Market Value Of Land Acquired Under 1894 Act Determined As Per Right To Fair Compensation Act Where Award Passed After Its Enforcement: Karnataka HC

The Karnataka High Court has made it clear that the market value of land acquired under section 4(1) the Land Acquisition Act 1894, is to be determined as per Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013, if the award is passed after the 2013 Act came into force.

A single bench of S Sunil Dutt Yadav allowed the petition filed by M/s Deco Equipments Pvt Ltd and quashed the Award dated 20.01.2016 passed by the Land Acquisition Officer, Mysore District.

The bench said “The market value even in regards to the circumstance of 4(1) Notification under the 1894 Act and where the Award is sought to be passed after coming into force of the 2013 Act would be as on 01.01.2014 (when the 2013 Act came into force)."

The Preliminary Notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on 15.03.2008 notifying the land of the petitioner. The Final Notification under Section 6 and 17(1) of 1894 Act came to be passed on 05.06.2009.

The validity of the notification came to be challenged by the petitioner which was disposed off remitting the matter for fresh disposal after affording an opportunity of hearing under Section 5-A of 1894 Act. After rejecting the objections, the Notification was published under Section 6(1) of 1894 Act.

Following this the petitioner challenged the validity of the Notification and during the pendency of the proceedings, 2013 Act came into force and the petition was disposed off directing that if an award has not been passed as on date, it would be necessary for determination of compensation under 2013 Act as is made plain under Section 24(1) of the 2013 Act.

However, the Special Land Acquisition Officer passed an Award and the market value was fixed on the basis of sale consideration of Sale Deed dated 21.04.2007 for Rs.78,00,000 and following the norms fixed in the Gazette Notification dated 04.07.2013.

The bench referred to Section 24 of 2013 Act, which reads thus "(1) Notwithstanding anything contained in this Act, in any case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894) - (a) where no award under Section 11 of the said Land Acquisition Act has been made, then, all provisions of this Act relating to determination of compensation shall apply."

It said if that were to be so, the proceedings of acquisition initiated under the 1894 Act are saved and compensation is to be determined under the provisions of the 2013 Act. “As regards notification under Section 4(1) of the 1894 Act and where Award is sought to be made after 2013 Act has come into force 'all provisions of 2013 Act (Section 24(1)(A) shall be applicable.”

Court noted that in the present case, though initially the petitioner had challenged the validity of the proceedings, during the course of the proceedings, the petitioner had settled for the relief of entitlement of compensation in terms of 2013 Act and accordingly, the petition was disposed off.

Thus, it allowed the petition and directed “The Land Acquisition Officer to pass a fresh Award while re-working the compensation in light of the discussion at Point-(a) supra and is to strictly adhere to the Guidelines under Section 26 and other applicable Rules made under the 2013 Act.”

Case Title: M/s Deco Equipments Pvt Ltd AND The State of Karnataka & others.

Case No: WRIT PETITION No.33180 OF 2016

Citation: 2023 LiveLaw (Kar) 334

Date of Order: 29-08-2023

Appearance: Senior Advocate D.L.N. Rao, for Advocate Raghavendra Kattimani for petitioner.

AGA R. Srinivas Gowda for R1, R2 & R4.

Advocate Omkaresha for R3.

Deputy Solicitor General H. Shanthi Bhushan for R5.

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