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High Court of Punjab and HaryanaCWP/10947/2019dismissed

Tasvir Singh And Others v. State Of Haryana And Others

2023-07-21The Chief Justice,Mr. Justice Arun Palli24 pages

  1 2023:PHHC:121449-DB

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

CM No. 28712023 in/and Civil Writ Petition No. 1 (O&M) Date of Decision: 21.07.2023

 

.....Petitioners versus     

.....Respondents

CORAM:

HON'BLE MR.JUSTICE RAVI SHANKER JHA, CHIEF JUSTICE HON'BLE MR. JUSTICE ARUN PALLI, JUDGE Present :

Mr. S.P.Khatri, Advocate, for the petitioners. Mr. Ankur Mittal, Addl. Advocate General, Haryana with Mr. Saurabh Mago, Deputy Advocate General, Haryana, Ms. Kushaldeep Kaur, Advocate and Mr. Shivam Garg, Advocate, for the respondents. ****  

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" "% &' ( The instant petition came to be dismissed for want of prosecution vide order dated 23.01.2023. The present application has been filed on behalf of the petitioners seeking restoration of the writ petition. For the reasons set out in the application, the same is allowed and the writ petition is restored to its original number. Main case is taken up for hearing on board today itself and the arguments of the respective parties have been heard with respect to the main petition.

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1.

The petitioners have approached this Court by filing the instant writ petition praying for quashing of the notifications dated 18.10.2002 and 08.09.2003 issued under Sections 4 and Section 6 of the Land Acquisition Act, 1894 (hereinafter referred as "Act of 1894") respectively, followed by

  2 2023:PHHC:121449-DB the award dated 05.09.2005   , on the ground that acquisition proceedings have lapsed under Section 24 (2) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation & Resettlement Act, 2013 (hereinafter referred as "Act of 2013") as neither the petitioners have received the amount of compensation awarded by the Collector nor it was deposited in the Court and possession of the acquired land is still with the petitioners.

2.

The petitioners claimed to be owners in possession of 280 sq. yards of land comprised in Killa no. 12//9 (80) and 12//26 (011) and further owners to the extent of their respective shares in Killa no. 12//13(40), 18/1 (017), 18/2 (113), 23 (40) total measuring 10 Kanal 10 Marlas situated within the revenue estate of Village Sehjanpur, Tehsil and District Sonepat. 3.

As regards the prayer of seeking lapsing of acquisition proceedings under Section 24(2) of Act of 2013, learned counsel for the petitioners fairly concedes that the said prayer is squarely covered against them in terms of the

      



 



  !"" . However, he asserts that there is another plea which the petitioners would like to press as regards to the "  "

on account of nonpayment of compensation amount. 4.

Learned counsel for the petitioners further contends that even though the award was announced on 05.09.2005, but no compensation amount was awarded to the land owners up to 12.07.2007 on account of the fact that the award statement and kabja vasool were not complete and therefore, the Land Acquisition Collector was not in a position to offer any amount to the land owners even after two years from the date of award. In this regard, the petitioners have placed reliance on a letter dated 12.07.2007

  3 2023:PHHC:121449-DB written by Land Acquisition Collector, Rohtak, which is appended with the petition as Annexure P4. Based upon this, learned counsel for the petitioners has contended that the award itself was illegal, nonest in the eyes of law and thus, was a nullity as it was announced without tendering of compensation amount required in accordance with Section 31 of the Land Acquisition Act, 1894. As per the petitioners, the contention of the earlier award being a nullity stands fortified from the fact that the State Government had announced the revised award on 05.06.2015, thereby assessing compensation in accordance with the provisions of Act of 2013. In sum and substance, the contention raised by the learned counsel for the petitioners is that once award itself was a nullity on account of non compliance of the statutory requirement of section 31 of Land Acquisition Act, 1894, therefore, acquisition proceedings cannot be said to have validly culminated in accordance with law.

5.

