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THE LAW OF LAND ACQUISITION

Dr.M.K.RAMESH

THE LAND ACQUISITION ACT,1894
• PRILIMINARY OBSERVATIONS:
• EMINENT DOMAIN- STATE SOVEREIGNTY - GROTIUS- (De Jure Belli ac Pacis)-KAUTILYA’S ARTHA SASTRA (- INDIVIDUAL-FAMILY-VILLAGESTATE)- power of sovereign to take property for public cause with out owner’s consent, coupled with the obligation to make good the loss

SALUS POPULI EST SUPREME LEX :
WELFARE OF THE PEOPLE IS THE ONLY CONSIDERATION AND MAY BE SAID TO BE THE CORNER STONE OF THE LAW OF LAND ACQUISITION

A. BACKGROUND
• 1824:BENGAL PROVINCE- REGULATION I : ACQUISITION OF IMMOVABLE
PROPERTY FOR A FAIR AND REASONABLE PRICE FOR CONSTRUCTION OF ROADS , CANALS OR OTHER PUBLIC PURPOSES- DEVELOPMENT OF RAILWAY NETWORK

• •

1839 (BOMBAY) &1852 (MADRAS)- BUILDING ACT:- TO OBVIATE
DIFFICULTIES CONCERNING CONSTRUCTION OF PUBLIC BUILDINGS

ACT VI OF 1857- FIRST FULL ENACTMENT- APPLICATION TO ENTIRE BRITISH INDIAREPEAL OF ALL PREVIOUS ENACTMENTS- ACT X OF 1870- REFERENCE OF
COMPLAINTS AND GRIEVANCES TO COURT- TIME CONSUMING PROCESS AND PROHIBITIVELY EXPENSIVE

1894 LAA:- REPLACED THE LAW MADE EARLIER- ADOPTED BY INDEPENDENT INDIA
AFTER INDEPENDENCE- VARIOUS AMENDMENTS NOTWITHSTANDING, THE ADMINISTRATIVE PROCEDURES HAVE REMAINED MORE OR LESS THE SAME EVEN AFTER A CENTURY OF ITS MAKING LAW PASSED BY COLONIAL STATE, WHEN POPULATION WAS LESS THAN A FOURTH OF WHAT IT IS NOW AND GROUNDS FOR ACQUISITION ONLY A FEW – MOVEMENT FROM AN AGRICULTURAL AND SUSTENANCE ECONOMY -THROUGH WELFARE STATEAND TRANSITIONING INTO MARKET ECONOMY LAW MADE WITH THE SOLE OBJECTIVE OF ENRICHING THE CROWN IN ENGLAND

VII . 1878 & 1927. List.• • • • PARALLEL DEVELOPMENTSLAND REVENUE ACT.31 Art. Entry 42 .300A Sch.STATE TO HAVE EXCLSIVE CONTROL OVER FORESTS –STATE CAN HAVE SIMILAR CONTROL OVER PRIVATE FORESTS AND OTHER LANDS THROUGH A PROCEDURE ESTABLISHED UNDER THAT LAW • • • • • CONSTITUTIONAL FOUNDATION: Art.REGULATIONS AND LEGISLATIONS FOREST RESERVATIONS (1806 LAW)-FOREST ACT -1865.ESTABLISHMENT OF ABSOLUTE PROPRIETARY RIGHT IN THE STATE AND ITS MONOPOLISTIC CONTROL OVER LANDS BY CONVERTING THEM TO STATE PROPERTYTRADITIONAL RIGHTS AND CUSTOMARY PRACTICES REDUCED TO CONCESSIONS AND PRIVILEGES.III. MINES AND MINERALS: PART OF PUBLIC PURPOSE.

