Supreme Court Allows Appeal in Land Acquisition Compensation Case — Redetermination Under Section 28-A Permissible Based on High Court Judgment in Same Acquisition. The Court held that Section 28-A of the Land Acquisition Act, 1894 is a beneficent provision and an application for redetermination can be filed within three months from the date of the appellate court's judgment if it is the first determination in the acquisition.

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Case Note & Summary

The Supreme Court allowed the appeal filed by Banwari and others against the judgment of the Punjab and Haryana High Court, which had set aside the order of the Land Acquisition Collector (LAC) granting enhanced compensation under Section 28-A of the Land Acquisition Act, 1894. The land of the appellants was acquired by notification dated 17th November 2004 for the Kundli Manesar Palwal Expressway, and compensation was awarded at Rs.12,50,000 per acre on 1st March 2006. The appellants did not seek a reference under Section 18. However, other similarly situated landowners filed a reference, which was dismissed by the Additional District Judge on 17th January 2012. They appealed to the High Court in RFA No. 429 of 2013, and on 2nd May 2016, the High Court enhanced compensation to Rs.19,91,300 per acre. Within three months of this judgment, on 30th June 2016, the appellants filed an application under Section 28-A before the LAC, who on 15th September 2020 allowed the application and granted enhanced compensation. The respondent HSIIDC challenged this order before the High Court, which set it aside relying on its earlier judgment in CWP No. 8456 of 2020, which in turn relied on the Supreme Court's decision in Ramsingbhai (Ramsangbhai) Jerambhai v. State of Gujarat (2018) 16 SCC 445, holding that an application under Section 28-A can only be filed within three months from the award of the Reference Court under Section 18, not from the judgment of the appellate court. The Supreme Court found that the High Court erred in relying on Ramsingbhai because that decision did not consider the earlier three-judge bench decision in Union of India v. Pradeep Kumari (1995) 2 SCC 736, which held that Section 28-A is a beneficent provision and must be construed liberally. In Pradeep Kumari, the Court held that the right to apply under Section 28-A arises from any award of the court under Part III, including a subsequent award, and the limitation of three months runs from the date of that award. The Supreme Court noted that the High Court's judgment in RFA No. 429 of 2013 is an award under Part III read with Section 54, and the appellants filed their application within three months of that judgment. Therefore, the application was maintainable. The Supreme Court set aside the High Court's judgment and restored the LAC's order dated 15th September 2020, allowing the appeal.

Headnote

A) Land Acquisition - Redetermination of Compensation - Section 28-A of the Land Acquisition Act, 1894 - Beneficent Provision - The provision is intended to remove inequality and benefit inarticulate and poor landowners who could not seek reference under Section 18. It must be construed liberally to advance its object. (Paras 8-10)

B) Land Acquisition - Limitation for Application under Section 28-A - Three Months from Date of Award of Court - The phrase 'award of the court' in Section 28-A includes the judgment of the appellate court if it is the first determination of compensation in the acquisition, as the appellate court's judgment is also an award under Part III read with Section 54. (Paras 10-12)

C) Land Acquisition - Conflict of Precedents - Ramsingbhai (Ramsangbhai) Jerambhai v. State of Gujarat (2018) 16 SCC 445 vs. Union of India v. Pradeep Kumari (1995) 2 SCC 736 - The latter, being a three-judge bench decision, holds that Section 28-A application can be based on a subsequent award of the Reference Court or appellate court, and the limitation runs from the date of such award. The former did not consider Pradeep Kumari and is per incuriam. (Paras 9-12)

D) Land Acquisition - Application under Section 28-A - Maintainability - Where the appellants filed an application under Section 28-A within three months of the High Court's judgment in RFA No. 429 of 2013 (dated 2nd May 2016), which enhanced compensation for similarly situated landowners in the same acquisition, the application is maintainable. The LAC correctly allowed the application. (Paras 3.4-3.5, 12)

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Issue of Consideration

Whether an application under Section 28-A of the Land Acquisition Act, 1894 can be filed within three months from the date of a judgment of the High Court (appellate court) under Section 54 of the Act, or only from the date of the award of the Reference Court under Section 18?