Even though the petitioners have sought to challenge the award dated 05.09.2005 by terming it to be a nullity, it is pertinent to mention that for all these years, the petitioners did not even plead so and the petition simply got adjourned awaiting the decision of the Apex Court as regards the applicability of Section 24(2) of Act of 2013. As a result of which the instant petition remained pending in this Court awaiting the decision of the Supreme Court of India as regards the interpretation and applicability of Section 24

(2) of the Act of 2013 which came to be decided by a Constitution Bench of the Apex Court in

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  4 2023:PHHC:121449-DB 6.

Controverting the pleas raised by the petitioners, a short reply of the Land Acquisition Collector, Urban Estate Department, Rohtak was filed after the pronouncement of the judgment in

    



. Placing reliance on the same, Mr. Ankur Mittal, learned Additional Advocate General, Haryana has contended that the land claimed in the petition along with other lands was acquired by the State of Haryana through Department of Urban Estates vide notifications dated 18.10.2002 and 08.09.2003 issued under Sections 4 and Section 6 of the Land Acquisition Act, 1894; followed by the award dated 05.09.2005 for the public purpose namely, development and utilization of land as residential, institutional and commercial Sector - 16, Sonepat. Neither any objections were filed under Section 5A of Act of 1894 nor there was any construction existing on the land claimed in the petition as it was lying completely vacant. After conclusion of the acquisition proceedings and announcement of the award dated 05.09.

2005, the possession of the land in question was taken by recording     No. 20 dated 05.09.2005 which implies that due possession was taken and the land stood vested in the State free from all encumbrances. The compensation amount qua the land in question alongwith other acquired land was duly tendered at the time of announcement of award and was made available to the landowners. 7.

Learned State counsel further submits that even though in the head note of the petition, it has been so mentioned by the petitioners that neither the compensation amount was paid nor was deposited in the Court and has sought to lay challenge to the award by terming it as a nullity, however, fact of the matter is that the petitioners have already received the amount of original award dated 05.09.2005 except for Khasra no. 12//26

  5 2023:PHHC:121449-DB (011). Once the petitioners have received the amount qua majority of the landholding, it does not leave any spec of doubt that the compensation was duly tendered and was made available for disbursement to the landowners. In such an eventuality, the argument being canvassed by the petitioners that the award is nullity on account of nonpayment of the compensation amount or depositing it in Reference Court falls flat. 8.

Learned State counsel further argued that validity of award is to be seen only against the touchstone of Sections 11 and 11A of Act of 1894 which primarily would include two aspects i.e., award is announced within 2 years from the last date of publication of declaration under Section 6 of Act of 1894 and the award was announced with approval of the State Government. Validity of award under section 11 of Act of 1894 is not dependent on Section 31 of Act of 1894 which postulates about the manner in which the compensation amount, pursuant to announcement of award is to be paid or deposited in the Court. He places reliance on the observations made by the Supreme Court of India in the case of

    



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 to contend that stage of Section 31 i.e., Payment of Compensation under Act of 1894 comes only after the passing of award under Section 11 of Act of 1894, except in the case of invocation of urgency clause under section 17 of Act of 1894, where 80% of estimated compensation amount has to be tendered and paid before taking possession of the land.

9.

As per Section 31(1), the Collector has to tender payment of the compensation amount awarded to the persons interested and shall pay such amount unless he is prevented from doing so, for any of three contingencies provided under SubSection (2) of Section 31 in which case he

  6 2023:PHHC:121449-DB has to deposit the amount of compensation in the Court. The three contingencies are (i) refusal to receive the amount of compensation, (ii) if there is no person competent to alienate the land; (iii) if there is any dispute as to the title to receive the compensation or if there is dispute as to the apportionment. The effect of noncompliance of Section 31 is envisaged in Section 34 of Act of 1894. It deals with a situation where any of the obligations under Section 31 are not fulfilled i.e.

