Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1346 of 2016, Judgment Date: Feb 15, 2016


                        IN THE SUPREME COURT OF INDIA

                       CIVIL  APPELLATE  JURISDICTION

                       CIVIL APPEAL NO. 1346  OF 2016
                   (Arising from S.L.P. (C) No.20678/2010)


CHANDRAKANT ADINATH UTTURE                                    … APPELLANT (S)

                                   VERSUS

STATE OF MAHARASHTRA & OTHERS                                … RESPONDENT (S)

                                    WITH

                        CIVIL APPEAL NO. 1348 OF 2016
                  (Arising from S.L.P. (C) No. 20816/2010)

                                     AND

                       CIVIL APPEAL NO.  1350 OF 2016
                   (Arising from S.L.P. (C) No.22455/2010)


                               J U D G M E N T

KURIAN, J.:



Leave granted.


The  Maharashtra  Project  Affected   Persons   Rehabilitation   Act,   1986
(hereinafter referred to as “the Act”) is a piece  of  legislation  intended
for  rehabilitation  of  persons  affected  on  implementation  of   certain
projects in the State of Maharashtra on the lands acquired  from  the  zones
benefitted by  the  projects.  The  Act  is  applicable  to  all  irrigation
projects of which the area of the affected zone exceeds 50 Hectares  or  the
area of the benefitted zone exceeds 200  Hectares  or  where  a  gaothan  is
affected. The State Government is also entitled to make the  Act  applicable
to other projects as well to which the Act is applicable. The affected  zone
is defined as the area declared under Section 13 of the  Act  to  constitute
the extent of the area affected under a particular project. Benefitted  zone
means the area declared under Section 13 of the Act to constitute  the  area
of the benefitted zone under the project. Rehabilitation  under  the  scheme
of the Act of the affected persons is done mainly by acquiring lands  coming
under the benefitted zone. In the present case, it is the Chikotra  project.


Under Section 13 of the Act, the State Government has to make a  declaration
of areas in affected and benefitted zones and also the extent of land to  be
acquired in the benefitted zone is as per the slabs mentioned in Part II  of
the Schedule. As far as extent of area constituting the affected zone  under
the project and the extent of  area  constituting  the  benefitted  zone  is
concerned, it is clearly provided under Section 13(2)  of  the  Act  that  a
public notice inviting objections or suggestions  is  to  be  issued.  After
considering the  objections  and  suggestions  only,  a  notification  under
Section 13 (1) of the Act could be published in the official gazette and  by
other modes of publication as provided under the Act.

In the instant case, there is no dispute on that procedure. The  dispute  is
in a narrow compass. In the gazette notification originally  published,  the
slab under Part II was Slab III whereunder there is no acquisition  in  case
the holding in the benefitted zone is not more than 3 Hectares and 23  Ares.
Under  all  slabs,  larger  the  holding,  proportionately  larger  is   the
acquisition.  After publishing the notification under Section 13  with  Slab
III  on  04.03.1994,  another  notification  was  published  on   26.07.1995
changing the slab under       Part II from Slab III to Slab  I  wherein  the
exemption from acquisition is only where the size of  holding  is  not  more
than 1 Hectare and 61 Ares. Under Slab I (if  the  size  of  the  benefitted
holding is more than 1 Hectare and 61 Ares but not more than 2 Hectares  and
42 Ares, the area to be acquired is that in excess of 1 Hectare and 61  Ares
(the exempted area under Slab I) but not more than 40 Ares). If the size  of
the holding is more than 2  Hectares  and  42  Ares  and  not  more  than  3
Hectares and 23 Ares (the exempted size of the holding under Slab III),  the
area to be acquired is the area in excess of 2 Hectares and 2 Ares  but  not
more than 80 Ares.

The simple question is, in case there is a change in  slab  or  area  to  be
acquired, after the publication of the first notification, should  there  be
a notice to those whose lands will be acquired on account of the  change  in
the slab.

The High Court in the impugned judgment  dated  07.06.2010,  has  taken  the
view that the public notice for hearing under Section 13  of  the  Act  need
only be in respect of the lands in the affected  zone  and  benefitted  zone
and there is no requirement under the Act or  under  law,  for  notice  when
there is a change in the slab, and hence, the appeals.

