Supreme Court Quashes High Court Order Directing Compensation Under Act, 2013 — Clarifies Applicability of Compensation Provisions.

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Case Note & Summary

The dispute arose from the High Court's order directing Bharat Petroleum Corporation Ltd. (BPCL) to determine compensation for acquired lands under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The lands were initially sought to be acquired under the State Land Acquisition Act, 1990, with notifications issued in 2016 and 2018. The original landowners challenged the acquisition proceedings, seeking to quash them and requesting compensation under the Act, 2013, arguing that no possession had been taken and no award declared. The appellants contended that the acquisition was valid under the State Act and that the provisions of the Act, 2013 were not applicable. The High Court ruled in favor of the landowners, leading to the present appeals. The Supreme Court analyzed the applicability of Section 24(1)(a) of the Act, 2013, concluding that it only pertains to acquisitions under the Land Acquisition Act, 1894, and not under the State Act of 1990. The Court emphasized that the repeal of the State Act did not nullify rights accrued under it, and thus the High Court's directive was erroneous. The Supreme Court remanded the case back to the High Court for consideration of other grounds raised by the landowners regarding the quashing of the acquisition proceedings, while clarifying that the issue of compensation under the Act, 2013 was settled and would not be revisited. The appeals were allowed, and no costs were ordered.

Headnote

A) Land Acquisition - Compensation Determination - Applicability of Act, 2013 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(1)(a) - The High Court directed compensation under the Act, 2013 despite the acquisition being initiated under the State Act of 1990, which was repealed. The Supreme Court held that Section 24(1)(a) of the Act, 2013 does not apply to acquisitions under the State Act, and thus the High Court's order was unsustainable (Paras 5.1-6).

B) Legal Proceedings - Repeal of Laws - General Clauses Act, 1897, Section 6 - The Supreme Court clarified that the repeal of the State Act of 1990 does not affect rights accrued under it, and the provisions of the Act, 2013 do not apply to the acquisition proceedings initiated under the repealed Act (Paras 5.3-5.4).

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Issue of Consideration

Whether the High Court erred in directing compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

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Final Decision

The Supreme Court quashed the High Court's order directing compensation under the Act, 2013, stating that Section 24(1)(a) does not apply to acquisitions under the State Act of 1990. The case was remanded to the High Court for consideration of other grounds raised by the landowners regarding the quashing of the acquisition proceedings.

Law Points

  • Land acquisition
  • compensation determination
  • applicability of repealed laws
  • legal proceedings
  • statutory interpretation
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Case Details

2022 LawText (SC) (10) 120

Civil Appeal Nos. 6778-6780 of 2022

2022-10-12

M.R. Shah, Krishna Murari

Tushar Mehta, Sunil Fernandes

Bharat Petroleum Corporation Ltd. & Ors.

Nisar Ahmed Ganai & Ors.

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Nature of Litigation

Challenge to land acquisition proceedings and compensation determination.

Remedy Sought

Landowners sought to quash acquisition proceedings and determine compensation under the Act, 2013.

Filing Reason

Acquisition proceedings initiated under the State Act of 1990 were challenged.

Previous Decisions

High Court directed compensation under the Act, 2013.

Issues

Applicability of the Act, 2013 to acquisitions under the State Act of 1990 Validity of the High Court's directive for compensation determination

Submissions/Arguments

Appellants argued that the acquisition was valid under the State Act and Act, 2013 was not applicable. Respondents contended that no possession was taken and no award declared, thus Act, 2013 should apply.

Ratio Decidendi

The provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 do not apply to acquisitions initiated under the State Land Acquisition Act, 1990, and the repeal of the latter does not affect rights accrued under it.

Judgment Excerpts

The High Court directed compensation under the Act, 2013 despite the acquisition being initiated under the State Act of 1990. The Supreme Court held that Section 24(1)(a) of the Act, 2013 does not apply to acquisitions under the State Act. The appeals were allowed, and no costs were ordered.

Procedural History

The original writ petitions were filed challenging the acquisition proceedings under the State Act of 1990, leading to the High Court's directive for compensation under the Act, 2013. The appellants appealed against this directive, resulting in the Supreme Court's review and decision.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(1)(a)
  • State Land Acquisition Act, 1990: Section 4, Section 6, Section 11
  • General Clauses Act, 1897: Section 6
  • Jammu & Kashmir Reorganization (Removal of Difficulties) Order, 2019: Clause 2(13)
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