Investigations. Penalties.B. VI Temporary Occupation of Land (3 sns. V Payments (4 sns. In the course of about 115 years of the life of the Act.still at various stages of consideration Several State legislations to facilitate acquisition for industry & to put the process on fast track –in existence .). Objections. And deletion of one sn. Major overhaul and amendment of the Act proposed in 2007.) Amendment of about 20sns.:. Possession). Declaration of intent. VIII Miscellaneous ( 12 sns:-Notice.. VII Acquisition of Land for Companies ( 9 sns.) . Compensation & Procedures(. Claims & Award.14 sns.) . Appeals etc.:-Nature of the Act & Defns.VIII Parts: I Preliminary (-3 sns.) . STRUCTURE & SCHEME • • • • • • • • • • • 63sns. II Acquisition (-18 sns. III &IV Court . Insertion of 9 snn.).

as contemplated under Part VII Substantive aspects of the law to be understood . .no such acquisition possible with out observing LAA procedures Acquisition for public purpose or for a company . interpreted and applied.a form of indemnity for the monetary loss suffered.determining the amount of compensation to be made on account of such acquisition Empowering state to compulsorily acquire land on payment of due compensation. to give effect to the objects • • • • .III.public purposes and companies and . PREAMBLE & OBJECTS: Law for acquisition of Land for.PRELIMINARIES • A. In the case of a company.

DEFINITIONS: (S. (f) public purpose . (e) company 4. person interested and (g) person entitled to act – representative capacity 3. (b). (a) land 2. is of expropriatory character • Only an interested person can challenge the acquisition • Makes provision for assessment and payment of compensation for the deprivation B.• Act.3) 1.

4-5 • B.5A • C.POSSESSION : Ss.610 • D.HEARING OBJECTIONS : S.16-17 .12.13A.15. & 15A • E.11.14.13. ENQUIRY & AWARD :Ss.11A.IV. ACQUISITION • A. INVESTIGATIONS : Ss. DECLARATION OF INTENTION :Ss.

that a particular land is “likely to be needed” for any public purpose or a co. it shall publish a notn. Proviso: when it concerns a dwelling house.following the notn.. an enclosed court or a garden attached to a dwelling house. the entry shall be with the consent of the occupier and after serving a notice of such intention .4) (a). besides giving a public notice to that effect . PRELIMINARY NOTIFICATION: (S. the authorised authority empowered to enter the land. draw its boundaries and carry out such works as to ascertain the suitability and “adaptability” of the land for the purpose . INVESTIGATION • 1.when it appears to govt. (b).. survey the same.A.

St. St. 1974) .1950 (-appropriate govt.1971) . In 1923.: a warning to those interested that the land may be acquired for a public purpose.no requirement of personal service of notice ( Mahal Singh V. 1967) .. St. of Raj. St.Amendments effected to the sn. of Punjab. conditions precedent for entry.)and 1984:.emphasis on publication and wide publicityobject of notn. that they may file objections against it and that the latter should maintain status quo there after(Laxmi Devi v. of Pun.1990) • Compliance of Procedures:.• .publication & notice. of Orissa.noncompliance fatal to the entire acquisition proceedings(-Khub Chand v.Observance of procedures mandatory .the description of the land likely to be acquired to be set out with sufficient precision (-New Ludhiana Industrial Corprn v.

as the petitioner is still entitled to seek an alternative accommodation under the ex-owner category (Sivalinga v. of business (Metro Theatre. Bombay. Guj.31.1988). 2003) -acquisition of business is not in the contemplation of the Act-no power to acquire a running business or any commercial undertaking –such an acquisition is with out the authority of law-govt. -not violative of A. 1978 ). -public purpose wold prevail over individual right to shelter. Guj.Ltd. incidentally.UoI.T.1988) .19(1) & A. just because it had the confiscatory character (Bai Malimabu v. V.N. can not acquire a business and say that it was mainly an acquisition of land and..• CONSTITUTIONAL CHALLENGE: -Not ultra vires the Constitution –non-discriminatory in nature (Ramgir Uttamgir Goswami v.

Banerjee.• Public Purpose: . after notn.1986) -nothing in the Act is against principles of Natural Justice (Gauripada Bandopadhyaya v.making provision for having hospital for crippled children is valid. shopping centres etc. even when the idea came subsequent to notn.Prima facie the appropriate authority is the best judge in deciding about the suitability of land for public purpose.contemplating to provide amenities like.1976) -resettlement of refugees. Lalit Mohan Mullick. hospitals and educational institutions... Commissioner..it means their rehabilitation.S. if it is for a public purpose .(Collector of 24 Paraganas v. Nagpur.WB1953) . can be aspects of rehabilitation –it would suffice. is a public purpose.it is only in the malafide exercise of power that the court can interfere(Mukhtyar Begum v.

