M/S. DELHI AIRTECH SERVIES PVT. LTD. vs. STATE OF U.P

Case Type: Civil Appeal

Date of Judgment: 14-10-2022

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Full Judgment Text

         REPORTABLE                                                                                                   IN THE SUPREME COURT OF INDIA                   CIVIL APPELLATE JURISDICTION                          CIVIL APPEAL NO. 24 OF 2009 M/s Delhi Airtech Services Pvt. Ltd & Anr.        .… Appellant(s) Versus State of U.P & Anr.                …. Respondent(s)     J U D G M E N T A.S. BOPANNA, J. This appeal has a chequered history.  The appeal was 1. heard by a Bench consisting of two Hon’ble Judges (Justice A.K. Ganguly and Justice Swatanter Kumar) and was decided by the Judgment dated 18.08.2011 with divergent opinion.  In Signature Not Verified the process, after consideration, Hon’ble Justice A.K. Ganguly Digitally signed by DEEPAK SINGH Date: 2022.10.15 10:22:53 IST Reason: arrived at the conclusion that taking over possession of the 1 land without complying the requirement under Section 17(3A) of the Land Acquisition Act, 1894 (for short ‘Act, 1894’) is clearly illegal and in violation of the statutory provision which automatically   violates   the   constitutional   guarantee   under Article 300A of the Constitution.   However, on taking note that   the   land   had   been   utilised   and   developed   by   the beneficiary of the acquisition, had allowed the retention of the land by directing to pass an award by construing the date of filing the writ petition i.e. 01.03.2006 as the date of Section 4 notification to reckon the market value as against the actual date of notification.  Hence allowed the appeal in those terms. 2. On the other hand, Hon’ble Justice Swatanter Kumar, however,   disagreed   with   the   said   conclusion   and   for   the separate reasons assigned by the learned Judge, arrived at the   conclusion   that   Section   11A   of   Act,   1894   has   no application to acquisition under Section 17 of Act, 1894.   It was further held that the default in complying with Section 17(3A) of Act, 1894 does not invalidate or vitiate the entire acquisition proceedings.  The learned Judge while deciding so had however misconstrued that 80% of the estimated value in terms of sub­section (3A) of Section 17 had been paid to the 2 land loser and in that context held that the interest provided in terms of Section 34 will be payable.   In that view, the learned Judge ordered dismissal of the appeal in terms of the directions issued. In that backdrop, in view of the divergence of opinion 3. between the learned Judges, they had ordered the matter to be   placed   before   Hon’ble   the   Chief   Justice   of   India   for reference to a larger Bench to resolve the conflict.  It is in that circumstance   Hon’ble   the   Chief   Justice   has   ordered   the matter to be placed before a Bench consisting of three Judges. However,   no   specific   question   has   been   formulated   and referred for decision by a three­member Bench.   Hence, we have heard the matter based on the factual aspects involved in this  case   de­novo,   so as  to determine  the   legal aspects which touch upon the same. 4. It would therefore be necessary for us to at the outset take note of the factual matrix involved in this case.  The New Okhla   Industrial   Development   Authority   (NOIDA)   – Respondent   No.2   was   to   implement   a   planned   Industrial layout in Gautam Budh Nagar District for which purpose the requisite land was to be acquired. The project was envisaged 3 by the State of U.P–Respondent No.1 as a part of planned Industrial Development.   Hence, Respondent No.1 being the appropriate   Government,   issued   the   Notification   dated 17.04.2002 invoking the special power due to urgency.   The Notification was therefore issued under Section 4(1) read with Section 17(1) and (4) of Act, 1894, whereby the requirement of procedure under Section 5A of the Act, 1894 was dispensed. Pursuant thereto, the declaration under Section 6 of the Act, 1894 was notified and published on 22.08.2002 declaring that the   area   was   required   by   the   Government   for   planned industrial   development.     It   was   also   stated   that   after   the expiry of 15 days from the date of publication of notification under sub­section (1) of Section 9 of the Act, 1894, possession of the acquired land will be taken. 5. In the large extents of land that was notified, an extent measuring   2­06­1/3­0   Bighas   situated   in  village   Haldauni, Tehsil and Pargana Dadri, District Gautam Budh Nagar, an ‘Abadi’ land was also included.   The Appellant, a company incorporated under the provisions of the Companies Act, 1956 claims to be the owner of the said small extent of land.  The Appellant alleges that they were not served with the notice 4 contemplated under Section 9(1) of Act, 1894.  However, it is not   disputed   that   possession   was   nevertheless   taken   on 04.02.2003.  But the grievance raised by the Appellant is that neither the initial requirement of tendering and paying 80% of the estimated compensation contemplated under sub­section (3A) to Section 17 of Act, 1894 was complied nor was the requirement of Section 11A of the Act, 1894 to pass the award within two years from the date of declaration under Section 6 of Act, 1894 complied.   