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Bookmarked Land Acquisition Compendium

The document is a compendium of legal cases related to land acquisition, summarizing key propositions from various judgments. It addresses issues such as the validity of compensation payment, the rights of landowners and subsequent buyers, and the responsibilities of the state in land acquisition processes. The cases illustrate the legal principles governing land acquisition in India as of November 2024.

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17 views457 pages

Bookmarked Land Acquisition Compendium

The document is a compendium of legal cases related to land acquisition, summarizing key propositions from various judgments. It addresses issues such as the validity of compensation payment, the rights of landowners and subsequent buyers, and the responsibilities of the state in land acquisition processes. The cases illustrate the legal principles governing land acquisition in India as of November 2024.

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Updated as on 02.11.

2024

LAND ACQUISITION COMPENDIUM

S. No. Case particular Proposition

1. Indore Development Authority U/s. 24(2)LAA,2013, Proceedings cannot lapse merely


V/s Manoharlal and Ors. because the State could not deposit compensation in a
DT. 06.03.2020 landowner's account. Further, payment does not
(2020) 8 SCC 129 require the state to deposit money in a landowner's
account, tendering compensation is sufficient
1A Overturned: Pune Municipal
Corpn

2 Assam Industrial Development Once possession is taken by the State, land vests
Corpn. Ltd. v. Gillapukri Tea absolutely with State and title of the landowner ceases
Co. Ltd. Once the award has been approved, compensation has
DT. 28.01.2021 been paid thereunder and possession of the land has
(2021) 3 SCC 388 been handed over to the Government, acquisition
proceedings could not have been reopened, including
Followed: Indore Development by way of re-notification of the already acquired land
Authority v. Manoharlal and under Section 4 of the L.A. Act by the Government.
Ors., (2020) 8 SCC 129 Notification to exempt land from acquisition under
LA.

3 Shiv Kumar v. Union of India A subsequent buyer has :o right to contest land
DT. 14.10.2019 acquisition processes (Para 1)
(2019) 10 SCC 229 ‘Affected Family' only includes family of previous
landowners before acquisition and not subsequent
3A
Followed in Asha - buyer
HMJ Shah's judgment

4. Vidya Devi v. State of H.P. State cannot invoke the doctrine of adverse possession
DT. 08.01.2020 to perfect title over acquired land from private citizens
(2020) 2 SCC 569 without following due process of law.
Updated as on 02.11.2024

5. Sukh Dutt Ratra v. State of State cannot hide behind delay and latches to evade its
H.P. responsibility after acquiring land, no limitation to
DT. 06.04.2022 doing, landowners get compensated after decades.
(2022) 7 SCC 508

6. Land & Building Dept. v. Attro State agencies are not supposed to guard/put police
Devi force to protect possession of the land taken after
DT. 11.04.2023 process of acquisition is complete; anyone entering the
2023 SCC OnLine SC 396 land thereafter is a trespasser. (p. 13)

Followed: Indore
Development Authority v.
Manoharlal and Ors., (2020) 8
SCC 129

7. Manubhai Sendhabhai To continue with the temporary acquisition for number


Bharwad v. ONGC of years would be arbitrary and can be said to infringe
DT. 20.01.2023 the right to use the property guaranteed under Article
2023 SCC OnLine SC 63 300A of the Constitution of India. It is unreasonable as
it infringes the rights of the landowners to deal with
and/or use the land. (p. 17)

8. Uddar Gagan Properties Ltd. v. If the law allows the State to take land for housing
Sant Singh needs, the State itself has to keep the title or dispose
DT. 13.05.2016 off the land consistent with Article 14 of the
(2016) 11 SCC 378 Constitution, i.e., after the completion of acquisition.
If, after initiation of acquisition, the process is not
completed, the land must revert to the owner on the
date of notice u/s 4 of LAA and not to anyone else,
directly or indirectly. (p. 30)

Further power to release land from acquisition had to


be exercised consistent with the doctrine of public trust
and not arbitrarily. (p. 31)

9. U.P. Awas Evam Vikas Notification to exempt land from acquisition under the
Parishad v. Noor Mohammad LAA is not a quasi-judicial order; it will not confer
DT. 16.12.2021 any vested rights to the landowner. (p. 22)
Updated as on 02.11.2024

2021 SCC OnLine SC 1266 The power to issue notification u/s 48(1) includes
power to rescind. (p. 24)
Moreover, the respondent received an exemption in
playing a fraud upon authority. (p. 25)

10. Union of India v. Harinder Pal Deducing the aggregate value of 5 villages' land using
Singh one villages' land value was held valid as all the
DT. 26.10.2005 villages were similar and could thus be consolidated
(2005) 12 SCC 564 into "one single unit". (pp. 15-16)

11. Subh Ram v. State of Haryana Purpose of the acquisition is not a relevant factor. This
DT. 20.10.2009 may not apply in all cases, although the general rule is
(2010) 1 SCC 444 that the landowner is being compensated for what he
has lost and not with reference to the purpose of the
acquisition. (pp. 17-20)

12. Tukaram Kana Joshi v. MIDC Delay and laches depend on facts and circumstances of
DT. 02.11.2014 the case. No action after s4 notice, the authorities
(2013) 1 SCC 353 should work within the contours of the law. (p. 11)

13. R.L. Jain v. DDA Publication of notice u/s 4 is a sine qua non for taking
DT. 12.03.2004 possession. (p. 12)
(2004) 4 SCC 79

14. DDA v. Sunil Khatri and Ors. The appellant was prevented by the interim orders in a
number of WP’s filed to take possession. Prior to the
DT. 19.05.2022 commencement of 2013 act there was no stay free
(2022 SCC OnLine SC 651) period of 5 years which could lead to a declaration that
the proceedings stand lapsed. Therefore, on account of
setting aside of notification u/s 6 of the act, the state
could not take possession in view of the orders passed
by the High Court (p.28)

15. DDA v. Godfrey Phillips (I) The ownership of State is made absolute over the
Ltd. Anr. property as soon as the possession is taken as under
DT. 06.05.2022 Section 16 of the Act. (p.32)
(2022) 8 SCC 771 Since the acquisition with respect of subject land was
not quashed due to non-filing of objection by original
owner, the benefit of Balbir Singh Case cannot be
extended to purchaser (p.43)
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2023 SCC OnLine SC 396

In the Supreme Court of India


(BEFORE ABHAY S. OKA AND RAJESH BINDAL, JJ.)

