TMI Blog2019 (10) TMI 1411X X X X Extracts X X X X X X X X Extracts X X X X ..... le is ab initio void. Such void transactions are not validated under the Act of 2013. No rights are conferred by the provisions contained in the 2013 Act on such a purchaser as against the State. No right can be claimed based on a transfer made by way of execution of Power of Attorney, Will, etc., as it does not create any interest in immovable property. Appeal dismissed. - CIVIL APPEAL NO. 8003 OF 2019 (ARISING OUT OF S.L.P. (C) NO.24726/2019, D.NO.25495 OF 2019) - - - Dated:- 14-10-2019 - ARUN MISHRA, M.R. SHAH AND B.R. GAVAI, JJ. JJUGDMENT ARUN MISHRA, J. 1. The question involved in the matter is whether a purchaser of the property after issuance of notification under section 4 of the Land Acquisition Act, 1894 (for short, the 1894 Act ), can invoke the provisions contained in section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, the Act of 2013 ). 2. Notification No.F.10(29)/96/L B/LA/11394, dated 27.10.1999, was issued for the acquisition of the land situated in the revenue estate of Village Pansali, Delhi, for the public purpose of the Rohini Residential Scheme un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. It is crystal clear that for seeking the relief under section 24, the proceedings for taking possession under Act of 1894 have been put into question as illusory one, and possession continues with appellants. The decision in Manav Dharam Trust (supra) has been mainly relied upon by the learned counsel appearing on behalf of the purchasers/ petitioners in which a Division Bench opined that subsequent purchasers are affected by the acquisition. Therefore, they are entitled to seek a declaration of the lapse of acquisition under the Act of 2013. It has further opined that since declaration is sought, the challenge is not to the acquisition proceedings. Because of the operation of section 24(2) of the 2013 Act, the ratio of the various cases decided by this Court under the Act of 1894, has no application to such situations. It has observed thus: 21. All the decisions cited by the learned Senior Counsel appearing for the appellants, no doubt, have categorically held that the subsequent purchasers do not have locus standi to challenge the acquisition proceedings. However, in the present case, the challenge is not to the acquisition proceedings; it is only for a declaration that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Anr. (1996) 7 SCC 426 it has been laid down that subsequent purchaser cannot take advantage of land policy. It was observed: 5. Though at first blush, we were inclined to agree with the appellant but on a deeper probe, we find that the appellant is not entitled to the benefit of the Land Policy. It is settled law that any person who purchases land after the publication of the notification under Section 4(1), does so at his/her peril. The object of publication of the notification under Section 4(1) is notice to everyone that the land is needed or is likely to be needed for a public purpose, and the acquisition proceedings point out an impediment to anyone to encumber the land acquired thereunder. It authorizes the designated officer to enter upon the land to do preliminaries, etc. Therefore, any alienation of land after the publication of the notification under Section 4(1) does not bind the Government or the beneficiary under the acquisition. On taking possession of the land, all rights, titles, and interests in land stand vested in the State, under Section 16 of the Act, free from all encumbrances, and thereby, absolute title in the land is acquired thereunder. If any sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Union of India v. Shiv Kumar Bhargava and Ors. (1995) 2 SCC 427. 18. In view of the above, the law on the issue can be summarized to the effect that a person who purchases land subsequent to the issuance of a Section 4 notification with respect to it, is not competent to challenge the validity of the acquisition proceedings on any ground whatsoever, for the reason that the sale deed executed in his favour does not confer upon him, any title and at the most he can claim compensation on the basis of his vendor's title. (emphasis supplied) 6(e). In Rajasthan State Industrial Development and Investment Corpn. v. Subhash Sindhi Cooperative Housing Society, Jaipur Ors. (2013) 5 SCC 427, it is laid down: 13. There can be no quarrel with respect to the settled legal proposition that a purchaser, subsequent to the issuance of a Section 4 Notification in respect of the land, cannot challenge the acquisition proceedings, and can only claim compensation as the sale transaction in such a situation is Void qua the Government. Any such encumbrance created by the owner, or any transfer of the land in question that is made after the issuance of such a notification would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bhoy Jeejeebhoy v. P.M. Bharucha 1958 (60) Bom.LR 1208] so as to contend that the 'person interested' in the land under Section 9 of the Land Acquisition Act would include a person who claims interest in compensation to be paid on account of acquisition of land ad the interest contemplated Under Section 9 is not restricted to legal or proprietary estate or interest in the land but such interest as will sustain a claim to apportionment, is the owner of the land. In our opinion, the decision is of no avail. The instant transaction being void as per Section 42 of the Rajasthan Tenancy Act, and the property was inalienable to non-SC. Obviously, the logical corollary has to be taken that no right in apportionment to compensation can be claimed by the Society. 