He acts
in a fiduciary capacity. Any act of infidelity or breach of trust is
a matter between the donor and the done.
An attorney holder may, however, execute a deed of conveyance B
in the exercise of the power granted under a power of attorney
and convey title on behalf of the grantor.
Scope of Will
14. A will is the testament of the testator. It is a posthumous
disposition of the estate of the testator directing the distribution C
of his estate upon his death. It is not a transfer inter vivo. The
two essential characteristics of a will are that it is intended to
come into effect only after the death of the testator and is
revocable at any time during the lifetime of the testator. It is said
that so long as the testator is alive, a will is not be worth the D
paper on which it is written, as the testator can at any time
revoke it. If the testator, who is not married, marries after making
the will, by operation of law, the will stands revoked. (see
Sections 69 and 70 of the Indian Succession Act, 1925).
Registration of a will does not make it any more effective.
E
Conclusion
15. Therefore, a SA/GPA/WILL transaction does not convey any
title nor create any interest in an immovable property. The
observations by the Delhi High Court, in Asha M. Jain v. Canara
Bank 94 (2001) DLT 841 that the “concept of power of attorney F
sales have been recognized as a mode of transaction” when
dealing with transactions by way of SA/GPA/WILL are
unwarranted and not justified, unintended misleading the general
public into thinking that SA/GPA/WILL transactions are some
kind of a recognized or accepted mode of transfer and that it
can be a valid substitute for a sale deed. Such decisions to the G
extent they recognize or accept SA/GPA/WILL transactions as
concluded transfers, as contrasted from an agreement to transfer,
are not good law.
16. We, therefore, reiterate that immovable property can be legally
and lawfully transferred/ conveyed only by a registered deed of H
718 SUPREME COURT REPORTS [2019] 13 S.C.R.
A conveyance. Transactions of the nature of ‘GPA sales’ or ‘SA/
GPA/WILL transfers’ do not convey title and do not amount to
transfer, nor can they be recognized or valid mode of transfer
of immovable property. The courts will not treat such transactions
as completed or concluded transfers or as conveyances as they
neither convey title nor create any interest in an immovable
B
property. They cannot be recognized as deeds of title, except to
the limited extent of Section 53A of the Transfer of Property Act.
Such transactions cannot be relied upon or made the basis for
mutations in Municipal or Revenue Records. What is stated
above will apply not only to deeds of conveyance in regard to
C freehold property but also to transfer of leasehold property. A
lease can be validly transferred only under a registered
Assignment of Lease. It is time that an end is put to the pernicious
practice of SA/GPA/WILL transactions known as GPA sales.
17. It has been submitted that making declaration that GPA sales
D and SA/GPA/WILL transfers are not legally valid modes of
transfer is likely to create hardship to a large number of persons
who have entered into such transactions, and they should be given
sufficient time to regularize the transactions by obtaining deeds
of conveyance. It is also submitted that this decision should be
made applicable prospectively to avoid hardship.”
E
No right can be claimed based on a transfer made by way of
execution of Power of Attorney, Will, etc., as it does not create any
interest in immovable property.
25. In Manav Dharam Trust (supra), even the provisions of the
F Act of 2013 have not been taken into consideration, which prohibits
such transactions in particular provisions of section 11, including the
proviso to section 24(2). Apart from that, it was not legally permissible
to a Division Bench to ignore the decisions of the larger Bench
comprising of three Judges and of Co-ordinate Bench. They were not
G per incuriam and were relevant for deciding the issue of taking
possession under Act of 1894, at the instance of purchaser. In case it
wanted to depart from the view taken earlier, it ought to have referred
the matter to a larger bench. It has been ignored that when a purchase
is void, then no declaration can be sought on the ground that the land
acquisition under the Act of 2013 has lapsed due to illegality/irregularity
H of proceedings of taking possession under the Act of 1894. No
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS. 719
[ARUN MISHRA, J.]
declaration can be sought by a purchaser under Section 24 that A
acquisition has lapsed, effect of which would be to get back the land.
They cannot seek declaration that acquisition made under the Act of
1894 has lapsed by the challenge to the proceedings of taking possession
under the Act of 1894. Such right was not available after the purchase
in 2000 and no such right has been provided to the purchasers under
the Act of 2013 also. Granting a right to question acquisition would be B
against the public policy and the law which prohibits such transactions;
it cannot be given effect to under the guise of subsequent legislation
containing similar provisions. Subsequent legislation does not confer any
new right to a person based on such void transaction; instead, it includes
a provision prohibiting such transactions without permission of the C
Collector as provided in Section 11(4).
