Supreme Court Upholds State in Land Acquisition Challenge; High Court's Quashing of Award and Notification Set Aside. Once Award Made, Court Not Justified to Quash Section 4(1) Notification and Section 6 Declaration Merely for Dispensing with Section 5-A Inquiry Under Section 17(4) of Land Acquisition Act, 1894.

In Favour of Prosecution
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from land acquisition proceedings initiated by the State of Haryana under the Land Acquisition Act, 1894. The landowners challenged the acquisition in the High Court, contending that the State illegally dispensed with the Section 5-A inquiry by invoking the urgency provision under Section 17(4) even though there was no urgency. The High Court allowed the writ petition and quashed the notification and award. The State appealed by special leave. A notification under Section 4(1) was issued on January 22, 1981. Notices under Section 9 followed. The Collector made an award on April 19, 1984 and allegedly took possession on the same date. The landowners filed a writ petition on May 13, 1985, challenging the notification under Section 4(1) on the ground that dispensing with the Section 5-A inquiry under Section 17(4) was bad in law due to absence of urgency. The High Court, by order dated May 27, 1985, allowed the writ petition following its earlier decision in Dharam Singh v. State of Haryana. The core legal issue was whether the High Court was justified in interfering with the award and the Section 4(1) notification after the award had been made. The State argued that the landowners had received compensation and sought a reference under Section 18, and that the award was made within two years under Section 11-A as amended by Act 68 of 1984, so the proceedings did not lapse. The landowners argued that the Section 5-A inquiry is a valuable right, and its dispensation under Section 17(4) without urgency was illegal; delay in challenging did not bar the writ petition. The Supreme Court noted that the notification and declaration were not challenged until May 13, 1985, while the award was made much earlier. The landowners had received compensation under protest and had made an application under Section 18, which was withdrawn after the High Court allowed the writ petition. The Court held that after the award was made, it would not be justified to quash the notification under Section 4(1) and the declaration under Section 6 merely for dispensing with the Section 5-A inquiry. The appropriate course was to sustain the notification, declaration, and award, while permitting the landowners to seek a reference under Section 18 for compensation within 30 days. The Supreme Court allowed the appeal, set aside the High Court judgment, and directed that the landowners may apply under Section 18 within 30 days for determination of compensation. No order as to costs.

Headnote

A) Land Acquisition - Dispensing with Inquiry under Section 5-A - Section 17(4) Land Acquisition Act, 1894 - Challenge after award not maintainable - The High Court quashed the Section 4(1) notification and award on the ground that the urgency power under Section 17(4) was illegally invoked to dispense with the Section 5-A inquiry. The Supreme Court held that once the award has been made, the High Court should not quash the notification under Section 4(1) and declaration under Section 6 merely on that ground. Held: challenge after the award is not maintainable and the acquisition proceedings are sustained (Paras 1-2).

B) Land Acquisition - Compensation Reference - Section 18 Land Acquisition Act, 1894 - Remedy after award - The Court directed that it would be open to the landowners to make an application under Section 18 within 30 days from the date of judgment to the Collector for reference to the Civil Court for determination of compensation. Held: despite sustaining the acquisition, landowners remain entitled to seek enhancement through the statutory reference (Paras 1-2).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the High Court was justified in quashing the land acquisition award dated April 19, 1984 and the notification under Section 4(1) of the Land Acquisition Act, 1894 on the ground that dispensing with the Section 5-A inquiry under Section 17(4) was illegal.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed; High Court judgment set aside; notification under Section 4(1), declaration under Section 6, and award under Section 11 sustained; respondents permitted to make an application under Section 18 within 30 days from the date of judgment to the Collector for reference to Civil Court for determination of compensation; no order as to costs.

Law Points

  • Once an award is made under the Land Acquisition Act
  • 1894
  • the High Court is not justified in quashing the Section 4(1) notification and Section 6 declaration merely on the ground that the Section 5-A inquiry was dispensed with under Section 17(4)
  • the appropriate remedy for the landowner is to seek a reference under Section 18 for determination of compensation
  • delay in challenging the notification after the award also weighs against interference
  • an award made within two years under Section 11-A does not lapse.
Subscribe to unlock Law Points Subscribe Now

Case Details

1995 LawText (SC) (11) 158

1995-11-06

K. Ramaswamy, B.N. Kirpal

1996 AIR 675, 1996 SCC (7) 394, JT 1995 (8) 348, 1995 SCALE (6) 480

State of Haryana & Ors.

Dewan Singh & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging land acquisition notification and award under the Land Acquisition Act, 1894

Remedy Sought

Respondents sought quashing of the notification under Section 4(1) and the award made by the Collector

Filing Reason

Dispensing with the Section 5-A inquiry by invoking urgency under Section 17(4) was alleged to be illegal as there was no urgency

Previous Decisions

High Court allowed the writ petition on May 27, 1985 following Dharam Singh v. State of Haryana (C.W.P. No. 2891 of 1984 decided on 9th November, 1984)

Issues

Whether the High Court was justified in quashing the award dated April 19, 1984 and the notification under Section 4(1) after the award had been made Whether dispensing with the Section 5-A inquiry under Section 17(4) of the Land Acquisition Act, 1894 was illegal and entitled the landowners to relief

Submissions/Arguments

Appellant contended that after the award, respondents received compensation and sought reference under Section 18; the award was made within two years under Section 11-A, so proceedings did not lapse; challenge after award was not maintainable Respondents contended that Section 5-A inquiry is a valuable right, allowing the owner to show the land was not suitable for public purpose or that other land was more suitable; invocation of Section 17(4) without urgency was illegal; delay did not bar the challenge

Ratio Decidendi

After an award is made under the Land Acquisition Act, 1894, the High Court is not justified in quashing the notification under Section 4(1) and declaration under Section 6 merely on the ground that the Section 5-A inquiry was dispensed with under Section 17(4); the appropriate remedy is a reference under Section 18 for determination of compensation; delay in challenging the notification also weighs against interference.

Judgment Excerpts

The notification under Section 4 of the Land Acquisition Act, 1894 [for short, "the Act"] was furnished on January 22, 1981. After the award was made, the Court would not be justified to quash the notification under Section 4 [1] and declaration under Section 6 for dispensing with the enquiry under Section 5-A. It would be open to the respondents to make an application under Section 18 within 30 days from today to the Collector for reference to Civil Court for determining the compensation.

Procedural History

Notification under Section 4(1) issued on 22-01-1981; notices under Section 9; Collector made award on 19-04-1984; respondents filed writ petition on 13-05-1985; High Court allowed writ petition on 27-05-1985; State appealed by special leave; Supreme Court allowed appeal on 06-11-1995.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 5-A, Section 6, Section 9, Section 11, Section 11-A, Section 17(4), Section 18
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appellant in Land Acquisition Act Case Due to Belated Challenge to Section 5A Enquiry Dispensation. High Court's Interference After Award and Possession Was Unjustified as Land Vested in Government Under Section 16 of Land Acquis...
Related Judgement
High Court High Court of Karnataka Dismisses Revision Petition by Bank Officials Against Order Taking Cognizance in Cheque Dishonour Case — Complaint Not Barred by Limitation Under Section 138 of Negotiable Instruments Act, 1881. The court held that the limit...