Land Acquisition Dispute: Supreme Court Overrules High Court’s Decision in Agra Development Authority Case

The Supreme Court of India recently delivered a significant judgment in the case of Agra Development Authority vs. Anek Singh & Others, which dealt with the application of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). The central issue in the case was whether land acquisition proceedings initiated under the earlier Land Acquisition Act, 1894 had lapsed due to non-payment of compensation to the landowners.

Background of the Case

The Agra Development Authority had acquired land for a public project. The landowners challenged the acquisition, arguing that under Section 24(2) of the 2013 Act, the acquisition proceedings had lapsed since compensation was not paid to them. The Allahabad High Court ruled in favor of the landowners, relying on the Supreme Court’s earlier decision in Pune Municipal Corporation & Anr. vs. Harakchand Misirimal Solanki & Ors. (2014).

The Agra Development Authority, aggrieved by the High Court’s decision, appealed to the Supreme Court, arguing that possession of the land had already been taken and compensation had been deposited with the Special Land Acquisition Officer, fulfilling the requirements of the law.

Arguments of the Appellant (Agra Development Authority)

The authority had taken possession of the land, and its name was recorded in revenue records.
The landowners were unlawfully occupying the land despite its acquisition.
Development work had already commenced, and compensation was available for withdrawal.
The writ petitioners deliberately refused to accept compensation, and their refusal could not invalidate the acquisition.

Arguments of the Respondents (Landowners)

The land acquisition proceedings should be deemed to have lapsed under Section 24(2) of the 2013 Act because compensation was not paid directly to them.
Reliance was placed on the judgment in Pune Municipal Corporation, where the Court had held that mere deposit of compensation in the treasury did not amount to payment.
Since compensation was not paid, the acquisition should be set aside.

Supreme Court’s Observations

The Supreme Court analyzed the constitutional validity of the High Court’s decision and examined the ruling in Pune Municipal Corporation. The Court noted that this precedent had been overruled by a larger bench in Indore Development Authority vs. Manoharlal & Others (2020), which held:

“The word ‘paid’ in Section 24(2) of the 2013 Act does not mean that compensation must be deposited in the personal account of the landowners. If possession has been taken and compensation is deposited in the treasury, the acquisition remains valid.”

Key observations included:

The High Court erred in relying on Pune Municipal Corporation without considering that it was subsequently overruled.
Section 24(2) of the 2013 Act does not invalidate acquisitions where compensation has been deposited with the appropriate authority.
Landowners cannot claim lapsing of acquisition proceedings merely by refusing to accept compensation.

Judgment and Directions

The Supreme Court ruled:

The acquisition of land in question had not lapsed under the 2013 Act.
The High Court’s decision was set aside.
The landowners were directed to collect compensation as per the acquisition proceedings.
The writ petition filed before the High Court was dismissed.

Key Takeaways from the Judgment

The ruling clarifies that refusal to accept compensation does not invalidate land acquisition.
The Supreme Court reinforced that deposit in government accounts is considered valid payment.
It prevents abuse of legal provisions by landowners seeking to delay acquisition proceedings.
The judgment ensures that government development projects are not stalled due to procedural technicalities.

Conclusion

The Supreme Court’s decision in Agra Development Authority vs. Anek Singh & Others provides crucial clarity on land acquisition laws. By upholding the validity of land acquisition where compensation has been deposited, the judgment ensures that infrastructure projects are not hampered by procedural disputes. This ruling serves as an important precedent for future land acquisition cases under the 2013 Act.

Petitioner Name: Agra Development Authority.
Respondent Name: Anek Singh & Others.
Judgment By: Justice M.R. Shah, Justice B.V. Nagarathna.
Place Of Incident: Agra, Uttar Pradesh.
Judgment Date: 20-05-2022.

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