26. Thus, we have to follow the decisions including that of larger
Bench mentioned above, laying down the law on the subject, which still
holds the field and were wrongly distinguished. The binding value of
the decision of larger and coordinate Benches have been ignored while D
deciding the Manav Dharam Trust case (supra), it was not open to it
to take a different view. The decision in Manav Dharam Trust (supra)
is per incuriam in light of this decision of this Court in Mamleshwar
Prasad v. Kanahaiya Lal, (1975) 2 SCC 232, A.R. Anutulay v. R.S.
Nayak, (1988) 2 SCC 602, State of Uttar Pradesh v. Synthetics and
Chemicals Ltd., (1991) 4 SCC 139, State of B. Shama Rao v. Union E
Territory of Pondicherry, AIR 1967 SC 1480, Municipal
Corporation of Delhi v. Gurnam Kaur, (1989) 1 SCC 101, Narmada
Bachao Andolan (III) v. State of Madhya Pradesh, AIR 2011 SC
1989, Hyder Consulting (UK) Ltd. v. State of Odisha, (2015) 2 SCC
189 and Sant Lal Gupta v. Modern Coop. Societies Ltd. 2010 13
F
SCC 336.
27. We hold that Division Bench in Manav Dharam Trust (supra)
does not lay down the law correctly. Given the several binding
precedents which are available and the provisions of the Act of 2013,
we cannot follow the decision in Manav Dharam Trust (supra) and
G
overrule it. Shri S.N. Bhatt, learned counsel submitted that in case this
Court does not agree with the Manav Dharam Trust (supra), the case
may be referred to Hon’ble the Chief Justice of India under the
provisions of Order VI Rule 2 of the Supreme Court Rules, 2013. He
has relied upon the decision of this court in Vineeta Sharma v. Rakesh
Sharma (2019) 6 SCC 162 in which, in view of the conflict of opinion H
720 SUPREME COURT REPORTS [2019] 13 S.C.R.
A of two Division Bench judgments of this Court as to the interpretation
of section 6 of the Hindu Succession Act, 1956 the matter was referred
to the Hon’ble the Chief Justice of India, for constituting an appropriate
Bench. However, in the instant case, the issue is different, whether we
have to follow the decision in Manav Dharam Trust (supra) or the
earlier decisions of this Court mentioned above. It is apparent that the
B decisions of the Three Judges Bench are binding on us, and in view of
other consistent decisions of this Court, we have to follow them. It is
not appropriate to refer the case to larger Bench under Order VI Rule
2 of Supreme Court Rules. We find no fault in the Judgments laying
down the law that the purchase after section 4 is void as against the
C State. We are not impressed with the submission raised on behalf of
the purchasers to refer the matter for the constitution of a Larger Bench
to the Hon’ble Chief Justice. When decisions of Larger Bench and
other Division Bench are available, the case cannot be referred to a
Larger Bench.
D 28. Concerning the illegal colony, averments have been made that
the colony is an unauthorized and provisional order was passed to
regularise it. The plea taken is contradictory and shows the falsity of
the claim raised by the purchasers. That, apart predecessors of the
purchaser obtained the land-based on Power of Attorney, Agreement
to Sell, and Will on 9.12.1982. As per averments made in the writ
E application, Bijender Singh, who was owning ½ share, sold the share
to Satya Narain by the documents like Agreement to Sell, Power of
Attorney, or Will. It has also been averred that Om Prakash sold the
remaining ½ share to Satya Narain on 11.3.1984 by way of Agreement
to Sale, Power of Attorney, or Will. The purchase made through
Agreement to Sale, Power of Attorney, or Will by Satya Narain did
F
not confer a title upon him to transfer it to the purchasers apart from
the fact that it was void in view of purchase after Section 4. Based on
purchase made from such owners whose title was not perfect,
purchasers had no derivative title in the eye of law. There was no legally
recognized title deed in favor of Satya Narain.
G 29. Resultantly, we hold that no interference is called for in the
judgment and order passed by the High Court. Accordingly, the appeal
is dismissed.
Devika Gujral Appeal dismissed.
H
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