, when the amount of compensation is not paid or deposited on or before taking possession of the land; the Collector shall pay the amount awarded with interest thereon @ 9% per annum from the time of taking possession until it is paid or deposited and after one year from the date on which possession is taken; interest payable shall be @ 15% per annum. Thus, as per the Scheme of the Act of 1894, when the award is announced under Section 11, thereafter the possession is taken under Section 16, the land vests in the State. At this stage, the announcement of the award and taking of possession is not dependent on the payment of compensation; therefore, the question of compliance of Section 31 of the Act of 1894 does not arise at all.

The only consequence of noncompliance of Section 31 is provided under Section 34 of Act of 1894 which can by no stretch of imagination, would relate back to the validity of the award announced under Section 11 of the Act of 1894. Therefore, he prays for rejection of the plea taken by the the petitioners as regards the award being nullity as misconceived and clearly against the scheme of the Act of 1894 itself.

10.

As regards the aspect of compensation, learned State counsel submits that pursuant to the announcement of the award on 05.09.2005, the compensation amount was duly tendered and was made available to the

  7 2023:PHHC:121449-DB landowners. He has further stated that earlier the award was announced on 05.09.2005 @ Rs. 12,50,000/ per acre. However, since there was a spurt of litigations seeking lapsing of acquisition proceedings under Section 24 (2) of the Act of 2013, only 31.11% of amount of compensation was disbursed among the landowners and as per the law prevalent at that time, the word ' used in Section 24(2) of the Act of 2013 was interpreted to mean actual payment or deposited in the Court; in order to save the acquisition proceedings from lapsing. The decision was taken by the State Government to pay compensation in accordance with the provisions relating to assessment of compensation of Act of 2013, qua which the directions were also issued by this Hon'ble Court vide order dated 26.05.2014 passed in CWP No.

8052 of 2009. Accordingly, the additional award was announced on 05.06.2015 for the entire acquired land @ Rs. 414/ per square yard as fixed on 03.06.2015 based upon the assessment made by the Court of learned Additional District Judge in reference cases under Section 18 of the Land Acquisition Act, 1894 including 100% solatium multiplier factor and 12% increase in the market value from the actual date of notification under Section 4 of the Act of 1894 till the assessment of compensation as per the Act of 2013. The total amount of the compensation of the additional award i.e., Rs. 1,78,92,06,315/ was also tendered, out of which Rs. 57,25,46,020/ has been disbursed to the land owners. The petitioners are at liberty to receive the compensation amount.

No fault can be attributed to the State agencies for nonpayment of compensation as they have fulfilled their obligation to pay the compensation amount after tendering the same.

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 wherein it was held that the

  8 2023:PHHC:121449-DB "tender" of compensation is sufficient discharge of the obligation to pay compensation and actual payment or deposit in the Court is not required. 11.

In view of the aforestated facts and placing reliance on the ratio laid down by the Apex Court in

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, learned Additional Advocate General has contended that none of the grounds seeking lapsing of acquisition proceedings as required under Section 24(2) of the Act of 2013 are fulfilled, as the possession of the land stands duly taken and the compensation amount has also been tendered, besides the land owners are being paid amount assessed in accordance with the provisions of Act of 2013 even though the award under Section 11 of the Act of 1894 was announced way back on 05.09.2005. For declaring the acquisition proceedings to have been lapsed, it is incumbent upon the landowners to show that both the contingencies prescribed in section 24(2) of Act of 2013 i.e. "nonpayment of compensation" and "nontaking of possession" coexist.

If one of the contingencies remains unfulfilled, there can be no declaration as regards the lapsing of acquisition proceedings. Since in the case at hand the possession of the land in question stands taken and the compensation also stands tendered, there can be no declaration as to lapsing of acquisition proceedings as none of the contingencies as prescribed in section 24(2) of Act of 2013 is fulfilled.

12.