In that view, the Appellant filed the writ petition on 01.03.2006 since more than three and half years  had  elapsed  and  neither  of  the  provisions  had  been complied.     The   appellant   therefore   contended   that   the acquisition in so far as the land belonging to the Appellant has lapsed and the same should revert to the Appellant. 6. The High Court having considered the matter was of the opinion that Section 11A of Act, 1894 is not attracted to the proceedings for acquisition in exercise of the power under Section 17 of Act, 1894.  In that regard, the High Court relied on the decision of this Court in  Satendra Prasad Jain Vs. (1993)   4   SCC   369   and   dismissed   the   writ State   of   U.P   5 petition by order dated 28.08.2006, which has given rise to the   above   appeal   which   was   earlier   heard   by   a   Bench consisting of two Hon’ble Judges who have differed as noted supra.  While taking note of the decision in  Satendra Prasad , rendered by a Bench of three Hon’ble Judges, Justice Jain A.K. Ganguly has found it to be  sub­silentio  and  per incuriam in the face of the provision contained in the statute.  Justice Swatanter Kumar, the other Hon’ble Judge however relied on the decision in   Satendra Prasad Jain   (supra) holding that compliance   with   Section   17(3A)   of   the   Act,   1894   is   not mandatory.     Hence   even   in   the   circumstance   of   non­ compliance, the benefit of interest as provided in Section 34 of the Act, 1894 was held as the entitlement.  Section 11A of Act, 1894 was also held not applicable to the acquisition under Section 17 of Act, 1894.  Though detailed reasons have been tendered   by   both   the   learned   Judges   for   their   respective opinion and has also been referred to by the learned Senior Counsel for the parties, we do not propose to go into the same since the entire matter has been placed before us and the 6 case put forth by the parties is to be independently examined by us. 7. In the above background we have heard Shri Sudhir Chandra,   learned   senior   counsel   for   the   appellant,   Shri Ravindra Kumar, learned senior counsel for the Respondent No.1,   Shri   Ravindra   Raizada,   learned   senior   counsel   for Respondent No.2, exhaustively and have perused the appeal papers. In   the   light   of   the   contentions   urged,   the   following 8. questions arise for our consideration. a. Is the requirement to tender payment of 80% of the estimated   compensation   as   contemplated   under sub­section(3A)   to   Section   17   of   Act,   1894, mandatory to ensure absolute vesting of the notified land. b. Whether the requirement to pass the award within the   time   frame   contemplated   under   Section   11A applicable to the acquisition notified under Section 17 of Act, 1894. c. Can the case in   Satendra Prasad Jain   (supra) be considered as a decision laying down  ratio decidendi on the above questions? 7 9. In   order   to   decide   the   scope   and   ambit   of   the provisions   under   consideration   it   would   be   appropriate   to reproduce Section 11A and Section 17 of the Act, 1894 in its entirety   and   keep   the   same   in   perspective.     Needless   to mention that if the plain meaning of the provision does not admit of any ambiguity no other external aid will be necessary to interpret the provision except to give it the plain meaning. The relevant provision read as hereunder: “ Section   11A­   Period within which an award shall be made ­ (1) The Collector shall make an award under section 11 within a period of two years   from   the   date   of   the   publication   of   the declaration and if no award is made within that period, the entire proceeding for the acquisition of the land shall lapse:  Provided   that   in   a   case   where   the   said declaration   has   been   published   before   the commencement   of   the   Land   Acquisition (Amendment)   Act,   1984,   the   award   shall   be made within a period of two years from such commencement.  Explanation ­ In computing the period of two years   referred   to   in   this   section,   the   period during   which   any   action   or   proceeding   to   be taken  in pursuance  of  the said declaration is stayed by an order of a Court shall be excluded.” “Section   17­   Special   powers   in   case   of urgency  – (1) In cases of urgency whenever the [appropriate   Government],   so   directs,   the Collector,   though   no   such   award   has   been made,   may,   on   the   expiration   of   fifteen   days 8 from the publication of the notice mentioned in section   9,   sub­section   (1),   [take   possession   of any   land   needed   for   a   public   purpose].   Such land   shall   thereupon   [vest   absolutely   in   the [Government], free from all encumbrances.  (2) Whenever, owing to any sudden change in the channel of any navigable river or other unforeseen emergency, it becomes necessary for any   Railway   Administration   to   acquire   the immediate   possession   of   any   land   for   the maintenance of their traffic or for the purpose of making thereon a river­side or ghat station, or of providing   convenient   connection   with   or accesses to any such station, [or the appropriate Government   considers   it   necessary   to   acquire the   immediate  possession  of  any  land for  the purpose of maintaining any structure or system pertaining to irrigation, water supply, drainage, road communication or electricity,] the Collector may,   immediately   after   the   publication   of   the notice mentioned in sub­section (1) and with the previous   sanction   of   the   [appropriate Government], enter upon and take possession of such   land,   which   shall   thereupon   [vest absolutely   in   the   [Government]]   free   from   all encumbrances:  Provided that the Collector shall not take possession of any building or part of a building under   this   sub­section   without   giving   to   the occupier thereof at least forty­eight hours’ notice of his intention so to do, or such longer notice as may   be   reasonably   sufficient   to   enable   such occupier to remove his movable property from such   building   without   unnecessary inconvenience.  (3)   In   every   case   under   either   of   the preceding   sub­sections   the   Collector   shall   at that   time   of   taking   possession   offer   to   the persons   interested   compensation   for   the standing crops and trees (if any) on such land and from any other damage sustained by them 9 caused by such sudden dispossession and not excepted in section 24; and, in case such offer is not accepted, the value of such crops and trees and the amount of such other damage shall be allowed   for   in   awarding   compensation   for   the land under the provisions herein contained.  [(3A) Before taking possession of any land under   sub­section   (1)   or   sub­section   (2),   the Collector   shall,   without   prejudice   to   the provisions of sub­section (3)­  (a) tender payment of eighty per centum of the   compensation   for   such   land   as estimated by him to the persons interested entitled thereto, and  (b)   pay   it   to   them,   unless   prevented   by some   one   or   more   of   the   contingencies mentioned in section 31, sub­section (2),  and where the Collector is so prevented, the provisions of section 31, sub­section (2) (except the second proviso thereto), shall apply   as   they   apply   to   the   payment   of compensation under that section.  (3B) The amount paid or deposited under section (3A), shall be taken into account for determining the amount of compensation required to be tendered under section 31, and where the amount so paid or deposited exceeds the compensation awarded by the Collector under section 11, the excess may, unless refunded within three months from the date of Collector's award, be recovered as an arrear of land revenue].  [(4) In the case of any land to which, in the opinion   of   the   [appropriate   Government], the   provisions   of  sub­section   (1)   or   sub­ section (2) are applicable, the [appropriate Government] may direct that the provisions of section 5A shall not apply, and, if it does so direct, a declaration may be made under 10 section 6 in respect of the land at any time [after   the   date   of   the   publication   of   the notification]   under   section   4,  sub­section (1).” 10. At   the   outset,   the   learned   senior   counsel   for Respondent No.1, in an attempt to sustain the acquisition strenuously contended with regard to eminent domain of the State in the matter of acquisition of land for public purpose and   relied   upon   the   case   in   Coffee   Board,   Karnataka, Bangalore   Vs.   Commissioner   of   Commercial   Taxes, Karnataka and Others  (1988) 3 SCC 263.  To be fair to him, though we have noted, we are however clear on that aspect that the State has the power.  But the position of law is also well established that in view of Articles 300A and 31A of the Constitution,   the   owner   of   land   can   be   divested   only   in accordance with law after appropriately compensating if such land is required by the State for public purpose.  Since such power of eminent domain is not in dispute, we need not advert to the decision referred in detail. In   the   normal   circumstance,   the   process   for 11. acquisition   would   commence   with   the   notification   under 11 Section   4,   after   which   the   procedure   under   Section   5A   is complied.  The declaration under Section 6 is thereafter made, when   the   requirement   of   the   land   for   public   purpose   is confirmed.     Thereafter,   the   process   for   determining   the compensation and taking possession through Section 11 and Section 16 of Act, 1894 is contemplated, which is undertaken after issue of notice under Section 9 of Act, 1894.  In so far as the said process, in order to protect the interest of the land loser to be compensated within a time frame, failing which, to give him benefit of his own land, Section 11A was inserted by Act 68 of 1984, w.e.f 24.09.1984.  The said provision leaves no ambiguity whatsoever that if the award is not made within the period of two years from the date of publication of the declaration   under   Section   6   of   Act,   1894,   the   entire proceedings   will   stand   lapsed.     The   only   option   for   the acquiring authority if the land is still required for the public purpose   is   to   notify   afresh   from   the   stage   of   issuing notification under Section 4 of Act, 1894.  The computation of two years would however exclude the period if the process was stayed   by   an   order   of   the   Court.     This   aspect   has   been clarified   by   this   Court   in   Yusufbhai   Noormohmed 12 Nandoliya Vs. State of Gujarat and Anr.  (1991) 4 SCC 531, placed for our consideration by the learned senior counsel for the appellant. So far so good, the question however is as to whether 12. the rigour of Section 11A of Act, 1894 will apply when the appropriate Government exercises its special power in cases of urgency, which does not contemplate the same procedure as in the normal acquisition process noted above.  In this regard also   this   Court   in   Yusufbhai   Noormohmed   Nandoliya (supra)   has   held   Section   11A   is   applicable   to   acquisition under Section 17, though without detailed discussion.  From the provision of Section 17 reproduced supra, it is seen that the   acquiring   authority   will   be   entitled   to   take   possession without taking recourse to the procedure which is otherwise provided   under   Section   16   of   Act,   1894   wherein   it contemplates   the   passing   of   an   award   before   taking possession.  But under Section 17 of Act, 1894, possession is permitted   to   be   taken   even   before   the   award   is   passed. Though such power was absolute earlier, sub­section (3A) was inserted by Act 68 of 1984, w.e.f 24.09.1984 whereby the pre­ condition imposed before taking possession is that 80% of the 13 estimated compensation is to be tendered and paid to the persons interested in the land.  The tendered amount should be paid unless prevented by one or more of the contingencies mentioned in Section 31(2) of Act, 1894.  It would necessarily mean that Section 31 will come into play and the 80% of the estimated compensation amount, though no award is passed, will have to be tendered and paid to the persons interested.  If tendered, but not able to pay due to valid reasons, it is to be deposited in Court.  The word employed in sub­section (3A) of Section 17 of the Act, 1894 is “shall” and it is to be tendered and   paid   “before   taking   possession”.     Hence   it   cannot   be understood   as   providing   any   discretion   to   the   acquiring authority.     In   fact,   the   last   sentence   of   sub­section   (1)   of Section 17 uses the word “thereupon” with respect to vesting. This word “thereupon” is correlated to taking possession and payment in terms of sub­section (3A) is a   sine qua non   for taking possession. Therefore (1) payment of 80% (2) taking over   possession   thereafter   and   (3)   vesting   of   land   in   the government take place in a sequence. Absent anyone of these in the sequence, the emergency provision fails. It is a pre­ requisite condition to acquire and take possession of the land 14 since   such   acquisition   is   permitted   by   exempting   the requirement   of   the   procedure   under   Section   5A   and possession is permitted to be taken prior to an award being passed under Section 11 of Act, 1894. That apart, sub­section (4) to Section 17 of Act, 1894 13. provides   the   discretion   to   the   appropriate   Government   to waive the application of the provisions of Section 5A and make the declaration under Section 6 in respect of the land at any time   after   the   initial   publication   of   the   notification   under Section 4 of Act, 1894.  This makes it clear that even in a case where   the   appropriate   Government   exercises   its   power   to invoke   the   special   power   in   case   of   urgency,   all   other procedure contemplated under the Act except the requirement under Section 5A of Act, 1894 is to be complied.  Therefore, after issue of the initial notification under Section 4 read with Section 17(1) and on taking possession after issue of notice under Section 9, the declaration under Section 6 of Act, 1894 is to be made so as to complete the process of acquisition, which indicates that the objection to acquisition of land shall alone stand muted and not the right to compensation which is 15 to be paid in strict compliance of the requirement in that regard. 14. Hence,   insofar   as   payment   of   compensation   for   the acquired land even if it is acquired under Section 17 of Act, 1894,   it   is   evident   that   an   award   as   contemplated   under Section 11 of Act, 1894 is required to be passed so as to determine the compensation payable.  Since sub­section (3A) to  Section   17   mandates   payment  of  80%  of   the   estimated compensation, such amount paid would get included in the amount to be determined and offered through the award.  In that context it is clear that Section 17(4) contemplates, that the declaration is to be made under Section 6 even when an urgency provision is invoked and an award under Section 11 is to be passed to determine the compensation.       15. However,   on   a   careful   composite   perusal   of   all   the provisions noted above, it is evident that the requirement to tender and pay 80% of the estimated compensation before taking possession assumes significance so as to carve out an exception   for   non­applicability   of   ‘lapsing’   as   contemplated under Section 11A of Act, 1894.  This is so, since the terms “vesting absolutely” and “lapsing” cannot co­exist and cannot 16 go hand in hand.   Post amendment w.e.f 24.09.1984, two elements have been inserted in Section 17 for the land to vest absolutely in the Government for public purpose even before the award is passed.  One, is that possession should be taken. The other is, by inserting sub­section (3A) it has been made mandatory   to   tender   payment   of   80%   of   estimated compensation before taking possession.  