SUPREME COURT OF INDIA
Surya Kant, Joymalya Bagchi, JJ.
The State of Arunachal Pradesh & Anr. – Appellants
Versus
Mihin Laling & Ors. – Respondents
Civil Appeal Nos. 11884-11888 of 2025 (Arising out of SLP(C)Nos. 9585-9589 of 2023)
Decided On : 16-09-2025
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 4 – Balipara/Tirap/Sadiya Frontier Tract Jhum Land Regulation, 1947 – Regulation 10 – Acquisition of Jhum land – 1947 Regulations do not envisage routine procedure followed under 1894/2013 Acts, i.e. issuance of Notification proposing acquisition; subsequent Declaration of such acquisition; issuance of notice(s) before passing of an award, etc. – Phrase “reasonable compensation” is an open-textured expression, designed to confer flexibility – It cannot be read as permitting compensation which is merely notional or arbitrary – In constitutional jurisprudence, reasonableness of compensation must align with guarantees of Article 14 and Article 300A – Right to property, though no longer fundamental, is nonetheless a constitutional right which cannot be divested save by authority of law, and such deprivation must meet tests of fairness and non-arbitrariness – While 1947 Regulations may provide alternate procedural framework for North-Eastern Frontier Tracts, they cannot be interpreted in isolation from this broader evolution of law – To construe “reasonable compensation” narrowly, ignoring ‘solatium’ and ‘interest’, would be to perpetuate inequality – Solatium and interest are not alien imports but integral components of fairness – Balance must be struck by ensuring that pending and future acquisitions are aligned with standards of 2013 Act, while leaving untouched those transactions where compensation has been finally determined and accepted – Respondents shall also be entitled to solatium as well as interest in accordance with provisions of the 2013 Act – Obligation of State to pay ‘solatium’ and ‘interest’ shall be without prejudice to its right to recover the same from ultimate beneficiaries of acquisition, in accordance with law. (Paras 16, 19, 21, 22, 23, 25 and 27)
Facts of the case:
Core controversy in instant set of appeals concerns the purported legal dissonance between two Statutes, both of which inter alia provide for land acquisition by State authorities. High Court has, vide impugned judgment, inter alia held that 1947 Regulations and the 2013 Act function in distinct legislative spheres, and are therefore not repugnant to each other under Article 254 of Constitution. It has also upheld Single Judge’s finding that appellant-authorities must provide solatium and interest to the respondents as per the scheme of the 2013 Act.
Findings of Court:
In respect of concluded acquisitions where compensation has been finally determined, accepted and disbursed, no reopening shall be permissible. Impugned judgment of High Court is set aside, to that extent. However, in all matters which remain pending either before competent authority or before a Court/Tribunal, compensation shall be recomputed to include solatium and interest.
Result : Appeals allowed in part.
JUDGMENT :
1. Leave granted.
2. The core controversy in the instant set of appeals concerns the purported legal dissonance between two Statutes, both of which inter alia provide for land acquisition by the State authorities. While on the one hand is the Balipara/Tirap/Sadiya Frontier Tract Jhum Land Regulation, 1947 (hereinafter, ‘1947 Regulations’), a pre-independence legislation governing the acquisition of ‘Jhum’ lands in the State of Arunachal Pradesh; on the other are the settled land laws prevailing in the rest of the country, i.e. either the Land Acquisition Act, 1894 (hereinafter, ‘1894 Act’) or its successor-statue, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter, ‘2013 Act’).
3. The State of Arunachal Pradesh and its Authorities are before us in appeal against the judgment and final order dated 12.09.2022, passed by a Division Bench of the Gauhati High Court (Itanagar Bench) (hereinafter, ‘High Court’) with respect to the validity of the compensation provided for acquisition of certain ‘Jhum’ lands, undertaken under the provisions of the 1947 Regulations.
4. The High Court has, vide the impugned judgment, inter alia held that the 1947 Regulations and the 2013 Act function in distinct legislative spheres, and are therefore not repugnant to each other under Article 254 of the Constitution. It has also upheld the learned Single Judge’s finding that the appellant- authorities must provide solatium and interest to the respondents as per the scheme of the 2013 Act.
5. Before proceeding with adjudication on merits, it is apposite to briefly explicate the facts, which are broadly admitted. The lands of the private-respondents were notified to be acquired on 17.02.2014, in a Notification issued under Section 10 of the 1947 Regulations. Notably, these lands were sought to be acquired for the purpose of construction of the Trans-Arunachal-Highway (hereinafter, ‘TAH’) along the Potin–Bopi (Godak) corridor.
6. The estimates for compensation were drawn up by the concerned Departments, and communicated to the relevant landowners. Pertinently, no solatium or additional interest formed part of these calculations. Aggrieved by the same, the respondents made representations before the Deputy Commissioner, Lower Subansiri District, Ziro. These representations were negatived by the Authority, citing Section 10 of the 1947 Regulations as a provision which merely necessitates “reasonable compensation”, and no other statutory benefit.
7. The private-respondents thereafter approached the High Court seeking the benefits provided under the 2013 Act’s acquisition mechanism. However, the High Court relegated them to the statutory remedy of appealing before the State Governor, postulated under Section 17 of the 1947 Regulations. By order dated 14.08.2020, the Governor was pleased to reject their appeal, holding that since the acquisition was effected under the 1947 Regulations, there would be no applicability of the 2013 Act.
8. Still aggrieved, the respondents again approached the High Court assailing the Governor’s rejection. The learned Single Judge of the High Court allowed this Writ Petition vide order dated 25.04.2022, reasoning that the State’s laws cannot be repugnant to the Central legislation and they are, to that extent, void. Thus, while the acquisition under the 1947 Regulations was held to be valid, its compensation was ordered to be calculated as per the model laid down in the 2013 Act. Accordingly, the High Court allowed for grant of the statutory benefits as prayed for by the respondents.
9. The State of Arunachal Pradesh and its authorities, i.e. the appellants, challenged this finding through intra-Court appeals, before a Division Bench of the High Court. As already noticed hereinabove, the High Court has partly allowed these appeals in a common judgment and order. The Division Bench modified the earlier order to the extent of holding that the 1947 Regulations a
(1) Acquisition of Jhum land – Phrase “reasonable compensation” is an open-textured expression, designed to confer flexibility – It cannot be read as permitting compensation which is merely notional ....
Concluded acquisitions under the old regulation preclude reopening for additional compensation, including Solatium, after acceptance of initial compensation.
Section 24(1)(a) of the Act, 2013 applies only to land acquisition proceedings initiated under the Land Acquisition Act, 1894, and not to acquisitions initiated under any other Central or State enact....
Petitioners are entitled to compensation and solatium and interest in view of RFCTLARR Act, 2013, as State cannot make any law in derogation of any provision of said Act.
State legislation cannot provide lesser compensation than that guaranteed under parliamentary law, rendering it repugnant and unconstitutional.
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