Land and Buiilding Department Through Secretary


and Another … Appellant(s);
Versus
Attro Devi and Others … Respondent(s).
Civil Appeal No. 2749/2023 (arising out of S.L.P.(Civil) No.
7510/2023 (arising out of S.L.P.(Civil) D. No. 23608/2021)
Decided on April 11, 2023
Advocates who appeared in this case :
For Petitioner(s) Mr. Atul Kumar, AOR
Ms. Sweety Singh, Adv.
Ms. Archana Kumari, Adv.
Mr. Rahul Pandey, Adv.
Mr. Rajiv Ranjan, Adv.
For Respondent(s) Mr. Rakesh Kumar-I, AOR
Ms. Manika Tripathy, AOR
Mr. Sumit Gupta, Adv.
Mr. Prateek Madnani, Adv.
Mr. Rahul Shyam Bhandari, AOR
The Judgment of the Court was delivered by
RAJESH BINDAL, J.:— Delay condoned.
2. Leave granted.
3. The appellants have challenged the order dated 20.12.2017
passed by the High Court of Delhi. Vide aforesaid order, writ petition
filed by the respondents was allowed holding that in view of Section 24
(2) of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (for short “the
2013 Act”), the acquisition in respect to the land in dispute, has
lapsed.
4. From the facts of the case as are available on record, it is evident
that vide notification dated 23.06.1989 issued under Section 4 of the
Land Acquisition Act, 1894 large chunk of the land including the land of
petitioner comprised in Khasra No. 1 Etc/57/1 and Khasra No. 1
Etc/58/1, situated in revenue estate of village Ghonda, Chauhan
Khadar, New Delhi was sought to be acquired for planned development
of Delhi. It was followed by the notification issued under Section 6
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dated 20.06.1990. The Award was announced on 19.06.1992.


5. A writ petition was filed in the High Court invoking Section 24(2)
of the 2013 Act claiming that the acquisition in question has lapsed as
neither possession has been taken nor the compensation therefor has
been paid. The appellant's stand before the High Court was that the
possession of the land was taken on 06.12.2012 and handed over to
the DDA on the spot. The compensation could not be paid to the
recorded land owners as they never came forward to claim the same.
6. The High Court relying upon the judgment of this Court in Pune
Municipal Corporation v. Misirimal Solanki, (2014) 3 SCC 183 held that
since the compensation was not paid to the landowners, i.e., the
respondents herein, the acquisition in question has lapsed.
7. The arguments raised by learned counsel appearing for the
appellants are that in view of the Constitution Bench judgment of this
Court in Indore Development Authority v. Manoharlal, (2020) 8 SCC
129 whereby earlier judgment of this Court in Pune Municipal
Corporation's case (supra) was overruled, the order passed by the High
Court is liable to be set aside. It was opined by the Constitution Bench
that compliance of either of the two conditions i.e. taking over of
possession of the land or payment of compensation, is good enough to
sustain the acquisition. From the undisputed facts available on record it
is evident that in the present case, the possession of land in dispute
was taken after the acquisition was complete.
8. Additionally, an important fact brought to our attention is that the
subject land is required by NHAI for construction of the Delhi-
Saharanpur-Dehradun Highway starting from Akshardham Junction to
Delhi/UP Border, in the State of Delhi in Phase-I of Bharatmala
Pariyojana. Even the contractors have been appointed to execute the
project, which may be delayed due to pendency of the present appeal.
The subject land is therefore a part of the project which is of national
importance.
9. On the other hand, the arguments raised by learned counsel for
the respondents are that the writ petition having been decided on the
basis of law as existing on the date of decision by the High Court
cannot be set aside on the basis of the subsequent judgment of this
Court. The High Court had held that compensation having not been
paid, as per the interpretation of Section 24(2) of the 2013 Act by this
Court in Pune Municipal Corporation's case (supra), the acquisition
proceedings lapsed. It is a matter of fact which has been noticed in the
order passed by the High Court that the possession of the land had
already been taken by the authority concerned.
10. Heard learned counsel appearing for the parties and perused the
records.
11. The Constitution Bench of this Court in Indore Development
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Authority's case (supra) had opined that satisfaction of either of the


conditions namely either taking possession of the acquired land or
payment of compensation to the landowners would be sufficient to save
the acquisition from being lapsed in terms of Section 24(2) of the 2013
Act. Various questions posed before the Constitution Bench of this
Court were also answered. Relevant para-Nos. 362 and 366 are
extracted below:
“362. Resultantly, the decision rendered in Pune Municipal
Corporation (supra) is hereby overruled and all other decisions in
which Pune Municipal Corporation (supra) has been followed, are also
overruled. …
…
366. In view of the aforesaid discussion, we answer the questions
as under:
366.1. Under the provisions of Section 24(1)(a) in case the
award is not made as on 1-1-2014, the date of commencement of
the 2013 Act, there is no lapse of proceedings. Compensation has
to be determined under the provisions of the 2013 Act.
366.2. In case the award has been passed within the window
period of five years excluding the period covered by an interim
order of the court, then proceedings shall continue as provided
under Section 24(1)(b) of the 2013 Act under the 1894 Act as if it
has not been repealed.
366.3. The word “or” used in Section 24(2) between possession
and compensation has to be read as “nor” or as “and”. The
deemed lapse of land acquisition proceedings under Section 24(2)
of the 2013 Act takes place where due to inaction of authorities
for five years or more prior to commencement of the said Act, the
possession of land has not been taken nor compensation has been
paid. In other words, in case possession has been taken,
compensation has not been paid then there is no lapse. Similarly,
if compensation has been paid, possession has not been taken
then there is no lapse.
(emphasis supplied)
366.4. The expression “paid” in the main part of Section 24(2)
of the 2013 Act does not include a deposit of compensation in
court. The consequence of non-deposit is provided in the proviso
to Section 24(2) in case it has not been deposited with respect to
majority of landholdings then all beneficiaries (landowners) as on
the date of notification for land acquisition under Section 4 of the
1894 Act shall be entitled to compensation in accordance with the
provisions of the 2013 Act. In case the obligation under Section
31 of the Land Acquisition Act, 1894 has not been fulfilled,
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interest under Section 34 of the said Act can be granted. Non-


