Case Note & Summary
Background: The dispute arose from a land acquisition notification under Section 4(1) of the Land Acquisition Act, 1894 published on January 23, 1990 for urbanization and commercial development in Sectors 4A and 6 of Daruhera and Malpura Village, District Rewari, Haryana. The respondents, landowners/shop owners, challenged the notification in the High Court on grounds that the government had a policy to exclude constructed lands and that their shops existed before the notification. The High Court quashed the notification, leading to the State of Haryana's appeal to the Supreme Court. Facts: The High Court in Writ Petition No 6804/91 found that the respondents had constructed shops before the notification and accepted the existence of a general policy to exclude built-up areas, thereby quashing the notification. During proceedings before the Supreme Court, it was admitted across the Bar that a specific decision had been taken not to acquire land west of a line marked A.B.C.D. on the Shajra Plan. The respondents placed on record a letter dated February 12, 1992 from the Director, Department of Urban Estate, Haryana directing the Land Acquisition Officer to delete such lands. The Supreme Court, however, could not determine from the scant material whether the respondents' lands were situated within that released area. Legal Issues: The core questions were whether a general policy existed to exclude all constructed lands from acquisition, whether the respondents' lands fell within the specific release decision, and what compensation was payable under Section 23(1) if the shops were constructed before notification. Arguments: The State argued that there was no general policy to exclude constructed lands from acquisition. The respondents relied on prior construction of shops and the specific release letter to claim exclusion. Court's Analysis: The Supreme Court reiterated that no general policy exists to delete all constructed lands from acquisition. However, given the admitted specific decision and the need for factual verification, the Court held that it would be hazardous to conclude on the present record. The appropriate course was to direct the respondents to apply to the Secretary, Urban Estate Department, Haryana, within a period of weeks, providing details of location. The Secretary was to have an enquiry made through the Urban Estates Department or Land Acquisition Officer to localise and identify the lands. If the lands were situated within the area west of the A.B.C.D. line, they would be released from acquisition. If situated outside, an enquiry was necessary to determine when the 14 shops were constructed. If the shops were constructed prior to the Section 4(1) notification, compensation had to be determined under Section 23(1); if constructed after, no compensation could be claimed. The first appellant (State of Haryana) was directed to dispose of the matter within two months. Decision: The appeal was disposed of with modifications and directions; no costs were awarded. The High Court's quashing was replaced by a factual determination process.
Headnote
A) Land Acquisition - Release of land from acquisition - No general policy to exclude constructed lands - Land Acquisition Act, 1894, Section 4(1) - High Court quashed notification relying on general policy to exclude built-up areas; Supreme Court held that no such general policy exists, but a specific decision to release land west of A.B.C.D. line on Shajra Plan existed and required factual identification of the land before quashing. Held that High Court's order is modified; the respondents must apply to Secretary for enquiry to identify whether lands are within released area (Paras 1-2). B) Land Acquisition - Compensation for structures - Determination of compensation for shops constructed before notification - Land Acquisition Act, 1894, Section 23(1) - If shops were constructed prior to notification under Section 4(1), compensation must be determined under Section 23(1); if constructed after, no compensation. Directed Secretary to enquire into construction date if lands outside A.B.C.D. line and take consequential action within two months (Paras 1-2).
Issue of Consideration
Whether the High Court was correct in quashing the Section 4(1) notification on the ground of a general policy to exclude built-up lands from acquisition; whether the respondents' lands fell within the area released by the Government's specific decision; and what compensation, if any, was payable for shops constructed before or after the notification.
Final Decision
The Supreme Court modified the High Court order. It held that no general policy existed to exclude all constructed lands from acquisition but directed respondents to apply to the Secretary, Urban Estate Department, Haryana, within a period of weeks with location details. The Secretary was to have an enquiry made through Urban Estates Department or Land Acquisition Officer to identify whether lands were within the area west of A.B.C.D. line on the Shajra Plan. If within that area, lands to be released from acquisition; if outside, enquiry into when 14 shops were constructed. If constructed before Section 4(1) notification, compensation to be determined under Section 23(1); if after, no compensation. The first appellant (State of Haryana) was directed to dispose of the matter within two months. Appeal disposed of with modification and direction, without costs.
Law Points
- No general policy to exclude constructed lands from acquisition
- specific Government decision to release land west of A.B.C.D. line on Shajra Plan requires factual identification
- compensation for structures depends on date of construction relative to Section 4(1) notification under Land Acquisition Act
- 1894
- Secretary directed to enquire and decide within two months
