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

Appeal (Civil), 3872 of 2010, Judgment Date: Nov 24, 2014

                                                              NON-REPORTABLE

                         IN THE SUPREME COURT OF INDIA

                         CIVIL APPELLATE JURISDICTION


                            I.A.NOS. 3-4 OF 2014


                                     IN


                         CIVIL APPEAL NO.3872 OF 2010



   RAM KISHAN & ORS                                  .........APPELLANTS


                                     Vs.


   STATE OF HARYANA & ORS                           .........RESPONDENTS




                                 J U D G M E N T



V.GOPALA GOWDA, J.




 I.A. No. 4 for exemption from filing official translation is ordered.


  I.A.  No.3  in  Civil  Appeal  No.  3872  of  2010   is   filed   by   the

applicants/appellant  Nos.  24-28  (for  short  'the  applicants')   seeking

direction and appropriate orders for disposal of this  appeal  in  terms  of

Section 24(2) of the Right to Fair Compensation  and  Transparency  in  Land

Acquisition, Rehabilitation and Resettlement Act, 2013 (in  short  'the  Act

of 2013'). The appellant-land owners have come  to  this  Court  questioning

the correctness of the judgment and order dated  13.03.2008  passed  by  the

High Court of Punjab and  Haryana  at  Chandigarh  in  Civil  Writ  Petition

No.3823 of 2008, wherein the writ petition was dismissed on the ground  that

the same was not maintainable after passing of the Award.



 The brief facts are mentioned hereunder.

    The appellant nos. 24-28 are the owners and in possession  of  the  land

in question bearing khewat no. 260 Khasra no.46 killa nos.1(3-18),  2(7-14),

3/1(0-16), 8/2(0-16), 9(8-0),  10(6-1)  and  26(0-5)  totally  measuring  27

kanals 13  marlas  of  land  situated  in  the  revenue  estate  of  Village

Kumashpur Tehsil and Distict Sonipat(Haryana). The appellants have  been  in

continuous possession of the  aforesaid  land  in  question  till  date  and

harvesting crops.


 On 20.01.2003 the respondents published a notification under Section  4  of

the Land Acquisition Act, 1894 (hereinafter referred to as 'the  L.A.  Act')

bearing  No.  LAC   (F)-NTLA/2003/137.   Thereafter   on   16.01.2004,   the

respondents issued notification under Section 6 of the L.A. Act bearing  No.

LAC (F)- NTLA/2004/190. The  Land  Acquisition  Collector  passed  an  award

bearing No.7 of the year 2006-2007 dated 14.01.2006.


 The appellants challenged the  said  notification  in  the  High  Court  of

Punjab and Haryana vide Civil Writ Petition No.3823 of 2008. The High  Court

vide its judgment and order dated 13.03.2008 dismissed the writ petition  by

assigning untenable reasons. Aggrieved by  the  same,  the  appellants  have

filed this appeal.


 The learned counsel for  the  appellants  placed  strong  reliance  on  the

application filed under Section 24(2) of the Act  of  2013  which  has  come

into force w.e.f. 01.01.2014, the said provision is extracted hereunder:-


"24(2)Notwithstanding anything contained in  sub-section  (1),  in  case  of

land acquisition proceedings initiated under the  LA  Act,  where  an  Award

under the said Section 11 has been made five years  or  more  prior  to  the

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 the provisions of this Act.


Provided that whether 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 specified in the notifications for acquisition  under  Section

4 of the said land acquisition and shall  be  entitled  to  compensation  in

accordance with the provisions of this Act."


 It is contended that in the instant case,  the  appellants  are  fulfilling

the requirements of Section 24(2)  of  the  Act  of  2013  as  the  physical

possession of the land involved in these  proceedings  has  not  been  taken

till date and no compensation is paid to the  appellants  though  the  award

has been made on 14.01.2006. Therefore, the  said  provision  under  Section

24(2) of the Act of 2013 squarely applies to the case of the appellants  and

the land acquisition proceedings  in  so  far  as  the  appellants  land  is

concerned be deemed to have elapsed.


 Further, the learned counsel for the  appellants  placed  reliance  on  the

decisions of this Court in the cases of Pune Municipal Corporation and  Anr.

v. Harakchand Misirimal Solanki & Ors.[1], Bharat Kumar v. State of  Haryana

& Another[2], Bimla Devi & Others v. State of Haryana & Others[3] and  Union

of India & others v. Shiv Raj & Others[4] and submitted that  the  ratio  in

the aforesaid judgments squarely apply to the present case  on  hand.  Thus,

the acquisition proceedings qua the  land  of  the  appellants  have  to  be

declared as lapsed by applying the provisions of Section 24(2)  of  the  Act

of 2013.