deposit of compensation (in court) does not result in the lapse of
land acquisition proceedings. In case of non-deposit with respect
to the majority of holdings for five years or more, compensation
under the 2013 Act has to be paid to the “landowners” as on the
date of notification for land acquisition under Section 4 of the
1894 Act.
366.5. In case a person has been tendered the compensation
as provided under Section 31(1) of the 1894 Act, it is not open to
him to claim that acquisition has lapsed under Section 24(2) due
to non-payment or non-deposit of compensation in court. The
obligation to pay is complete by tendering the amount under
Section 31(1). The landowners who had refused to accept
compensation or who sought reference for higher compensation,
cannot claim that the acquisition proceedings had lapsed under
Section 24(2) of the 2013 Act.
366.6. The proviso to Section 24(2) of the 2013 Act is to be
treated as part of Section 24(2), not part of Section 24(1)(b).
366.7. The mode of taking possession under the 1894 Act and
as contemplated under Section 24(2) is by drawing of inquest
report/memorandum. Once award has been passed on taking
possession under Section 16 of the 1894 Act, the land vests in
State there is no divesting provided under Section 24(2) of the
2013 Act, as once possession has been taken there is no lapse
under Section 24(2).
366.8. The provisions of Section 24(2) providing for a deemed
lapse of proceedings are applicable in case authorities have failed
due to their inaction to take possession and pay compensation for
five years or more before the 2013 Act came into force, in a
proceeding for land acquisition pending with the authority
concerned as on 1-1-2014. The period of subsistence of interim
orders passed by court has to be excluded in the computation of
five years.
366.9. Section 24(2) of the 2013 Act does not give rise to new
cause of action to question the legality of concluded proceedings
of land acquisition. Section 24 applies to a proceeding pending on
the date of enforcement of the 2013 Act i.e. 1-1-2014. It does not
revive stale and time-barred claims and does not reopen
concluded proceedings nor allow landowners to question the
legality of mode of taking possession to reopen proceedings or
mode of deposit of compensation in the treasury instead of court
to invalidate acquisition.”
12. The issue as to what is meant by “possession of the land by the
State after its acquisition” has also been considered by Constitution
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Bench of Hon'ble Supreme Court in Indore Development Authority's


case (supra). It is opined therein that after the acquisition of land and
passing of award, the land vests in the State free from all
encumbrances. The vesting of land with the State is with possession.
Any person retaining the possession thereafter has to be treated
trespasser. When large chunk of land is acquired, the State is not
supposed to put some person or police force to retain the possession
and start cultivating on the land till it is utilized. The Government is
also not supposed to start residing or physically occupying the same
once process of the acquisition is complete. If after the process of
acquisition is complete and land vest in the State free from all
encumbrances with possession, any person retaining the land or any re-
entry made by any person is nothing else but trespass on the State
land. Relevant paragraphs 244, 245 and 256 are extracted below:
“244. Section 16 of the Act of 1894 provided that possession of
land may be taken by the State Government after passing of an
award and thereupon land vest free from all encumbrances in the
State Government. Similar are the provisions made in the case of
urgency in Section 17(1). The word “possession” has been used in
the Act of 1894, whereas in Section 24(2) of Act of 2013, the
expression “physical possession” is used. It is submitted that
drawing of panchnama for taking over the possession is not enough
when the actual physical possession remained with the landowner
and Section 24(2) requires actual physical possession to be taken,
not the possession in any other form. When the State has acquired
the land and award has been passed, land vests in the State
Government free from all encumbrances. The act of vesting of the
land in the State is with possession, any person retaining the
possession, thereafter, has to be treated as trespasser and has no
right to possess the land which vests in the State free from all
encumbrances.
245. The question which arises whether there is any difference
between taking possession under the Act of 1894 and the expression
“physical possession” used in Section 24(2). As a matter of fact,
what was contemplated under the Act of 1894, by taking the
possession meant only physical possession of the land. Taking over
the possession under the Act of 2013 always amounted to taking
over physical possession of the land. When the State Government
acquires land and drawns up a memorandum of taking possession,
that amounts to taking the physical possession of the land. On the
large chunk of property or otherwise which is acquired, the
Government is not supposed to put some other person or the police
force in possession to retain it and start cultivating it till the land is
used by it for the purpose for which it has been acquired. The
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Government is not supposed to start residing or to physically occupy


it once possession has been taken by drawing the inquest
proceedings for obtaining possession thereof. Thereafter, if any
further retaining of land or any re-entry is made on the land or
someone starts cultivation on the open land or starts residing in the
outhouse, etc., is deemed to be the trespasser on land which in
possession of the State. The possession of trespasser always inures
for the benefit of the real owner that is the State Government in the
case.
xxxx
256. Thus, it is apparent that vesting is with possession and the
statute has provided under Sections 16 and 17 of the Act of 1894
that once possession is taken, absolute vesting occurred. It is an
indefeasible right and vesting is with possession thereafter. The
vesting specified under Section 16, takes place after various steps,
such as, notification under Section 4, declaration under Section 6,
notice under Section 9, award under Section 11 and then possession.
The statutory provision of vesting of property absolutely free from all
encumbrances has to be accorded full effect. Not only the possession
vests in the State but all other encumbrances are also removed
forthwith. The title of the landholder ceases and the state becomes
the absolute owner and in possession of the property. Thereafter
there is no control of the landowner over the property. He cannot
have any animus to take the property and to control it. Even if he
has retained the possession or otherwise trespassed upon it after
possession has been taken by the State, he is a trespasser and such
possession of trespasser enures for his benefit and on behalf of the
owner.”
(emphasis supplied)
13. It is also a fact to be noticed and taken care of that large chunk
of land is acquired for planned development to take care of immediate
need and also keep buffer for future requirements. Such portion of land
may be lying vacant also. As has been observed in Indore Development
Authority's case (supra) by this Court, the State agencies are not
supposed to put police force to protect possession of the land taken
after process of acquisition is complete. As far as the case in hand is
concerned, the land even if was lying vacant, is required now for a
project of national importance for construction of the Delhi-Saharanpur-
Dehradun Highway starting from Akshardham Junction to Delhi/UP
Border, in the State of Delhi in Phase-I of Bharatmala Pariyojana.
14. It is the undisputed fact on the record, as has been noticed in
the impugned order passed by the High Court, the possession of the
land was taken over by the Land Acquisition Collector and handed over
to Delhi Development Authority. Report of possession proceedings
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dated 06.12.2012 has also been placed on record. Hence, one of the
conditions being satisfied, we need not examine any other argument.
15. Keeping in view the aforesaid fact and the law laid down by the
Constitution Bench of this Court in Indore Development Authority's case
(supra), in our opinion the order passed by the High Court cannot be
legally sustained and the same is accordingly set aside. However, the
respondents shall be entitled to receive compensation as per their
entitlement. The Land Acquisition Officer should also take steps to pay
the same to the rightful owner.
16. The appeal is disposed of accordingly.
———
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2023 SCC OnLine SC 63

In the Supreme Court of India


(BEFORE M.R. SHAH AND M.M. SUNDRESH, JJ.)