6(g). In M. Venkatesh Ors. v. Commissioner, Bangalore Development Authority, etc. (2015) 17 SCC 1, a threeJudge Bench has opined: 16. That brings us to the question of whether Prabhaudas Patel and other respondents in SLP (C) No. 12016 of 2013 were entitled to any relief from the Court. These respondents claim to have purchased the suit property in terms of a sale deed dated 22-8-1990, i.e., long after the issuanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the publication of the declaration under Section 6 was published. (emphasis supplied) 7. It has been laid down that the purchasers on any ground whatsoever cannot question proceedings for taking possession. A purchaser after Section 4 notification does not acquire any right in the land as the sale is ab initio void and has no right to claim land under the Policy. 8. When we ponder as to beneficial provisions of the Act of 2013, they also intend to benefit landowners mentioned in the notification under Section 4, not for the benefit of such purchasers who purchase the land after it has been vested in the State. 9. Subsection 4 of Section 11 of the Act of 2013, which is akin to section 4 of the Act of 1894, contains a prohibition that no person shall make any transaction or cause any transaction of land or create any encumbrance on land from the date of publication of such notification. Section 11(4) is extracted hereunder: 11. Publication of preliminary notification and power of officers thereupon. x x x x x (4) No person shall make any transaction or cause any transaction of land specified in the preliminary notification or create any encumbrances on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isition of such land; The affected family includes landowners for whose benefit land is held before the acquisition. A person acquiring interest after section 11 notification cannot be said to be included in the affected family at all. 11. Definition of family' is in section 3(m), it is extracted hereunder: 3. Definition. In this Act, unless the context otherwise requires,- .. (m) family includes a person, his or her spouse, minor children, minor brothers and minor sisters dependent on him: Provided that widows, divorcees, and women deserted by families shall be considered separate families; Explanation.-An adult of either gender with or without spouse or children or dependents shall be considered as a separate family for the purposes of this Act. 12. The definition of landowner' is in section 3(r), the same is extracted hereunder: 3. Definition. In this Act, unless the context otherwise requires,- .. (r) landowner includes any person,- (i) whose name is recorded as the owner of the land or building or part thereof, in the records of the authority concerned; or (ii) any person who is granted forest rights under the Scheduled Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Land Acquisition Act has been made, then, all provisions of this Act relating to the determination of compensation shall apply; or (b) where an award under said section 11 has been made, then such proceedings shall continue under the provisions of the said Land Acquisition Act, as if the said Act has not been repealed. (2) Notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894), where an award under the said section 11 has been made five years or more prior to the commencement of this Act but the physical possession of the land has not been taken, or the compensation has not been paid the said proceedings shall be deemed to have lapsed and the appropriate Government, if it so chooses, shall initiate the proceedings of such land acquisition afresh in accordance with the provisions of this Act: Provided that where an award has been made, and compensation in respect of a majority of land holdings has not been deposited in the account of the beneficiaries, then, all beneficiaries specified in the notification for acquisition under section 4 of the said Land Acquisition A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a property which has already been acquired by the State Government, he cannot claim even higher compensation, as per proviso to section 24(2) under the Act of 2013. An original landowner cannot be deprived of higher value under the Act of 2013, which higher compensation was not so contemplated when the void transaction of sale had been entered, and right is conferred under proviso to Section 24(2) on recorded owners under Act of 1894. We have come across instances in which after notifications under section 4 were issued and, the property was purchased at throwaway prices by the builders and unscrupulous persons, such purchases are void and confer no right even to claim higher compensation under Section 24(2) of the Act of 2013 as it is to be given to the owner as mentioned in the notification. 