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2020 (3) TMI 1310 - SC - Indian LawsInterpretation of Statute - Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Land acquisition proceedings - meaning of the expression paid'/tender' in Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - non-deposit of compensation in court Under Section 31(2) of the Act of 1894 - word 'or', should be read as conjunctive or disjunctive in Section 24(2) of the Act of 2013? - true effect of the proviso, part of sub-Section (2) or main Section 24 of the Act of 2013 - mode of taking possession under the Land Acquisition Act - period covered by an interim order of a Court concerning land acquisition proceedings, to be excluded for the purpose of applicability of Section 24(2) of the Act of 2013 - revival of barred and stale claims - HELD THAT - Section 24(2) of the Act of 2013 is a penal provision-to punish the acquiring authority for its lethargy in not taking physical possession nor paying the compensation after making the award five years or more before the commencement of the Act of 2013 in pending proceedings, providing that they would lapse. The expression where an award has been made, then the proceedings shall continue used in Section 24(1)(b) under the provisions of the Act of 1894 means that proceedings were pending in praesenti as on the date of enforcement of the Act of 2013 are not concluded proceedings, and in that context, an exception has been carved out in Section 24(2) - Even if possession has been taken, despite which payment has not been made nor deposited, (for the majority of the land-holdings), then all beneficiaries holding land on the date of notification Under Section 4 of the Act of 1894, are to be paid compensation under the provisions of the Act of 2013. Section 24 of the Act of 2013 frowns upon indolence and stupor of the authorities. The expression possession of the land has not been taken or compensation has not been paid indicates a failure on the part of the authorities to take the necessary steps for five years or more in a pending proceeding Under Section 24(1)(b). Section 24(2) starts with a non-obstante Clause overriding what is contained in Section 24(1). Thus, Section 24(2) has to be read as an exception to Section 24(1)(b). It is apparent from a plain reading of Section 16 (of the Act of 1894) that the land vests in the Government absolutely when possession is taken after the award is passed. Clearly, there can be lapse of proceedings under the Act of 1894 only when possession is not taken. The provisions in Section 11A of the Act of 1894 states that the Collector shall make an award within a period of two years from the date of the publication of the declaration Under Section 6 and if no award is made within two years, the entire proceedings for acquisition of the land shall lapse. The period of two year excludes any period during which interim order granted by the Court was in operation. Once an award is made and possession is taken, by virtue of Section 16, land vests absolutely in the State, free from all encumbrances - Payment of compensation under the Act of 1894 is provided for by Section 31 of the Act, which is to be after passing of the award Under Section 11. The exception, is in case of urgency Under Section 17, is where it has to be tendered before taking possession. Once an award has been passed, the Collector is bound to tender the payment of compensation to the persons interested entitled to it, as found in the award and shall pay it to them unless prevented by the contingencies mentioned in Sub-section (2) of Section 31. Section 31(3) contains a non-obstante Clause which authorises the Collector with the sanction of the appropriate Government, in the interest of the majority, by the grant of other lands in exchange, the remission of land revenue on other lands or in such other way as may be equitable. The legal fiction of lapsing (Under Section 24(2) of the Act of 2013) cannot be extended to denude title which has already vested in the beneficiaries of the acquisition Corporation/Local Bodies, etc., and who, in turn, have also conveyed title and transferred the land to some other persons after development. In COMMISSIONER OF SALES TAX, UP. VERSUS MODI SUGAR MILLS LTD. 1960 (10) TMI 65 - SUPREME COURT the Court has held that A legal fiction must be limited to the purpose for which it has been created and cannot be extended beyond its legitimate field. - This Court is of opinion that Section 24 of the Act of 2013 does not intend to take away vested rights. This is because there is no specific provision taking away or divesting title to the land, which had originally vested with the State, or divesting the title or interest of beneficiaries or third-party transferees of such land which they had lawfully acquired, through sales or transfers. There is a specific provision made for divesting, nor does the Act of 2013 by necessary intendment, imply such a drastic consequence. Divesting cannot be said to have been intended. The present case involves placement of colon preceding to the Proviso to Section 24(2) and not Section 24(1), which ends with a full stop, and it makes sense and the true meaning where Parliament has placed it. The proviso is part of Section 24(2). It is not permissible to alter the provision and to read it as a proviso to Section 24(1)(b), mainly when it makes sense where Parliament so placed it. To read the proviso as part of Section 24(1)(b), will create repugnancy which the provisions contained in Section 24(1)(b). The window period of 5 years is provided to complete the acquisition proceedings where the award has been passed, and the provisions of the Act of 1894 shall be applied as if it has not been repealed. Section 24(2) starts with a non-obstante clause; it plainly is notwithstanding Section 24(1), and the proviso to Section 24(2) enlarges the scope of Section 24(2). When the window period has been provided Under Section 24(1)(b), i.e., Section 24(2) and its proviso, higher compensation cannot follow in case of an award which has been