C). to assess the situation and satisfy itself Where a huge land is covered. can not complain about the acquisition proceedings on the ground that they are going to be deprived of their source of livelihood-that is a sacrifice by the petitioners for the larger interest of of a larger no.1974 S. V. Kant. of Karnataka.No need to mention specific plots and names of persons. St.) Petitioners who are few in no.1963 All.Ramappa v. in the society who belong to the weaker sections(D.P . 1981.Delhi.1989) .U. and therefore.Gov. bound to vary with the times and the prevailing conditions in a given locality.• - - -public purpose. may have to be utilized for different purposes (Delhi Admn. Aflatoon v. clear mention of the area alone would suffice(Ram Sewak V. Friends Housing Society. it would not be a practical proposition even to attempt a comprehensive definition-govt. it is quite possible that various plots covered by the notn. Lt. it is difficult to insist upon greater precision for specifying public purpose because.

to be more comprehensive and detailed and s. 1962) CHANGE OF PUBLIC PURPOSE :-Slum dwellers for whose benefit land was sought to be acquired refused to move inState Housing Board.1979 S. to be more precise and restricted in terms (Babu Singh v. to effectively object to it in an enquiry u/s.P.former refers to land in a particular locality.C) S.C). the latter contemplates a particular land (Vishnu Prasad Sharma v.. proceeded to allot building sites in the area to the persons belonging to low and middle income groups- .M.6 notn. Illegal(Munshi Singh v.5A.4 notn.UoI. UoI 1973 S.vague PP makes notns.- - Law requires a broad and understandable statement of PP-as this would give an opportunity to those whose lands are proposed to be acquired.

incurable.of U.1964 Mad.held .(Narendrajit Singh v. notn.St. must receive liberal construction.6 notn.)-Govt. St.1988) NOTN.not even by giving full particulars in s.No bar for issue of successive notn.“slum dweller”.Sivaprakasa Mudaliar v.C) .: Defect in notn. to include poor people and those belonging to low income group living in a crowded place in a city.it is equally permissible to locate another public project in the site already acquired (-Guestavo Renato de Cruz Pinto v.Challenged: failure of the intended purpose & no authority of diversion. .P1971 S. meant for a beneficent purpose. Bom. of Madras. of Goa.St.not diversion(S. can change its project to a different site if subsequently it is realized that it could better be located elsewhere.

P 1983) - . mandatory. of Bihar v. Dhirendra Kumar.. made earlier(Ghansham Dass Goyal v. Validity of notns.inordinate delay or non-publication deprives the person interested to file objections –vitiates the entire acquisition proceeding(Chevuru Suryanarayana Reddy v. 1986)-Act a complete code-No power for Civil Courts to qn.36).(St.48): (a) Except in case of Temporary Acquisition of land(-s. P& H.Govt.1996 S.A. to rescind a notn.C)-* Publication of the substance of the notn.COMPLETION OF ACQUISITION NOT COMPULSORY ( S. at .it is always open to the govt.

Collector shall determine the amount of compensation due for the damage suffered by the owner in consequence of the notice/ of any proceedings thereunder.liberty to withdraw from acquisition of any land. and shall pay such amount to the person interested. together with all the costs reasonably incurred by him in the proceedings • (c) Provisions of Part III shall apply in determining the compensation payable . of which possession has not been taken • (b) Upon such withdrawal.

he shall at once refer the dispute to the decn. pay for all necessary damage to be done and in case of dispute as to the sufficiency of the amt.5): Authorised officer shall. of the district and such decn. shall be final .PAYMENT FOR DAMAGE (S. of the Collector or other Chief Revenue offcr. so paid. at the time of entry.• 2.

after hearing all the objections and after making such further inquiry. of the govt. as deemed necessary. for the decn.-decns. containing his recommendations on the objections. he has to make a report to the appropriate govt.B. on objections shall be final. together with the record of the proceedings held by him. .5-A) (a) Person interested may object to the acquisition within 30 days of its publication (b) Every objection shall be made to the collector in writing-Collector shall give the objector an opportunity of being heard. Hearing of Objections (s.

