2011 (4) TMI 1326 - SC - Indian Laws

Whether the Division Bench of the Allahabad High Court was justified in entertaining and allowing the writ petition filed by respondent No.1-Moti Lal Agarwal in 2008 for nullifying the acquisition of his land by the State Government vide notification dated 8.9.1998 issued under Section 4(1) read with Section 17(1) and 17(4) of the Land Acquisition Act 1894 (for short the Act ) which was followed by declaration dated 7.9.1999 issued under Section 6(1) read with Section 17(1) on the ground of non passing of award within the time prescribed under Section 11A?

Summary

Issues Involved:
1. Justification of the High Court in entertaining and allowing the writ petition.
2. Validity of the acquisition proceedings under the Land Acquisition Act, 1894.
3. Compliance with Section 11A of the Land Acquisition Act.
4. Delay and laches in filing the writ petition.
5. Physical possession of the acquired land.
6. Impact of symbolic/paper possession.
7. Utilization of acquired land for public purpose.
8. Applicability of Section 11A in cases involving Section 17(1) and 17(4).

Detailed Analysis:

1. Justification of the High Court in entertaining and allowing the writ petition:
The Supreme Court questioned whether the High Court was justified in entertaining a writ petition filed nearly nine years after the declaration under Section 6(1) and six years after the award. The Court emphasized that the High Court should have considered the delay and the significant developments that had taken place during this period, including the creation of third-party rights and the implementation of the Tulsi Nagar Residential Scheme.

2. Validity of the acquisition proceedings under the Land Acquisition Act, 1894:
The acquisition of 103 bighas of land for the Banda Development Authority (BDA) was initiated through notifications under Sections 4(1) and 6(1), read with Sections 17(1) and 17(4). The Supreme Court upheld the acquisition process, noting that the BDA had complied with the statutory requirements, including depositing 80% of the compensation and taking possession of the land.

3. Compliance with Section 11A of the Land Acquisition Act:
The High Court had quashed the acquisition proceedings on the grounds that the award was not passed within two years as mandated by Section 11A. However, the Supreme Court clarified that Section 11A does not apply to acquisitions under Section 17(1) and 17(4), where possession is taken before the award. The Court cited precedents, including Satendra Prasad Jain v. State of U.P., to support this view.

4. Delay and laches in filing the writ petition:
The Supreme Court emphasized that the writ petition was filed after an unreasonable delay of nine years from the declaration under Section 6(1) and six years from the award. The Court held that such delay adversely affects settled rights and should have been a ground for the High Court to deny relief. The Court referenced multiple judgments to underscore that delay in challenging land acquisition should be viewed seriously.

5. Physical possession of the acquired land:
The High Court had accepted the respondent's claim that physical possession was not taken until July 2002. However, the Supreme Court found this finding unsustainable, noting that the BDA had taken possession on June 30, 2001, as evidenced by the panchnama and subsequent development activities. The Court highlighted that the respondent had virtually admitted possession in his civil suit.

6. Impact of symbolic/paper possession:
The Supreme Court clarified that the act of preparing a panchnama and other formalities constituted actual possession, especially when the land was vacant. The Court cited Balwant Narayan Bhagde v. M.D. Bhagwat to explain that symbolic possession is sufficient in the absence of crops or structures.

7. Utilization of acquired land for public purpose:
The Supreme Court noted that the BDA had utilized the acquired land for the Tulsi Nagar Residential Scheme, including developing plots and constructing flats for various income groups. This substantial utilization was a key factor in the Court's decision to uphold the acquisition and reject the High Court's finding.

8. Applicability of Section 11A in cases involving Section 17(1) and 17(4):
The Supreme Court reiterated that Section 11A does not apply to acquisitions under Section 17, where possession is taken before the award. The Court cited multiple precedents, including Awadh Bihari Yadav v. State of Bihar and Government of A.P. v. Kollutla Obi Reddy, to support this position.

Conclusion:
The Supreme Court allowed the appeal, set aside the High Court's order, and dismissed the writ petition with costs. The Court held that the High Court erred in its findings regarding the possession and applicability of Section 11A, and emphasized the significance of delay and the utilization of the acquired land for public purposes.