Therefore, 80% of the estimated   compensation,   the   payment   of   which   only   if tendered and paid, the vesting would become absolute and in such event the consequence of lapsing in respect of absolutely vested land cannot occur and as such, in that circumstance alone Section 11A though applicable will not take effect.  The right of the land loser would be to enforce passing of award which will include the balance 20% of compensation even if it is beyond two years and get adequately compensated in terms of Section 23 and 34 of Act, 1894 for the delay if any. But it is a different matter altogether, when Section 16. 17(1) is invoked but the requirement thereunder which is a pre­requisite condition is not complied.  As noted, sub­section (3A) has  been inserted w.e.f. 24.09.1984, whereunder it is made   mandatory   to   tender   and   pay   80%  of   the   estimated 17 compensation  before   taking   possession.     Therefore,   even  if possession is taken, such possession cannot be considered as legal  so  as   to  vest  the   land   absolutely   if   the   pre­requisite condition for payment of 80% before taking possession is not complied.  In such circumstance, by legal fiction it looses its character as an acquisition under Section 17 and since the absolute vesting does not take place, it will lapse if the further process is not complied and the award is not passed within two years from the date of declaration.  However, even when the pre­condition is not complied, if the land loser does not challenge   the   acquisition   and/or   taking   of   possession   as illegal,   but  concedes   to  the   position,   the   possession   taken does not become per­se illegal and the vesting will be absolute and in such event it cannot be considered to have lapsed until the land loser exercises the right.   We consider it so, since, both Section 11A and sub­section (3A) to Section 17 of Act, 1894 were inserted in Act,1894 to enable the land losers to exercise their right conferred on them.  As such, the said right is to be exercised by the land loser and none other, not even the   acquiring   authority   or   beneficiary   nor   would   the   said 18 provision   become   automatically   applicable   unless   it   is triggered by the land loser. 17. Therefore, we are of the considered view that Section 11A though applicable to the cases of acquisition initiated under Section 17(1) of Act, 1894 the consequence of it will not affect   the   case   where   the   land   has   absolutely   vested   on compliance of sub­section (3A) to Section 17 of Act, 1894 and 80% of estimated compensation is tendered and paid.  Hence, when there is a challenge by the land loser, each case will have to be considered on its own merits to determine whether the pre­requisite condition to tender and pay as contemplated under sub­section (3A) is made before possession is taken.  If in   the   case   concerned   the   mandatory   prerequisite   is   not complied, such acquisition will loose its character as being under Section 17 and if the award is not passed within two years from the date of the declaration, it will lapse and not otherwise.  The benefit of said provision is available only to be invoked   by   the   land   loser   and   cannot   be   invoked   by   the acquiring   authority   to   claim   lapse   by   pointing   to   non­ compliance   since   the   ‘vice’   of   non­compliance   cannot   be permitted to be converted into a ‘virtue’.  19 Though   the   learned   counsel   for   the   beneficiary­ 18. Respondent No.2 placed reliance on the decision in   Indore  (2020) 8 Development Authority Vs. Manoharlal & Others SCC 129 rendered by the Constitution Bench to contend that it has been held therein that “paid” as contained in Section 24(2)  of   RFCTLARR   Act,   2013   does   not   include   deposit   of compensation in Court, we are of the considered opinion that the   same   will   not   be   applicable   to   the   question   under consideration before us in this case.  In the instant case, the requirement   to   tender   and   pay   80%   of   the   estimated compensation   and   the   consequent   lapsing   as   considered above is in the context of exercise of urgency provision which permits a deviation from the normal process of acquisition and   the   payment   envisaged   is   to   take   benefit   of   the   said provision.  In contradistinction, the consideration in the cited case is about the effect of Section 24 (2) of Act, 2013 in the circumstance contemplated therein.    19. In   considering   the   effect   of   Satendra   Prasad   Jain (supra) it would be appropriate to take note of the decision relied on by the learned senior counsel for the appellant in 20 Laxmi Devi Vs. State of Bihar  (2015) 10 SCC 241 wherein it is analysed as hereunder: 
“26.This is also in line with a plain reading of
Section 17(1), which states that “once
possession of the land is taken by the
Government under Section 17, the land vests
absolutely in the Government, free from all
encumbrances”. In Section 48(1) the taking over
of the possession of the land is of seminal
significance in that the provision succinctly
states that “the Government shall be at liberty to
withdraw from the acquisition of any land the
possession of which has not been taken”. The
next sub­section covers calculation of
compensation for the aborted occupation.