St.2006)-if an objection is filed by an interested person before the publication of Gazetted Notn. of Mysore.: .no obligation to consider the same beyond the stipulated time(Brahman Sahayak Sangh v. to enable the objectors to make suitable representation to the govt.(Kaushalendra Prasad Narain Singh v. 6.St. of Mah.Kangan .v. of Bihar.• New provision introduced in 1923. St.. is not• Objection with in 30 days of Notn.it should treated as valid objection made after the notn.K.condition precedent for issuance of a notn. it should not be treated as premature. also obliged to give information of the despatch of his report.scope for enquiry exists if objections filed with in the stipulated 30 days time.. if the DC’s recommendations are adverse to themomission to impart information.object: opportunity of being heard.1967) • Interested Person:.is a transgression of a mandatory provision – must lead to nullification of the Declaration made u/s.person not recorded as tenant.6 –DC. u/s. subsequently (V.1978) .

A. debars the authorities from taking possession after the lapse of 3 months.P 1962) • o . on the objection either on the basis of collector’s recommendation and report or otherwise ( Sarju Prasad Sahu v.Petitioner to have the opportunity of knowing the answers given by the concerned depts. U.Pondicherry. St. unless an enquiry is held by them before taking such possession • RECOMMENDATIONS & OBJECTIONS: Where the former land acquisition proceedings were dropped after the report was submitted. decided to accept the objections.P Law. had actually recorded a decn.1971).-posting enquiry on the same day the time for filing objections. referred to by the Acquisition officer in his report to the govt.• Enquiry:. unless it is established that the govt.. it can not be said that they were dropped as a result of acceptance of recommendations or because the govt. would not give the required opportunity.T.acquisition proceedings vitiated and liable to be quashed ( Sinnaiyan v. of U.

1953) .Decn. St. it amounts a withdrawl u/s. be made u/s. nor a decln.:-. of U.4(-Mowasi v.48.• Finality of the govt. Is made in favour of the objector. in substance. it would no longer be possible to acquire the plots with out a fresh notn. u/s.P. 6 to the contraryif a decn. decn. once made can not be cancelled or altered.

make declaration to that effect under signature of the concerned Secy. taking umbrage under the provisions for making several declns. or a co. otherwise.4 (-1967 amendment – incorporated to safeguard the interests of owners of land as. that any particular land is needed for a PP. the govt.-different declns.. u/s. upon satisfaction. In respect of a single notn.6: DECLARATION OF INTENDED ACQUISITION (a) Subject to the provisions of Part VII (acquisition for companies). may treat it as a kind of reservoir from which it can from time to time draw out land and . u/s.DECLARATION & NOTICE • 1.4.C. S. . may be made from time to time in respect of different parcels of any land covered by the same notn. after consideration of the Report. the govt.

of T. exclude the period during which any action or proceeding to be taken in its pursuance.Chinnathambi Gounder v. Govt..N.. u/s.4 was made(-K. 1980) -No such decln.( after the commencement of the 1984 amendment). be published. pegged down at the rates that were prevalent when the notn.(-between 1967 and 1984) or after one year of such notn. after the expiry of 3 years of the initial notn. but at the same time keep the owners of land at bay by having the compensation payable for the lands drawn out at successive stages.in computing the period after such notn.make declns. for which a stay has been granted by a Court .

in case any plans are made of the land. the place where such plans could be inspected • (c) The declaration is the conclusive evidence that the land is needed for a public purpose or for a co. no such decln.Further.4. its approximate area and .It should clearly state the district in which the land is situated. and the govt. or out of the public revenues or some funds with a local authority • (b) Publication and public notice of the Declaration shall follow the same procedural requirements of s. the purpose. be made unless the compensation to be awarded is to be paid by a co. may proceed to acquire the same .

there must be some unmistakable manifestation of the intention of the govt.when a Plan is prepared for the land. 1965 S.. M.Shyam Behari v.• -Declaration.C) . Organisation. the acquisition will be for a public purpose . if the other requirements of the law are satisfied(. though insignificant . to pay some compensation from out of the public revenues preceding publication of the Declaration (-Syed Dilawar Hussain v. opportunity for inspection ought to be provided • -where a part of the money .even though the balance portion comprising a substantial portion there of is paid by a pvt. 1955). indicative of satisfaction of the govt. required for acquisition is paid by the govt. that the land is needed for PP. mandatory . Collector of Madras.P.mentioning particulars of the land.

