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2004 Supreme(AP) 282

Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY, DALAVA SUBRAHMANYAM, DEVENDER GUPTA, G.ROHINI, GHULAM MOHAMMED
Land Acquisition Officer-cum-R.D.O., chevella Division, Hyderabad - Appellant
Versus
Mekala Pandu - Respondent
W.A.No.170/2002 and Batch
Decided On : 03-09-04
Advocates Appeared :
M. Lakshman, P. Sri Raghu Ram, P. Venugopal, Mr. Challa Sitaramaiah

Headnote:LAND ACQUISITION ACT, 1894, Sec.23 - CONSTITUTION OF INDIA, Arts.39(b),(c), 41, 14,21 & 31-A - A.P. ASSIGNED LANDS (PROHIBITION OF TRANSFERS) ACT, 1977, Sec.3 - BOARD STANDING ORDER, 21 - D-Form patta, conditions - Payment of compensation under provisions of Land Acquisition Act when assigned lands resumed by Government for public purpose - Assignment of land by Government to landless poor and weaker sections of society - Assignment is not gratis, but is a constitutional obligation imposed upon State in nature of public assistance - Assignees are constitutional claimants.

       Contention that acquisition only relates to quantum of interest of D-Form pattedar and quantum of interest is to be determined with reference to condition of grant and that even where compensation is determinable under Land Acquisition Act same will be computed with reference to limited interest of grantee and that condition of non transferability is relevant for purpose of estimating quantum of right of grantee which he is being deprived of by procedure of land acquisition.

       Rights in land granted under patta are heritable - Assignee is entitled to be in perpetual possession and enjoyment of assigned land and such rights devolve upon legal descendents of assignee - Object of legislation is not to deprive assignees their right, title and interest in land - Provisions and conditions in pattas were not incorporated to deprive legitimate ownership rights of assignees, but were enacted to protect ownership of assignees - No condition incorporated in patta/deed of assignment shall operate as a clog putting any restriction on right of assignee to claim full compensation as owner of land.

       Assignees are constitutional claimants and constitutional claim cannot be subjected to governmental restrictions or sanctions except pursuant to constitutionally valid rule or law - Deprivation of assignee’s right to payment of just compensation equivalent to market value of assigned land may amount to deprivation of right to livelihood - Denial of constitutional claim to receive just compensation after depriving assignee of his land is impermissible except pursuant to a constitutionally valid rule of law.

       ‘No compensation clause’, restricting right of assignees to claim full compensation in respect of land resumed equivalent to market value of land, is unconstitutional and infringes fundamental rights guaranteed by Articles 14 and 31-A of Constitution - Assignees of government lands are entitled to payment of compensation equivalent to full market value of land and other benefits on par with full owners of land even in cases where assigned lands are taken possession of by State in accordance with terms of grant of patta, though such resumption is for a public purpose - Even in cases where State does not invoke covenant of grant or patta to resume land for such public purpose and resorts to acquisition of land under provisions of Land Acquisition Act, assignees shall be entitled to compensation as owners of land and for all other consequential benefits under provisions of Land Acquisition Act.

       Larger Bench judgment in State of A.P V. Bondapalli Sanyasi is overruled.

B. SUDERSHAN REDDY, J.

( 1 ) THE common question of law that arises for consideration in these matters is:"whether the claimants are entitled to payment of compensation under the provisions of the Land Acquisition Act, 1894 (for short the Act ) when the assigned lands are resumed by the government for a public purpose?"

( 2 ) A Full Bench of this Court in State of a. P. V. P. Peda Chinnayya held:"where the Government resorts to the provisions of the Act for acquisition of the patta lands without resorting to the terms of the grant for resumption, it is liable to pay compensation under the act, but such compensation will be only the market value of the interest of the owner or the assignee of the land, subject to the clog. In such cases of acquisition, the claimant would also be entitled to consequential reliefs, such as those of solatium and interest etc. , under the Act. In a case where the patta lands are resumed by the government, the assignees cannot claim compensation under the Act, but can claim compensation equal to the market value of their interest in the land, subject to the clog. In such cases, no solatium may be payable but interest may be claimed on the amount of compensation from the date of dispossession and till the date of payment of compensation. In a case where the assignees are dispossessed from their patta lands without resuming the lands in terms of the grant and/or initiation of proceedings under the Act, the Government may be directed to initiate proceedings under the Act and to pay compensation under the Act as indicated. "

( 3 ) THE same issue once again came up for consideration before another Full Bench of this Court on a reference made by a division Bench and the Full Bench in its turn considered it appropriate to refer the matter to a Larger Bench by order dated 20-9-2001, the relevant portion of which reads thus:". . . . . . . . FURTHERMORE, we are prima facie of the opinion that that part of the law laid down by the judgment of the Full bench that the plaintiffs would be entitled to the market value together with interest may not be correct, particularly, in view of the fact that the right of assignees of the Government land is subordinate to the State. The lands assigned under such patta are resumable. In that view of the matter, they may not be treated to be owners of the lands so as to claim entire compensation calculated at the market value for acquisition thereof under the land Acquisition Act. "

( 4 ) THAT is how the matter once again came up for consideration before a Larger bench in State of A. P. v. Bondapalli sanyasp, wherein it is held:". . . . . . . . . . THE Full Bench committed error insofar as it held that where patta lands are resumed by the Government, the assignee would be entitled to compensation which would be equal to the market value of their interest in the land subject to the clog. Quantum of damages has to be ascertained having regard to the fact situation of each case. The right of the State to resume land is conditional only to the extent referred to in D-Form patta. Once such conditions are fulfilled, which have been done in the instant case, no grant of compensation would be payable towards resumption of land. Compensation may, however, be payable if lands have not been resumed by following due process of law. The act of the State in such cases would be tortuous in nature. "

( 5 ) THE views of the Larger Bench are summarized in the following manner:"where the assigned land is taken possession of by the State in accordance with the terms of the grant or patta the right of the assignee to any compensation will have to be determined in accordance with the conditions in patta itself and where the state does not resort to the covenant of the grant and resorts to the Land acquisition Act the assignee shall be entitled to compensation in terms of the land Acquisition Act not as an owner but as an interested person for the interest he held in the property. "

( 6 ) DR. Motilal B.




















































































































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