Being a pure question of law, it is not necessary to  delve  deep  into  the
facts and yet we shall refer to a few dates.

Notices under Section 13(2) of the Act inviting objections with  respect  to
lands in the affected and benefitted zones  were  published  on  20.09.1993,
22.11.1993  and  03.12.1993.   After   considering   the   objections,   the
notification under Section 13(1) of the Act was issued and published in  the
gazette on 04.03.1994. There were around 500 project affected khatedars  and
the land estimated for the rehabilitation was around 653  Hectares.  As  per
the notified Slab III, exempted size of holding being  upto  the  extent  of
3.43 Hectares, the land  available  for  acquisition  was  only  around  179
Hectares, as per the respondent. However, if the slab was changed from  Slab
III to Slab I, the land  available  for  acquisition  would  be  around  548
Hectares. It was  hence  and  in  that  context,  another  notification  was
published on  26.07.1995  changing  the  slab  from  Slab  III  to  Slab  I.
According to the appellants, though there is no  requirement  under  Section
13 of the Act for a notice and hearing while issuing a notification for  the
first time under Section 13(1) of the Act, when there is  a  change  in  the
slab reducing the exempted  area,  the  affected  persons  are  entitled  to
notice.

In order to appreciate the contention, we have to analyse the scheme of  the
Act under Sections 13 and 14 of the Act  dealing  with  the  declaration  of
areas in the affected and benefitted zones and  the  Schedule.  Sections  13
and 14 read as follows:

“Section 13: Declaration of areas in affected or benefitted zones


(1) The State Government shall, by notification in the Official Gazette  and
also by publication of such notification in  the  manner  provided  in  sub-
section (2) of section 11, declare-


(a) the extent of area which shall constitute  the  area  of  affected  zone
under the project;


(b) if the project is an irrigation project, the extent of area which  shall
constitute the area of benefitted zone under the project;


(c) which of the slabs mentioned in Part II of the Schedule shall  apply  to
such project for the purpose of acquisition of land in the benefitted zone.


(2) Before publishing a notification under sub-section  (1),  the  Collector
shall give a public notice inviting objections or suggestions in respect  of
the lands  falling  under  clauses  (a)  and  (b)  of  sub-section  (1),  by
publishing in the manner specified in sub-section  (2)  of  section  11  and
also in the Official Gazette and in  one  daily  newspaper  in  the  Marathi
language circulating in the local area comprising such  villages  and  areas
of affected and benefitted zone. Any person interested in the land  in  such
areas may make, objections or suggestions, if any, to the  Collector  within
30 days from the date on which such public notice is published  by  beat  of
drum in the village or area concerned or the date on which it  is  published
in the newspaper as aforesaid, whichever is later; and the Collector  shall,
with all reasonable dispatch, forward any objections or suggestions so  made
together with his report in respect thereof to the State Government  and  on
considering the report and the  objections  and  suggestions,  if  any,  the
State Government may pass such order as it deems fit.


(3) If at any time during the course of execution of a project, the  project
authority is satisfied that  any  change  in  the  areas  mentioned  in  the
notification under subsection (1) is necessary, it  shall  communicate  such
change with reasons and the plans and particulars relating to the change  to
the State Government through the Collector.


(4) On receipt of the communication under sub-section (3) and the report  of
the Collector, if any,  the  State  Government  may  after  considering  the
reasons given by the project authority and in the report,  if  any,  of  the
Collector and making such enquiry, if any,  as  it  thinks  fit,  make  such
change in the manner laid down in sub-sections (1) and (2).





Section 14: Power to acquire land for purposes of this Act


(1) The State Government or the Collector authorised by  it  by  general  or
special order in this behalf may enter into an  agreement  with  any  person
for the purchase or exchange of any  land  required  for  carrying  out  the
purposes of this Act:


Provided that, the amount paid under an  agreement  under  this  sub-section
shall not be less than the amount of compensation payable for the land,  had
it been acquired in accordance with the provisions of sub-section (2).