Manubhai Sendhabhai Bharwad and Another …


Appellants;
Versus
Oil and Natural Gas Corporation Ltd. and Others …
Respondents.
Civil Appeal No. of 2023 (Arising from S.L.P. (Civil) No.
13885/2022)
Decided on January 20, 2023
The Judgment of the Court was delivered by
M.R. SHAH, J.:— Leave granted.
2. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 26.04.2022 passed by the High Court of Gujarat at
Ahmedabad in SCA No. 9258/2021, by which the High Court has
dismissed the said writ petition preferred by the appellants - original
writ petitioners for quashing temporary acquisition proceedings, the
original writ petitioners - landowners have preferred the present appeal.
3. That the land bearing survey No. 837/1 situated at Village Vastral,
Taluka Vatva, District Ahmedabad admeasuring 10034 square meters is
under temporary acquisition by Oil and Natural Gas Corporation Ltd.
(ONGC) since the year 1996 for the purposes of oil exploration, which
land was undisputedly purchased by appellant No. 1 under a registered
sale deed dated 15.03.2005. It is required to be noted that as such
now the land in question falls in the city of Ahmedabad and it cannot
be disputed that the prices of the land have increased manyfold and
even the surrounding lands are already developed. At present, the
appellants are being paid the rent at the rate of Rs. 24/- per square
meter per annum for temporary acquisition.
4. That the appellants herein approached the High Court in the year
2016 by way of SCA No. 3992/2016 seeking a direction to the
respondents to either acquire the land on permanent basis or release
the land from acquisition. The said writ petition came to be disposed of
vide order dated 23.02.2017 on the stand taken by the respondents
that they will initiate the process for acquiring the land permanently.
However thereafter no concrete steps were taken to acquire the land
permanently. On the contrary, ONGC approached the Special Land
Acquisition Officer/Collector. The Land Acquisition Officer addressed a
communication to the Deputy Collector that there shall be huge cost
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involvement in acquiring the land on permanent basis under the new


Land Acquisition Act, 2013. However thereafter the acquisition
proceedings were kept on hold and the appellants continued to be paid
the rent @ Rs. 24/- per square meter per annum for temporary
acquisition. That after the disposal of the writ petition in 2017 and
though it was assured that the process for permanently acquiring the
land would be initiated, nothing was done thereafter and therefore the
appellants again approached the High Court for quashing of the
acquisition proceedings and to direct the respondents to release the
said land from temporary acquisition and to handover vacant and
peaceful possession of the land in question to the appellants.
5. It was the case on behalf of the appellants that to continue the
temporary acquisition for nearly 25 years would be absolutely
unreasonable and arbitrary and that too by paying abysmally low rent.
It was pointed out that in the neighbouring area, Ahmedabad Metro
Rail Corporation is paying Rs. 1000/- per square meter per month as
rent whereas now the rate of rent fixed for the subject land is Rs. 30/-
per square meter per annum.
6. In response to the notice issued by the High Court, the
respondents appeared before the High Court. It was again submitted
that the competent authority has accorded approval for acquisition of
the subject land on permanent basis and the same is under process. A
statement was made on behalf of the ONGC before the High Court that
the acquisition proceedings would be concluded within 12 months. An
undertaking on behalf of the ONGC was also placed on record. Relying
upon the said undertaking, the High Court, by the impugned judgment
and order, has rejected the prayer for quashing temporary acquisition
proceedings. However, taking note of the fact that the Corporation
made a show of having paid enhanced rent from Rs. 24/- per square
meter per annum to Rs. 30/- per square meter per annum, which can
be said to be abysmally on the lower side and not commensurate with
the prevalent market rent and the statutory authorities of the State
under similar circumstances having paid Rs. 1,000/- per square meter
per month, the High Court has directed that the Corporation would
consider the claim of the appellants for paying rent at Rs. 1,000/- per
square meter per month till acquisition of the land on permanent basis
from the date of purchase of the land by the appellants i.e., from
15.3.2005.
7. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court refusing to quash the temporary
acquisition proceedings and as such not passing any order to increase
the rent per month for temporary acquisition, the landowners have
preferred the present appeal.
8. Shri Gopal Sankaranarayanan, learned Senior Advocate appearing
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on behalf of the appellants - landowners has vehemently submitted


that to continue the temporary acquisition for number of years, namely,
in the present case, twenty five years and that too on payment of a
meagre rent per annum is nothing but arbitrary, unreasonable and
violative of right to hold property guaranteed under Article 300A of the
Constitution of India.
9. It is submitted that even in the year 2016, an assurance was
given to the High Court that to acquire the land permanently,
proceedings shall be initiated and on that assurance the High Court
disposed of the earlier writ petition. It is submitted that thereafter also,
after a period of six years, no further concrete steps are taken to
acquire the land permanently and the appellants are being paid meagre
rent at present at the rate of Rs. 30/- per square meter per annum.
10. It is further submitted that the area in question in which the
land under temporary acquisition is situated is now forming part of the
city area and is a fully developed area and the prices have gone very
high. It is submitted that therefore to offer/pay rent at the rate of Rs.
30/- per square meter per annum and that too for the entire area of the
land in the developed area is absolutely unreasonable, arbitrary and
violative of Article 300A of the Constitution of India. It is submitted
that because of the temporary acquisition for 25 years, the appellants
are not in a position to use the land in question. They are not in a
position to fetch the market price. They are also not getting the
adequate compensation/rent. It is submitted that if the land would
have been acquired permanently earlier, the appellants would have got
sufficient compensation and the appellants would have utilised that
money for purchase of other land, which the appellants could not
because of non-payment of compensation due to non-acquisition of the
land permanently.
11. Shri Vikramjit Banerjee, learned Additional Solicitor General of
India has submitted that the land in question has been acquired by the
ONGC for its oil exploration and production activities on temporary
basis. It is submitted that for the aforesaid the landowners are being
paid the annual rent revised from time to time by the Committee
comprising Collector, Town Planning Officer, Deputy Collector, Assistant
Collector, Special Land Acquisition Officer and the representative of the
ONGC with respect to the land situated in Gujarat. It is submitted that
the appellants are accepting the periodically revised upward rent
voluntarily.
12. It is further submitted that after the High Court passed an order
in Special Civil Application No. 3992/2016, which was disposed of on
the statement made by the respondents that they would initiate the
process of permanent acquisition, on 23.5.2018, Revenue Department,
Government of Gujarat published a notification stating that the land in
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question is required by the ONGC for public purpose declaring its


