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2022 Supreme(SC) 488

SUPREME COURT OF INDIA
M.R. SHAH, B.V. NAGARATHNA, JJ.
Faizabad-Ayodhya Development Authority – Appellant
Versus
Dr. Rajesh Kumar Pandey and Others – Respondents
Civil Appeal No. 2915 of 2022
WITH
Moradabad Development Authority and Another – Appellants
Versus
Babu and Others – Respondents
Civil Appeal No. 2917 of 2022
WITH
Moradabad Development Authority and Another – Appellants
Versus
Horam Singh and Others – Respondents
Civil Appeal No. 2918 of 2022
WITH
Moradabad Development Authority – Appellant
Versus
Smt. Malka Begum and Others – Respondents
Civil Appeal No. 2919 of 2022
Decided On : 20-05-2022

Advocates:
Advocate Appeared:
For the Appellant(s) : Mr. Rakesh Uttamchandra Upadhyay, AOR Ms. Aarti Upadhyay Mishra, Adv. Mr. Rishabh Kumar Pandey, Adv. Mr. Mridul Singh Vats, Adv. Mr. R.K. Singh, Adv. Mrs. Neeraj Singh, Adv. Mr. Kumar Gaurav, Adv. Ms. Ritu Reniwal, Adv. Mr. Ajay Chaudhary, Adv. Mr. Praveen Pathak, Adv. Mr. Sajith. P, AOR
For Respondent(s): Mr. Ankur Yadav, AOR Mr. Rudreshwar Singh, Adv. Ms. Isha Singh, Adv. Mr. Kaushik Poddar, AOR Mr. Nishit Agrawal, AOR Mr. Shery Kapoor, Adv. Mr. Harsh Mishra, Adv. Ms. Upasna Agarwal, Adv. Mr. Rajeev Kumar Dubey, Adv. Mr. Ashiwan Mishra, Adv. Mr. Anurag Tiwari, Adv. Mr. Kamlendra Mishra, AOR Mr. Bhakti Vardhan Singh, AOR Mr. Pukhrambam Ramesh Kumar, AOR Mr. Karun Sharma, Adv. Mr. Mohan Singh, Adv.

IMPORTANT POINTS
(1) Acquisition of land – In a case where on the date of commencement of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, no award has been declared under Section 11 of Act, 1894, due to pendency of any proceedings and/or interim stay granted by Court, such landowners shall not be entitled to compensation under Section 24(1) of Act, 2013 and they shall be entitled to compensation only under Act, 1894.
(2) Restitution – A person on right side of law should not be deprived, on account of effects of litigation.

Headnote:

(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 24(1)(a) – Land Acquisition Act, 1894 – Section 11 – Acquisition of land – Direction to pay compensation – Land owner cannot, on one hand, assail acquisition and seek interim orders restraining authorities from proceeding further in acquisition, and on other hand, contend that since no award has been made under Section 11 of Act, 1894 on 01.01.2014, provisions of Act, 2013 should be made applicable in determining compensation – An unsuccessful litigant who had benefit of an interim order in his favour cannot encash or take advantage of same on enforcement of Act, 2013 by initially stalling acquisition process and later seeking a higher compensation under provisions of Act, 2013 – Even applying principle of restitution, landowners cannot be permitted to take advantage of interim order obtained by them due to which Authority could not declare award under Section 11 of Act, 1894 and thereafter contend that in that view of the matter, he/they shall be paid compensation under Section 24(1) of Act, 2013, under which a higher compensation will be available to them on determination of compensation under Act, 2013. (Paras 10.13, 15, 16 and 17)

(B) Civil Procedure Code, 1908 – Section 144 – Restitution – Principle of restitution is a remedy against unjust enrichment or unjust benefit – Restitutionary jurisdiction is inherent in every court, to neutralise advantage of litigation – A person on right side of law should not be deprived, on account of effects of litigation – Wrongful gain of frivolous litigation has to be eliminated if faith of people in judiciary has to be sustained. (Para 15.1)

Facts of the case:

Question which is posed for the consideration of this Court is whether in a case where an award under Section 11 of the Land Acquisition Act, 1894 could not be declared by Authority due to pendency of the writ petition and/or the interim stay granted by High Court, which was filed by the landowners and consequently as on the date on which the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 came into force, there was no award declared under Section 11 of the Act, 1894, the original landowners shall be entitled to compensation determined under sub-section (1) of Section 24 of the Act, 2013?