.Govt.T. used for intensive cultivation should be avoided (. Unexplained and inordinate delays which tend to hold claimants at ransom.unexplained delay operates only to the hardship and prejudice of the citizen alone and not to the state which has the power at any time to withdraw from acquisition either by virtue of s. St. wetlans and lands. whose properties are sought to be acquired and are further denied compensation with in a reasonable time.Secy. of Haryana. acquisition of “topes”. especially of small farmers. Social Welfare Dept.Dy.A.Radhey Sham Gupta v.• Bona fides of acquisition: Act visualizes expeditious finalization of acquisition.48 or on the broader provisions of the General Clauses Act (.Subbaiah v.N. would be sharp and pointed pieces of evidence to establish the lack of bona fides for the exercise of power.1982) -if more suitable alternative lands are available.1989) .

• . 1989) • Diversion of land for a PP other than the one stated in the Decln. of Maharashtra. to continue the proceedings for acquisition (-Industrial Dev. how the state uses the excess land is no concern of the original owner and can not be the basis for invalidating the acquisition –Land acquired for village marketMunicipal Council later sold away excess land making them in to separate plots for a housing colony-valid(-Gulam Mustafa V.once the original acquisition is valid and the title gets vested in the State.Ltd..PP specified must be real and continue to subsist..C. as well until the land vests with the govt. there would be no further jdn. 1977) • -The govt. of Mah. St. cannot change the original PP till the acquisition is ..Pvt.if the purpose gets altered or ceases to exist.S. St.and Investment Co.v.

during the period of acquisition. a pvt. Nand Kishore. in the . and circumstances may arise when assistance to that body may attain public welfare and if that be so there is no reason why acquisition for that purpose cannot be made . the govt.expansion of the only school . it cannot change the PP from one to another at its will or fancy as it did in UoI v.Complete. it will put the land. Instn.1982 Del. 1982) • -There might be exceptional circumstances in which the public welfare could be gained by acquiring a person’s land and by giving it to another person .After the land gets vested in it..building Fire Station-Planned development of DelhiConstruction of Staff Quarters..(.A private body may be engaged in a work of public utility. will have the power to change the use to which.Widening of Road in connection with Asiad.

cost of acquisition should.the purpose for which acquisition can be made is necessarily only for a PP. S.is for public benefit and in the general interest of the community(-Mohan Kori v.locality .6.C. V. 2003) . of W. at public expense valid as it corrected the earlier defect (.1974) -Govt. of M. by providing for acquisition. of Guj. where compensation is to be entirely paid by a co. to acquire land for a co.P.C.St.: The wordings “ for a co.St.1980) • Acquisition for a co. come out of public funds (-Pratibha Nema v. has no power to issue a notn. wholly or in part.” do not by themselves create a category of purpose.. S. -issuance of a second notn. for acquisition of land for a PP. for a PP. Bhogilal Keshavlal.B. St. u/s.it is open for the govt.

irrespective of any consideration of the willingness (or otherwise) of the owner to part with his property.• DECLARATION:. Of Bank’s business and the same was challenged.. The Act vests the Local Govt.No requirement under the Act that the acquisition should be for a pmt. with absolute discretion in the matter of acquisition.only land actually declared under this sn.R... All his objections are limited to the amount of compensation and matters connected therewith.L. PP or for a Pmt.(the Act) does not contain any provision for any objection on the part of the owner to the acquisition itself. Or his concern with the question whether the acquisition will be pmt. the ct. 1902) . Secy. Co.” (-Ezra v. had the following observation to make: “ In making the acquisition the wishes of the owner of the land are wholly irrelevant . can be acquired and no other– where the acquisition was made of the land adjacent to the Bank of Bengal for the extn. I. Of St. such as measurement and area.

Should be clear and sufficient to enable an owner of land to know with reasonable effort whether or not and how much of his property is being covered by the Decln. the actual acquisition only comes in later(-Iyer Bader v. St.(-Hareendran v. St. to acquire. Amounts only to a decn. on the part of the govt. 1965) • – Particulars of land given in the decln. of Kerala. 2005 (3)) .• -The Decln. of Madras.

GOVT. THE COLLECTOR SHALL CAUSE THE LAND TO BE MARKED OUT.8: THEREUPON. SHOULD DIRECT COLLECTOR TO TAKE ORDER FOR ACQUISITION OF LAND • 3. MEASURED AND PLANNED .• 2. S. S.7: AFTER DECLN.

