Supreme Court Quarterly Digest On Land Laws [January to March 2023]

Land Laws

Coal Bearing Areas (Acquisition and Development) Act, 1957; Section 2(d), 11 - The State Government being the original owner can be said to be deemed lessor - The State Government can be said to be the ‘person interested’ in getting the compensation. (Para 5) Mahanadi Coalfields Ltd. v. State of Odisha, 2023 LiveLaw (SC) 51 : AIR 2023 SC 668

Coal Bearing Areas (Acquisition and Development) Act, 1957; Section 18(a) - The compensation/rental payable with respect to the lands by the lessee/deemed lessee is altogether different than the royalty. Royalty is for extraction of minerals in the lands in question - The amount of royalty cannot be mixed with the compensation/loss caused to the State Government due to loss of land and surface land rent as the State Government is entitled for the adequate compensation. (Para 5.1, 6) Mahanadi Coalfields Ltd. v. State of Odisha, 2023 LiveLaw (SC) 51 : AIR 2023 SC 668

Constitution of India, 1950; Article 14 - classification between Pushtaini and Gair-pushtaini Landowners is based on one class of landowners being sons of the soil, while the other class being mere landowners, who are not directly attached to the land- not reasonable classification- The justification given by the GNOIDA Authority, and the Full-bench of the High Court assumes that only Pushtaini landowners permanently reside in the subject land or that the subject land is the primary source of income only for Pushtaini landowners, and this assumption has been backed by no empirical data produced by the authority-t. Many Gair-pushtaini landholders, whose main area of residence or their main source of income is also the subject land, would be subject to great discrimination and injustice, if the same compensation that has been granted to the pushtaini landholders is not extended to them. (Para 38 to 40) Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Constitution of India, 1950; Article 14 - Test of Proportionality - The classification, as discussed above, if allowed to exist, can lead to several Gair-pushtaini landowners who may also need to be rehabilitated, cannot rehabilitate themselves without compensation for the same. Such a mischief, if allowed to exist, would not only nullify the purpose of the Act, but also violate the third and fourth principle of the proportionality test, and hence is liable to be struck down. (Para 55) Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Constitution of India, 1950; Article 300A - To continue with the temporary acquisition for number of years would be arbitrary and can be said to be 9 infringing the right to use the property guaranteed under Article 300A of the Constitution of India. Even to continue with the temporary acquisition for a longer period can be said to be unreasonable, infringing the rights of the landowners to deal with and/or use the land. (Para 7) Manubhai Sendhabhai Bharwad v. Oil and Natural Gas Corporation Ltd; 2023 LiveLaw (SC) 55 : AIR 2023 SC 992

Delhi Land Reforms Act not applicable once an area is urbanised under Delhi Municipal Corporation Act. Mohinder Singh v. Narain Singh, 2023 LiveLaw (SC) 191 : AIR 2023 SC 1427

Encroachment of Public Land - Supreme Court sets aside HC direction to legalize unauthorized occupations near a school by taking the market value - SC terms the High Court direction unsustainable - Notes that the school has no playground. State of Haryana v. Satpal, 2023 LiveLaw (SC) 163 : AIR 2023 SC 1391

Land Acquisition - The Land Acquisition Act does not distinguish between classes of owners, and uniformly provides compensation to all class of landowners. The classification made between Pushtaini landowners and Gair-pushtaini landowners, on the basis of the reasoning mentioned above, is violative of the law laid down in the Nagpur Improvement Trust v. Vithal Rao, (1973) 1 SCC 500 and Article 14 of the Constitution. Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Land Acquisition - When the purpose of the acquisition of the land is for the benefit of the public at large, then the nature of the owner of the said land is inconsequential to the purpose. If such a classification on the basis of the nature of owner is allowed, then on the same grounds, there might be a possibility of future classifications where power holding members of the society may get away with a larger compensation, and the marginalized may get lesser compensation. (Para 59) Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Land Acquisition Act, 1894 - If the land is continued to be under temporary acquisition for number of years, meaning and purpose of temporary acquisition would lose its significance. Temporary acquisition cannot be continued for approximately 20 to 25 years. It cannot be disputed that once the land is under temporary acquisition and the same is being used by the ONGC for oil exploration, it may not be possible for the landowners to use the land; to cultivate the same and/or to deal with the same in any manner. (Para 7) Manubhai Sendhabhai Bharwad v. Oil and Natural Gas Corporation Ltd; 2023 LiveLaw (SC) 55 : AIR 2023 SC 992

Land Acquisition Act, 1894; Section 5A - Merely because Section 5A has not been mentioned in the said order, the entire acquisition proceedings including notifications under Sections 4 & 6 of the Act, 1894 and more particularly the declaration which was issued after considering the report/objections under section 5A cannot be declared illegal. When the Collector has exercised the power of the appropriate government and a declaration under section 6 of the Act has been issued after considering the report on the objections under Section 5A of the Act, the High Court has seriously erred in quashing and setting aside the entire acquisition proceedings on the aforesaid ground. (Para 12, 12.3) Indore Development Authority v. Burhani Grih Nirman Sahakari Sanstha Maryadit Sneh Nagar, 2023 LiveLaw (SC) 183 : AIR 2023 SC 1401

