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2023 Supreme(P&H) 2379

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SURESHWAR THAKUR, KULDEEP TIWARI, JJ.
Satnam Singh & Anr. – Petitioners
Versus
State of Haryana & Ors. – Respondents
CWP-17464 of 2007
Decided On : 09-10-2023

Advocates Appeared:
Mr. Ashish Chopra, Advocate and Ms. Rupa Pathania, Advocate; For the Petitioners
For the Respondent: Mr. Ankur Mittal, Addl. AG, Haryana with Mr. Saurabh Mago, DAG, Haryana.
Mr. Deepak Sabherwal, Advocate for Respondent-HSVP (in all the cases).

Post-acquisition, landowners cannot enter into valid agreements regarding the acquired land, as the public interest served by the acquisition prevails over private benefits, rendering such agreements void.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4 and 6 - Petition challenging land acquisition proceedings based on collaboration agreements executed post-declaration under Section 6 - The court analyzed if such agreements constitute illegality in the context of public purpose. (Paras 2-6, 16-36)

(B) Public Purpose - The State's power of eminent domain cannot be exercised for private benefit; hence any transactions made post-acquisition notification are void. The rationale was reinforced that public interest must prevail over private interests in land acquisition matters. (Paras 22-25)

(C) Rights of Landowners - Once land is acquired under the Act, landowners possess no title or interest to unduly influence the acquisition process; any agreements resulting in the divestiture of state-acquired land are void. (Paras 17-22, 29-30)

Facts of the case:
Challenges were raised regarding the legitimacy of collaboration agreements made between landowners and private builders after the issuance of acquisition notifications. The primary claim centered on whether public interest was compromised by such agreements.

Findings of Court:
The acquisition notifications were upheld, and the agreements were quashed due to their illegality following the issuance of acquisition notifications.

Issues: The main issues included the legality of collaboration agreements post-acquisition notifications, the concept of public purpose versus private benefit, and the authority of landowners post-acquisition.

Ratio Decidendi: The court determined that post-acquisition, landowners lost ownership rights, voiding any agreements made thereafter. The public purpose underlying land acquisition supersedes individual agreements that seek to circumvent statutory mandates.

Result: Writ petitions dismissed with costs.

Table of Content
1. challenge to land acquisition legality. (Para 1 , 2 , 3)
2. discussion on relevant legal precedents. (Para 4 , 5 , 6)
3. details of the acquisition process. (Para 7 , 8)
4. background of the petitioners' claims. (Para 9)
5. petitioners' arguments and grievances. (Para 10 , 11 , 12 , 13 , 14 , 15)
6. court's legal analysis. (Para 16 , 17)
7. court's application of relevant laws. (Para 18 , 19 , 20 , 21)
8. public versus private interests. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)
9. final reasoning against petitioners’ claims. (Para 29 , 30 , 31 , 32 , 33)
10. conclusion and implications for future. (Para 34 , 35 , 36)
11. final orders and directions of the court. (Para 37)

JUDGMENT

Sureshwar Thakur, J.

Since all the above mentioned writ petitions arise from a common notification of acquisition besides when common questions of law and facts are involved thereins, therefore, all the above mentioned writ petitions are taken up together for disposal.

2. Petitioner No.2 in CWP-17464-2007 on the strength of a collaboration agreement dated 2.4.2004 (admittedly entered after issuance of a declaration under Section 6 of the LAND ACQUISITION ACT , 1894 (hereinafter referred to as 'the Act of 1894'), has through filing the instant writ petition(s), thus thrown a challenge, to the land acquisition proceedings which were successfully and legally terminated in the year 2006. It is not in dispute that petitioner No.2 had entered into a collaboration agreement with petitioner No.1, but yet post the issuance of a declaration under Section 6 of the Act of 1894.

3. The core issue which arises for determination, before this Court, is whether the collaboration agreement executed inter-se the land losers, and, the collaborator(s) concerned, rather begets the stain of illegality, thus stemming from the factum of its becoming drawn post the issuance of notification (Supra):-

(i) The other question which arises for determination is whether the collaborator(s) concerned, who only at the stage (Supra) emerged into the scenario, does thereby become entitled to the benefit of release of the acquired land, especially when the claim for release is planked, but only on the premise of the apposite collaboration agreement, thus whether thereby the said endeavor would be frustrating the public purpose besides would be promoting the makings of ill-profits by the builder or by the collaborator(s) concerned;

(ii) That if the said collaboration agreement is alike the transfer of rights in the acquired land, vis-a-vis, the collaborator(s) concerned. Moreover, when it is entered into but post the issuance of notification under Section 4 of the Act of 1894, whether thereby when at the stage (Supra), any transfer of title by the land losers concerned, to the collaborator concerned, is but barred or when thereafters, the claim for releases of the acquired land, as made, imperatively post the issuance of a notification under Section 4 of the Act of 1894, whether thereby, the said claim, can be well laid either by the land losers or by the collaborator concerned.

4. For making determinations, upon, the question of law (Supra), it is deemed imperative, to allude to the judgment rendered by the Hon'ble Supreme Court in Uddar Gagan Properties Ltd. v. Sant Singh & Ors., to which Civil Appeal No. 5072 of 2016 (Arising out of SLP(Civil)5455 of 2014), becomes assigned. Before proceeding to extract the relevant paragraph, as occur, thereins, it is deemed imperative to delineate the facts as occur thereins.

(i) The imperative fact which emerged, thereins is that, on 11.4.2002, 850.88 acres of land was proposed to be acquired for residential/commercial Sector 27-28, Rohtak, Haryana. The said proposal was carried in the notification of even date becoming issued under section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act of 1894'). The said notification became succeeded by a declaration made on 8.4.2003 under Section 6 of the Act of 1894 leading to an awa

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