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2023 Supreme(SC) 141

SUPREME COURT OF INDIA
KRISHNA MURARI, S. RAVINDRA BHAT, JJ.
Ramesh Chandra Sharma & Ors. – Appellants
Versus
State of Uttar Pradesh & Ors. – Respondents
Civil Appeal No. 8819 of 2022 (arising out of S.L.P. (C) No. 11447 of 2018)
With
Anoop Singh (Dead) Thr. Lr(s). & Ors. – Appellants
Versus
State of Uttar Pradesh & Ors. – Respondents
Civil Appeal No. 8820 of 2022 (arising out of S.L.P. (C) No. 21323 of 2018)
With
Jageshwar Singh @ Jage (Dead) Thr. Lr(s). & Anr. – Appellants
Versus
State of Uttar Pradesh & Ors. – Respondents
Civil Appeal No. 8821 of 2022 (arising out of S.L.P. (C) No. 2256 of 2019)
Decided On : 20-02-2023

Advocates appeared:
For the Appellant(s) : Mr. Prashant Kanha, Adv. Mr. Gaurav Shrivastava, AOR Mr. Salman Khurshid, Sr. Adv. Mr. S.G. Hasnain, Sr. Adv. Mr. Aftab Ali Khan, AOR Mr. Syed Mohd. Fazal, Adv. Ms. Azra Rehman, Adv. Mr. M.Z. Choudhary, Adv. Mr. Pradeep Kant, Sr. Adv. Mr. Rohit Kumar Singh, AOR Mr. Simranjeet Singh Rekhi, Adv. Mr. Harsh Jain, Adv. Mr. Shubham Kumar, Adv.
For the Respondent(s): Mr. Ravindra Kumar Raizada, Sr. A.A.G. Ms. Alka Sinha, Adv. Mr. Anuvrat Sharma, AOR Mr. Ravindra Kumar, Sr. Adv. Mr. Binay Kumar Das, AOR Ms. Neha Das, Adv. Ms. Priyanka Das, Adv. Mr. Pradeep Kant, Sr. Adv. Mr. Rohit Kumar Singh, AOR Ms. Kamini Jaiswal, Adv. Ms. Rani Mishra, Adv. Mr. Omanakuttan K. K., AOR

Headnote:(A) Land Acquisition Act, 1894 - Section 23 - U.P. Land Acquisition Rules, 1997 - Discrimination in compensation - Classification between ‘Pushtaini’ and ‘Gair-Pushtaini’ landowners held unreasonable and violative of Article 14. The classification denied equal compensation despite similar circumstances leading to unequal treatment. The Court found no empirical basis for such a division and underscored the necessity for fair compensation irrespective of land ownership status. Issues of application under Section 23 regarding proper evaluation of compensation were prevalent. (Paras 21, 31, 62, 63)

Facts of the case:
The appellants, landowners whose land was acquired under the act, claimed that the compensation distinction between Pushtaini and Gair-Pushtaini landowners constituted unjust discrimination under constitutional provisions. The appeals stemmed from the Full Bench's ruling, which upheld the classification.

Findings of Court:
The classification was found to lack reasonable justification, leading to systematic discrimination against Gair-Pushtaini landowners. The Court emphasized the need for equitable treatment regardless of ownership.

Issues: The core issues were whether the appellants waived their rights for revision of compensation by earlier agreements, the legality of discriminatory compensation practices, and conformity with previous Supreme Court judgments regarding equal treatment under the Land Acquisition Act.

Ratio Decidendi: The Court ruled that the arbitrary differentiation in compensation based on residence was unconstitutional, affirming that all landowners should receive equivalent compensation irrespective of arbitrary categories.

Result: Appeals allowed.

Table of Content
1. overview of land acquisition and classification (Para 1 , 2 , 5 , 9 , 10)
2. court's observations on historical context and classification terms (Para 6 , 8 , 18)
3. arguments presented by both parties regarding compensation (Para 20 , 21)
4. legal principles regarding rights to compensation (Para 22 , 28 , 60)
5. court's analysis on legality of classification (Para 24 , 31 , 58)
6. final conclusion and order of the court (Para 67 , 68 , 69)

JUDGMENT :

Krishna Murari, J.

1. These appeals are directed against the judgment and order dated 30.03.2018 passed by a Full Bench of the High Court of Judicature at Allahabad (hereinafter referred to as ‘the High Court’), The reference to Full Bench came to be made under the following circumstances: -

1.1 Writ Petition No. 61449 of 2009, Smt. Madhuri Srivasatava Vs. State of U.P. & Ors., (2016) 6 SCC OnLine AII 2832 along with other connected petitions were filed by certain landholders whose land was acquired by NOIDA challenging the decision of the Board of Directors of NOIDA dated 07.01.1998 as also the approval granted to the said resolution by the State Government dated 02.03.2009 whereby a distinction was carved out in the matter of payment of compensation by creating a classification between “Pushtaini” and “Gair-pushtaini” landholders. The ‘Pushtaini’ landholders whose lands were acquired, were given additional compensation @ Rs.3 per sq. yard along with 15% as rehabilitation bonus on the compensation already awarded, as also the 10% area of the acquired land, whereas those who were declared as ‘Gair-pushtaini’ were denied this additional benefit. A Division Bench of the High Court vide Judgment and order dated 10.05.2016 dismissed the Writ Petition holding the classification to be reasonable having direct nexus with the object sought to be achieved i.e., rehabilitation of the original residents who are likely to become landless due to the acquisition of their land.

2. Another bunch of Writ Petitions were filed by the present appellants challenging a similar classification made by the Greater Noida Authority (hereinafter referred to as ‘G Noida’) in payment of compensation on the basis of the landholder being ‘Pushtaini’ and ‘Gair-Pushtaini’.

3. While considering the Writ Petitions, another Division Bench disagreed with the views expressed in the case of Smt. Madhuri (Supra) and vide order dated 07.07.2017 referred the matter to be decided by a larger Bench.

4. The Full Bench constituted in pursuance to the reference framed the following questions for adjudication :-

    (i) Whether the law laid down by a Division Bench of this Court in the case of Smt. Madhuri Srivastava reported in (2016) 6 ADJ 1 is in conflict to the law laid down by the Supreme Court in the case of Nagpur Improvement Trust and Another Vs. Vithal Rao and Ors., (1973) 1 SCC 500 and also with the provisions of the LAND ACQUISITION ACT , 1894?

    (ii) Whether the classification made under the U.P. Land Acquisition (determination of compensation and declaration of award by agreement) Rules, 1997, the distinction made among ‘Pushtaini’ and ‘Gair-Pushtaini’ farmers, is a classification having reasonable nexus with the object sought to be achieved?

5. Vide impugned judgment and order dated 30.03.2018, the Full Bench answered question No. 1 in negative and question No. 2 in affirmative and upheld the view taken by the Division Bench in the case of Smt. Madhuri Srivastava (Supra). As a consequence of the answers to the questions framed, the Full Bench held that nothing remains to be decided in the Writ Petitions filed by the present appellants and the same were dismissed.

6. Before we enter into the factual matrix of the case, we find it expedient to first trace out the etymology of the words “Pushtaini” and “Gair Pushtaini” used in the impugned classification, for language, once adopted inside the realm of law, mater


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