9: NOTICE TO PERSONS INTERESTED: • Notice : 2 classes of notice to be issued by DC :i) a general notice on or near the land and ii) a special notice on the occupier and other persons known or believed to be interested • -Must state the particulars of the land needed and must require the persons interested to state their objections to the measurements made and to make claims for compensation. not before lapse of 15 days after the publication of notice • DC may require require the statements to be in writing . to the DC • .• 4.Shall require all such persons to appear personally/ through agent before the DC and make their claims. S. at a time and place mentioned therein.

service on interested parties.Sen v.duty to serve notice on . renders the subsequent proceedings illegal and invalid (-Mani Ram v.No scope for piece-meal acquisition of one holding. one proceeding and one award.K. of Punjab. awarded by the Collector • Mandatory Nature of the Notice: .25 (1) makes it clear that when the applicant has made a claim to compensation the amt.1921) • -Very necessary that the claimants should state the nature of their respective interests in the land as well as the amount and particular claims of compensation-S. awarded to him by the ct.1975). Trustees for the Improvement of Calcutta and the LA Collector .there should be one notice.failure to comply. shall not exceed the amount so claimed or be less than the amt.• And signed by such person • . regarding one holding and one ownership (-R. a must.St.

non-service to others “claiming” an interest in the land can neither make the award void to any extent. Of St. such a person.(-Gungaram Marwari v. would still have a right to challenge the Award by adopting suitable steps for the same(.C. who was so prevented from making a claim or for establishing it.L.like.18. 30 Cal) . I. applying to Ct.Dharwar.R. 1962) • -If the Collector wilfully and perversely refused to give notice to the persons interested.• those who are known or believed to have an interest in the property and the Collector is under no obligation on any other.this is because.Secy. V. his proceedings should be held inoperative in vesting the land in the govt. as to facilitate disposal of that reference on merits(-Hunuikeri Brs.A. by which the latter may direct the Collector to make a reference u/s.

10:Power to require and enforce the making of statements as to names and interests.vested in the Collector .• S.

ENQUIRY & AWARD BY COLLECTOR .11.ENQUIRY & AWARD • S.

13-A : CORRECTION OF CLERICAL ERRORS S.11-A: PERIOD WITHIN WHICH AN AWARD SHALL BE MADE S.15 : MATTERS TO BE CONSIDERED & NEGLECTED • S.13 : ADJOURNMENT OF ENQUIRY S.12: AWARD OF COLLECTOR WHEN TO BE FINAL S.• • • • • S.15-A: POWER TO CALL FOR RECORDS .14: SUMMONING AND ENFORCEMENT OF ATTENDANCE OF WITNESSES & PRODUCTION OF DOCUMENTS • S.

which shall thereupon vest absolutely in the govt. is free to withdraw from acquisition till the Collector actually takes the possession of the land .TAKING POSSESSION • 1.1969)-so long as the possession is not taken the title does not vest in the st. he may take possession of the land ..As under s. Spl.48 the govt.Baroda.. of the award. free from all encumbrances No time limit has been laid down for the Collector to take possession after the decln..the claimant is not expected to keep his land uncultivated till the Collector decides to take possession of it (-Daya prakash Trikambhai v.11. Land ACQUISITION Offcr. 16 :POWER TO TAKE POSSESSION • When the Collector has made an award u/s. S.

17: SPECIAL POWERS IN CASES OF EMERGENCY • (a) In an emergency situation. for the purpose of maintaining any structure or system .. when so directed by the govt.9.. or (ii) when the government considers it necessary to acquire and possess any land immediately. • (b) (i) When there is a sudden change in the channel of any navigable river or other unforeseen emergency compelling the Railway administration to take possession of any land immediately for the maintenance of their traffic etc.• 2. even though no Award has been made . the Collector may take possession of any land with in 15 days of the publication u/s. S. Such land shall thereupon vest in the government free from all encumbrances.

. after s.the Collector may. at the time of taking possession. shall offer compensation to the persons interested for the . take immediate possession of such land. water supply.such a possession of any building cannot be taken by the Collector with out giving the occupier thereof at least forty-eight hours notice of his intention to do so from such building. this is to enable such occupier to remove his movable property with out unnecessary inconvenience (c) The Collector. drainage.pertaining to irrigation..9 notn. road communication or electricity .

the value of such crops and trees and the amount of such other damage shall be allowed fr awarding compensation • (d) Before taking possession. In case such offer is not accepted.31 . the Collector shall tender payment of 80% of the compensation for such land estimated by him to the persons interested entitled thereto and pay it to them/ deposit with the Court in circumstances as provided in S.• standing crops and trees on such lands and for any other damage sustained by them caused by such dispossession.

