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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 31 of the 1894 Act
  • Section 24(2) of the 2013 Act
  • Section 31(2) of the Act, 1894
  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
  • Section 11 of the 1894 Act
  • Section 4 of the Land Acquisition Act, 1894
  • Section 4(1) of the Land Acquisition Act, 1894
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 31 of the 1894 Act
  • Section 24(2) of the 2013 Act
  • Section 31(2) of the Act, 1894
  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
  • Section 11 of the 1894 Act
  • Section 4 of the Land Acquisition Act, 1894
  • Section 4(1) of the Land Acquisition Act, 1894
Smart Summary

Factual and Procedural Background

The appellants challenged a land acquisition process initiated under the Land Acquisition Act, 1894. Specifically, they questioned (i) a notification dated 11-11-2002 issued under Section 4, (ii) a declaration dated 7-11-2003, and (iii) an award dated 31-10-2005. Their writ petition before the Punjab and Haryana High Court was dismissed on 1-5-2008 in Vijay Latka v. State of Haryana (2008 SCC OnLine P&H 2172) solely on the ground that, since an award had already been passed, the petition was not maintainable.

While the writ petition was pending, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 came into force. Relying on Section 24(2) of the 2013 Act, the appellants filed an additional affidavit before the Supreme Court asserting that (a) no compensation had been paid to them and (b) physical possession had not been taken. The Court sought a response from the State. An affidavit dated 19-4-2016 from the Administrator, Haryana Urban Development Authority (HUDA) stated that possession had been taken “on an as-is-where-is basis” on 31-10-2005 and that compensation was available to anyone who approached the Authority.

Legal Issues Presented

  1. Whether the land acquisition proceedings concerning the appellants’ land had lapsed under Section 24(2) of the 2013 Act because compensation was neither paid to the landowners nor deposited in court.
  2. Whether the State could lawfully insist that landowners approach the acquiring authority to collect compensation, rather than the authority tendering or depositing the amount as required by Section 31 of the 1894 Act.
  3. (Left open) Whether taking possession “on an as-is-where-is basis” satisfies the statutory requirement of physical possession under land acquisition law.

Arguments of the Parties

Appellants' Arguments

  • No compensation has ever been paid to them despite the passage of the 2005 award.
  • Physical possession of their land has not been taken; hence the acquisition has lapsed under Section 24(2) of the 2013 Act.

Respondents' Arguments

  • Possession was taken by the Land Acquisition Collector on 31-10-2005 on an “as-is-where-is” basis.
  • Compensation was “due and ready”; landowners who approached the authority have already received amounts totalling Rs 4,00,93,086. The appellants failed to collect their compensation and therefore cannot claim lapse of acquisition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vijay Latka v. State of Haryana, 2008 SCC OnLine P&H 2172 The High Court held that a writ petition challenging acquisition is not maintainable after an award has been passed. The Supreme Court reversed this outcome, holding that Section 24(2) of the 2013 Act can render such an acquisition void if statutory conditions (payment/deposit of compensation) are unmet, irrespective of the award’s existence.

Court's Reasoning and Analysis

1. Section 24(2) of the 2013 Act provides that where an award under Section 11 of the 1894 Act has been made, the acquisition shall lapse if:

  • (a) compensation has not been paid to the landowner or deposited in court, and/or
  • (b) physical possession has not been taken.

2. The Court focused on the compensation prong because the State conceded that no compensation had actually been paid to the appellants. The State’s stance—that landowners must come forward to collect payment—was deemed legally untenable. Under Section 31 of the 1894 Act, the onus lies on the acquiring authority to pay the amount or, in case of dispute, deposit it with the appropriate court.

3. Because the statutory obligation to pay or deposit compensation was not fulfilled, the Court held that the acquisition automatically lapsed under Section 24(2) without needing to decide whether possession had been validly taken.

4. The Court therefore allowed the appeal, set aside the entire acquisition, and clarified that HUDA remains free to initiate fresh acquisition proceedings under the 2013 Act if it so chooses.

Holding and Implications

HOLDING: Appeal allowed; the land acquisition proceedings initiated by the 2002 notification, 2003 declaration, and 2005 award are declared to have lapsed.

Implications: The appellants retain their land, and HUDA must begin anew under the 2013 Act should it wish to acquire the property. The judgment reiterates that acquiring authorities cannot shift the burden of receiving compensation onto landowners; failure to pay or deposit compensation triggers automatic lapse under Section 24(2). No costs were awarded.

