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2015 Supreme(SC) 679

SUPREME COURT OF INDIA
VIKRAMAJIT SEN, ABHAY MANOHAR SAPRE, JJ.
LAXMI DEVI – APPELLANT
VERSUS
STATE OF BIHAR & ORS. – RESPONDENTS
CIVIL APPEAL No. 3385 OF 2012
Decided On : 03-07-2015

IMPORTANT POINTS
Urgency provision in Land Acquisition Act merely defers passing of award. It does not dispense it with.
If a statute prescribes the manner in which an action is to be performed, it must be carried out strictly in consonance thereto or not at all.
Tendering payment of eighty per cent of the estimated compensation to the person interested in compensation for such land is prerequisite for invoking section 17.
Ratio decidendi discussed.
There is distinction between setting aside of an acquisition and the reversion of possession.

Headnote:(a) Land Acquisition Act, 1894 – Section 17 – Making of award merely deferred, not dispensed with – Available only on expiration of fifteen days from issuance of Section 9 notice. (Para 12)

       (2011) 9 SCC 354; AIR 1964 SC 1217; (2014) 6 SCC 564; 1984 (Supp) SCC 196; (1875) 1 Ch D 426 – Referred

       (b) Administration of Justice – If a statute prescribes the manner in which an action is to be performed, it must be carried out strictly in consonance thereto or not at all.

       (1875) 1 Ch D 426; (1935-36) 63 IA 372; AIR 1954 SC 322; AIR 1964 SC 358; (1999) 3 SCC 422; (2014) 8 SCC 425 – Relied upon

       (c) Land Acquisition Act, 1894 – Section 17(3A) – Tendering payment of eighty per cent of the estimated compensation to the person interested in compensation for such land – Prerequisite for invoking section 17 – Passing of award u/s 9 to 11 is a must. (Para 14)

       (d) Administration of Justice – Judgment – Interpretation of – Binding precedent – Ratio decidendi – “The reason for deciding” – Principle or rule of law on which a Court’s decision is founded – Rule of law on which a latter Court thinks that a previous Court founded its decision – A general rule without which a case must have been decided otherwise. (Para 17)

       (1990) 4 SCC 207; (2007) 3 SCC 720; (2003) 6 SCC 697 – Relied upon

       (e) Land Acquisition Act, 1894 – Section 11A – Possession of land taken in 1987 – No award passed despite High Court order – Full compensation not paid till date – Setting aside of an acquisition, and the reversion of possession – Distinction – Latter is not allowed but the former is not ruled out by implication – Upholding the vesting and possession of State, acquisition dated 18.11.1987 set aside for non-compliance with Section 11A – To do equity with all land owners State directed to issue fresh section 4 notification – State restrained from contending that the land is no longer required by it or that it should revert to the Appellants. (Para 24, 25, 26)

       (1993) 4 SCC 369; (1970) 2 SCC 149 – Distinguished

       (1967) 1 SCR 373; (1996) 6 SCC 424; 1995 Supp (4) SCC 268; (2011) 5 SCC 394 – Referred

       Facts of the case:

       Land Acquisition notification u/s 4 invoking section 17 was issued in 1987. However no award was passed and the acquisition lapsed. Subsequently more notifications were issued but all lapsed for same reason. High Court directed passing of award and payment of balance compensation. The order attained finality.

       Now the State has contended that as the acquisition was made invoking section 17, there was no need to pass an award.

       Finding of the Court:

       Passing of the award is only deferred. It is not dispensed with.

       Result: Appeal partly allowed.

       

Judgment

Vikramajit Sen, J.

1. The legal nodus that we are called upon to unravel in this Appeal is whether the Land Acquisition Act, 1894 (L.A. Act for brevity) as amended from time to time, requires an Award to be passed even in respect of lands expropriated by the State pursuant to the exercise of special powers in cases of urgency contained in Section 17 thereof. It is indeed ironical that what was, as far back as in 1987, perceived as an imperative, urgent and exigent necessity, justifying the steamrolling of the rights of citizens, has proved substantially to be a fallow and ill-conceived requirement even after the passage of three decades; till date, tracts of the acquired land remain unutilized; the initially declared purpose of construction of residential quarters for State officials having novated to portions of the land being used as helipads for ‘State Dignitaries’. We must not forget that even though ownership of property has ceased to be conceived of as a Fundamental Right, it continues to receive Constitutional protection. It is also the regrettable reality that Governments are increasingly relying on rulings of this Court to the effect that even if the public purpose providing the predication for the compulsory acquisition of a citizen’s land has proved to be an illusion or misconception, another purpose can conveniently be discovered or devised by the State for retention by it of the expropriated land. Our opinion intends to insulate genuinely urgent projects from lapsing and not to annihilate the constitutional rights of the individual from the might of the State even though it transgresses the essence of the statute. It has become alarmingly commonplace for lands to be expropriated under the banner of urgency or even under the normal procedure, only to be followed by a withdrawal or retraction from this exercise enabling a favoured few to harvest the ill-begotten windfall. The ambivalence or cleavage of opinion of this Court in Delhi Airtech Services (P) Ltd. vs. State of U.P. (2011) 9 SCC 354 on the necessity to pay the erstwhile owners of land of even its unilaterally assessed value has emboldened and spurred the State into contending before us that no sooner the urgency mantra is mouthed, no other provision of the L.A. Act has any relevance or efficacy, including the legal necessity of passing an Award.

2. We shall succinctly narrate the salient facts of the Appeal before us. The State Government had by means of Notification No.2/86-87 dated 18.11.1987 and 3/86-87 dated 18.11.1987 initiated steps for acquiring tracts of lands in Mouza Sansarpur and in Hardas Chak. These Notifications had simultaneously excluded the provisions of Section 5A of the L.A. Act from applying to the acquired lands, which, because of the significance of its language, is reproduced below:

“This Notification is hereby issued under the provisions of section 4 of the Bihar Act No.11, 1961 as amended Act No.1, 1894 for those persons who are concerned with it.

The map of the above land can be seen in the office of the Land Acquisition Officer, Khagaria. Government of Bihar do hereby authorize the Land Acquisition Officer, Khagaria and his staff and the office bearers of the Executive Engineer Bhawan Nirman Khagaria in the preliminary investigation of this project that they should conduct the survey of the land after entering it and they are directed to all the acts specified under section 2 of the Section 4 of the above Act.

And whereas it is the opinion of the Governor of Bihar that the above mentioned barren land/agricultural land and its part thereof is necessary for immediate acquisition. Therefore, it is directed under sub section 4 of the section 17 of the above Act that the provisions of the section 5A of the above act shall not apply to the above land/lands”.

3. This first Notification under Section 4 came to be followed by subsequent Notifications, lucidly illustrating the understanding of the Respondent State that the preceding Noti



































































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