26.1.The same position came to be reiterated
inSatendra Prasad Jainby a three­Judge Bench
of this Court. The acquisition proceedings
including the exclusion of Section 5­A had
obtained the imprimatur of the Allahabad High
Court; the urgency and public purpose had
received curial concurrence. Possession of the
land was taken by the State from the
landowners. Previously, the special leave petition
filed by the landowners had been dismissed by
this Court. Ironically, the subsequent stance of
the State was that the acquisition of land under
the urgency provisions was required to be set
aside for the reason that the State had failed to
pass an award under Section 11 within two
years and had also failed to pay eighty per cent
of the estimated compensation required under
Section 17(3­A). Whilst the State endeavoured to
withdraw from the acquisition, the erstwhile
landowners opposed it. This Court directed the
State “to make and publish an award in respect
of the said land within twelve weeks from today”.
The abovementioned discussion bears out that
this Court was concerned only with the issue of
21
the land being returned by the State to the
erstwhile owner. It does not go so far as to limit
or restrict the rights of landowners to fair
compensation for their expropriated property, as
that is a constitutional right which cannot be
nullified, neutralised or diluted.
 We think it justified to again refer to the 26.2. opinion in  Satendra Prasad Jain  that : (SCC p. 374, para 16) “ 16 . … Section 11­A cannot be so construed as to leave the Government holding title to the land without   the   obligation   to   determine compensation, make an award and pay to the owner the difference between the amount of the award and the amount of eighty per cent of the estimated compensation.”
26.3.The second issue, one that we feel must be
kept in mind in the interpretation in the law laid
down by this Court, is the factual matrices
involved in bothSatendra Prasad
JainandAvinash Sharma. In both these
precedents, as well as in innumerable others
that have relied upon them, the Government's
attempt was to misuse its own omissions to
achieve its own oblique purposes. It was in this
context that this Court declined to accede to the
pleas of the Government. This Court poignantly
repelled the State's attempt to nullify the
acquisition on the predication of its non­
compliance with Sections 16 and 17(3­A). The
judicial intent was not to cause any loss to
landowners, but to protect them. The pernicious
practice that was becoming rampant, that is to
make partial compliance with the statute and to
follow the acquisition procedure in a piecemeal
manner, and then to argue that its own lapses
rendered its acquisition illegal, was roundly
repulsed. Although this strictly constitutes
obiter, we think it appropriate to clarify that
where the landowners do not assail the
acquisition, it may be open to them to seek a
22
mandamus for payment to them, after a
reasonable period, of the remaining
compensation, which will thereupon
metamorphose from a mere estimation to the
actual compensation for the expropriation.
28.We do, however, recognise thatSatendra
Prasad Jainhas been interpreted more broadly
in the past. InAllahabad Development
Authorityv.Nasiruzzaman,Deptt. of
Telecommunicationsv.Madan Mohan
PradhanandBanda Development
Authorityv.Moti Lal Agarwal, this Court has
dismissed the landowners' challenges to the
respective acquisitions on the basis ofAvinash
SharmaandSatendra Prasad Jain. It is
pertinent to note that all three of these cases
were brief in their explanations ofAvinash
SharmaandSatendra Prasad Jainand did not
examine their rationes decidendi, their innate
contradictions, their intentions or their
consequences at any length. We thus feel it
appropriate to rely on our own detailed
exploration of these cases, as opposed to simply
placing reliance on the largely contradictory case
law that has developed over the years. It was for
this reason that we had revisited the curial
concept of ratio decidendi.
29.The scenario before us depicts the
carelessness and the callousness of the State,
quite different from the situation inSatendra
Prasad JainandAvinash Sharma. The
appellants herein are being denied just and fair
compensation for their land in proceedings
which commenced in 1987, despite the
directions of the High Court passed as early as
in 1988 to pass an award within four months.
The raison d'être behind the introduction of
Section 11­A was for the landowners to have a
remedy in the event of an award not being
passed expeditiously. IfSatendra Prasad Jainis
23
interpreted to mean that Section 11­A will not
apply to any acquisition under the urgency
provisions, landowners such as the appellants
before us will have no protection, even if they are
not paid full compensation for their land for
decades. This cannot be in keeping with the
legislative intent behind this section.
Furthermore, keeping empirical evidence in
sight, we make bold to opine that circumstances
require this Court to reconsider its view that
even if the stated public interest or cause has
ceased to exist, any other cause can substitute
it, especially where the urgency provisions have
been invoked.