 We have heard the learned counsel for both  the  parties.  After  examining

the facts and circumstances of the case on hand, we are  of  the  considered

view that neither the possession of the land in question has been  taken  by

the respondents nor was the compensation paid to the appellants though  more

than five  years  have  passed  since  the  date  of  the  award  passed  on

14.01.2006. Therefore, the  acquisition  proceedings  of  the  land  of  the

appellants have lapsed in view of Section 24(2) of  the  Act  of  2013.  The

said provision has been succinctly interpreted  by  the  three  Judge  Bench

decision of this Court in the case of Pune  Municipal  Corporation  (supra).

The relevant paras 20 and 21 of the aforesaid case is extracted hereunder:-

"20.......it is clear that the award pertaining  to  the  subject  land  has

been made by the Special Land  Acquisition  Officer  more  than  five  years

prior to the commencement of the 2013 Act.  It  is  also  admitted  position

that   compensation   so   awarded   has   neither   been   paid   to    the

landowners/persons interested nor deposited in the  court.  The  deposit  of

compensation amount in the Government treasury is of no avail and cannot  be

held to  be  equivalent  to  compensation  paid  to  the  landowners/persons

interested. We have, therefore, no hesitation in holding  that  the  subject

land acquisition proceedings shall be deemed to have  lapsed  under  Section

24(2) of the 2013 Act.




21. The argument  on  behalf  of  the  Corporation  that  the  subject  land

acquisition proceedings have been concluded in all respects under  the  1894

Act and that they are not affected at all in view of Section 114(2)  of  the

2013 Act, has no merit at all, and is noted to be rejected.  Section  114(1)

of the 2013 Act repeals the  1894  Act.  Sub-section  (2)  of  Section  114,

however, makes Section 6 of the General Clauses Act,  1897  applicable  with

regard to the effect of repeal but this is subject to the provisions in  the

2013 Act. Under Section 24(2) land acquisition proceedings  initiated  under

the 1894 Act, by legal fiction, are deemed to have lapsed  where  award  has

been made five years or more prior to the commencement of the 2013  Act  and

possession of the land is not taken or compensation has not been  paid.  The

legal  fiction  under  Section  24(2)  comes  into  operation  as  soon   as

conditions stated therein are satisfied. The applicability of Section  6  of

the General Clauses Act being subject to Section 24(2), there  is  no  merit

in the contention of the Corporation."




10. Further, reliance was placed on the decision of this Court in  the  case

of Bimla Devi & Ors. (supra) and Sree Balaji Nagar  Residential  Association

v. State of Tamil Nadu & others[5], wherein the law laid down  in  the  case

of Pune Municipal Corporation  (supra) was reiterated. In Sree Balaji  Nagar

Residential Association (supra),  it  was  held  that  the  provision  under

Section 24(2) of the 2013 Act does not exclude any period during  which  the

land acquisition proceedings might have remained stayed on account  of  stay

or  injunction  granted  by  any  court.  It  was  further  held  that   the

Legislature has consciously omitted to  extend  the  period  of  five  years

indicated in Section 24(2) even if  the  proceedings  had  been  delayed  on

account of an order of stay or injunction granted by a court of law  or  for

any reason.


11. Further in the case of Shiv Raj & Ors.  (supra),  this  Court  discussed

the  circular  issued  by  the  Government  of  India,  Ministry  of   Urban

Development, Delhi Division wherein  the  legal  opinion  of  the  Solicitor

General of India clarified the statutory provisions of the Act of 2013  with

respect to lapsing of land acquisition proceedings under  Section  24(2)  of

the Act of 2013. The relevant para 25 is extracted hereunder:-


"25..... 3.Interpretation of five years' period "With regard to  this  issue

viz.  interpretation  of  five  years'  period,  two  situations  have  been

envisaged in cases where the acquisition has been initiated under  the  Land

Acquisition Act, 1894 viz. (1) parties whose lands have been  acquired  have

refused to accept the compensation and (2) parties  whose  lands  have  been

acquired having just parted with physical possession of the  land.  However,

in both the above situations, as on 1-1-2014, the period of  5  years  would

not have ended and in such cases, the advisory seeks  to  clarify  that  the

new law shall apply only if the situation of  pendency  continues  unchanged

for a period that equals to or exceeds five years. In my view, it should  be

further clarified that in none of the cases the period of five  years  would

have elapsed pursuant to an award made under Section 11  from  the  date  of

commencement of the Act and that  the  benefit  of  Section  24(2)  will  be

available to those cases which are pending and where  during  pendency,  the

situation has remained unchanged with physical possession not  being  handed

over or compensation not having been accepted and the period  equals  to  or

exceeds five years.


