Featured image for Supreme Court Judgment dated 05-03-2019 in case of petitioner name New Okhla Industrial Developme vs Lt. Col. J.B. Kuchhal (Dead) T
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Supreme Court Upholds Landowners’ Rights: Compensation Ordered for Illegal Acquisition in NOIDA

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The case of New Okhla Industrial Development Authority v. Lt. Col. J.B. Kuchhal (Dead) Through LRs. & Ors. revolves around the illegal acquisition of private land in NOIDA and the compensation claim by landowners. The Supreme Court, in its judgment dated March 5, 2019, upheld the Allahabad High Court’s ruling, which had quashed the acquisition and ordered compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013.

This judgment is significant as it reinforces the principle that land cannot be taken by the state without due process, and affected landowners must be fairly compensated.

Case Background

The case originated when the New Okhla Industrial Development Authority (NOIDA) sought to acquire 91.11 bighas (57.218 acres) of land in Village Bhagel Begumpur, Ghaziabad (now Gautam Buddh Nagar) for infrastructure development. The land acquisition was initiated through:

  • A preliminary notification dated November 30, 1989, under Section 4(1) of the Land Acquisition Act, 1894.
  • A final notification dated June 16, 1990, under Section 6(1) of the Act.
  • The government invoked Sections 17(1) and 17(4) of the Act, bypassing the requirement of conducting an inquiry under Section 5A.

The landowners, led by Lt. Col. J.B. Kuchhal and others, challenged the acquisition before the Allahabad High Court, arguing that:

  • The invocation of urgency provisions under Section 17 was illegal.
  • They had not been properly compensated.
  • NOIDA had already started construction despite ongoing legal proceedings.

High Court’s Decision

The High Court ruled in favor of the landowners, citing the Supreme Court’s earlier ruling in Daya Ram Tyagi (D) Through LRs. v. State of U.P. (2011). The key findings were:

  • The acquisition was illegal as the urgency provision (Section 17) had been misused.
  • The state’s failure to follow due process rendered the acquisition void.
  • NOIDA must compensate the landowners at twice the market value under the 2013 Land Acquisition Act.

Aggrieved by this ruling, NOIDA appealed before the Supreme Court.

Petitioner’s Arguments

NOIDA, represented by Senior Advocate Ranjit Kumar, argued:

  • The High Court erred in applying the 2013 Act retroactively.
  • The landowners had no legal claim as they had already lost possession.
  • The acquisition was necessary for public purposes, including roads, bus depots, and green belts.
  • The landowners had failed to prove ownership.

Respondent’s Arguments

The landowners, represented by Senior Advocate Dr. Abhishek Manu Singhvi, countered:

  • The acquisition was invalid as the Supreme Court had already quashed similar notifications.
  • NOIDA had illegally started construction on the land.
  • Their land titles were duly registered and had been produced in court.
  • Compensation must be calculated under the latest law to ensure fairness.

Supreme Court’s Observations and Ruling

The Supreme Court upheld the High Court’s decision, stating:

“The High Court was justified in quashing the notification, having regard to our judgment in Daya Ram Tyagi.”

On NOIDA’s claim that the landowners had no legal rights:

“The appellant has not produced any document to substantiate its contention that the writ petitioners are not the title holders of the land.”

On the retrospective application of the 2013 Act:

“Since the land acquisition was found to be illegal, compensation must be determined in accordance with the prevailing law at the time of final adjudication.”

On NOIDA’s conduct in continuing construction despite legal disputes:

“This act on the part of the respondents needs to be deprecated. The authority concerned went to the extent of undertaking illegal construction, putting the public exchequer at risk.”

The Court ruled:

  • NOIDA’s appeal was dismissed.
  • The acquisition notifications of November 30, 1989, and June 16, 1990, were quashed.
  • Compensation must be paid at twice the market value, as per the 2013 Act.
  • If compensation was not paid within three months, NOIDA must restore possession to the landowners.

Conclusion

This judgment reinforces several key principles:

  • The government cannot bypass due process in land acquisitions.
  • Landowners are entitled to compensation under the prevailing law.
  • Unauthorized construction by government agencies is unlawful.
  • Courts can impose strict penalties for procedural violations in land acquisitions.

By upholding the High Court’s ruling, the Supreme Court has ensured that landowners receive just compensation and that the government follows the rule of law in future acquisitions.


Petitioner Name: New Okhla Industrial Development Authority.
Respondent Name: Lt. Col. J.B. Kuchhal (Dead) Through LRs. & Ors..
Judgment By: Justice A.K. Sikri, Justice S. Abdul Nazeer, Justice M.R. Shah.
Place Of Incident: NOIDA, Uttar Pradesh.
Judgment Date: 05-03-2019.

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