Supreme Court Sets Aside MP HC Order To Disburse 1.96 Crore Deposited By Defence Ministry To Land Owners As Compensation

The Supreme Court set aside the Madhya Pradesh High Court order that directed the disbursal of the amount of about Rs. 1.96 crore deposited by Defence Ministry with Collector as compensation to land owners.

Land owners of about 51.57 acres in Jabalpur had filed the writ petition before the Madhya Pradesh High court alleging that they were being obstructed by the Defence Ministry from carrying out any kind of activities on their land. This writ petition was disposed of with a direction to authorities to take appropriate steps to determine the damages and payment of damages to the landowners on account of imposition of restrictions.

The Collector, Jabalpur, initially, invoked provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and asked the local military authority to deposit more than Rs.10.55 crores. Faced with this, the ministry approached the to approached  the revenue authorities stating that the compensation should be determined in terms of Sections 23 and 24 of the Works of Defence Act, 1903 and not under the 2013 Act. The Collector undertook fresh exercise and determined the compensation vide his award dated 27.09.2019 fixing it at Rs.1,96,97,200.

In a contempt petition filed, the High court noted that the ministry had already deposited Rs.1,96,97,200/- before the Collector and this amount may be released/disbursed to the respondents within fifteen days. Against this order, the Apex Court was approached.

In appeal, the court noted that the contempt proceedings have, in the present case, proceeded as if all issues and questions that required determination and adjudication. The orders passed in the second and third contempt petitions have, therefore, gone beyond the scope and ambit of the order passed in writ petition, the bench comprising Justices AM Khanwilkar and Sanjiv Khanna said. Invoking Article 142 powers, the bench, while allowing the appeal, directed as follows:

(a) The reference petition pending before the 29th Additional District Judge, Jabalpur in Case No. MJC/6337/2020 CNR: MP200L0195912020 filed by the appellants against the determination of compensation amount by the Collector, Jabalpur, be decided expeditiously and in accordance with law. Before proceeding with the said reference on merits, the court may examine the preliminary objection of the respondents that reference at the instance of the appellants being beneficiary, is not maintainable.
(b) The respondents would be also at liberty to file a reference before the District Judge for enhancement of the compensation.
(c) The reference filed by appellants be decided uninfluenced by the fact that the appellants had failed to pass any order under Section 3 of the 1903 Act or that the order dated 02.07.2021 has been passed post the impugned order.
(d) It will be open to the appellants to apply for stay against disbursement of the compensation amount lying deposited with the Collector, Jabalpur. Equally, it will be open to the respondents to approach the Collector for release of the amount to them. Such applications be decided on its own merits and in accordance with law.

Case: AJAY KUMAR vs. KEWAL KUMAR JAGGI
Counsel: Sr. Adv R. Balasubramium, AOR Sachin Sharma, for appellants, Adv V.K. Shukla, Adv. Sugam Mishra, for respondents.

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