LawDistill
Supreme Court of India

M/S. COMPETENT AUTOMOBILES CO. LTD vs UNION OF INDIA on 26 February, 2015

Cites 1 provisionsCites 1 judgmentsCited by 3
C.A. No.-005054-005054 - 2008Official PDFBench Vikramajit Sen, Prafulla Chandra PantAdvocates CHANDRA BHUSHAN PRASAD | RACHANA SRIVASTAVA
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No.5054 OF 2008
M/S. COMPETENT AUTOMOBILES CO. LTD. .…APPELLANT
Vs.
UNION OF INDIA & ORS. .…RESPONDENTS
WITH
CIVIL APPEAL NOs.5100,5283,5105-5124,5101-5104,5053,5050,5052 all of
2008, 3279,3280, all of 2012, ,5127-5129,5125,,5051 all of 2008 and 3278 of
2012
O R D E R JUDGMENT

1 All of these Appeals were admitted before the commencement of the

Right to Fair Compensation and Transparency in Land Acquisition

Rehabilitation and Resettlement Act, 2013. After commencement thereof, the

Appellants changed the tack of their challenge – originally framed under the

Land Acquisition Act, 1894 - and impugned the acquisition proceedings in toto,

by evoking the deemed lapse of proceedings under Section 24(2) of the 2013

Act. Any determination under this provision must proceed sequentially. First,

the factum of an Award under Section 11 of the Land Acquisition Act, 1894,

must be clearly established. The said Award must predate the commencement

of the Act, i.e., 01.01.2014., by at least five years (or more), ie., the Award must

have been passed on or before 01.01.2009. This having been established, if

possession is found to not have been taken, or compensation not paid, then the

proceedings shall be deemed to have lapsed. Thereafter, the appropriate

Government, if it so chooses, may reinitiate acquisition proceedings in respect

of the same land, but under the 2013 Act’s regime.

2 Each and every deeming operation under Section 24(2) requires

unambiguously and unvaryingly that a factual conclusion be drawn about the

passing of the Award under Section 11, of the 1894 Act, on or before

01.01.2009; further, the absence of compensation having been paid or the JUDGMENT

absence of possession having been taken by the acquirer, either of these, must

be a proven point of fact, as a threshold requirement attracting the lapse.

3 From the record, these Appeals do not unambiguously answer these

indispensable queries, which inarguably must precede any declaration of lapse

of acquisition under Section 24(2). Each of these Appeals must factually

satisfy this Court on the ingredients of Section 24(2), before this Court may pass

a declaration in recognition of the statutory lapse of acquisition.

4 This Court has in a number of decisions including Pune Municipal

Corporation vs. Harakchand Misirimal Solanki (2014) 3 SCC 183, Union of

India vs. Shiv Raj (2014) 6 SCC 564 and Bimla Devi vs. State of Haryana

(2014) 6 SCC 583, clarified the manner in which the new provision is to be

interpreted viz., that the acquisition lapses.

5 It has been contended in other Appeals before this Court that the Right to

Fair Compensation and Transparency in Land Acquisition, Rehabilitation and

Settlement Ordinance, 2014, issued on 31st December, 2014, clarifies that if

possession of the acquired land has not been taken owing to interim Orders

passed in this regard the acquisition may be protected and insulated from the

purpose and intendment of Section 24 of the 2013 Act. This Court has now

clarified in Radiance Fincap (P) Ltd. v. Union of India & Ors. [Civil Appeal No. 4283 of 2011 decided onJUDGMENT12.01.2015] that the Ordinance shall have prospective

operation only. This Court therein held as under:

“The right conferred to the land holders/owners of the

acquired land under Section 24(2) of the Act is the statutory right

and, therefore, the said right cannot be taken away by an Ordinance

by inserting proviso to the abovesaid sub-Section without giving

retrospective effect to the same.”

The legal position has been subsequently reiterated by this Court in Arvind

Bansal v. State of Haryana (Civil Appeal Nos.417-418 of 2015 decided on

13.01.2015) and Karnail Kaur v. State of Punjab [Civil Appeal No. 7424 of

2013 decided on 22.01.2015]. We are in respectful agreement with all these

decisions. In the event that there is no ambiguity that (a) the Award is over five

years old and (b) that compensation has not been paid or (c) that possession of

the land has not been taken, the acquisition is liable to be quashed. In Rajiv

Chowdhrie HUF v. Union of India [Civil Appeal No.8786 of 2013, decided on

06.02.2015], noting that the physical possession of the land had not been taken

by the Respondents, nor compensation paid by the Respondents to the

Appellant in respect whereof the Award was passed on 6.08.2007, the

acquisition proceedings had been declared as having lapsed. The same position

was arrived at in Rajiv Chowdhrie HUF v. Union of India in Civil Appeal

No.8785 of 2013 decided on 10.12.2014 by a different Bench of this Court.

5 In all these Appeals, the submission of the land owners is that either

possession is still with them, or compensation has not been tendered by the State. Consequently, the land owners propose to initiate proceedings founded on Section 24 of the Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to

as 'the 2013 Act").

6 Having heard all the learned counsel, we are persuaded to dispose of

these proceedings, without entering on the merits, by granting liberty to the land

owners before us to pray for the revival of the Appeals in the event that Orders

under Section 24 of the 2013 Act are adverse to their interest. We, therefore,

permit the land owners to initiate appropriate proceedings in the proper

forum/court, seeking the benefit of Section 24 of the 2013 Act, within eight

weeks from today. We clarify that, in the event that any land owners have

already approached the High Court concerned, their plea under Section 24 of

the 2013 Act shall be decided on merits.

7 It is in these circumstances that all these Appeals are disposed of with

liberty to the parties to revive these Appeals in the event that the Orders under

Section 24 of the 2013 Act are seen as adverse to their interest. Interim

protection, if already granted, shall continue for a period of 90 days from today.

8 It is further clarified that the parties desirous of reviving the Appeal must

approach this Court within 90 days of the passing of the High Court's orders.

9 The Appeals stand disposed of with the aforesaid observations and

directions.

[PRAFULLA C. PANT] New Delhi; February 26 , 2015.