intention to acquire the land for development of its infrastructure. It is
submitted that after the notification dated 23.5.2018, again on
22.07.2019, Revenue Department of Government of Gujarat published
a notification relating to land in question required by the ONGC for
public purpose, the same was issued under Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (hereinafter referred to as the ‘2013 Act’). It is submitted
that however thereafter on 21.10.2019 through internal
communication, GM(HR) I/c LAQ Section, ONGC, Ahmedabad was
informed that the permanent acquisition of the land in question is put
on hold and the proposal detailing number of acquisition to be made at
Ahmedabad Asset, including its financial implications have been sent
for appraisal to the Executive Committee/ONGC Board. It is submitted
that therefore the respondent-ONGC has full intention to proceed with
the permanent acquisition, but due to the reasons so stated in the
letter dated 21.10.2019, the process for permanent acquisition was put
on hold. It is therefore submitted that the respondent-ONGC needs
more time to make the acquisition process in conformity with 2013 Act,
to acquire the land permanently.
13. Now so far as the grievance on behalf of the appellants that they
are being paid meagre annual rent is concerned, it is submitted that as
such In-house Executive Committee of the ONGC revises the rate after
every three years. It is submitted that the rate of rent is revised
recently as well with effect from 1.2.2021 from Rs. 24/- per square
meter to Rs. 30/- per square meter for the lands acquired directly by
ONGC on temporary basis. It is submitted that periodical upward rent is
accepted voluntarily by the appellants. It is submitted that the
appellants again claiming the annual rent/revision of annual rent
considering the market value/market price of the land in question.
14. We have heard learned counsel for the respective parties at
length.
15. At the outset, it is required to be noted that the land in question
owned by the appellants has been under temporary acquisition by the
respondent-ONGC since the year 1996 for the purposes of its oil
exploration. The land in question has been purchased by the first
appellant under a registered sale deed dated 15.3.2005. Therefore, as
such, at the time when appellant No. 1 purchased the land in question,
the land in question was under temporary acquisition by the ONGC. Be
that as it may, on and from 15.3.2005, appellant No. 1 is the owner of
the land in question and therefore can question the temporary
acquisition if the temporary acquisition has been continued for a long
period. It is to be noted that the land in question now falls in the city of
Ahmedabad and the prices of the land have increased manyfold. The
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appellants are being paid the annual rent @ Rs. 30/- per square meter
per annum as revised.
16. As observed hereinabove, the land in question is under
temporary acquisition by the ONGC since the year 1996 for its oil
exploration. The same is under temporary acquisition under Section 35
of the Land Acquisition Act, 1894 (for short, ‘1894 Act’). Section 35 of
the 1894 Act reads as under:
“35. Temporary occupation of waste or arable land, procedure
when difference as to compensation exists - (1) Subject to the
provisions of Part VII of this Act, whenever it appears to the
appropriate Government that the temporary occupation and use of
any waste or arable land are needed for any public purpose, or for a
company, the appropriate Government may direct the Collector to
procure the occupation and use of the same for such terms as it shall
think fit, not exceeding three years from commencement of such
occupation.
(2) The Collector shall thereupon give notice in writing to the
persons interested in such land of the purpose for which the same is
needed, and shall, for the occupation and use thereof, for such term
as aforesaid, and for the materials (if any) to be taken therefrom,
pay to them such compensation, either in a gross sum of money, or
by monthly or other periodical payments, as shall be agreed upon in
writing between him and such persons respectively.
(3) In case the Collector and the persons interested differ as to
the sufficiency of the compensation or apportionment thereof, the
Collector shall refer such difference to the decision of the Court.”
17. Approximately 26 years have passed and still the land in
question is under temporary acquisition by the ONGC. If the land is
continued to be under temporary acquisition for number of years,
meaning and purpose of temporary acquisition would lose its
significance. Temporary acquisition cannot be continued for
approximately 20 to 25 years. It cannot be disputed that once the land
is under temporary acquisition and the same is being used by the
ONGC for oil exploration, it may not be possible for the landowners to
use the land; to cultivate the same and/or to deal with the same in any
manner. To continue with the temporary acquisition for number of years
would be arbitrary and can be said to be infringing the right to use the
property guaranteed under Article 300A of the Constitution of India.
Even to continue with the temporary acquisition for a longer period can
be said to be unreasonable, infringing the rights of the landowners to
deal with and/or use the land.
18. However, from the material on record, it appears that in the year
2018 and after the High Court disposed of the earlier writ petition on
the submission made on behalf of the ONGC that the land in question
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shall be acquired permanently, efforts were made in the year 2018 to


acquire the land under the provisions of the 2013 Act. However,
thereafter the same is put on hold by the Land Acquisition Officer/State
Government and the reason seems to be the higher value of the land to
be paid towards compensation. Even before this Court also, learned
counsel appearing on behalf of the ONGC has prayed for some further
time to acquire the land in question permanently. As such, in the
impugned judgment and order, the High Court has granted time to the
ONGC and the State to acquire the land in question permanently within
twelve months from the date of the impugned order, i.e., within twelve
months from 26.04.2022, i.e., on or before 26.04.2023. Therefore, as
such, a writ of mandamus is already issued by the High Court directing
the Corporation ONGC to complete the acquisition proceedings on or
before 26.04.2023. Therefore, if the land in question is not acquired as
per the writ issued by the High Court within a stipulated time,
necessary consequence shall follow. The respondent-ONGC is directed
to act as per the impugned judgment and order passed by the High
Court, more particularly para 7(ii), failing which necessary consequence
shall follow.
19. Now so far as the grievance with respect to the quantum of
annual rent paid is concerned, the High Court has already issued
directions in terms of para 7(iii) of the impugned judgment and order.
Even otherwise, as per section 34 of the 1894 Act, if the appellants are
aggrieved by the amount of compensation/annual rent, it will always be
open to the appellants/landowners to approach the Collector and the
Collector shall refer such reference to the decision of the Court.
20. With the aforesaid observations and directions, the present
appeal stands disposed of in terms of the above.
———
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2021 SCC OnLine SC 1266

In the Supreme Court of India


(BEFORE HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.)