30.We feel it imperative to distinguish between
the setting aside of an acquisition and the
reversion of possession to the erstwhile
landowners. While the LA Act and the judgments
discussed above do not allow for the latter, we
are of the considered opinion that this does not
necessarily imply that the former is also not an
option. Both the abovementioned cases dealt
with a factual situation in which the
Government was attempting to set the
acquisition of the land at naught so that they
would not have to pay compensation to acquire
it. Setting aside of the acquisition in those cases
was tantamount to reverting the possession to
the original owners. In this scenario, however,
the two do not have to go hand in hand. In
allowing the acquisition of land that the
Government finds necessary to be set aside, we
would not necessarily be holding that the land
revert to the appellants, as the alternative of
permitting the Government to keep possession
provided it reacquires the land with a new
Section 4 notification exists. This option,
particularly in the present factual matrix, does
the least violence to the intent and content of
the LA Act, in that it upholds Section 11­A even
in cases of acquisition under Section 17 while
24
preserving the requirement of Section 17 that
the unencumbered possession of the land
remain vested in the Government. It also
protects the rights of the landowners, thus
fulfilling the intent of Section 11­A, while
allowing the Government to acquire land in
cases of emergencies without its title being
challenged, which is the avowed intention of
Section 17. Any other interpretation of the law
would serve to protect only those landowners
who had approached the court to stop the
Government from undoing an emergency
acquisition, while leaving in the cold equally
aggrieved landowners seeking to enforce their
right to fair compensation for their land. Even
equity demands that the party bearing the
consequence of the delay in the award ought not
to be the innocent landowner, but the errant
State.”
20. We  are in agreement with the opinion expressed in Laxmi Devi (supra) by a Bench of two Hon’ble Judges.  In our opinion also the philosophy based on which the decision in Satendra Prasad Jain  (supra) was rendered is as contained in para­17, which reads as hereunder: "17. In the instant case, even that 80 per cent of the estimated compensation was not paid to the appellants   although   Section   17   (3­A)   required that it should have been paid before possession of the said land was taken but that does not mean that the possession was taken illegally or that the said land did not thereupon vest in the first respondent.  It is, at any rate, not open to the third respondent, who, as the letter of the   Special   Land   Acquisition   Officer   dated June   27,   1990   shows,   failed   to   make   the necessary monies available and who has been 25 in occupation of the said land ever since its possession   was   taken,   to   urge   that   the possession   was   taken   illegally   and   that, therefore, the said land has not vested in the first respondent and the first respondent is under no obligation to make an award ."      (Emphasis supplied) We have also in our view indicated above that the acquiring authority   and/or   beneficiary   cannot   derive   benefit   of   non­ compliance of requirement of Section 17(3A) and take benefit of Section 11A of Act, 1894.  The benefit of the provision is for the land loser.   In     (supra) also this Satendra Prasad Jain Court was of the opinion that it was not open for the acquiring authority or the beneficiary to take benefit of Section 11A and Section 17(3A) which is intended to benefit the land owner to ensure that award be made within time.  Hence it is clear that (supra) does not lay down the ratio Satendra Prasad Jain   that the acquisition does not lapse under any circumstance if the   urgency   provision   under   Section   17   of   Act,   1894   is invoked but it only disapproved applying it against the land loser. In the above background it is noted that in the instant 21. acquisition   from   which   this   case   arises,   an   extent   in   all 26 measuring   63.540   acres   (101­15­17,   5/6   Bighas)   was acquired through the declaration under Section 6 of Act, 1894 for which a sum of Rs. 7,48,67,857.73 being 80% is stated to have been deposited by Respondent No.2 – Beneficiary, with Respondent No.1 and the balance amount is also deposited on 21.12.2002   so   as   to   enable   the   collector   to   enter   into   an agreement   with   the   landowners   and   pay   compensation. Insofar as the extent of land belonging to the appellant, it is stated by Respondent No.1 that a letter dated 01.01.2003 was issued   calling   upon   the   appellant   to   come   forward   and execute an agreement.  Thereafter there is no effort to tender and pay 80% of the estimated compensation or to pass an award, which prompted the appellant to file the writ petition before the High Court. 22. From the sequence of events, it is clear that the other land   losers   have   entered   into   an   agreement   and   received compensation.  The appellant on the other hand was neither tendered   nor   paid   80%   of   the   estimated   compensation   as required under sub­section (3A) to Section 17 before taking possession nor was an award passed and compensation paid 27 within two years from the date of declaration under Section 6 of Act, 1894. 23. In   the   normal   circumstance,   the   acquisition   would lapse insofar as the appellant’s land in view of our conclusion on the legal aspect.  