We have heard the arguments made by learned counsel for the respective parties at length. Even though learned counsel for the petitioners has conceded that the matter is covered against the petitioners as regards the plea of lapsing of acquisition proceedings under section 24(2) of Act of 2013 in view of the judgment of the Apex Court rendered in



  9 2023:PHHC:121449-DB   (supra). However, since replies were filed long back and the learned counsel appearing for the State has asserted all claims, we deem it appropriate to deal with issue of lapsing as well, besides considering the issue as to whether noncompliance of the provisions of section 31 of Act of 1894 would render an award nullity.

13.

The interpretation of Section 24(2) of Act of 2013 had remained subject matter of controversy for quite a while, until it was settled by a Constitution Bench of the Apex Court in

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 The principles of interpreting the provision were summarized in the penultimate paragraph of the judgment cited supra in the manner as follows: 

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4 14.

The sum and substance of the interpretation of Section 24 (2) of the Act of 2013 by the Apex Court is that both the contingencies provided i.e., about the physical possession and the payment of compensation are to be fulfilled, meaning thereby, if either of the conditions is not satisfied, there would be no lapsing. As far as the obligation to make the payment in lieu of the land acquired is concerned, it has been clarified that such obligation to pay is complete by tendering the compensation which would mean that the compensation amount was made available to the land owner and if the same has not been accepted, it will not be available for the land owner to claim that the compensation has not been paid. Similarly, word "  !

4 has been interpreted to mean depositing with the Land Acquisition Collector or the treasury or the Reference Court. Drawing of panchnama has been considered to be a valid proof of taking physical possession and once the land stands vested in the State, there is no divesting provided under Section 24 (2) of the Act of 2013. The Apex Court has further clarified that the period for which any interim order was in operation will be excluded while computing the gap period of five years. Similarly, it has been clarified that Section 24 (2) of the Act of 2013 does not give rise to a new cause of action to question the legality of concluded proceedings of land acquisition as it applies to only those cases wherein the proceedings were pending on the date of enforcement of Act of 2013.

  12 2023:PHHC:121449-DB 15.

Testing the factual matrix of the case against the touchstone of the principles laid down by the Apex Court, it transpires that the possession of the land claimed in the petition was taken by recording rapat No. 20 dated 05.09.2005. The Apex Court in

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 has categorically held that recording of panchnama is a valid mode of taking possession of the land and amounts to taking of physical possession of the land. Once the possession of the land is taken, it vests in the State free from all encumbrances and any person who retains the possession of the land thereafter is a trespasser. The reference in this regard is made to the following paragraphs from the judgment: 

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 )      *  the real owner that is the State Government in the case." 16.

With respect to the status of compensation, there are categorical pleadings in the reply that the amount of compensation for the entire awarded land was made available to all the landowners. Not only this, original amount of award has also been received by the petitioners except for the land comprised in Khasra No. 12//26 (011), thus, the compensation was not only tendered but was also paid to the petitioners. In the case at hand, even though there was no requirement in law to announce additional award for paying the compensation in terms of the Act of 2013, yet the State Government in its wisdom took a decision, which is so recorded in the direction issued by this Court in order dated 26.05.2015 passed in Civil Writ Petition No.

8052 of 2009, to announce an additional award by making the assessment of compensation, thereby applying the provisions of determination of compensation of the Act of 2013 i.e. Sections 26 to 30 of the Act. This appears to have happened owing to the perplexity prevailing as regards the interpretation of the proviso to Section 24(2) of the Act of 2013, because as stated before us, the actual payment made to the land owner on the date of coming into effect of 2013 Act, was approximately 31.11% and thus, to save the land in question so as to achieve the public purpose, the Government announced the additional award which in any eventuality will relate back to the original award having been announced on 05.09.

  14 2023:PHHC:121449-DB in the case at hand in the year 2005. Seeing the same from the perspective of interpretation made by the Indore Development Authority (supra), the State was not under any obligation to announce the additional award but it having done so with the apparent intent to save the acquisition and the same being not an issue before us, we do not want to deliberate any further as regards this aspect except to say that this step of the State Government conclusively indicates the essentiality of the land in question so as to achieve the public purpose for which it was sought to be acquired. 17.