• (e) The amount so paid/ deposited. 6 may be made any time after the date of publication of the notn. the excess may. the declaration u/s.5-A ( -hearing objections) shall not apply. u/s. may direct that the provisions of S.31 and where this amount exceeds the compensation amount awarded u/s. in the said emergency situation.4 . Whereupon. unless refunded within 3 months from the date of Collector’s Award.11 by the Collector. be recovered as the arrears of land revenue • (f) The government. shall be taken into account for determining the amount of compensation required to be tendered u/s.

of U. St. to direct the Collector • Any land: . requiring objective assessment and review by High Court (-supervisory jdn.twin conditions ought to be satisfied: urgency coupled with the need to possess immediately. 1981).• URGENCY:-It is impossible to state in exhaustive detail all the instances where an emergency exists-the question as to what would constitute an urgency.Discretion of the govt.226 : Thandrala Narasaiah v.Initial burden of proof on the govt. will have to be determined on the facts of each case(-Adarsha Nagar Co-operative Housing Society v.position after 1984 .earlier it referred only to “arable or waste” land .under A.subjective satisfaction of the govt.Pastapurapu Bhadraiah. A. 1973.P).P.

(ii) to the amount of compensation.V. require that the matter be referred by the latter for the the determination of the court. (iii) the persons to whom it is payable or (iv) the apportionment of the amount of compensation among the persons interested • The application shall state the grounds of objection . REFERENCE TO COURT: S.18:• (a) Any person interested who has not accepted the award may. REFERENCE TO COURT & PROCEDURES • A. by written application to the Collector . • The objection may be – (i) to the measurement of the land.

Collector would have no other choice in this regard. if the person making it was present/represented before the Collector at the time when he made his award and (ii) in other cases . whichever period shall first expire first COLLECTOR’S REFERENCE:If the said conditions are fulfilled.• (b) Every such application shall be made. SubCollector.Chintada Kasiviswanadham v. Behrampur. or within 6 months from the date of Collectors’ award.(. (i) within 6 weeks of the Collectors’ award.12(2). within 6 weeks of receipt of notice from the Collector u/s. 1961) . the collector is bound make the reference.

P v.18 & S.but.St.of Punjab.No power given to the Collector to make a reference suo motu u/s.of Punjab. Sri Abdul Karim. of U.• -S. if an application for reference is made after the expiry of the prescribed time. But. the Collector would have the discretion to either refer it to court or not.there is no express provision of law forbidding a reference on a time-barred application(.30 (-Hazara Singh v.St.30.1983) • Reference under S.St.18 contains no provision whatsoever requiring the Collector to make a reference on his own.1971) Both the provisions refer to apportionment of compensation or as to the persons to whom it is payable.under the former. it is upon application within time by person interested who was . 1963)-It is open to the District Judge to go behind the reference and examine its validity (-Sant Singh v.18 . such a power is available to him u/s.

u/s.C)• . . of U.4 and decln u/s.30.U/S. 20 and to pass orders u/s.the initial burden of proving that the award is wrong is always on the claimant-Once the proceedings commence before the ct. St. when a person who has not appeared in the acquisition proceeding before the Collector and/or if he is not served with the notice of the filing.6 are null and void & illegal (-Balram Chandra v. that notn.P.Basically in a reference the award is under challenge.present when the award was made and did not accept the award.26-Reference Court cannot go beyond the reference and give a decln. the Collector may refer the dispute to the Court • -The Court of reference is enjoined to go into the objections raised by the claimants in making enquiry u/s. raises a dispute as to the apportionment or as to the persons to whom it is payable . 1995 S. Collector makes the Reference.

except by agreement of the parties (-Collector.L. 1964. COLLECTOR’S STATEMENT TO THE COURT:. Chaturbhuj Panda.of Raj..D’Silva 1957) .v.To be in the prescribed form.they are not a continuation of the proceedings before the Collector and the earlier record does not form part of the case before the ct. A schedule giving particulars of the notices served and the statements made to the parties be attached to the said statement The reference can only be after the award (-St. Raigarh v. including all that are to be stated in the award u/s11 along with the objections and the grounds on which the amount of compensation was determined.19) .(S.P) B.they are strictly judicial. M.

