Appasani Babu Rao vs Union of India, Rep. by its Secretary, Ministry of Petroleum & Chemicals, New Delhi

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2020 Supreme(AP) 867

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
NINALA JAYASURYA, J.
Appasani Babu Rao and Others - Petitioners
Versus
The Union of India, Rep. by its Secretary, Ministry of Petroleum & Chemicals, New Delhi and Another – Respondents
Writ Petition Nos.682, 10069 and 11829 Of 2019
Decided On : 22-10-2020

Advocates Appeared:
For the Petitioners: Sri D. Krishna Murthy.
For the Respondents: Sri Josyula Bhaskar Rao, learned counsel., Sri Dominic Fernandez, learned counsel, Sri G. Rama Gopal, learned counsel.

Headnote:(A) Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 - Sections 2(a), 3(1), 5(2), and 6(1) - Constitution of India - Article 300-A - Writ petitions challenging the acquisition of land for a pipeline project; applicants claimed violations of procedural safeguards regarding objection hearings. (Paras 1-14)

(B) In determining objections under the PMP Act, the competent authority must provide a reasoned order following the principles of natural justice, ensuring fair consideration of landowners' rights. (Paras 4, 5, 14)

(C) The competent authority's failure to objectively consider objections invalidates the declaration of acquisition under Section 6(1) of the PMP Act, rendering the process unsustainable. (Paras 4, 14)

Facts of the case:
Petitioners contested land acquisition for a pipeline, alleging disregard to their objections, lack of consideration, and mechanical orders by the authority. (Paras 1-13)

Findings of Court:
The orders of the competent authority were held invalid as they failed to adequately consider the objections of landowners. (Paras 14-16)

Issues: Whether the competent authority acted in compliance with mandatory provisions of the PMP Act, considered objections properly, and if there were any lapses in procedural fairness. (Paras 8-14)

Ratio Decidendi: The court emphasized that a competent authority must act fairly, definitively, and in accordance with natural justice principles, failing which the acquisition may be annulled. (Paras 4, 14)

Result: Writ petitions partly allowed; petitioners entitled to compensation determined based on market value but the acquisition process deemed invalid. (Paras 15-16)

Table of Content
1. challenges against land acquisition under pmp act (Para 1 , 2 , 3)
2. petitioners challenge due process of land acquisition (Para 5 , 6)
3. respondents assert compliance with pmp act (Para 7 , 10)
4. court reflects on legal standards in acquisition (Para 8 , 9)
5. court affirms the need for reasoned orders (Para 11 , 12 , 14)

ORDER :

(Ninala Jayasurya, J.)

(Heard and pronounced through Blue Jeans App (Virtual) mode, since this mode is adopted on account of prevalence of COVID-19 pandemic)

1. The issues falling for consideration in these three writ petitions arise under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (hereinafter referred to as “the PMP Act”) and involve common points for adjudication. Hence, the same are taken up together and disposed of, by this common order.

W.P.No.682 of 2019 is filed questioning the land acquisition proceedings initiated under the Notification S.O.No.2098 dated 06.09.2017 issued under Section 3 (1) of the PMP Act, Order dated 04.01.2018 made under Section 5 (2) of the PMP Act and the Declaration dated 11.04.2018 issued under Section 6 (1) of the PMP Act, insofar as the petitioners’ lands are concerned, as illegal, arbitrary and violative of provisions of Article 300-A of the Constitution of India.

W.P.No.10069 of 2019 is filed challenging the land acquisition proceedings initiated under Notification S.O.No.2098 dated 06.09.2017 issued under Section 3 (1) and all other consequential proceedings under Section 5 (2) and Section 6 (1) of the PMP Act, insofar as the petitioners’ lands are concerned as illegal, arbitrary and violative of provisions of Article 300-A of the Constitution of India and to pass such other orders as deemed fit and proper in the facts and circumstances of the case.

W.P.No.11829 of 2019 is filed challenging the land acquisition proceedings initiated under Notification S.O.No.440 dated 24.03.2019 issued under Section 3 (1), Order dated 07.08.2019 made under Section 5 (2) and all consequential proceedings issued under Section 6 (1) of the PMP Act, insofar as the petitioners’ lands in Survey No.53/2C of Chevuturu Village are concerned as illegal, arbitrary and in violation of provisions of Articles 14 and 300-A of the Constitution of India and to pass such other orders as deemed fit and proper in the facts and circumstances of the case.

2. Brief facts leading to the filing of the writ petitions may be narrated:

Government of India, in the interest of public undertook transportation of petroleum products from Paradeep in the State of Orissa via State of Andhra Pradesh to Hyderabad, through a pipeline project called Paradeep-Hyderabad pipeline project (hereinafter referred to as ‘the Pipeline Project’). In the process of laying the pipelines, the necessity to acquire the right of user in respect of the petitioners’ lands under the provisions of the PMP Act arose. Accordingly, a Notification under Section 3 (1) of the PMP Act was issued on 06.09.2017 covering different extents of lands of the writ petitioners, situated in the villages of Gaddamanugu, Cheruvumadhavaram, Sunnampadu, Loya, Kavuluru, Munagapadu and Chevuturu in G.Konduru Mandal, Krishna District. All the petitioners are farmers owning different extents of lands in the said villages and eking out their livelihood by cultivating the same. Originally the pipeline alignment was going in a straight line between Konduru village and Indian Oil Corporation Ltd., (IOCL) terminal at Kowluru village as per the peg marking fixed in the year 2016. However, the said notification dated 06.09.2017 was issued by the Central Government expressing its intention to acquire the right of the user in land, with a changed alignment. Subsequently, another Notification under Section 3 (1) of the PMP Act, was issued on 24.03.2019 in respect of lands of the writ petitioners in W.P.No.11829 of 2019 situated in Survey No.53/2C of Chevuturu Village.

As per the said notifications, any pers