However, in the fact situation, the relief is required to be moulded.  This is for the reason that the land belonging to the appellant is not a stand­alone extent.   As noted, the acquisition was for a planned industrial layout and the total extent acquired and possession taken was 101­15­ 17, 5/6 bighas of which, the land belonging to the appellant is only 2­06­1/3­0 bighas.  In the planned layout, the land has been utilized for various purposes and amenities.  A ‘Mandi’ has been constructed over a larger extent of land of which the smaller extent of land belonging to the appellant also forms a part.  Hence reversion of the land does not arise.  Further, the course as suggested in Laxmi Devi (supra) to issue a fresh notification   also   would   not   be   appropriate,   since   the   very scheme   of   acquisition   and   determination   of   compensation under the old regime has undergone a sea change.  As such it would be unjust not only to the state exchequer but also the other land losers under the same notification if the present 28 prevailing   process   is   applied   in   determining   the compensation.   Further, though after being nudged by the High Court, the award in any event was passed on 09.06.2008 under the old regime which is now to be substituted with adequate compensation. 24. On   weighing   all   aspects   of   the   matter,   we   deem   it appropriate that it will serve the ends of justice to direct the respondents   to   determine   the   market   value   insofar   as   the appellant’s land is concerned by reckoning the relevant date as   09.06.2008   (i.e.   the   date   on   which   the   award   was ultimately passed), by applying the yardstick under Act, 1894. It is made clear that only the market value be determined as on that date but for awarding the statutory benefits, it shall be calculated from the date of the original notification since admittedly   the   appellant   has   been   dispossessed   on 04.02.2003   pursuant   to   the   notification   dated   17.04.2002. Further, from the date on which the fresh award is passed pursuant to this judgment, the appellant would get the cause of action for seeking reference if dissatisfied with the quantum of   compensation   awarded.     It   is   made   clear   that   the determination of compensation, in this case, shall not give 29 rise to any right in favour of any other land loser whose land was   acquired   under   the   same   notification,   to   seek   for   re­ determination of compensation where the same has already attained finality. The decision in this case based on the principle of law 25. settled herein, if it arises for consideration in any other case under   Act,   1894   or   any   other   enactment   relating   to   land acquisition containing  pari materia  provisions shall be applied only prospectively and cases which have attained finality shall not be reopened.   26. In the result, we pass the following order: (i) The provision contained in Section 11A of Act, 1894 shall be applicable to cases in which the acquiring   authority   has   not   complied   with   the requirement of sub­section (3A) to Section 17 of Act,   1894   by   tendering   and   paying   eighty   per centum   of   the   estimated   compensation   before taking possession since possession in such cases cannot be considered to be taken in accordance with law and the vesting is not absolute. 30 (ii) If the requirement is complied and possession is taken   after   tendering   and   paying   eighty   per centum, though there is need to pass an award and   pay   the   balance   compensation   within   a reasonable time, the rigour of Section 11A of Act, 1894 will not apply so as to render the entire proceedings for acquisition to lapse in the context of absolute vesting.   The right of land loser in such case is to enforce passing of the award and recover the compensation. (iii) In the instant case though Section 11A of Act, 1894   has   become   applicable,   in   the   changed circumstance   we   deem   it   proper   to   mould   the relief instead of holding the acquisition to have lapsed.   Hence for the reasons stated above, we direct as follows: (a)    The respondents shall construe 09.06.2008 as the relevant date and determine the market value prevailing as on that date applying the yardstick   under   Act,   1894   in   respect   of   the acquired land. 31 (b)     To calculate the statutory benefits on such amount including interest, the same shall be determined   by   taking   into   consideration   the date   of   the   Section   4   notification   dated 17.04.2002   since   the   appellant   was dispossessed on 04.02.2003 pursuant to the same. (c)   The date on which the fresh award is passed pursuant to this judgment and communicated shall be the date of cause of action for seeking enhancement of compensation if the appellant is   dissatisfied   with   the   quantum   of compensation offered. (d)      The compensation determined in this case shall not give the cause of action to any other land loser whose land is acquired under the same notification to seek re­determination of compensation. (e)    The appellant shall be entitled to the cost incurred in these proceedings. 32 27.  The appeal is disposed of accordingly.   Pending application, if any, stands disposed of. 28. ….…………………………J. (S. ABDUL NAZEER)   …...……………………….J.                                          (A.S. BOPANNA)            …..…….……………………J.    (V. RAMASUBRAMANIAN) New Delhi, October 14, 2022 33