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    Vijay Latka And Another v. State Of Haryana And Others

    Kurian Joseph, J.— Leave granted. The appellants are aggrieved by the judgment dated 1-5-2008 in Vijay Latka v. State of Haryana 2008 SCC OnLine P&H 2172 of the High Court of Punjab and Haryana. The writ petition was filed by the appellants challenging the Notification dated 11-11-2002 issued under Section 4 of the Land Acquisition Act, 1894 (for short “the 1894 Act”) and the declaration dated 7-11-2003 and award dated 31-10-2005. The High Court dismissed the writ petition on the sole ground that since the award had already been passed, the writ petition was not maintainable.

    2. Be that as it may, during the pendency of the writ petition, in view of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short “the 2013 Act”) the appellants have filed an additional affidavit stating therein that the land acquisition proceedings have lapsed as far as the land of the appellants is concerned. Since according to the appellants, the respondent State has neither paid the compensation nor taken physical possession of the land, this Court directed the State to respond to the affidavit. Accordingly, an affidavit dated 19-4-2016 has been filed before this Court by the Administrator, Haryana Urban Development Authority. At Para 3 of the affidavit, it is stated that the award was made on 31-10-2005 and “that possession of the land was taken over on as-is-where-is basis by the Land Acquisition Collector on 31-10-2005…”. Whether taking over the possession in such a manner would satisfy the statutory requirement of taking physical possession is a question to be addressed.

    3. However, since the appellants are otherwise entitled to succeed in this case we leave that question open. It is the case of the appellants that no compensation in respect of the acquired land has been paid to them. The learned counsel for the respondents submits that whoever approached the Authority, the compensation has been paid. The learned counsel also invited our attention to Para 8 of the affidavit which reads as follows:

    “That as regards the compensation amount for acquired land, office of the Land Acquisition Officer, Panchkula has reported that the compensation has not been obtained by the petitioners though compensation to the extent of Rs 4,00,93,086 has already been obtained by other landowners who came forward to take the compensation. Therefore, there was due offer of compensation and the present case does not fall within the meaning of provision contained in Section 31(2) of the Act, 1894.”

    4. Under Section 24(2) of the 2013 Act, where an award under Section 11 of the 1894 Act has been passed and in case compensation has not been paid to the landowner or deposited before the court in terms of the requirements under the 1894 Act, the acquisition proceedings get lapsed. In case compensation has not been paid, the land acquisition proceedings in respect of that acquisition will stand lapsed, as if there is no acquisition.

    5. The contention of the learned counsel appearing for the respondents is that whoever approached the Haryana Urban Development Authority or the competent authority has been paid compensation and since the appellants failed to approach the quarters concerned for the compensation, they cannot be granted any relief. We find this contention difficult to appreciate. When land is compulsorily acquired, it is for the requisitioning authority to make the payment and does not require the landowner to come and receive the payment.

    6. As and when land is taken over by way of acquisition, the landowner has to be compensated with the amount of compensation duly determined under the Act. In case there is any dispute as to who is to be paid the amount, the same is to be deposited in court in terms of Section 31 of the 1894 Act. In this case before us, the stand of the requisitioning authority, namely, Haryana Development Authority is that the money is ready with them and it is for the landowner to come and receive the payment. This stand is not permissible under the law. It is for the authorities concerned to pay the money and take the land and in case there is any dispute as to whom the money should be paid, then the same has to be deposited in court.

    7. As admittedly no compensation has been paid to the appellants in terms of the abovementioned award passed in the year 2005, the appellants are entitled to succeed. Accordingly, the appeal is allowed.

    8. The proceedings for acquisition of land of the appellants and covered by the Notification issued under Section 4(1) of the Land Acquisition Act, 1894 and leading to the award referred to above, stand set aside as having been lapsed.

    9. The learned counsel for the Haryana Urban Development Authority submits that the land of the appellants has been acquired for the purpose of development scheme and it comes under the green belt. We make it clear that this judgment would not stand in the way of HUDA taking fresh steps for requisition of the land of the appellants under the provisions of the 2013 Act.

    10. The appeal is allowed. No costs.

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    Vijay Latka And Another v. State Of Haryana And Others
    (May 5, 2016)