passed within 5 years of the enactment of the Act of 2013 otherwise anomalous results shall accrue. In case proviso is read as a part of Section 24(1)(b), it would be repugnant to the consideration of the provision which has been carved out saving acquisition and providing window period of 5 years to complete the acquisition proceedings - There is no question of outright deposit. In such event as the deposit is to be made when the Collector is prevented by the exigencies specified in Section 31(2) from making payment. The deposit is not contemplated directly either in the court or the treasury, as the case may be as provided in Section 31(2), corresponding to Section 77(2) of the Act of 2013. The word paid used in Section 24(2) does not include within its meaning the word deposited , which has been used in the proviso to Section 24(2). Section 31 of the Act of 1894, deals with the deposit as envisaged in Section 31(2) on being 'prevented' from making the payment even if the amount has been deposited in the treasury under the Rules framed Under Section 55 or under the Standing Orders, that would carry the interest as envisaged Under Section 34, but acquisition would not lapse on such deposit being made in the treasury. In case amount has been tendered and the landowner has refused to receive it, it cannot be said that the liability arising from non-payment of the amount is that of lapse of acquisition. Interest would follow in such a case also due to non-deposit of the amount. Equally, when the landowner does not accept the amount, but seeks a reference for higher compensation, there can be no question of such individual stating that he was not paid the amount (he was determined to be entitled to by the collector). In such case, the landowner would be entitled to the compensation determined by the Reference court. The drawing of Panchnama of taking possession is the mode of taking possession in land acquisition cases, thereupon land vests in the State and any re-entry or retaining the possession thereafter is unlawful and does not inure for conferring benefits Under Section 24(2) of the Act of 2013. The maxim actus curiae neminem gravabit is founded upon the principle due to court proceedings or acts of court, no party should suffer. If any interim orders are made during the pendency of the litigation, they are subject to the final decision in the matter. In case the matter is dismissed as without merit, the interim order is automatically dissolved. In case the matter has been filed without any merit, the maxim is attracted commodum ex injuria sua nemo habere debet, that is, convenience cannot accrue to a party from his own wrong. No person ought to have the advantage of his own wrong. In case litigation has been filed frivolously or without any basis, iniquitously in order to delay and by that it is delayed, there is no equity in favour of such a person. Such cases are required to be decided on merits. The courts cannot invalidate acquisitions, which stood concluded. No claims in that regard can be entertained and agitated as they have not been revived. There has to be legal certainty where infrastructure has been created or has been developed partially, and investments have been made, especially when land has been acquired long back. It is the duty of the Court to preserve the legal certainty - Section 24 cannot be used to revive dead and stale claims and concluded cases. They cannot be inquired into within the purview of Section 24 of the Act of 2013. The provisions of Section 24 do not invalidate the judgments and orders of the Court, where rights and claims have been lost and negatived. There is no revival of the barred claims by operation of law. Thus, stale and dead claims cannot be permitted to be canvassed on the pretext of enactment of Section 24. 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 Act of 2013, there is no lapse of proceedings. Compensation has to be determined under the provisions of Act of 2013. 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 Act of 2013 under the Act of 1894 as if it has not been repealed. 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 Act of 2013 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. 4. The expression 'paid' in the main part of Section 24(2) of the Act of 2013 does not include a deposit of compensation in court. The consequence of non-deposit is provided in proviso to Section 24(2) in case it has not been deposited with respect to majority of land holdings then all beneficiaries (landowners) as on the date of notification for land acquisition Under Section 4 of the Act of 1894 shall be entitled to compensation in accordance with the provisions of the Act of 2013. In case the obligation Under Section 31 of the Land Acquisition Act of 1894 has not been fulfilled, 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 Act of 2013 has to be paid to the landowners as on the date of notification for land acquisition Under Section 4 of the Act of 1894. 5. In case a person has been tendered the compensation as provided Under Section 31(1) of the Act of 1894, 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). Land owners 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 Act of 2013. 6. The proviso to Section 24(2) of the Act of 2013 is to be treated as part of Section 24(2) not part of Section 24(1)(b). 7. The mode of taking possession under the Act of 1894 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 Act of 1894, the land vests in State there is no divesting provided Under Section 24(2) of the Act of 2013, as once possession has been taken there is no lapse Under Section 24(2). 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 Act of 2013 came into force, in a proceeding for land acquisition pending with concerned authority 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. 9. Section 24(2) of the Act of 2013 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 Act of 2013, 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. Let the matters be placed before appropriate Bench for consideration on merits.
