Sec 24(1) RFCTLARR Act- Land Acquisition Proceedings Get "Initiated" From Publication Of Sec 4(1) Notification Under 1894 Act : Supreme Court

In a judgment delivered on Thursday (28 July 2022), the Supreme Court explained the meaning of 'Initiation' for the purpose of Section 24(1) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

The proceedings under the Land Acquisition Act, 1894, shall be treated as initiated on publication of a notification under Section 4(1) thereof, for the purposes of Section 24(1) of the RFCTLARR Act, the Court held.

The court also observed that when Section 24(1)(a) of the 2013 Act is applicable, the proceedings shall continue as per the 1894 Act except the determination of compensation amount for which the provisions of the 2013 Act shall be applied. 

Section 24(1)(a) of the RFCTLARR provides that if land acquisition proceeding was initiated under the L.A. Act, but no award was passed under Section 11 thereof, then, all provisions of the 2013 Act relating to the "determination of compensation" would apply. At the same time, if upon initiation of acquisition proceedings under the L.A. Act, an award under Section 11 of the L.A. Act was passed, then, such proceedings shall continue under the provisions of the L.A. Act itself, as if the same had not been repealed.

In these appeals, the appellants including Haryana State Industrial and Infrastructure Development Corporation and others sailing along with them (Party 'A'), contended that, for the purpose of Section 24(1) of the 2013 Act, issuance and publication of a Notification under Section 4(1) of the L.A. Act, 1894 alone would amount to initiation of acquisition proceedings thereunder. Per contra, the contesting parties, (Party 'B') contend that it is the declaration that the land is required for a public purpose under Section 6(1) of the L.A. Act that would mark the point of initiation of acquisition proceedings thereunder.

Thus the issue raised in these batch of appeals was regarding the meaning and interpretation of the word "initiated" employed in Section 24(1) RFCTLARR.

The court noted that combined effect of Section 24(1) and clause (a) thereof is that if land acquisition proceeding under the L.A. Act was initiated prior to 01.01.2014, the date of coming into force of the 2013 Act, and if it was not culminated in an award under Section 11 of the L.A. Act, then all the provisions of the 2013 Act relating to the determination of compensation should apply to such acquisition proceedings.  

Referring to various judgment cited by both sides, the bench observed:

"A careful scanning of all the decisions cited by both sides would thus reveal that all those decisions hold that land acquisition proceedings under the L.A. Act begin with the publication of a notification under sub-section (1) of Section 4. A declaration under Section 6 of the L.A. Act is one of the steps under the L.A. Act which ultimately culminates into the conclusion of the proceedings by making an Award and taking over possession of the acquired land. A declaration under Section 6 cannot be made without holding an inquiry unless urgency clause under Section 17 is applied. Publication of a notification under sub-section (1) of Section 4 of the L.A. Act is condition precedent for taking further steps. Hence, such a notification is the starting point of acquisition proceedings under the L.A. Act. The initiation of the proceedings is by the publication of the notification under sub-section (1) of Section 4 of the L.A. Act."

Rejecting the contention that Section 4(1) notification is nothing but a mere formality and got no real relevance or importance in the process of land acquisition under the L.A. Act, the bench observed:

Any construction of the said provision without taking into the legislative intention, referred hereinbefore would defeat the legislative intention as also the very objects of the 2013 Act. Certainly, it would not be in public interest to allow such proceedings to lapse or allow the authorities to follow the procedures during such period according to their sweet will. A uniform procedure has to be followed in respect of such proceedings. The acquisitions initiated for public purposes should go on in a fair and transparent manner with a view to achieve the intent and purport of the 2013 Act and at the same time, the persons affected shall have definite idea about the manner in which procedures would be conducted. The Party 'B' would not be justified in describing such situations of necessity and the consequential application of provisions which are actually saved 41 on account of the construction of Section 24 as an attempt to bring the words expressly employed in Section 24(1)(b) and absent in Section 24(1)(a), by indirect method to Section 24(1)(a) of the 2013 Act. The aforesaid conclusions and findings would make the contentions of Party 'B' that Section 4(1) notification issued prior to 01.01.2014 could not survive after 01.01.2014 and also that Section 6 notification under the L.A. Act could not be issued after 01.01.2014, unsustainable. In fact, all such procedures and formalities shall be continued till the determination of compensation by applying all the provisions for determination of compensation, under the 2013 Act. A contra-construction, in view of the restrictive application of the provisions to such proceedings during its continuance, would make the provisions under Section 24(1)(a) of the 2013 Act unworkabl

The court therefore concluded as follows:

To conclude, we hold that for the purposes of sub-section (1) of Section 24 of the 2013 Act, the proceedings under the L.A. Act shall be treated as initiated on publication of a notification under sub-section (1) of Section 4 of the L.A. Act. We further hold that when Clause (a) of sub-section (1) of Section 24 of the 2013 Act is applicable, the proceedings shall continue as per the L.A. Act. However, only for the determination of compensation amount, the provisions of the 2013 Act shall be applied. 

Case details

Haryana State Industrial and Infrastructure Development Corporation vs Deepak Aggarwal | 2022 LiveLaw (SC) 644 | SLP (C) 6631-16632/2018 | 28 July 2022 | Justices AM Khanwilkar, Abhay S. Oka and CT Ravikumar

Headnotes

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 ; Section 24(1) - Land Acquisition Act, 1894 ; Section 4(1) - Meaning of 'Initiation' for the purpose of Section 24(1) of the 2013 Act - Issuance and publication of Section 4(1) notification in the official gazette of the appropriate Government - When Section 24(1)(a) of the 2013 Act is applicable, the proceedings shall continue as per the L.A. Act - Only for the determination of compensation amount, the provisions of the 2013 Act shall be applied. (Para 27, 34)

Constitution Of India, 1950 ; Articles 21 and 300-A - Right to property had ceased to be a fundamental right. True that it is a human right as also constitutional right. Hence, compulsory acquisition by scrupulous adherence to the procedures authorised by law would not violate Article 300-A.  (Para 26)

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