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2022 Supreme(SC) 71

K. M. JOSEPH, PAMIDIGHANTAM SRI NARASIMHA
New Okhla Industrial Development Authority (Noida) – Appellant
Versus
Yunus – Respondent


Advocates appeared:
For the Petitioner(s): Mr. Anil Kaushik, Adv. Mr. Rachit Mittal, Adv. Ms. Ritika Dawalia, Adv. Mr. Sudhir Naagar, AOR
For the Respondent(s): Mr. Dhruv Mehta, Sr. Adv. Mr. V.K. Shukla, Sr. Adv. Mr. Pradeep Kumar Mathur, AOR Mr. Keith Varghese, Adv. Mr. Chiranjeev Johri, Adv. Mr. M.K. Tiwari, Adv.

Judgement Key Points

Key Points: - The Supreme Court held that an Award passed by Lok Adalat under Section 20 cannot form the basis for redetermination of compensation under Section 28A of the Act. (!) (!) - The Court explained the correct interpretation of Section 21’s deeming fiction, clarifying that awards under Section 20 are not awards of a Court under Part III and thus cannot be treated as decrees of a Civil Court for Section 28A purposes. (!) (!) (!) (!) - The decision emphasizes Lok Adalat’s non-adjudicatory function and that its awards are settlements/compromises, not Court adjudications, and thus cannot be invoked under Section 28A. (!) (!) (!) - The Court reaffirms that Section 28A requires adjudication by a "Court" as defined in the Act, i.e., a Civil Court, not a Lok Adalat award. (!) (!) (!) - The appeals are allowed; impugned judgments declaring Lok Adalat awards as basis for Section 28A are set aside. (!)

What is the legal position on whether an Award passed by Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987 can form the basis for redetermination of compensation under Section 28A of the Land Acquisition Act, 1894?

What is the proper interpretation and scope of the legal fiction that Lok Adalat awards are deemed decrees under Section 21 of the 1987 Act for the purpose of Section 28A?

What is the Court’s ruling on whether an Award passed by Lok Adalat under Section 20 can be treated as an order of the Court under Section 28A, and whether it can be basis for redetermination of compensation?


JUDGMENT :

K. M. JOSEPH, J.

1. Leave granted.

2. In these batch of cases, the question which arises is whether the Award passed by a Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987 (hereinafter referred to as the ‘1987 Act’) can form the basis for redetermination of compensation as contemplated under Section 28A of the Land Acquisition Act, 1894 (hereinafter referred to as ‘Act’). By the impugned judgment, the High Court has taken the view that the Award passed by the Lok Adalat can indeed form the foundation for exercising power under Section 28A of the Act.

3. A notification came to be issued under Section 4(1) of the Act on 21.03.1983 in respect of villages situated in Tehsil Dadri (Situation in District Ghaziabad) for planned industrial development contemplated by the Appellant. By the Award of the Land Acquisition Officer, which was passed on 28.11.1984, compensation was fixed for the lands belonging to the respondents herein inter alia at the rate of Rs.24,033 per bigha. The respondents did not seek enhancement under Section 18 of the Act. One Fateh Mohammed filed an application seeking reference against the Award dated 28.11.1984. The said reference was m

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