It is the stand of the State that the amount due to the petitioners as per additional award is available for disbursement and the petitioners are at liberty to receive the same, this shows that the compensation amount was duly tendered, and the obligation to the State to pay the compensation stands duly discharged. In view of the exposition in

    



, the obligation of the State to pay the compensation is discharged if the amount of compensation is tendered which has been interpreted to mean that the amount was made available to the land owners as observed in Para 205 which is reproduced here in below: =(,7 3

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  ! 18.

As far as the reliance on Annexure P9 is concerned, it would have no bearing in view of the fact that it was merely an interdepartmental communication to send the man power for disbursing compensation. It would in no manner imply that the compensation was not tendered and deposited with the Land Acquisition Collector. In view of the said fact, second contingency for claiming the lapsing of acquisition proceedings is also not available to the petitioners.

19.

The Apex Court in

      



 



 has clearly observed that for deemed lapsing of acquisition proceedings under Section 24 (2) of the Act of 2013, both the conditions i.e., payment of compensation and taking of possession must not be fulfilled i.e., if either of the condition is fulfilled, the lapsing cannot happen. The Apex Court has observed that word

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  17 2023:PHHC:121449-DB 20.

Since the possession of the acquired land stands duly taken and the compensation amount has also been tendered and received (original amount of compensation) for majority of land holdings, we hereby hold that none of the conditions prescribed in Section 24(2) of the Act of 2013 are fulfilled, therefore, the said provision cannot be relied upon by the petitioners to claim lapsing of the acquisition proceedings. 21.

Even though the petitioners all throughout maintained a stand that the present writ petition is only limited and confined to applicability of Section 24(2) of Act of 2013, yet they have now sought to raise additional plea as regards the

  4 on account of nonpayment of compensation. It is incomprehensible that plea sought to be raised by the petitioners runs counter to the facts of the case as the petitioners have received the original amount of compensation awarded in the year 2005 for majority of land. Once it is so, aforesaid plea of the petitioners falls flat and shows that they are only making an attempt to keep litigation alive on one ground or the other. It is pertinent to mention that even otherwise such plea cannot be entertained at this stage because if the petitioners were aggrieved of the said fact, they should have approached this Court at the time when the award was announced in the year 2005, whereas they are approaching in 2019 anchoring their claim entirely on Section 24(2) of Act of 2013, which is also barred by delay and laches as cause of action to claim lapsing also had arisen five years back on 01.01.2014. Therefore, observing from every angle, the instant petition deserves dismissal. 22.

Nonetheless, even in law the argument of the petitioners that award becomes nullity if compliance of section 31 of Act of 1894 is made, is completely misconceived and rests on faulty foundation and interpretation of

  18 2023:PHHC:121449-DB scheme of Act of 1894. We are adidem with the submissions made by the learned State counsel that plea sought to be set up by the petitioners runs antithesis to scheme of the Act of 1894. The acquisition proceedings (other than for Company) are carried out under PartII of the Act of 1894 which commence from Section 4 providing therein the procedure of publication of preliminary notification and culminates with Section 17 which provides for the procedure to be undertaken in case the land is to be acquired in cases of urgency.

It is pertinent to note that pursuant to the issuance of notification and declaration under Sections 4 and Section 6 of the Act of 1894 respectively and after undertaking all the procedure prescribed in the Act, the acquisition proceedings are finalized only with the announcement of award under Section 11 of Act of 1894. Requirements of a valid award are twofold i.e., it shall be made with the previous approval of the appropriate Government as provided in Sub Section 1 of Section 11 and further, it shall be announced within a period of 2 years from the last date of publication of declaration under Section 6 of the Act of 1894 as envisaged in section 11A of Act of 1894.