19. Given that, the transaction of sale, effected after section 4 notification, is void, is ineffective to transfer the land, such incumbents cannot invoke the provisions of section 24. As the sale transaction did not clothe them with the title when the purchase was made; they cannot claim possession' and challenge the acquisition as having lapsed under section 24 by questioning the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2013. What cannot be done directly cannot be permitted in an indirect method. 22. The provisions of the Act of 2013 aimed at the acquisition of land with least disturbance to the landowners and other affected families and to provide just and fair compensation to affected families whose land has been acquired or proposed to be acquired or are affected and to make adequate provisions for such affected persons for their rehabilitation and resettlement. The provisions of Act of 2013 aim at ousting all intermeddlers from the fray by ensuring payment in the bank account of landholders under section 77 of the Act. 23. The intendment of Act of 2013 is to benefit farmers etc. Subsequent purchasers cannot be said to be landowners entitled to restoration of land and cannot be termed to be affected persons within the provisions of Act of 2013. It is not open to them to claim that the proceedings have lapsed under Section 24(2). 24. Apart from that the claims have been made on transactions based on the power of attorneys, agreements, etc.; as such also they are not entitled to any indulgence and cannot invoke provisions of section 24(2) of the 2013 Act. The Court has considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecute a deed of conveyance in the exercise of the power granted under a power of attorney and convey title on behalf of the grantor. Scope of Will 14. A will is the testament of the testator. It is a posthumous disposition of the estate of the testator directing the distribution of his estate upon his death. It is not a transfer inter vivo. The two essential characteristics of a will are that it is intended to come into effect only after the death of the testator and is revocable at any time during the lifetime of the testator. It is said that so long as the testator is alive, a will is not be worth the paper on which it is written, as the testator can at any time revoke it. If the testator, who is not married, marries after making the will, by operation of law, the will stands revoked. (see Sections 69 and 70 of the Indian Succession Act, 1925). Registration of a will does not make it any more effective. Conclusion 15. Therefore, a SA/GPA/WILL transaction does not convey any title nor create any interest in an immovable property. The observations by the Delhi High Court, in Asha M. Jain v. Canara Bank 94 (2001) DLT 841 that the concept of power of attorney sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iso to section 24(2). Apart from that, it was not legally permissible to a Division Bench to ignore the decisions of the larger Bench comprising of three Judges and of Coordinate Bench. They were not per incuriam and were relevant for deciding the issue of taking possession under Act of 1894, at the instance of purchaser. In case it wanted to depart from the view taken earlier, it ought to have referred the matter to a larger bench. It has been ignored that when a purchase is void, then no declaration can be sought on the ground that the land acquisition under the Act of 2013 has lapsed due to illegality/irregularity of proceedings of taking possession under the Act of 1894. No declaration can be sought by a purchaser under Section 24 that acquisition has lapsed, effect of which would be to get back the land. They cannot seek declaration that acquisition made under the Act of 1894 has lapsed by the challenge to the proceedings of taking possession under the Act of 1894. Such right was not available after the purchase in 2000 and no such right has been provided to the purchasers under the Act of 2013 also. Granting a right to question acquisition would be against the public policy a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier decisions of this Court mentioned above. It is apparent that the decisions of the Three Judges Bench are binding on us, and in view of other consistent decisions of this Court, we have to follow them. It is not appropriate to refer the case to larger Bench under Order VI Rule 2 of Supreme Court Rules. We find no fault in the Judgments laying down the law that the purchase after section 4 is void as against the State. We are not impressed with the submission raised on behalf of the purchasers to refer the matter for the constitution of a Larger Bench to the Hon ble Chief Justice. When decisions of Larger Bench and other Division Bench are available, the case cannot be referred to a Larger Bench. 28. Concerning the illegal colony, averments have been made that the colony is an unauthorized and provisional order was passed to regularise it. The plea taken is contradictory and shows the falsity of the claim raised by the purchasers. That, apart predecessors of the purchaser obtained the landbased on Power of Attorney, Agreement to Sell, and Will on 9.12.1982. As per averments made in the writ application, Bijender Singh, who was owning share, sold the share to Satya Narain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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