Civil Appeal No. 8083 of 2011


U.P. Avas Evam Vikas Parishad through Housing Commissioner and
Another … Appellant(s);
Versus
Noor Mohammad and Others … Respondent(s).
With
Civil Appeal No. 8072 of 2011
Civil Appeal No. 8083 of 2011 and Civil Appeal No. 8072 of 2011
Decided on December 16, 2021
The Judgment of the Court was delivered by
V. RAMASUBRAMANIAN, J.:— U.P. Avas Evam Vikas Parishad, which is a statutory
authority of the State of Uttar Pradesh for housing and development, has come up with
the present appeals, challenging the orders of the High Court of Judicature at
Allahabad, setting aside a Notification cancelling a previous Notification issued under
Section 48(1) of the Land Acquisition Act, 1894 for the release of the land of the
respondents herein from acquisition.
2. We have heard Shri Vishwajit Singh, learned counsel appearing for the
appellants and Mr. Krishnam Mishra and Mr. Anand Varma, learned counsel appearing
for the respondents.
3. A Notification dated 25.07.1964 was issued by the State Government under
Section 36 of the United Provinces Town Improvement Act, 1919 (hereinafter referred
to as “the U.P. Act”) for the acquisition of land of a total extent of acre 1.85 in Village
Mirzapur, Tehsil-Sadar, District Gorakhpur for the public purpose of providing
housing/residential accommodation. This notification is akin to Section 4(1) of the
Land Acquisition Act, 1894.
4. The above notification was followed by another notification dated 17.06.1967
under Section 42 of the U.P. Act, which is equivalent to Section 6 of the Land
Acquisition Act, 1894. It appears that the emergency clause was invoked and the
enquiry dispensed with, before the declaration was made. The possession of the entire
land except one piece bearing plot No. 292/2 measuring an extent to 0.028 acres, was
taken over by the State Government on 24.07.1970 and an award was also passed on
30.03.1971.
5. From the year 1983, the land owners made attempts to get the lands released
from acquisition, but fortune fluctuated in a see-saw battle.
6. Eventually by a Notification dated 7.04.2003 issued in exercise of the powers
conferred by Section 49(1) of the U.P. Avas Evam Vikas Parishad Adhiniyam, 1965
read with Section 48(1) and 49(1) of the Land Acquisition Act, 1894, the land was
exempt from acquisition. But within a couple of years, the Government issued another
notification dated 15.09.2005 cancelling the notification dated 07.04.2003 on the
ground that the land owners had played fraud by making false representations, while
seeking the release of the land.
7. Challenging the said Notification dated 15.09.2005, the original land owners filed
a writ petition in W.P (C) No. 64727 of 2005 and the purchaser of one part of the land
from the original owners filed another writ petition in W.P No. 50151 of 2008. Both
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these writ petitions were allowed by Division Bench of the High Court by an Order
dated 31.08.2010, holding that once the acquired land is released from acquisition, by
way of Notification, the Government can reclaim the land only by initiating a fresh
process of acquisition. Aggrieved by the said order, the Housing and Development
Authority has come up with the above appeals.
8. Before we address the rival contentions for consideration, it may be necessary to
bring on record the background in which the original Notification dated 07.04.2003
under Section 48(1) of the Land Acquisition Act was passed and the reasons for the
issue of the latter notification dated 15.09.2005 cancelling the previous one. This
background as well as the reasons are stated very pithily in the second Notification
dated 15.09.2005 and, hence, it is reproduced as follows:
“Land in Village Mirzapur/Betiahtata, Gorakhpur was acquired under the
provisions of U.P. Town Improvement Act, 1919 for the Betiahata South Scheme,
Gorakhpur of the U.P. Avas Evam Vikas Parishad and later on 8.6.1965, it was
transferred to the U.P. Avas Evam Vikas Parishad for planned development of the
area. The State Government issued Notification u/s 17 of the Land Acquisition Act,
1894 vide no. 93Ka/37-19(1)(16)-66 dated 13.1.1970.
An application dated 28.2.83 along with a letter addressed to the Chief Secretary
dated nil in connection with Khasra no. 257 (rakba 0.51 Acre), Khasra no. 254
(rakba 0.30 Acre), Khasra no. 255/1 (rakba 0.18 Acre), Khasra no. 255/2 (rakba
0.18 Acre), Khasra no. 291/1 (rakba 0.31 Acre), Khasra no. 291/2 (rakba 0.31
Acre), Khasra no. 292/1 (rakba 0.03 Acre), Khasra no. 292/2 (rakba 0.03 Acre)
total rakba 1.85 acre land, sent by applicants Smt. Shakuran w/o Late Rojan, Shri
Noor Mohd., Shri Shafi Mohd., Shri Ramjan Mohd. all sons of sons of Late Salarbux
Mohalla Tetiahata South (New Avas Vikas Colony), Post Office Sadar, Dist.
Gorakhpur was received by the Government on 23.1.84 by which the applicants
brought to the notice of the government that the aforesaid plots belonged to them
which have been acquired by the Parishad. There exist 17 or 18 cemeteries of their
forefathers and they earn their livelihood by way of vegetation/horticulture on the
said land. There are 20 members in their family and none of them have their own
house and that they would live there by making houses on the land. After due
consideration on the applications received from applicants, the government issued
G.O. no. 472/37-2-85-3 HB(108)/83 dated 30.01.85 thereby exempting the
