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  • Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
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  • Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
Smart Summary

Factual and Procedural Background

The State of Haryana filed Special Leave Petition (Civil) … CC No. 8453 of 2017 challenging the judgment dated 29 June 2016 of the Punjab & Haryana High Court in G.D. Goenka Tourism Corporation Ltd. v. State of Haryana 2016 SCC OnLine P&H 5138. Multiple allied matters involving acquisition of land were also listed. During the initial hearing the State cited the recent three-judge decision in Indore Development Authority v. Shailendra (2018) 3 SCC 412 as dispositive of the controversy. Senior counsel representing other land-acquisition litigants sought to be heard, asserting that Indore Development Authority unsettled established law and warranted reconsideration by a larger Bench. The Court eventually adjourned the matters to 07 March 2018 and issued interim directions.

Legal Issues Presented

  1. Whether the interpretation of Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, laid down in Indore Development Authority v. Shailendra, should be affirmed or referred to a larger Bench because it conflicts with an earlier co-ordinate three-judge Bench decision.
  2. Pending such determination, what interim measures should govern ongoing and future litigation concerning Section 24 across the Supreme Court and the High Courts.

Arguments of the Parties

State of Haryana's Arguments

  • The controversy is fully governed by the ruling in Indore Development Authority v. Shailendra (2018) 3 SCC 412, which resolves the issues related to Section 24.
  • The Court should proceed to decide the present SLPs on that basis.

Respondents’ and Intervening Senior Counsel’s Arguments

  • A three-judge Bench cannot declare another co-ordinate three-judge Bench decision to be per incuriam; the proper course is a reference to a larger Bench.
  • Indore Development Authority has disturbed a settled position of law and has serious repercussions for numerous land-acquisition cases nationwide.
  • Several cases have already been decided relying on Indore Development Authority without any reference order, creating uncertainty that must be addressed promptly.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Indore Development Authority v. Shailendra (2018) 3 SCC 412 Interpretation of Section 24 of the 2013 Land Acquisition Act; effect of lapsing of acquisition proceedings. Treated as the immediate authority said to govern the present dispute, but its coherence with earlier precedent is under consideration for potential reference to a larger Bench.
G.D. Goenka Tourism Corporation Ltd. v. State of Haryana 2016 SCC OnLine P&H 5138 High Court judgment under challenge in the present Special Leave Petition. Forms the factual and procedural basis for the SLP; no substantive analysis of its reasoning undertaken at this stage.

Court's Reasoning and Analysis

Recognising the existence of two conflicting three-judge Bench decisions on Section 24, the Court observed that:

  • When one three-judge Bench disagrees with another, established judicial discipline requires a reference to a larger Bench rather than declaring the earlier decision per incuriam.
  • Several cases nationwide are currently being decided on the strength of Indore Development Authority, risking inconsistent outcomes.
  • To avoid prejudice and procedural confusion, an interim freeze on adjudication concerning Section 24 is necessary until the reference question is resolved.

Balancing these considerations and at the request of counsel, the Court deferred substantive hearing to 07 March 2018 and issued interim administrative directions to other benches and High Courts.

Holding and Implications

INTERIM ORDER ISSUED; MATTER ADJOURNED

Implications:

  • All High Courts are requested not to take up cases involving interpretation of Section 24 of the 2013 Act until the Supreme Court decides whether the issue requires reference to a larger Bench.
  • Benches of the Supreme Court dealing with similar matters are to defer hearings for the same period, minimising inconsistent rulings and litigant inconvenience.
  • The present SLPs were formally admitted: delay was condoned, notice was issued returnable on 07 March 2018.
  • The order does not establish new substantive precedent but imposes an interim nationwide procedural pause on Section 24 litigation.

    State Of Haryana And Others v. G.D. Goenka Tourism Corporation Limited And Another

    Order

    1. Special Leave to Appeal (C) … CC No. 8453 of 2017 has been filed by the State of Haryana challenging the judgment and order dated 29-6-2016 passed by the High Court of Punjab and Haryana in G.D. Goenka Tourism Corpn. Ltd. v. State of Haryana 2016 SCC OnLine P&H 5138.

    2. There are some other similar matters that are listed today on the same subject, that is, with regard to acquisition of the land of the respondents.

    3. It is submitted by the learned counsel for the State of Haryana that the matter is covered by the recent decision of a Bench of 3 learned Judges of this Court in Indore Development Authority v. Shailendra (2018) 3 SCC 412. During the course of the submissions made by the learned counsel for the State of Haryana, some learned Senior Counsel were present in the Court and they requested to be heard in the matter since they had been engaged in some similar matters. They submitted that the decision in Indore Development Authority (2018) 3 SCC 412 had unsettled a long-standing statement of law and had very serious repercussions on land acquisition cases.

    4. Acceding to their request, we heard some learned Senior Counsel led by Mr Mukul Rohatgi, Senior Advocate and we also heard the learned counsel for the State of Haryana.

    5. Mr P.S. Patwalia, learned Senior Counsel who has been engaged to represent the State of Haryana expressed his personal difficulty in appearing in the Court today and tomorrow. However, he did appear for a short while and requested that the matter may be taken up on some other day.

    6. Acceding to his request, we list the matter on 7-3-2018 as part-heard matter.

    7. It was submitted by Mr Mukul Rohatgi, learned Senior Counsel and by other learned Senior Counsel that when a Bench of 3 learned Judges does not agree with the decision rendered by another Bench of 3 learned Judges, the appropriate course of action would be to refer the matter to a larger Bench. He submitted that one of the learned Judges in Indore Development Authority (2018) 3 SCC 412 has expressed that view. It was also submitted by Mr Rohatgi that a Bench of 3 learned Judges cannot hold another decision rendered by a Bench of 3 learned Judges as per incuriam. He referred to some decisions but we need not go into them at the present moment. Hearing is not concluded on the issue whether the matter should at all be referred to a larger Bench or not.

    8. However, we were informed by Mr Rohatgi that some cases have already been decided on the basis of the judgment rendered in Indore Development Authority (2018) 3 SCC 412, without the matter being referred to a larger Bench. We have also been informed by the learned counsel appearing on both the sides that some similar matters are listed tomorrow as well and it is possible that in the next couple of days similar matters may be listed before various High Courts.

    9. Taking all this into consideration, we are of the opinion that it would be appropriate if in the interim and pending a final decision on making a reference (if at all) to a larger Bench, the High Courts be requested not to deal with any cases relating to the interpretation of or concerning Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Secretary General will urgently communicate this order to the Registrar General of every High Court so that our request is complied with.

    10. Insofar as the cases pending in this Court are concerned, we request the Benches concerned dealing with similar matters to defer the hearing until a decision is rendered one way or the other on the issue whether the matter should be referred to a larger Bench or not. Apart from anything else, deferring the consideration would avoid inconvenience to the litigating parties, whether it is the State or individuals.

    11. Delay condoned in SLPs. Issue notice on SLPs returnable on 7-3-2018. Dasti.

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    State Of Haryana And Others v. G.D. Goenka Tourism Corporation Limited And Another
    (Feb 21, 2018)