(2) Subject to the provisions of this section, the State Government may  for
carrying out the purposes of this Act, also compulsorily acquire land  under
the Land Acquisition Act, 1894 (I of 1894); and the acquisition of any  land
for any of the said purposes shall be deemed to be a public  purpose  within
the meaning of that Act.


(3) The State Government may also acquire lands included  in  a  gaothan  in
the affected zone as far as practicable according to the provisions of  Part
I of the Schedule.


(4) For the purpose of rehabilitating affected  persons  from  the  affected
zone under an irrigation  project,  including  those  under  any  irrigation
project  who  have  remained  to  be  rehabilitated,  on  land,  the   State
Government may acquire land from holdings in  the  benefitted  zone  of  the
project according to the  slab  declared  in  the  notification  under  sub-
section (1) of section 13 and may also acquire, where necessary,  land  from
any other villages or areas, as it may deem fit.


(5) All lands acquired under this  section  shall  form  part  of  the  land
pool.”




Slab I and Slab III in Part II under the Schedule, to the  extent  relevant,
read as follows:
|“Size of holding                |Area to be acquired          |
|(1)                             |(2)                          |
|Slab I                                                        |
|(a) Not more than 1 Hectare     |(a) NIL                      |
|and 61 Ares.                    |                             |
|(b) More than 1 Hectare and 61  |(b) The area in excess of 1  |
|Ares and not more than 2        |Hectare and 61 Ares but not  |
|Hectares and 42 Ares.           |more than 40 Ares.           |
|(c) More than 2 Hectares and 42 |(c) The area in excess of 2  |
|Ares and not more than 3        |Hectares and 2 Ares but not  |
|Hectares and 23 Ares.           |more than 80 Ares.           |
|(d) More than 3 Hectares and 23 |(d) The area in excess of 2  |
|Ares and not more than 3        |Hectares and 42 Ares but not |
|Hectares and 4 Ares.            |more than 1 Hectare and 21   |
|                                |Ares.                        |
|xxx                           xxx                      xxx    |
|Slab III                                                      |
|(a) Not more than 3 Hectares and|(a) NIL                      |
|23 Ares.                        |                             |
|(b) More than 3 Hectares and 23 |(b) The area in excess of 3  |
|Ares and not more than 4        |Hectares and 23 Ares but not |
|Hectares and 4 Ares.            |more than 40 ares.           |
|xxx                            xxx                            |
|xxx”                                                          |


Under  Section  13  of  the  Act,  before  the  State  Government  makes   a
notification  in  the  official  gazette  declaring  the  extent   of   area
constituting affected and benefitted zones and the slab  under  Part  II  of
the Schedule, the Collector has to give a public notice under Section  13(2)
of the Act inviting objections  or  suggestions  in  respect  of  the  lands
falling  under  the  affected  zone  and  benefitted  zone.  The   mode   of
publication is gazette and daily newspaper in Marathi having circulation  in
the respective  areas.  The  Collector  has  to  forward  a  report  on  the
objections or suggestions made  by  the  persons  interested  in  the  lands
coming under the affected or benefitted zone and the  State  Government  has
to pass appropriate orders on the report on the objections and  suggestions.
Only after completing the process as above under sub-Section (2) of  Section
13 of the Act, a notification of the affected and benefitted zones  and  the
slab under Part II of the Schedule can be published. Under sub-Section  (3),
if, at any time, during the course of execution of a project, in  case,  any
change in the areas mentioned in  the  notification  under  sub-Section  (1)
becomes necessary, such change can be made only in the manner laid  down  in
sub-Sections (1) and (2). As per the first notification under Section  13(1)
of the Act published on 04.03.1994, since the slab was Slab III,  there  was
no acquisition where the size of the holding in the benefitted zone  is  not
more  than  3  Hectares  and  23  Ares;  however,  as  per  the   subsequent
notification dated 26.07.1995 published under Section 13(1), since there  is
a change of slab from Slab III to Slab I, there is  acquisition  from  those
who hold land more than 1 Hectare and 61 Ares. It is certainly a  change  as
perceived under sub-Section (3) and such a change can be brought out  during
the course of execution of a project only in the manner laid  down  in  sub-
Sections (1) and (2) of Section 13 of  the  Act.  The  reason  is  that  any
adverse change in the slab would have its impact on the extent on the  lands
in benefitted zone. That zone in the process gets reduced.  In  the  instant
case, while publishing the second notification on 26.07.1995, the  procedure
under sub-Section (2), admittedly, has not been followed.