aforesaid khasras from acquisition with the condition that the landowners will not
sell out the land. Following the aforesaid G.O., the Housing Commissioner, U.P.
Avas Evam Vikas Parishad wrote a letter to the government requesting for
cancellation of the aforesaid G.O. dated 30.01.85 and accordingly, Amendment
Order dated 27.6.85 was issued by the Government whereby cancelling the earlier
G.O. dated 30.1.85 in which it was specifically mentioned that the layout map of
the Yojana may be modified, while excluding the Mazaars, if any exists on the
disputed land.
Subsequent to the aforesaid order, the applicants filed writ petition no.
19757/1985 in the Hon'ble High Court. In compliance of the orders of the Hon'ble
High Court, after giving serious thoughts to the joint representation of the
applicants, the same was rejected on 21.12.91. The applicants again filed writ
petition no. 5002/1992 before the Hon'ble High Court in which the Hon'ble High
Court passed “dismissed as withdrawn” order on 19.5.99.
Thereafter, the government reviewed the representations submitted by the
applicants from time to time. In their representations, the applicants had primarily
stated that they were poor unemployed persons. None of their family members was
in government service. The aforesaid land was the only source of their livelihood
and they earn their livelihood by way of vegetation/horticulture on the said land.
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There are 20 members in their family and none of them have their own house and
that they would live there by making houses on the land. Cemeteries of their
forefathers exist on the land and as per the general policy of the Government, such
land should not be acquired. In view of the facts contained in the representation
and after due consideration, Notification no. 1049/9-Aa-2-2003-3 HB (AB)/83 dated
7 April 1983 was issued for exempting Khasra no. 257 (rakba 0.51 Acre), Khasra
no. 254 (rakba 0.30 Acre), Khasra no. 255/1 (rakba 0.18 Acre), Khasra no. 255/2
(rakba 0.18 acre), Khasra no. 291/1 (rakba 0.31 Acre), Khasra no. 291/2 (rakba
0.31 Acre), Khasra no. 292/1 (rakba 0.03 Acre), Khasra no. 292/2 (rakba 0.03
Acre) total rakba 1.85 acre land from acquisition.
After passing of the Notification, it came to the notice of the government from
various sources that the aforesaid exempted land was being used for commercial
purposes and the land-mafias were buying and selling the land after raising illegal
constructions on it. In view of the complaints, inquiry was got conducted from the
Housing Commissioner and the up-to-date status of the land was sought. The
Housing Commissioner submitted his inquiry report thereby informed as under:—
a) 1.00 Acre (out of total 1.17 Acre land of Khasra no. 254 (rakba 0.30 acre),
khasra no. 255 (rakba 0.36 acre), khasra no. 257 (rakba 0.51 acre)) was sold
out on 23.4.2003 through Agreement Deed.
b) 5220 sq.ft. land from Khasra no. 255 was sold through registry on 29.4.2004
to Shri Shravan s/o Jaket, Dist. Deoria.
c) 2370 sq.ft. land from Khasra no. 254 was sold through registry on 16.9.2004
to Shri Bajrang Prasad Gupta s/o Shri Mahavir Prasad.
d) 9000 sq.ft. land from Khasra no. 254 and 255 was sold through registry on
21.9.2004 to Smt. Lalita Chhabaria v1/o Shri Hari Prasad Chhabaria.
e) Entire rakba 0.51 of Khasra no. 257 was sold through registry n 16.9.2004 to
Smt. Vartika Singh w/o Shri Krishna Singh and Shri Brijesh Kumar Singh s/o
Shri Shiv Poojan Singh.
From the above, it is evident that the facts placed by the applicants before the
Government, on the basis of which their land was released from acquisition vide
Notification dated 7.4.2003, were misleading and false. The applicants are in the
process of selling the land after dividing it in small plots and they neither using the
land for earning their livelihood by way of doing vegetation nor for any other
purpose. Therefore, after due consideration, the Governor of Uttar Pradesh has been
pleased to approve cancellation of the aforesaid Notification no. 1049/9-Aa-2-2003-
3 HB (AB)/83 dated 7 April, 1983 issued in respect of releasing the aforesaid land
from acquisition.”
9. The main ground on which the High Court set aside the second Notification dated
15.09.2005 was that once a Notification is issued under Section 48(1) of the Land
Acquisition Act, 1894, the land gets released from acquisition and that, therefore, the
only way the State Government could retrieve the land is to initiate the process of
acquisition afresh. This reasoning is based upon two premises, namely, (i) that while
there is a provision under Section 48(1) of the Land Acquisition Act for the withdrawal
of the land from acquisition, there is no provision in the Act for cancellation of a
Notification under Section 48(1); and (ii) that once a Notification under Section 48(1)
of the Land Acquisition Act is issued, the land gets vested in the original owner and
that therefore, divesting cannot take place without following the process of acquisition
as enunciated in the Statute.
10. But insofar as the first contention is concerned, Section 21 of the General
Clauses Act, 1897 is a complete answer. It reads as follows:—
“21. Power to issue, to include power to add to, amend, vary or rescind
notifications, orders, rules or bye-laws.-Where, by any Central Act or
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Regulations a power to issue notifications, orders, rules or bye-laws is conferred,


