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        Case ID :

        2014 (11) TMI 1290 - SC - Indian Laws

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        Land acquisition lapse and mandatory Section 5A compliance invalidated the acquisition proceedings Land acquisition proceedings under the 1894 Act were treated as having lapsed where the award was more than five years old at the commencement of the 2013 ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Land acquisition lapse and mandatory Section 5A compliance invalidated the acquisition proceedings

                          Land acquisition proceedings under the 1894 Act were treated as having lapsed where the award was more than five years old at the commencement of the 2013 Act and physical possession had not been taken; the text says Section 24(2) then operates to deem lapse. It also states that a Section 6 declaration was defective because the State did not accept the Collector's Section 5A report or record reasons for disagreement, even though Section 5A compliance is a mandatory safeguard. On that basis, the acquisition notification and award were set aside.




                          Issues: (i) Whether the land acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 for want of physical possession and payment of compensation within the statutory period. (ii) Whether the acquisition was vitiated because the State Government issued the declaration under Section 6 of the Land Acquisition Act, 1894 without accepting the Collector's report under Section 5A and without assigning reasons for disagreement.

                          Issue (i): Whether the land acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 for want of physical possession and payment of compensation within the statutory period.

                          Analysis: The award had been made more than five years before commencement of the 2013 Act. The physical possession of the acquired land had not been taken. The Court applied the settled interpretation of Section 24(2) that where an award is older than five years and possession has not been taken, the acquisition is deemed to have lapsed. The absence of effective possession, coupled with the statutory conditions being satisfied, attracted the legal fiction of lapse.

                          Conclusion: The acquisition proceedings are deemed to have lapsed under Section 24(2) and this issue is decided in favour of the appellants.

                          Issue (ii): Whether the acquisition was vitiated because the State Government issued the declaration under Section 6 of the Land Acquisition Act, 1894 without accepting the Collector's report under Section 5A and without assigning reasons for disagreement.

                          Analysis: The Collector had recommended release of the land, but the State Government neither accepted that recommendation nor recorded reasons for rejecting it before issuing the declaration. Compliance with Section 5A is a mandatory safeguard, and the Government is required to apply its mind to the Collector's report and disclose cogent reasons if it departs from that view. The failure to do so rendered the declaration defective and the acquisition unsustainable.

                          Conclusion: The acquisition was vitiated for non-compliance with the mandatory procedure under Section 5A and this issue is decided in favour of the appellants.

                          Final Conclusion: The acquisition notification and award were set aside, and the appeals succeeded because the proceedings had lapsed and the statutory procedure for acquisition had not been duly followed.

                          Ratio Decidendi: Where the statutory conditions under Section 24(2) of the 2013 Act are satisfied, land acquisition proceedings initiated under the 1894 Act are deemed to have lapsed, and a declaration under Section 6 of the 1894 Act is invalid if the Government departs from the Collector's Section 5A report without giving cogent reasons.


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                          ActsIncome Tax
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