Pursuant to the announcement of award, Section 16 authorizes the Collector to take possession of the land whereafter, the land vests absolutely in the Government free from all encumbrances. Till this stage of announcement of award and taking possession of the acquired land, the legislature has not put any obligation on the collector to pay the compensation amount either at the time of announcement of award or taking possession of the acquired land.

  19 2023:PHHC:121449-DB by one or more of the contingencies mentioned in Section 31 (2) of Act of 1894.

23.

The payment of compensation amount is provided in Part V of the Act of 1894. It commences with Section 31, which provides that on making an award under Section 11, the collector shall tender payment of compensation to the interested persons entitled thereto according to the award and shall pay it unless prevented by one or more of the contingencies mentioned in Sub Section (2) of Section 31. Section 31 is extracted herein below for the ready reference:

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  20 2023:PHHC:121449-DB 24.

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 wherein the plea raised by the land owner claiming lapsing of award on account of nonpayment of compensation and its nondeposit in the reference Court under Section 31 stood conclusively rejected. Relevant extract of the judgment is reproduced herein below: 52 6    '

  

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In view of the above, it is crystal clear that the payment of compensation (either by way of tender, payment to the land owner or deposit in the Reference Court) is an event which follows the announcement of award. Thus, any delay on the part of the State to discharge the obligations towards payment of compensation in either of the form, permitted under law, cannot affect the validity of the award having been announced in accordance with law. If the argument of the counsel for the petitioner is accepted (which otherwise stands rejected) that would mean putting the clock back which is not permissible in law. In the case at hand, all throughout, the petitioners have maintained their challenge on the touch stone of deeming lapsing providing under Section 24(2) of the Act of 2013, however, having confronted with the exposition of law in

    



+ they have suddenly changed their course and sought to plead the nullity of award.

  23 2023:PHHC:121449-DB 26.

As a sequel of the aforesaid, as regards the plea of nullity of award, it is held that validity of award announced under section 11 of Act of 1894, consequential action of taking possession of the land under section 16 of Act of 1894 and vesting of same in the State Government is not dependent on compliance of the provisions of Section 31 of Act of 1894 which deals with Payment of compensation. In the scheme of the Act, the effect and consequence of noncompliance of section 31 of Act of 1894 is provided in section 34 of Act of 1894 i.e., payment of interest on the amount of compensation @ 9% per annum for the first year from the date of taking possession and thereafter @ 15% per annum. In no eventuality, does non compliance of section 31 of Act of 1894 would render the award announced under section 11 of Act of 1894 a nullity or affect the vesting of land in the State Government in any manner.

27.

As far as the plea of lapsing is concerned, no declaration as regards the lapsing of acquisition proceedings can be made as none of the conditions prescribed in section 24(2) of Act of 2013 are fulfilled since the possession of the land stands duly taken by recording Rapat No. 20 dated 05.09.2005 and the compensation amount as awarded originally vide award dated 05.09.2005 has been received by the petitioners, rest of the amount is available for disbursement. Even the learned counsel appearing for petitioners does not disputes the fact that aspect of lapsing is covered against the petitioners in view of exposition made in

   



 



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 28.

Before parting with the judgment, there is yet another aspect which requires consideration which is "essentiality" of the land in question. As stated in para no. 8 of the reply, the land of the petitioners affects the site

  24 2023:PHHC:121449-DB of 24 mtr. road, 12 mtr road, site of group housing as per the development plan. This shows that the land is very much viable for the public purpose for which it was acquired, thus, even considering the preeminence of the public purpose, present petition deserves to be dismissed as a litigant cannot be allowed to stall the development process for years altogether. 29.

As a sequel of the discussions made herein above, the instant petition is hereby dismissed and the pending application if any, shall also meet same fate.

(RAVI SHANKER JHA) CHIEF JUSTICE (ARUN PALLI) JUDGE 21.07.2023 ravinder Whether speaking/reasoned √Yes/No Whether reportable √Yes/No