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2015 Supreme(SC) 546

SUPREME COURT OF INDIA
Vikramajit Sen, C. Nagappan, JJ.
Rajiv Choudhrie HUF - Appellant
Vs.
Union of India (UOI) and Ors. - Respondents
I.A. No. 3 in C.A. No. 8786 of 2013
Decided On: 06-02-2015

The interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and the prospective operation of the Ordinance.

Headnote:

Land Acquisition - Interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Court clarifies the manner in which the new provision is to be interpreted, leading to the quashing of the subject land acquisition proceedings.

Fact of the Case:

The Union of India admitted that compensation had not been tendered in consonance with the law, and the possession of the land could not be taken due to interim orders.

Finding of the Court:

The Court accepted the applications and quashed the subject land acquisition proceedings in terms of Section 24(2) of the New Act.

Issues: Interpretation of Section 24(2) of the New Act, retrospective operation of the Ordinance, and the nature of the Proviso to the said Section.

Ratio Decidendi: The Court clarified the interpretation of Section 24(2) of the New Act and held that the acquisition lapses, while also affirming the prospective operation of the Ordinance.

Final Decision: The Appeals are accepted, and the subject land acquisition proceedings are quashed in terms of Section 24(2) of the New Act.

ORDER

1. In these matters Special Leave to Appeal was granted on 27.09.2013. These applications have been filed praying that the Appeals be disposed of in view of the various subsequent determinations of this Court. It has been pointed out that in its Counter Affidavit, the Union of India has in terms admitted that compensation had not been tendered in consonance with the law. In para 19 of the Counter Affidavit, it has been pleaded that "when the possession of the land could not be taken by virtue of the operation of the interim orders of this Hon'ble Court and the Hon'ble Delhi High Court, the question of payment of compensation to the Petitioner does not arise". In the cases in hand, the Award is dated 06.08.2007 and is in existence therefore for more than five years. Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short 'the New Act") is clearly applicable. This Court has in a number of decisions including Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014) 3 SCC 183, Union of India v. Shiv Raj (2014) 6 SCC 564 and Bimla Devi v. State of Haryana (2014) 6 SCC 583 clarified the manner in which the new provision is to be interpreted viz. that the acquisition lapses.

2. As regards the Ordinance which has been promulgated with effect from 31st December, 2014, decisions have been rendered namely Radiance Fincap (P) Ltd. v. Union of India in Civil Appeal No. 4283 of 2011 decided on 12.01.2015 and in Arvind Bansal v. State of Haryana in Civil Appeal Nos. 417-418 of 2015 decided on 13.01.2015, hereinafter referring to the previous judgments of this Court including that of the Constitution Bench Judgment, it has been held that the Ordinance shall have prospective operation only. This view is also to be found in Karnail Kaur v. State of Punjab in Civil Appeal No. 7423 of 2013 decided on 22.01.2015. We respectfully concur.

3. Learned Additional Solicitor General has sought to contend otherwise vociferously that the Proviso to the said Section added by means of the Ordinance, is only clarificatory in nature and will therefore have retrospective operation. This plea ought to have been raised before the Bench which heard Radiance Fincap (P) Ltd. as well as Arvind Bansal and Karnail Kaur. In any event, we are not persuaded by the said argument.

4. In these circumstances, as prayed for in the applications, the Appeals are accepted. We quash the subject land acquisition proceedings in terms of Section 24(2) of the New Act. All the Applications and Appeals are allowed in the above terms.

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