'Land acquisition compensation can't be different based on the nature of ownership': Supreme Court strikes down noida authority's classification. Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Land cannot be kept under temporary acquisition for years, It violates right to property under Article 300A. Manubhai Sendhabhai Bharwad v. Oil and Natural Gas Corporation Ltd; 2023 LiveLaw (SC) 55 : AIR 2023 SC 992

Land in Himachal Pradesh cannot be transferred to a non-agriculturist without the State Govt. permission. Ajay Dabra v. Pyare Ram, 2023 LiveLaw (SC) 69 : AIR 2023 SC 698

Land Reforms Act, 1954 (Delhi) - Municipal Corporation Act, 1957 (Delhi) - Land Reforms Act not applicable to area covered under Municipal Corporation Act - Once a notification has been published in exercise of power under Section 507(a) of the Act, 1957, the provisions of the Act, 1954 cease to apply. (Para 36) Mohinder Singh v. Narain Singh, 2023 LiveLaw (SC) 191 : AIR 2023 SC 1427

Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973; Section 54 - When within three years various steps were taken for implementation of the scheme including the steps to acquire the land by negotiations and even thereafter on failure to acquire the land by negotiations approaching the State Government to acquire the land under the Land Acquisition Act, the High Court has erred in declaring that the scheme has lapsed under section 54 of the Adhiniyam. The High Court has adopted too narrow a meaning while interpreting and/or considering section 54 of the Adhiniyam. (Para 11) Indore Development Authority v. Burhani Grih Nirman Sahakari Sanstha Maryadit Sneh Nagar, 2023 LiveLaw (SC) 183 : AIR 2023 SC 1401

MP Nagar Tatha Gram Nivesh Adhiniyam - Scheme will not lapse merely because it was not completed within 3 years despite substantial steps. Indore Development Authority v. Burhani Grih Nirman Sahakari Sanstha Maryadit Sneh Nagar, 2023 LiveLaw (SC) 183 : AIR 2023 SC 1401

RFCTLARR Act - Owner cannot pray for lapse of land acquisition after refusing to accept compensation. State of Gujarat v Jayantibhai Ishwarbhai Patel, 2023 LiveLaw (SC) 247

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; Section 24 (2) - Once the land owner refuses to accept the amount of compensation offered by the Acquiring Body, thereafter it will not be open for the original land owner to pray for lapse of acquisition on the ground that the compensation has not been paid. State of Gujarat v Jayantibhai Ishwarbhai Patel, 2023 LiveLaw (SC) 247

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement, 2013; Section 24 (2) - Is the overruling of the judgment in Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014) by a Constitution Bench judgment in Indore Development Authority v. Manoharlal (2020) a ground to review judgments which followed Pune Municipal Corporation? Supreme Court 2- judge bench delivers split verdict - Justice MR Shah holds subsequent overruling is a ground to review - Justice BV Nagarathna disagrees. Govt. of NCT of Delhi v. K.L. Rathi Steels Ltd; 2023 LiveLaw (SC) 204

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; Section 24 (2) - If the acquiring body/beneficiary was not able to take the possession due to pending litigation in a proceeding initiated by the land owner, thereafter the land owner cannot be permitted to take the benefit/advantage of the same and thereafter to contend that as the possession is not taken over (may be due to the pending litigation) still they are entitled to benefit of lapse. Govt. of NCT of Delhi v. Sunil Jain, 2023 LiveLaw (SC) 36 : AIR 2023 SC 415

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; Section 24 (2) - Subsequent purchaser has no locus to challenge the acquisition and/or lapsing of the acquisition. Govt. of NCT of Delhi v. Sunil Jain, 2023 LiveLaw (SC) 36 : AIR 2023 SC 415

Sec 24(2) RFCTLARR Act - Benefit of lapse not available if delay in taking possession was due to pending litigation. Govt. of NCT of Delhi v. Sunil Jain, 2023 LiveLaw (SC) 36 : AIR 2023 SC 415

Supreme Court stuck down the classification made by the Greater NOIDA Authority between Pushtaini and Gair-Pushtaini Landholders for the purpose of granting compensation upon acquisition. Ramesh Chandra Sharma v. State of Uttar Pradesh, 2023 LiveLaw (SC) 123 : AIR 2023 SC 1117

Tenancy and Land Reforms Act, 1972 (Himachal Pradesh); Section 118 - The whole purpose of Section 118 of the 1972 Act is to protect agriculturists with small holdings. Land in Himachal Pradesh cannot be transferred to a non-agriculturist, and this is with a purpose. The purpose is to save the small agricultural holding of poor persons and also to check the rampant conversion of agricultural land for non-agricultural purposes. A person who is not an agriculturist can only purchase land in Himachal Pradesh with the permission of the State Government. The Government is expected to examine from a case-to-case basis whether such permission can be given or not - By merely assigning rights to an agriculturist, who will be using the land for a purpose other than agriculture, would defeat the purpose of this Act. (Para 17) Ajay Dabra v. Pyare Ram, 2023 LiveLaw (SC) 69 : AIR 2023 SC 698