Supreme Court Dismisses Special Leave Petitions Against Eviction of Purchasers in Land Acquisition Matter, Upholding High Court Decrees. Sales Made After Publication of Section 4(1) Notification Under Land Acquisition Act, 1894 Were Void and State Acquired Land Free from Encumbrances Under Section 16.

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Case Note & Summary

The dispute concerned land acquired under the Land Acquisition Act, 1894. The Special Leave Petitions arose from a High Court judgment in second appeals where the petitioners, who had purchased the acquired land after publication of a Section 4(1) notification, sought to resist eviction by the State and the respondent society. The Supreme Court examined whether post-notification sales were valid, whether the State had acquired title free from encumbrances, and whether the petitioners could claim adverse possession. The facts established that a notification under Section 4(1) of the Land Acquisition Act, 1894 was published on January 29, 1957. Thereafter, the original owner sold the properties to the petitioners on June 11, 1957 and August 22, 1958. A declaration under Section 6 was published on August 14, 1958. Notice under Sections 9 and 10 was issued on September 23, 1958, an award was made on October 9, 1959, and possession was taken on November 18, 1959 and handed over to the third respondent society. The State subsequently filed a suit for possession, but the Court observed that summary eviction under the Public Premises Act should have been resorted to. All lower courts, including the Bombay High Court at Nagpur bench in S.A. Nos. 146, 147 and 150 of 1982 dated October 11, 1994, granted a decree in favour of the Government and the Society and negatived the petitioners' adverse possession claim. The petitioners argued that they had perfected title by adverse possession. The respondents contended that the sales made after the Section 4(1) notification were void and that the State had acquired absolute title. The Supreme Court held that sales made after publication of notification under Section 4(1) were void and did not bind the State. It further held that upon award and taking of possession, the State acquired right, title and interest free from all encumbrances under Section 16, and that possession recorded by panchnama signed by witnesses was complete and conclusive. On adverse possession, the Court ruled that no such claim could arise unless the petitioners pleaded and proved that after possession was taken and handed over to the respondent society, they had asserted their own right to its knowledge, and the society had acquiesced while they remained in uninterrupted possession, nec vi, nec clam, nec precario. Since no such plea or proof existed, the claim was rejected. The Supreme Court found no ground to interfere and dismissed the Special Leave Petitions.

Headnote

A) Land Acquisition Law - Post-Notification Sales - Land Acquisition Act, 1894, Sections 4(1), 6 - Voidness of Sale - The original owner sold the acquired properties to the petitioners on June 11, 1957 and August 22, 1958 after publication of Section 4(1) notification on January 29, 1957; the Court held that such sales were void and the State was not bound by them, and the subsequent acquisition process remained valid. Held that the petitioners acquired no valid title to the land. (Paras 1-2)

B) Land Acquisition Law - Vesting and Possession - Land Acquisition Act, 1894, Sections 9, 10, 16 - Conclusive Possession - After notice under Sections 9 and 10 on September 23, 1958, award on October 9, 1959, and possession taken on November 18, 1959 through panchnama signed by witnesses, the Court held that such possession was complete and conclusive, extinguishing the original owner's title and making the State and the third respondent society absolute owners free from all encumbrances. Held that the acquisition was complete and valid. (Paras 1-2)

C) Property Law - Adverse Possession - General Principles of Adverse Possession (nec vi, nec clam, nec precario) - Pleading and Proof Requirement - The petitioners claimed perfected title by adverse possession, but all courts negatived this; the Supreme Court held no question of adverse possession arises unless it is pleaded and proved that after possession was taken and handed over to the respondent society, the petitioners asserted their own right to its knowledge and it acquiesced while they remained in uninterrupted possession, nec vi, nec clam, nec precario. Held that absent such plea and proof, no prescriptive title arose. (Paras 1-2)

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Issue of Consideration

Whether sales effected by the original owner after publication of notification under Section 4(1) of Land Acquisition Act, 1894 were void and not binding on the State; whether the State acquired absolute title free from encumbrances under Section 16 upon taking possession; whether the petitioners could claim title by adverse possession absent pleading and proof of hostile possession

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Final Decision

The Supreme Court dismissed the special leave petitions, finding no ground to interfere with the High Court's judgment and decree in S.A. Nos. 146, 147 and 150 of 1982 dated October 11, 1994. The Court held that sales after publication of notification under Section 4(1) of the Land Acquisition Act, 1894 were void; the State acquired title free from all encumbrances under Section 16; possession via panchnama was complete and conclusive; and the petitioners could not claim adverse possession. All decrees in favour of the Government and the Society were upheld.