It may be seen that the whole purpose of notice  under  sub-Section  (2)  of
Section 13 of the Act is to invite objections or suggestions in  respect  of
the lands falling under the affected or benefitted zone. By change of  slab,
as noted above, there is change in the area of the benefitted zone and  that
change can be brought out only on following the procedure under  sub-Section
(2) after considering the objections and suggestions.

Sub-Section (4) of Section 14 of the Act is also another  indicator  on  the
requirement of notice. The Government is  permitted  to  acquire  land  even
from any other villages or areas  for  the  purpose  of  rehabilitating  the
affected persons from the affected zone or for  rehabilitating  those  under
any project who have remained to be rehabilitated. Once there  is  a  change
in the notification on the slab reducing the size of exempted  holding,  the
people thus affected should get  a  chance  to  make  their  objections  and
suggestions,  so  that  the  Government  may  consider  the  report  of  the
Collector on those objections and  suggestions,  before  issuing  a  revised
notification under Section 13(1) of the Act.

Learned Counsel for  the  respondent-State  submits  that  pursuant  to  the
notifications issued under the Act, further  steps,  as  noted  below,  have
been taken for acquisition of the land:
|Sl. No.   |Date         |Particular                           |
|1.        |21.09.2000   |Notification under Section 4 of Land |
|          |             |Acquisition Act was published in     |
|          |             |Government Gazette.                  |
|2.        |             |Notice u/s. 4(1) of the Land         |
|          |             |Acquisition Act was given to the     |
|          |             |petitioner.                          |
|3.        |28.11.2000   |Objections raised by the petitioner  |
|          |             |u/s.5(1) of the Land Acquisition Act |
|          |             |were heard.                          |
|4.        |14.12.2001   |Declaration u/s. 6 of Land           |
|          |             |Acquisition Act was published in     |
|          |             |Government Gazette.                  |
|5.        |15.01.2002   |The notice u/s.9(3)(4) of the Land   |
|          |             |Acquisition Act was issued to the    |
|          |             |petitioner.                          |
|6.        |21.01.2004   |Final Award has been declared”       |




Passing of the award by itself does not mean that any illegality should  not
be addressed. In the instant case, the writ petitions were  filed  when  the
declaration under Section 6 of the Act was published, and in  any  case,  it
is submitted by the appellants that they have not been dispossessed  so  far
and no compensation also has been paid.

Therefore, the High Court is not right in holding that  the  requirement  of
notice on objections and suggestions need only be in respect  of  the  lands
coming under Section 13(1)(a) of the Act (the affected  zones)  and  Section
13(1)(b) of the Act  (the  benefitted  zones).  The  High  Court  is  right,
however, in holding that no notice is  required  in  respect  of  the  lands
belonging to the slab under Section 13(1)(c) of the Act, when it  is  issued
for the first time. However, in case there is a change in the slab  reducing
the  area  of  exemption  from  acquisition  in  the  benefitted  zone,  the
procedure under Section 13 (2) of the Act is required to be followed.

For the  above  reasons,  these  appeals  are  disposed  of  permitting  the
appellants to prefer their objections or submit  their  suggestions  on  the
change of slab from Slab III to Slab  I  before  the  Collector  within  one
month from today. The  Collector  shall  make  appropriate  inquiry  on  the
objections or suggestions and forward his report  to  the  State  Government
within another two months.  The  State  Government  shall  pass  appropriate
orders on the report within another two  months.  Depending  on  the  orders
thus passed by  the  Government,  the  Collector  shall  revise  the  awards
already passed, if required. The appeals are allowed to the above extent.

There shall be no order as to costs.


                                                         ..……………..……………………J.
                                                            (KURIAN JOSEPH)


                                                           ……………..……………………J.
                                                     (ROHINTON FALI NARIMAN)
New Delhi;
February 15, 2016.

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                                                                  REPORTABLE


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