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2022 Supreme(Chh) 20

HIGH COURT OF CHHATTISGARH, BILASPUR
Narendra Kumar Vyas, J.
Siyaram Kurre & Ors. – Appellant
Versus
State of Chhattisgarh & Ors. – Respondents
WPCR No.674, 979, 1031, 1096, 751, 828 of 2019, WPC No. 3355 of 2019 WPCR No. 1037 of 2019
Date of Decision : 10-01-2022

Advocate Appeared:
For the Petitioner:Mr. Krishnan Venugopal, Sr. Advocate with Mr Amit Verma, Ms. Swati Sood, Mr. Kaushik Mishra, Mr. Anurag Dayal Shrivastgava, Mr. Arvind Shrivastava, Mr. Rohan & Mr. Siddharth Shukla, Advocates.
For the Respondent:Mr. Devendra Pratap Singh, Dy. A.G. with Mr. Sudeep Verma, Dy. G.A., Mr. Vaibhav Dhar Diwan, Advocate on behalf of Mr. P.R. Patankar, Mr. Manoj Mishra, Mr. Ankit Singhal, Mr. Yash Agrawal, and Mr. Ankur Agrawal, Advocates, Mr. Ramakant Mishra, A.S.G., Mr. Vikash Singh, Sr. Advocate with Mr. Vaibhav Shukla, Ms. Deepika Kalia, Ms. Astha Shukla & Mr. Chandradeep Prasad, Advocates.

Headnote:(A) Railway Act, 1989 - Section 20A - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Land acquisition for railway project - Dispute over jurisdiction of collector to inquire into compensation fixation leading to FIR registration for alleged fraud by petitioners - Inquiry report revealing significant discrepancies in compensation awards suggesting fraud and collusion - Assessment of compensation without due process or consideration of existing guidelines contributes to illegality. (Paras 1, 6, 70, 102, 128)

(B) Judicial Discretion - High Court’s authority to quash FIR or intervening orders based on jurisdictional issues and compliance with principles of natural justice - Procedural irregularities and lack of adequate opportunity to parties investigated addressing fairness in outcome of administrative acts. (Paras 73, 118)

Facts of the case:
Petitioners, landowners and officials, challenged FIR registration based on inquiry report accusing them of colluding to inflate compensation for land acquired for a railway project. Compensation determination process faced scrutiny and allegations of lack of jurisdiction and procedural compliance by the collector leading to improper awards.

Findings of Court:
FIRs arising from inquiries reflecting potential misconduct caused by significant procedural flaws warranting proper reassessment of compensation awards.

Issues: Competence of the collector to investigate and alter compensation determinations; jurisdictional validity of FIRs based on findings of fraud or negligence in compensation processes; procedural fairness in administrative actions affecting fundamental rights.

Ratio Decidendi: The court held that the collector lacked jurisdiction in the inquiry process as per Railway Act stipulations overriding state authority; procedural fairness mandates necessary hearings and considerations in awarding compensation, reinforcing the principle of natural justice in administrative law.

Result: Writ petitions allowed; inquiry proceedings and FIRs quashed, directing reassessment of land compensation according to proper legal frameworks.

Table of Content
1. writ petitions addressing common legal and factual issues. (Para 1 , 2)
2. details of land acquisition notifications relevant to the case. (Para 3 , 4 , 5)
3. allegations of fraud against petitioners related to compensation. (Para 6 , 7 , 8)
4. jurisdictional challenges regarding the authority of the collector. (Para 9 , 10)
5. interim orders and their implications on the case. (Para 11 , 12)
6. definitions of ‘person interested’ in land acquisition context. (Para 13 , 14)
7. calculation of compensation and relevant guidelines. (Para 15 , 16 , 17 , 18)
8. factors leading to alleged irregularities in compensation. (Para 19 , 20)
9. interplay of statutory authority and the principle of natural justice. (Para 21 , 22)
10. arc principles applied to determine market value of land. (Para 23 , 24)
11. recommendations from inquiry committee on recovery of compensation. (Para 25 , 26)
12. the necessity for judicial oversight in statutory project applications. (Para 27 , 28 , 29)

JUDGMENT :

1. As common question of law and facts are involved in all the aforesaid bunch of Writ Petitions (Cr.) & Writ Petition (C), they heard analogously and are being disposed of by this common order.

2. By filing all these Writ Petitions (Cr.), the petitioners who are either Government Officials or the land losers have assailed the report dated 30.07.2019 given by respondent No.2/Collector Bastar and on the basis of this report, First Information Report dated 04.08.2019 was registered in connection with Crime No. 409/2019 at Police Station Kotwali, Jagdalpur, District- Bastar under Sections 109 , 120-B, 467, 468, 471, 406, 407, 408 and 409 of IPC and two letters bearing Nos. 1274 and 1283 dated 5- 8-2019 issued by respondent No.3/Station House Officer to respondent No.4 Bank seeking to freeze the Bank Account Nos. 101202000007188, 10120400000117 and 10120100010115 of the respective petitioners on various facts and grounds which will be dealt with separately with regard to individual petitioners in foregoing paragraphs of this order.

WPCR No. 1031 of 2019

3. The brief facts as projected by the petitioner in WPCR No. 1031 of 2019 are that the petitioner is a tribal belonging to Nagwanshi Tribe. The State of Chhattisgarh by issuing the notification dated 02.07.2014 has notified Ward No.37 of Jagdalpur as Lok Manya Tilak Ward and its boundaries are near to and adjoining village Palli in Bastar District. On 28.08.2015 the Central Government issued a notification exercising powers under Section 105(3) of the Right to Compensation Act 2013 (for short, “the Act, 2013”), by which certain provisions of the Act, 2013 have been made applicable. Thereafter, on 04-04.2016 the Government of India issued a notification under Section 2(37-A) of the RAILWAYS ACT for notifying the Special Railway Project in the State of Chhattisgarh between Rowghat – Jagdalpur (140 km.) part of Dailirajhara -Jagdalpur 235 km. railway line. The said special railway project was to be constructed for providing better infrastructure. It has been further stated that the Central Government notified the rules for the purpose of special railway projects vide notification dated 23.06.2016 and thereafter vide order dated 20.01.2017 has appointed competent authority as defined under Section 2(7A) of the RAILWAYS ACT to perform the functions of the competent authority for such area as may be specified in the notification and accordingly for Bastar District, Additional Collector was appointed as competent authority to determine the compensation.

4. It has been further stated that the petitioner has submitted his objections for the acquisition of his lands situated at village Palli and his objections were rejected, by the competent authority on 31.01.2018. Thereafter, the Central Government issued notification dated 21.08.2017 under Section 20-A of the RAILWAYS ACT inviting objections with respect

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