Supreme Court Upholds Landowners' Appeal Against Temporary Acquisition by ONGC — Directs Permanent Acquisition Process to Conclude Within Specified Timeframe.

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Case Note & Summary

The dispute arose from the temporary acquisition of land by Oil and Natural Gas Corporation Ltd. (ONGC) for oil exploration purposes, which had been ongoing since 1996. The appellants, landowners, purchased the land in question in 2005, while it was already under temporary acquisition. They approached the High Court seeking to quash the temporary acquisition proceedings and to compel ONGC to either acquire the land permanently or release it. The High Court dismissed their writ petition but directed ONGC to consider increasing the rent paid to the appellants. The appellants contended that the continued temporary acquisition for 25 years at a meager rent was arbitrary and violated their constitutional rights. ONGC argued that the acquisition was necessary for public purpose and that they were revising the rent periodically. The Supreme Court noted that the prolonged temporary acquisition was unreasonable and infringed the landowners' rights under Article 300A. The court directed ONGC to complete the permanent acquisition process within twelve months, failing which necessary consequences would follow. The court also acknowledged the landowners' right to challenge the compensation amount if they found it inadequate. The appeal was disposed of with these directions.

Headnote

A) Constitutional Law - Right to Property - Infringement of Rights - Article 300A of the Constitution of India - The prolonged temporary acquisition of land for approximately 26 years was deemed arbitrary and unreasonable, infringing the landowners' rights to use and deal with their property. The court directed the ONGC to complete the permanent acquisition process within twelve months from the date of the impugned order. Held that continued temporary acquisition loses its significance over time (Paras 6-10).

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Issue of Consideration

Whether the continued temporary acquisition of land for an unreasonable duration infringes the landowners' rights under Article 300A of the Constitution and whether the compensation paid is adequate.

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Final Decision

The Supreme Court directed ONGC to complete the permanent acquisition process within twelve months from the date of the impugned order, failing which necessary consequences would follow. The court also acknowledged the landowners' right to challenge the compensation amount if deemed inadequate.

Law Points

  • Temporary acquisition
  • right to property
  • unreasonable delay
  • compensation
  • Land Acquisition Act
  • 1894
  • Article 300A of the Constitution
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Case Details

2023 LawText (SC) (01) 272

Civil Appeal No. of 2023 (Arising from S.L.P.(Civil) No. 13885/2022)

2023-01-20

M.R. Shah, M.M. Sundresh

Gopal Sankaranarayanan, Vikramjit Banerjee

Manubhai Sendhabhai Bharwad and Another

Oil and Natural Gas Corporation Ltd. & Others

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Nature of Litigation

Appeal against the dismissal of a writ petition challenging temporary acquisition of land.

Remedy Sought

Landowners sought to quash temporary acquisition proceedings and compel ONGC to acquire the land permanently.

Filing Reason

Alleged unreasonable and arbitrary continuation of temporary acquisition for 25 years.

Previous Decisions

High Court dismissed the writ petition but directed ONGC to consider increasing the rent.

Issues

Prolonged temporary acquisition infringing property rights Adequacy of compensation paid for temporary acquisition

Submissions/Arguments

Appellants argued that continued temporary acquisition is arbitrary and violates their rights. Respondents claimed the acquisition was necessary for public purpose and rent was revised periodically.

Ratio Decidendi

The court held that prolonged temporary acquisition of land for decades is unreasonable and infringes the landowners' rights under Article 300A of the Constitution, necessitating timely permanent acquisition.

Judgment Excerpts

The prolonged temporary acquisition of land for approximately 26 years was deemed arbitrary and unreasonable. The court directed the ONGC to complete the permanent acquisition process within twelve months.

Procedural History

The appellants filed a writ petition in the High Court, which was dismissed. They then appealed to the Supreme Court challenging the dismissal and seeking relief.

Acts & Sections

  • Land Acquisition Act, 1894: Section 35
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013:
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