4. Limitation


As regards this item relating to the period spent  during  litigation  would

also be accounted for the purpose of determining whether the period of  five

years has to be counted or not, it should be clarified that  it  will  apply

only to cases where  awards  were  passed  under  Section  11  of  the  Land

Acquisition Act, 1894, 5 years or more prior to  1-1-2014  as  specified  in

Section 24(2) of the Act, to avoid any  ambiguity.  Since  this  legislation

has been passed with the  objective  of  benefiting  the  land-losers,  this

interpretation is consistent with that objective and also  [pic]added  as  a

matter of abundant caution that the period spent in  litigation  challenging

an award cannot be excluded for  the  purpose  of  determining  whether  the

period of five years has elapsed or not. If  the  possession  has  not  been

taken or compensation has not been paid due to the  challenge  to  the  land

acquisition proceedings, the  pendente  lite  period  will  be  included  to

determine the five year period and including such period if  the  award  was

made five years or more prior to the commencement of the Act, then the  said

acquisition  proceedings  will  be  deemed  to  have   elapsed   and   fresh

proceedings, if so desired, will have to be  initiated  in  accordance  with

the new Act.


The Objects and Reasons of the 2013 Act and particularly Clause  18  thereof

fortify  the  view  taken  by  this  Court  in  the  judgments  referred  to

hereinabove. Clause 18 thereof reads as under:


"18. The benefits under the new law would be available in all the  cases  of

land acquisition under the Land Acquisition Act, 1894 where  award  has  not

been made or possession of land has not been taken."




12. By considering the aforesaid decisions of this Court and the  facts  and

circumstances of the present case on hand, we are of the view that  physical

possession of the land belonging to the appellants has  not  been  taken  by

the respondents and more than five years have elapsed since  the  making  of

the award on 14.01.2006 when the Resettlement Act, 2013 came into  force  on

01.01.2014. Therefore, the conditions stated in Section 24(2) of the Act  of

2013 are fulfilled for allowing the plea of the  appellants  that  the  land

acquisition proceedings be deemed to have elapsed. The said legal  principle

laid down by this Court in the case of Pune Municipal Corporation and  other

cases referred to supra with regard to interpretation of  Section  24(2)  of

the Act of 2013 are applicable with all fours to the fact situation on  hand

with respect to the land covered in this appeal and for granting  relief  as

prayed by the appellants in this application.




13.  In view of the aforesaid decisions of this  Court  referred  to  supra,

and the findings and reasons recorded by  us  the  application  filed  under

Section 24(2) of the Act of 2013 is allowed. Consequently, having regard  to

the facts of this case, this appeal is allowed by quashing  the  acquisition

proceedings in so far as the land of  the  applicants/appellant  Nos.  24-28

are concerned. There shall be no order as to costs.






.....................................................................J.

                         [V. GOPALA GOWDA]






.....................................................................J.


                         [C. NAGAPPAN]




New Delhi,


November 27, 2014





ITEM NO.1B-For Judgment     COURT NO.9          SECTION IV


               S U P R E M E  C O U R T  O F  I N D I A


                       RECORD OF PROCEEDINGS


I.A. No. 3-4 in Civil Appeal  No(s).  3872/2010


RAM KISHAN & ORS.                            Appellant(s)


                                VERSUS


STATE OF HARYANA & ORS.                      Respondent(s)


Date : 27/11/2014 This appeal was called on for JUDGMENT today.


For Appellant(s)    Mr. Vimal Chandra S. Dave,Adv.


                     Mr. Ranbir Singh Yadav,Adv.




For Respondent(s)    Mr. Kamal Mohan Gupta,Adv.




            Hon'ble Mr. Justice V.Gopala Gowda pronounced  the  judgment  of

the Bench comprising His Lordship and Hon'ble Mr. Justice C.Nagappan.


            I.A.No. 4/2014 for exemption from  filing  official  translation

is ordered.


            I.A. No. 3/2014 is allowed.


            The appeal is allowed in terms of the signed order.



    (VINOD KUMAR)                          (MALA KUMARI SHARMA)     COURT

MASTER                                  COURT MASTER


      (Signed Non-Reportable judgment is placed on the file)


-----------------------

[1]


       (2014) 3 SCC 183

[2]    (2014) 6 SCC 586

[3]    (2014) 6 SCC 583

[4]    (2014) 6 SCC 564

[5]    2014 (10) SCALE 388