then that power includes a power, exercisable in the like manner and subject to the
like sanction and conditions (if any), to add to, amend, vary or rescind any
notifications, orders, rules or bye-laws so issued.”
11. Therefore, the power to issue Notification would include a power to rescind the
Notification. This position was not contested by the respondents, when their attempts
to have the land released from acquisition, proved unsuccessful on earlier occasions.
As a matter of fact, on the application presented by the respondents on 28.02.1983,
the Government issued a letter dated 30.01.1985 requesting the Parishad to initiate
necessary action for exemption of the land, subject to the condition that the land
owners will not sell the land. This condition was stipulated in view of the fact that the
request of the respondent was based on religious sentiments due to the alleged
existence of cemeteries of about 20 of their forefathers on the acquired land. But the
proposal mooted by the State Government on 30.01.1985 was opposed by the
Parishad on the ground that there was no mention about any cemeteries, when the
land owners filed objections to the acquisition. In the light of such objections, the
Government issued proceedings dated 27.06.1985 withdrawing the earlier proposal
dated 30.01.1985.
12. Therefore, the land owners filed a writ petition in Civil Miscellaneous writ
Petition No. 19757 of 1985, seeking a direction to the Government and to the Parishad
not to dispossess them. This Writ Petition was disposed of by an Order dated
30.09.1988, permitting the land owners to file a representation to the Government
within one month and directing the State Government to consider the said
representation.
13. Pursuant to the said order, the land owners made a representation dated
10.10.1988. But the same was rejected by the State Government by an Order dated
21.12.1991, pointing out that the land already stood vested in the Parishad and that
Parishad has already become the owner.
14. Challenging the Order of rejection dated 21.12.1991, the land owners filed a
fresh writ petition in W.P. (C) No. 5002 of 1992. But the said writ petition was
dismissed as withdrawn, on 9.04.1999. Thereafter, a fresh representation was made
on 29.05.1999. It was reiterated in the said representation that there are cemeteries
and Mazaars of the forefathers of the land owners and that regular religious
programmes were being conducted in the acquired land. It is on the basis of the said
representation that the Notification dated 7.04.2003 was issued under Section 48(1).
15. Therefore, it is clear that the land owners were actually playing hide and seek
by pleading religious sentiments, leading to the issue of the Notification dated
7.04.2003 under Section 48(1). In other words the Notification under Section 48(1)
was invited by the land owners by making false representations. The land owners have
actually played fraud upon the Government and secured the Notification dated
7.04.2003. Hence, they cannot be allowed to contend that the land can be acquired
only through a fresh process of acquisition.
16. The learned counsel for the respondents-land owners contended that Section 21
of the General Clauses Act, does not confer an overarching power on the Government
to rescind a notification conferring vested rights in immoveable property, especially
when such a power is not contemplated by the Land Acquisition Act, 1894. The right
to property, though not a fundamental right, is held to be a Constitutional right and a
human right and that, therefore, according to the counsel for the respondents, the
same cannot be taken away by taking recourse to Section 21 of the General Clauses
Act.
17. In support of the aforesaid contention, Mr. Anand Varma learned counsel for the
respondents relies upon the decision of this Court in Industrial Infrastructure
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Development Corporation (Gwalior) M.P. Ltd. v. CIT1, wherein it was held as follows:
“21. The general power, under Section 21 of the General Clauses Act, to rescind
a notification or order has to be understood in the light of the subject-matter,
context and the effect of the relevant provisions of the statute under which the
notification or order is issued and the power is not available after an enforceable
right has accrued under the notification or order. Moreover, Section 21 has no
application to vary or amend or review a quasi-judicial order…”
18. The learned counsel for the respondents also relied upon the decision in H.C.
Suman v. Rehabilitation Ministry Employees Co-Operative House Building Society Ltd.
New Delhi2, wherein it was held that a substantial right created in favour of a party,
which is enforceable in law cannot be taken away by a subsequent order under general
power of rescindment available under the General Clauses Act.
19. But the decision in Industrial Infrastructure Development Corporation (supra)
arose out of an order passed under Section 12-A of the Income Tax Act, 1961, which
was admittedly a quasi judicial order. In paragraphs 19 and 20 of the said decision,
this Court pointed out that “the functions exercisable by CIT under section 12-A
are neither legislative nor executive but essentially quasi-judicial in nature”
and that “an order under section 12-A of the Income Tax Act does not fall in
the category of orders mentioned in Section 21, which would be in the nature
of Notification/Rules/bye-laws”.
20. But a proceeding under section 48(1) of the Land Acquisition Act is
administrative in nature as can be seen from the language employed. Section 48 of
the Act reads as follows:
48. Completion of acquisition not compulsory, but compensation to be
awarded when not completed. -
(1) Except in the case provided for in section 36, the Government shall be at
liberty to withdraw from the acquisition of any land of which possession has
not been taken.
(2) Whenever the Government withdraws from any such acquisition, the
Collector shall determine the amount of compensation due for the damage
suffered by the owner in consequence of the notice or of any proceedings
there under, and shall pay such amount to the person interested, together
with all costs reasonably incurred by him in the prosecution of the proceedings
under this Act relating to the said land.
(3) The provision of Part III of this Act shall apply, so far as may be, to the
determination of the compensation payable under this section.”
21. What is provided in Section 48(1) is the power/liberty to withdraw from
acquisition. It is an administrative act. Therefore, the reliance on the decision in
Industrial Infrastructure Development Corporation (supra) is misplaced.
22. For the very same reason, the decision in H.C. Suman, is also of no assistance
to the respondents in as much as the first notification of the Lt. Governor, which was
sought to be withdrawn by the subsequent notification, was issued pursuant to a quasi
-judicial order passed by the Lt. Governor on a statutory appeal. The quasi judicial
order created a vested right which was given effect through a notification. Therefore,
this Court held in para 35 of the decision in H.C. Suman that the vested right created
by a quasi-judicial order cannot be taken away by taking recourse to the general
power of rescindment available under the General Clauses Act. Hence the reasoning
contained in the said decision cannot be applied to the case on hand.
23. While a Notification for acquisition issued under Section 4(1) of the Land
Acquisition Act seeks to take away an individual's right to property, a Notification
under Section 48(1) is actually the reverse or opposite. It confers benefit upon an
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individual and hence it is not supposed to be preceded by any enquiry. The essence of
an order which is quasi-judicial in nature is that it is preceded by an opportunity of
hearing to the party affected thereby. A notification under Section 48(1) does not
warrant any notice or opportunity of hearing, to the original land owners. If at all any
person will be aggrieved by the Notification under Section 48(1), it will be the
beneficiary of the acquisition, which in this case is the Parishad, and not the land
owners. Therefore, we can understand if the Parishad makes out a grievance that their
rights were taken away by the notification under Section 48(1) especially after the
land vested in them.
24. Therefore, we reject the argument that a Notification under Section 48(1) is a
quasi-judicial order. As a consequence, we reject the argument that the Government
cannot fall back upon Section 21 of the General Clauses Act to rescind an order under
Section 48(1).
25. Coming to the second limb of the argument that the Notification under Section
48(1) has created a vested right and that the same cannot be taken away unilaterally
by a subsequent Notification for cancellation, we have to state that the first
Notification was secured by the respondents by false representations and by playing
fraud. When the respondents wanted to ward off the acquisition, they claimed that
there were cemeteries of their forefathers, but after the first notification was issued,
they started selling the land to third parties, who cannot and do not share the same
religious sentiments with the respondents. We have already extracted the second
Notification dated 15.09.2005 which contains the list of sales made by the land
owners. The enquiry conducted by the Housing Commissioner has revealed that the
land mafia has taken over the land. It is trite to point out that an order secured by
fraud and misrepresentation will not confer any vested right and that, therefore, the
land owners cannot pitch their claim either on the basis of vesting or on the basis of
Article 300A.
26. Interestingly, Sh. Anand Varma, learned counsel for the respondents relied
upon the decision of this Court in Mutha Associates v. State of Maharashtra3, in
support of his contention that even if the impugned notification is taken to be
administrative in nature, the same should be preceded by an opportunity of hearing to
the land owners. But the decision in Mutha Associates (supra) is actually a double-
edged weapon insofar as the respondents are concerned. In that case, this Court held
that even for the exercise of the power of withdrawal under Section 48(1) of the Land
Acquisition Act, an opportunity had to be given necessarily to the beneficiary. In fact
two principles could be culled out from Mutha Associates. They are : (i) that the
publication of the Notification under Section 48, is necessary just as the publication of
notifications under Sections 4 and 6 are mandatory; and (ii) that the beneficiary
should be heard before the withdrawal of land from acquisition.
27. In this case, the Notification dated 7.04.2003 does not appear to have been
preceded by an opportunity of hearing to the beneficiary, namely, U.P. Avas Evam
Vikas Parishad. Therefore, the withdrawal of such an illegal notification, which was
secured by fraud, cannot be found fault with.
28. Therefore, in fine, all the contentions of the respondents-land owners are liable
to be rejected and the appeals liable to be allowed. Accordingly both the appeals are
allowed, the impugned orders of the High Court are set aside and the writ petitions
filed by the respondents are dismissed. Since the acquisition has been complete in all
respects the appellant-Parishad may proceed to implement the public purpose for
which the land was acquired. There will be no order as to costs.
———
1
(2018) 4 SCC 494
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2
(1991) 4 SCC 485

3
(2013) 14 SCC 304
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