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court judgment dated 25th November 2021, and restored the order of the LAC dated 15th September 2020 granting enhanced compensation to the appellants.

Law Points

  • Section 28-A of the Land Acquisition Act
  • 1894 is a beneficent provision
  • redetermination of compensation can be based on appellate court judgment if it arises from the same acquisition
  • limitation period of three months runs from the date of the award of the Reference Court or the appellate court judgment if it is the first determination in the acquisition
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Case Details

2024 LawText (SC) (12) 108

Civil Appeal No. 13348 of 2024 (Arising out of SLP(C) No.12221 of 2022)

2024-12-13

B.R. Gavai

2024 INSC 951

Shri Piyush Sharma for the appellants, Shri Rajat Sangwan for the respondents

Banwari and Others

Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) and Another

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Nature of Litigation

Civil appeal against High Court judgment setting aside LAC order granting enhanced compensation under Section 28-A of the Land Acquisition Act, 1894.

Remedy Sought

Appellants sought restoration of LAC order granting enhanced compensation based on High Court judgment in RFA No. 429 of 2013.

Filing Reason

Appellants' land was acquired; they did not seek reference under Section 18 but filed application under Section 28-A within three months of High Court judgment enhancing compensation for similarly situated landowners.

Previous Decisions

LAC allowed application on 15th September 2020; High Court set aside that order on 25th November 2021 relying on Ramsingbhai.

Issues

Whether an application under Section 28-A of the Land Acquisition Act, 1894 can be filed within three months from the date of a judgment of the High Court (appellate court) under Section 54 of the Act, or only from the date of the award of the Reference Court under Section 18? Whether the High Court erred in relying on Ramsingbhai (Ramsangbhai) Jerambhai v. State of Gujarat without considering the earlier three-judge bench decision in Union of India v. Pradeep Kumari?

Submissions/Arguments

Appellants argued that the High Court erred in relying on Ramsingbhai as it did not consider Pradeep Kumari, which held that Section 28-A is a beneficent provision and application can be based on any award of the court, including appellate court judgment. Respondents argued that the High Court rightly relied on Ramsingbhai, which held that Section 28-A application can only be based on award of Reference Court under Part III, not appellate court judgment.

Ratio Decidendi

Section 28-A of the Land Acquisition Act, 1894 is a beneficent provision intended to remove inequality. An application for redetermination of compensation can be filed within three months from the date of any award of the court under Part III, including a judgment of the appellate court under Section 54, if it is the first determination of compensation in the acquisition. The limitation runs from the date of such award, not necessarily the first award of the Reference Court.

Judgment Excerpts

It can thus be seen that, this Court has held that as the appellant therein was seeking redetermination of compensation on the basis of the judgment of the High Court passed under Section 54 of the 1894 Act, he was not entitled to such a relief. In the case of Pradeep Kumari and Others (supra), though the award of LAC therein was not challenged by Pradeep Kumari, the similarly circumstanced persons whose land was acquired had made references. The object underlying the enactment of Section 28-A is to remove inequality in the payment of compensation for same or similar quality of land arising on account of inarticulate and poor people not being able to take advantage of the right of reference to the civil court under Section 18 of the Act.

Procedural History

Land acquired by notification dated 17th November 2004 under Section 4 of the Land Acquisition Act, 1894. Award dated 1st March 2006 fixed compensation at Rs.12,50,000 per acre. Reference under Section 18 dismissed on 17th January 2012. High Court in RFA No. 429 of 2013 enhanced compensation to Rs.19,91,300 per acre on 2nd May 2016. Appellants filed application under Section 28-A on 30th June 2016. LAC allowed application on 15th September 2020. Respondent filed writ petition; High Court set aside LAC order on 25th November 2021. Appellants filed SLP before Supreme Court, which granted leave and allowed appeal on 13th December 2024.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 11, Section 18, Section 28-A, Section 54
  • Constitution of India: Articles 226/227
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