Law Points

  • Sales made after publication of notification under Section 4(1) of Land Acquisition Act
  • 1894 are void and not binding on the State
  • State acquires right
  • title and interest in land free from all encumbrances under Section 16 upon award and possession
  • possession recorded by panchnama signed by witnesses is complete and conclusive
  • adverse possession requires pleading and proof of continuous
  • hostile possession to the knowledge of the true owner with nec vi
  • nec clam
  • nec precario
  • State should have resorted to summary eviction under Public Premises Act but civil court decree upheld
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Case Details

1995 LawText (SC) (07) 24

Special Leave Petition (Civil) Nos. 14430-32 of 1995

1995-07-28

K. Ramaswamy, K.S. Paripoornan

1995 SCC (5) 335, 1995 SCALE (4) 768

Nikhil Nayyar, T.V.S.N. Chari

Mahavir & Anr. Etc. Etc.

The Rural Institute, Amravati & Anr. Etc. Etc.

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Nature of Litigation

Special leave petition against a High Court judgment in second appeals concerning eviction and title over land acquired under the Land Acquisition Act, 1894.

Remedy Sought

The petitioners sought special leave to appeal against the Bombay High Court's judgment and decree in S.A. Nos. 146, 147 and 150 of 1982 dated October 11, 1994, and to set aside the decrees granting possession to the Government and the Society.

Filing Reason

The petitioners, who purchased the land after the Section 4(1) notification, claimed rights over the acquired land by adverse possession and challenged the decrees for possession granted in favour of the State and the respondent society.

Previous Decisions

All lower courts, including the Bombay High Court at Nagpur bench in S.A. Nos. 146, 147 and 150 of 1982 dated October 11, 1994, granted decree in favour of the Government and the Society and negatived the petitioners' claim of adverse possession.

Issues

Whether sales effected by the original owner after publication of notification under Section 4(1) of the Land Acquisition Act, 1894 but before declaration under Section 6 and award were void and not binding on the State. Whether the State acquired absolute title free from all encumbrances under Section 16 upon taking possession and whether such possession, evidenced by panchnama, was conclusive. Whether the petitioners could claim title by adverse possession absent pleading and proof of continuous, hostile possession to the knowledge of the respondent society.

Submissions/Arguments

The petitioners contended that they had perfected title by adverse possession over the acquired land. The respondents contended that sales after Section 4(1) notification were void and the State acquired title free from encumbrances upon taking possession by panchnama.

Ratio Decidendi

A sale of land effected after publication of notification under Section 4(1) of the Land Acquisition Act, 1894 is void and does not bind the State. Upon making of award and taking possession, title vests in the State under Section 16 free from all encumbrances, and possession recorded by panchnama signed by witnesses is conclusive. A party claiming adverse possession must plead and prove continuous, hostile possession to the knowledge of the true owner, nec vi, nec clam, nec precario; absent such plea, no prescriptive title arises.

Judgment Excerpts

We do not find any justification warranting interference in this matter. Thus, it could be seen that the sales made after the publication of the notification under Section 4(1) are void sales and the State is not bound by such a sale effected by the owner. by operation of Section 16 the State acquires the right, title and interest in the property free from all encumbrances. No question of adverse possession arises unless it is pleaded and proved that after the possession was taken and handed over to the 3rd respondent, the petitions have asserted their own right to the knowledge of the 3rd respondent and it had acquisced in it and remained in uninterrupted possession and enjoyment, nec vi, nec lam and nec pre cario.

Procedural History

Notification under Section 4(1) of Land Acquisition Act, 1894 was published on January 29, 1957. The original owner sold the properties to the petitioners on June 11, 1957 and August 22, 1958. Declaration under Section 6 was published on August 14, 1958. Notice under Sections 9 and 10 was issued on September 23, 1958; award was made on October 9, 1959; and possession was taken on November 18, 1959 and handed over to the third respondent society. The State filed a suit for possession, and all courts, including the High Court in S.A. Nos. 146, 147 and 150 of 1982 dated October 11, 1994, granted decree in favour of the Government and the Society. Aggrieved, the petitioners filed Special Leave Petitions (Civil) Nos. 14430-32 of 1995 before the Supreme Court, which were dismissed on July 28, 1995.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 6, Section 9, Section 10, Section 16
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