Issues Involved:
1. Interpretation of "established or incorporated" in the context of private universities. 2. Interpretation of the conjunction "or" in statutory language. 3. Application of Section 24(2) of the Land Acquisition Act, 2013. 4. Consequences of non-deposit of compensation. 5. Impact of interim court orders on the computation of time under Section 24(2). 6. Revival of stale or barred claims under Section 24. Issue-wise Detailed Analysis: 1. Interpretation of "established or incorporated" in the context of private universities: - The Court observed that the term "established or incorporated" in Sections 2(f), 22, and 23 of the UGC Act should be read as "established and incorporated" for private universities. This interpretation ensures that a university must have the necessary infrastructure before being incorporated, aligning with the constitutional scheme and avoiding conflicts between state and central legislation. 2. Interpretation of the conjunction "or" in statutory language: - The Court discussed various precedents where "or" was interpreted as "and" to avoid absurd results and to align with legislative intent. It concluded that in the context of Section 24(2) of the Land Acquisition Act, 2013, "or" should be read as "and" to ensure that both conditions (non-payment of compensation and non-taking of possession) must be met for the acquisition to lapse. 3. Application of Section 24(2) of the Land Acquisition Act, 2013: - Section 24(2) provides for the lapse of acquisition proceedings if compensation has not been paid and possession has not been taken for five years or more. The Court emphasized that both conditions must be satisfied for the acquisition to lapse. The provision aims to address inaction by authorities and ensure timely completion of acquisition processes. 4. Consequences of non-deposit of compensation: - The Court clarified that non-deposit of compensation in court does not result in the lapse of acquisition proceedings. Instead, it attracts higher compensation under the Act of 2013. The obligation to pay is considered fulfilled if the compensation is tendered, even if not accepted by the landowner. 5. Impact of interim court orders on the computation of time under Section 24(2): - The Court held that the period during which an interim order of the court is in force should be excluded from the computation of the five-year period under Section 24(2). This interpretation aligns with the principle that no party should suffer due to court orders, ensuring that authorities are not penalized for delays caused by legal proceedings. 6. Revival of stale or barred claims under Section 24: - The Court ruled that Section 24 does not revive stale or barred claims. It applies only to pending proceedings as of January 1, 2014, and does not reopen concluded acquisitions. The provision is not intended to invalidate acquisitions that have been settled or to question the legality of concluded proceedings. Summary of Key Judgments: - Pune Municipal Corporation and Anr.: Overruled. - Shree Balaji Nagar Residential Association: Overruled. - Indore Development Authority v. Shailendra: Clarified that the aspect of the proviso to Section 24(2) was not considered. - Velaxan Kumar: Overruled regarding the mode of taking possession. - Narmada Bachao Andolan: Overruled regarding the mode of taking possession. Conclusion: The Court provided a comprehensive interpretation of Section 24 of the Land Acquisition Act, 2013, ensuring that both conditions (non-payment of compensation and non-taking of possession) must be met for the acquisition to lapse. It also clarified that interim court orders should be excluded from the computation of the five-year period and that Section 24 does not revive stale claims. The judgments in Pune Municipal Corporation and related cases were overruled to align with this interpretation.
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