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2021 Supreme(Bom) 1671

IN THE HIGH COURT OF BOMBAY
A.S. Chandurkar, Vinay Joshi, G.A. Sanap, JJ.
Sandeep S. Metange and Others – Appellants
Versus
State Of Maharashtra and Others – Respondents
W. P. Nos. 2776 and 4083 of 2018
Decided On : 17-12-2021

Advocates Appeared:
For the Petitioner: S. B. Bhandarkar, Manish Sharma.
For the Respondent: Shishir Ukey, S. G. Jagtap, J. B. Kasat, A. V. Gupta, Akash Gupta, A. M. Kinkhede.

The issuance of preliminary notification under section 4 of the Land Acquisition Act, 1894 amounts to initiation of land acquisition proceedings for the purposes of section 24(1) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Headnote:

Land Acquisition - Initiation of Proceedings - Section 24(1) of the New Act - Section 4 notification amounts to initiation of land acquisition proceedings - Summary: The court addressed the issue of what amounts to initiation of land acquisition proceedings for the purposes of section 24(1) of the New Act. The court held that the land acquisition proceeding stands initiated on issuance of preliminary notification under section 4 of the Act for the purposes of section 24(1) of the New Act. The court concurred with the view expressed by the Referral Bench and held that the view expressed in the case of Nilima Bhole is not the correct exposition of law.

Fact of the Case:

The Division Bench of the Court was conflicted with an issue regarding the interpretation of 'initiation of proceedings' within the meaning of section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The conflict centered around whether the issuance of preliminary notification under section 4 of the Land Acquisition Act, 1894 or declaration under section 6 of the Old Act amounts to initiation of land acquisition proceedings within the meaning of section 24 of the New Act. The Full Bench was called upon to answer the questions and the matter was referred to the Full Bench for authoritative pronouncement.

Finding of the Court:

The court held that the land acquisition proceeding stands initiated on issuance of preliminary notification under section 4 of the Act for the purposes of section 24(1) of the New Act. The court concurred with the view expressed by the Referral Bench and held that the view expressed in the case of Nilima Bhole is not the correct exposition of law.

Issues: The conflict centered around the interpretation of 'initiation of proceedings' within the meaning of section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The specific questions were: What amount to 'initiation of land acquisition proceedings' for the purposes of section 24(1) of the 2013 Act? Whether publication of preliminary notification under section 4 of the Old Act amounts to 'initiation of land acquisition proceedings'? Whether publication of declaration under section 6 of the Old Act amounts to 'initiation of proceedings'?

Ratio Decidendi: The court held that the land acquisition proceeding stands initiated on issuance of preliminary notification under section 4 of the Act for the purposes of section 24(1) of the New Act. The court concurred with the view expressed by the Referral Bench and held that the view expressed in the case of Nilima Bhole is not the correct exposition of law.

Final Decision: The court answered the reference by stating that publication of preliminary notification under section 4 of the Old Act amounts to initiation of the land acquisition proceedings for the purposes of section 24(1) of the New Act.

JUDGMENT :

Vinay Joshi, J. –

1. Division Bench of this Court was conflicted with an issue, as to which stage of the land acquisition proceedings shall be construed as ‘initiation of proceedings’ within the meaning of section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as “the New Act” for short). In other words, whether issuance of preliminary notification under section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Old Act’ for short) or declaration under section 6 of the Old Act amounts to initiation of land acquisition proceedings within the meaning of section 24 of the New Act.

2. In order to effectively address the issue, it necessitates us to understand factual background under which the Referral Bench of this Court thought it fit to make the reference to a Full bench for authoritative pronouncement. In those petitions, validity of the land acquisition award passed under the provisions of the Old Act, was called in question.

3. The entire conflict centers around the question as to what amounts to initiation of land acquisition proceedings, in given cases. Admittedly, in those cases, preliminary notification under section 4 of the Old Act, was issued before datum line i.e. 1-1-2014 (date of commencement of the New Act) whilst declaration under section 6 of the Old Act, was issued thereafter. Rival claims were put-forth about the applicability of the Old or the New Act by interpreting the term “initiation of the land acquisition proceedings”. Petitioners have challenged the awards by contending that on issuance of declaration under section 6 of the Old Act, the proceedings have deemed to be initiated. It is contended that, since preliminary notification under section 4 of the Old Act was published prior to 1-1-2014, it does not amount to initiation. On the other hand, rival stand was taken by respondents stating that, no sooner preliminary notification under section 4 has been published, it amounts to initiation of land acquisition proceedings within the meaning of section 24(1) of the New Act. The controversy is obvious as it would decide the applicability of the provisions of the Old or New Act, while determining the compensation which has different parameters.

4. In the light of said controversy, the Full bench has called upon to answer the following questions :

    (i) What amount to ‘initiation of land acquisition proceedings’ for the purposes of section 24(1) of the 2013 Act?

(ii) Whether publication of preliminary notification under section 4 of the Old Act amounts to ‘initiation of land acquisition proceedings’? OR

(iii) Whether publication of declaration under section 6 of the Old Act amounts to ‘initiation of proceedings’?

5. The New Act, came into force on 1-1-2014. Section 24 of the New Act, clarifies the position of land acquisition proceedings, with reference to the determination of compensation in terms of Old or New Act. It necessitates us to reproduced section 24 of the New Act for ready reference, which reads as below :

    “Section 24. Land acquisition process under Act No. 1 of 1894 shall be deemed to have lapsed in certain cases. —

(1) Notwithstanding anything contained in this Act, in any case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894) (a) where no award under section 11 of the said Land Acquisition Act has been made, then, all provisions of this Act relating to the determination of compensation shall apply; or (b) where an award under said section 11 has been made, then such proceedings shall continue under the provisions of the said Land Acquisition Act, as if the said Act has not been repealed.

(2) Notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894), where an award under the said section 11 has been made five years or more prior to the com

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