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2019 Supreme(SC) 1143

SUPREME COURT OF INDIA
ARUN MISHRA, M.R. SHAH, B.R. GAVAI, JJ.
Shiv Kumar & Anr. – Appellant
Versus
Union of India & Ors. - Respondents
Civil Appeal No. 8003 of 2019 (Arising Out Of S.L.P. (C) No.24726 of 2019 D.No.25495 of 2019)
Decided on : 14-10-2019

Advocates Appeared:
For the Petitioner(s):Mr. S.N. Bhat, Advocate

IMPORTANT POINTS
Purchase of land after notification u/s 4 is void ab initio.
No benefit can be claimed on basis of a void transaction.
Unauthorised re-entry does not confer any right.
It is not open to a Bench to take a different view ignoring decisions of coordinate and larger Benches by wrongly distinguishing them.
When the present Bench differs from that of a coordinate Bench and follows decisions of larger Benches prior to and after the decision in question, there will be no need to refer that decision to larger Bench.

Headnote:

(a) Land acquisition Act, 1894 - Section 4 r/w section 4 and 11(4), Act, 2013 - Purchase of land after notification u/s 4 is void ab initio - Purchaser has no right in the property - He cannot question acquisition. (Para 6, 7, 8)

(b) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 3(c) and 3(r) - Affected family - Includes landowners for whose benefit land is held before the acquisition - A person acquiring interest after section 11 notification not included at all - He is not the owner. (Para 10, 12)

(c) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24 - Instantly possession taken and compensation paid - Petitioner re-entering the land unauthorisedly and claiming that he is possession and such possession has not been taken - Unauthorised re-entry does not confer any right - Proviso to Section 24(2) does not recognize a purchaser after Section 4 notification - Cannot claim rehabilitation and resettlement. (Para 16, 17, 18, 23)

(d) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24 - Acquisition cannot be challenged based on void transaction - Declaration to obtain the land can also not be sought on such transaction. (Para 20)

(e) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - No right can accrue on transactions based on power of attorneys, agreements, etc. (Para 24)

(f) Administration of justice - Judicial propriety - Not open to a Bench to take a different view ignoring decisions of coordinate and larger Benches by wrongly distinguishing them. (Para 26)

(g) Supreme Court Rules, 2013 - Order VI Rule 2 - Referring a decision to larger Bench - When present Bench differs from that of a coordinate Bench and follows decisions of larger Benches prior to and after the decision in question - No need to refer that decision to larger Bench. (Para 27)

Facts of the case:

Notification was issued for acquisition of the land. It was followed by the declaration under section 6 issued on 3.4.2000. Possession was taken on 12.5.2000. Subsequently, the petitioners purchased the land on 5.7.2001 by way of Registered Sale Deed executed by one Satya Narain, the Power of Attorney holder of original owners. The purchasers then participated in the proceedings for the determination of compensation under sections 9 and 10 of the 1894 Act. The award was passed on 3.4.2002. In the meanwhile, an unauthorized colony came up with the name of Deep Vihar, Pansali, Pooth Kalan, Delhi. The petitioners claimed that they continued in the actual physical possession of the land even after passing of the award on 17.09.2008 and the same formed part of the unauthorized colony. The Government of NCT of Delhi provisionally regularised the colony. The Act of 2013 came in force from 1.1.2014. The respondents never took the actual physical possession of the land; as such, the acquisition has lapsed. The purchasers/petitioners filed a writ petition at the High Court of Delhi. A Division Bench of the High Court has dismissed the writ application.

Finding of the Court:

Appellant has no right on the land in dispute. Not entitled to any relief.

Result: Appeal dismissed.

Judgement Key Points

Based on the provided legal document, here are the key points regarding the case Shiv Kumar & Anr. vs. Union of India & Ors., formatted with the requested citation style:

  • Purchase of land after Section 4 notification is void ab initio. Any transaction of land or creation of encumbrances after the publication of a notification under Section 4 of the Land Acquisition Act, 1894 is void against the State, and the purchaser acquires no right, title, or interest in the land (!) (!) (!) (!) (!) (!) (!) .
  • No right to challenge acquisition proceedings. A subsequent purchaser has no locus standi to question the validity of the notification, the regularity of taking possession, or the acquisition proceedings themselves, as their sale deed does not confer any title (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) .
  • No benefit from the Act of 2013 for subsequent purchasers. Purchasers who acquire interest after the Section 11 notification are not included in the definition of "affected family" or "landowner" under Section 3(c) and Section 3(r) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (!) (!) .
  • Prohibition on transactions under Section 11(4) of the Act of 2013. The Act of 2013 explicitly prohibits any person from making any transaction or creating any encumbrance on land from the date of publication of the notification under Section 11 (!) (!) (!) (!) .
  • Unauthorised re-entry does not confer any right. A person cannot claim rehabilitation, resettlement, or restoration of land based on unauthorized re-entry into the land after possession was taken by the government; such possession is illegal and does not confer any right (!) (!) (!) .
  • Section 24 of the Act of 2013 does not validate void transactions. The provisions of Section 24 of the Act of 2013, which deal with the lapse of acquisition proceedings, do not confer any right on a purchaser whose sale is ab initio void; no declaration can be sought to get the land back based on such a transaction (!) (!) (!) (!) (!) (!) .
  • Transactions via Power of Attorney, GPA, or Will are invalid. No rights can be claimed based on transactions executed through Power of Attorney, Agreement to Sell, or Will, as these do not convey title or create any interest in immovable property (!) (!) (!) (!) .
  • Judicial propriety regarding precedent. It is not open to a Bench to take a different view ignoring decisions of coordinate and larger Benches by wrongly distinguishing them; if a Bench differs from a coordinate Bench but follows decisions of larger Benches, there is no need to refer the matter to a larger Bench (!) (!) .
  • Result of the appeal. The appeal was dismissed as the appellant has no right on the land in dispute and is not entitled to any relief under the law (!) (!) .

JUDGMENT :

ARUN MISHRA, J.

1. The question involved in the matter is whether a purchaser of the property after issuance of notification under section 4 of the Land Acquisition Act, 1894 (for short, “the 1894 Act”), can invoke the provisions contained in section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, "the Act of 2013").

2. Notification No.F.10(29)/96/L&B/LA/11394, dated 27.10.1999, was issued for the acquisition of the land situated in the revenue estate of Village Pansali, Delhi, for the public purpose of the Rohini Residential Scheme under planned development of Delhi. It was followed by the declaration under section 6 issued on 3.4.2000. Possession was taken on 12.5.2000. Subsequently, the petitioners purchased the land on 5.7.2001 by way of Registered Sale Deed executed by one Satya Narain, the Power of Attorney holder of original owners. The purchasers then participated in the proceedings for the determination of compensation under sections 9 and 10 of the 1894 Act. The award was passed on 3.4.2002. In the meanwhile, an unauthorized colony came up with the name of Deep Vihar, Pansali, Pooth Kalan, Delhi. The petitioners claimed that they continued in the actual physical possession of the land even after passing of the award on 17.09.2008 and the same formed part of the unauthorized colony. The Government of NCT of Delhi provisionally regularised the colony. The Act of 2013 came in force from 1.1.2014. The respondents never took the actual physical possession of the land; as such, the acquisition has lapsed. The purchasers/petitioners filed a writ petition at the High Court of Delhi. A Division Bench of the High Court has dismissed the writ application.

3. Learned counsel appearing on behalf of the purchasers submitted that the High Court has erred in rejecting the writ application on the ground that the purchasers after issuance of notification under section 4 of the 1894 Act cannot question the land acquisition. The decision runs contrary to the dictum laid down by this Court in Government (NCT of Delhi) v. Manav Dharam Trust & Anr. (2017) 6 SCC 751. Learned counsel further submitted that the High Court has also erred in dismissing the writ application on the ground that petitioners have admitted that the property is part of the unauthorized colony of Deep Vihar.

4. Shri K.M. Natraj learned Additional Solicitor General has supported the impugned judgment and order and submitted that the purchase made after the notification issued under section 4 of the 1894 Act and declaration under section 6 is void. The purchasers had acquired no right, and they cannot question the land acquisition, nor they can invoke the provisions contained in section 24 of the Act of 2013. It was further submitted that decision in Manav Dharam Trust (supra) is per incuriam because of a large number of decisions of this Court holding that sale made after issuance of notification under section 4 is void.

5. It is crystal clear that for seeking the relief under section 24, the proceedings for taking possession under Act of 1894 have been put into question as illusory one, and possession continues with appellants. The decision in Manav Dharam Trust (supra) has been mainly relied upon by the learned counsel appearing on behalf of the purchasers/petitioners in which a Division Bench opined that subsequent purchasers are affected by the acquisition. Therefore, they are entitled to seek a declaration of the lapse of acquisition under the Act of 2013. It has further opined that since declaration is sought, the challenge is not to the acquisition proceedings. Because of the operation of section 24(2) of the 2013 Act, the ratio of the various cases decided by this Court under the Act of 1894, has no application to such situations. It has observed thus:

“21. All the decisions cited by the learned Senior Counsel appearing for the appellants, no doubt, have categorically held that

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