Findings of Court:

If landowners are aggrieved by determination of compensation declared under the award under the Act, 1894, it will be open for them to take recourse to law for enhancement of compensation under the provisions of the Land Acquisition Act, 1894 only.

Result : Appeals allowed.

JUDGMENT :

M.R. SHAH, J.

1. As common questions of law and facts arise in this group of appeals, they have been heard together and are being disposed of by this common judgment and order.

2. Feeling aggrieved and dissatisfied with the respective judgments and orders/orders passed by the High Court of Judicature at Allahabad passed in respective writ petitions preferred by the private respondents herein-original landowners by which the High Court has disposed of the said writ petitions by directing the respective appellants-Development Authorities to pay the compensation to the original landowners as per “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the “Act 2013)” on the ground that on the date on which the Act, 2013 came into force, no award under Section 11 of the Land Acquisition Act, 1894 (hereinafter referred to as the “Act 1894”) was declared with respect to the lands acquired, the respective Development Authorities have preferred the present appeals.

Civil Appeal No. 2915 of 2022

3. Land totally measuring 17.172 hectares in village Ranopali, District Faizabad was requisitioned by the Faizabad Development Authority (hereinafter referred to as the “Authority”) for the purpose of residential project. The land therein included land admeasuring 03.13 hectares in Plot Nos. 407, 413 and 415 belonging to respondent Nos. 1 to 4 herein (hereinafter referred to as the “original landowners”).

3.1 Notification under Section 4 and Section 6 read with Section 17 was issued. The original landowners preferred Writ Petition No. 3810 of 2005 before the High Court challenging the acquisition with respect to the aforesaid three plots. The High Court granted interim stay restraining the Authority from taking over the possession of the aforesaid three plots. Except the aforesaid three plot, the possession of the entire land was taken over by the Authority. Even the Award under Section 11 of Act, 1894 was also declared except in respect of the aforesaid three plots in question, due to the pendency of the writ petition before the High Court and due to the interim order passed by the High Court. It is this significant fact, which has led us to consider this case in light of the real intention of the Parliament under Section 24(1)(a) of the Act, 2013. Thus, excluding the land involved in the aforesaid writ petition, i.e. the aforesaid three plots, possession of the remaining property was taken over on 07.09.2005 and Award therein was published on 10.04.2007. A total sum of Rs. 5,11,60,606.00 was made available on different dates with respect to the compensation to be paid.

3.2 Vide order dated 27.09.2010, the High Court has disposed of the said Writ Petition No. 3810 of 2005 preferred by the respondents herein by directing the State Government to consider the application/representation submitted by the original landowners under Section 48(1) of the Act, 1894. That the Appropriate Authority rejected the representation/ application of the original landowners under Section 48 of the Act, 1894 vide order dated 13.03.2012. The respondents herein-original landowners again preferred the present Writ Petition No. 41 of 2012 before the High Court.

3.3 During the pendency of the aforesaid writ petition, Act, 2013 came into force. At the time of hearing of the present writ petition before the High Court, it was submitted on behalf of the original landowners-original writ petitioners that as no award has been made under Section 11 of the Act, 1894, therefore, the provisions of Section 24(1) of the Act, 2013 would be attracted and the original landowners shall be entitled to the compensation determined under the provisions of Act, 2013.

3.4 By the impugned judgment and order, the High Court has allowed the said writ petition and has observed and held that the respondents herein-original writ petitioners-original landowners would be entitled to compensation in terms of provi

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