SERVICE OF NOTICE (S. to the applicant. for its determination on the objection. the Court causes a notice to the served.21)- Scope of enquiry in the proceedings is restricted to a consideration of the interests of the persons affected by . 18 alone has to be determined by the court • D. RESTRICTION ON SCOPE OF THE PROCEEDINGS (S.• C. for appearance before it. all the persons interested in the objection (. if the objection is with regard to the area of land or to the amount of compensation • The objection u/s.except those who have consented with out protest to receive payment of compensation awarded) and to the collector.20): After the Collector’s reference. on a day fixed by it.

u/s. from appearing on the reference to the court E. DETERMINATION OF COMPENSATION: (a) MATTERS TO BE CONSIDERED(S. which ever is earlier.. on the ground that he had not appeared before the collector.in every case.4 notn.:(i) Market value of the land at the date publication s.the objection.18 • A person interested is not debarred.6 in no.in addition. the court shall award 12% p.23):. whether he received notice from the collector or not. . PROCEEDINGS TO BE IN THE OPEN COURT (S.a to such market value up to the date of award or the date of taking possession.22) F.

the court shall award another 30% on such market value in consideration of the compulsory nature of acquisition (Solatium) (ii) Damage sustained by the person interested for the loss any standing crops/trees on the land. by reason of acquisition injuriously affecting his other movable or immovable property. in any other manner. or his earnings . at the time of taking possession by the Collector (iii) Damage sustained by the person interested. by reason of severing such land from his other land (iv) Damage sustained by the person interested at the time of collector’s taking possession of land. at the time of collector’s taking possession of the land.

shall be excluded (b) MATTERS TO BE NEGLECTED (S.(v) reasonable expenses incidental to changing of residence or business by the interested person. u/s.6 and taking possession by the collector *While computing the period under this provision.24): 8 in no.:- . resulting from diminution of profits of the land between the time of publication of decln. the period during which the proceedings for acquisition was held up . as a consequence of acquisition (vi) Bona fide damage. if compelled to do so .on account of stay or injunction of a court.

(i) (ii) Degree of urgency that had led to the acquisition Any disinclination on the part of the person interested to part with the land (iii) Any damage sustained by him which.6. would not render such person liable to a suit (iv) Any damage likely to be caused to the land acquired after the date of publication of the decln. if caused by a pvt. Person. u/s. by or in consequence of the use to which it will be put (v) Any increase in value to the land acquired that is likely to accrue from the use to which it will be put after acquisition .

the land acquired commenced.4 notn. . or disposal of .or (viii) Any increase in value to the land on account of its being part to any use which is forbidden by law or opposed to public policy . made or effected with out the sanction of the collector after the the publication of S.(vi) Any increase in value to the other land of the person interested likely to accrue from the use to which the land acquired will be put (vii) Any outlay or improvements on.

of Delhi. checks and verifies their meticulous observance by the Collector • -Limit the liberty & scope of enquiry by the ct.C.C) • Compensation: 3 methods of valuation are to be adopted in determining the compensation : capitalization (-the method used to convert future benefits to present value by discounting such future benefits at an appropriate rate of return. • Constitutional Challenge: .since Ss. Chief Commissioner.23 & 24 do not deal with procedures and so not open to this challenge (R. 1974 S. 1975.1970..These are exactly the aspects that guide the collector (-s. that would include an opportunity to be heard. Ratni Devi v. in determining compensation.COOPER v.15) and the ct. Gov. Lt.a process .• .Deal with matters to be considered/not considered by the ct.19(5)). in a way.S.C.Acquisition of property ought to pass the test of procedural reasonableness (A. Aflatoon v. UOI.

). valuation by experts and valuation of similar lands with reference to the sales effected at or about the date of the s..determination of the reasonable rate of return in respect of investment in various types of properties.Constitutional cases . is the most crucial aspect of the exercise.“reasonable” and “just” compensation“amount” etc. of precision . 1984.4 notn. Veerabhadrappa. (-Spl.C)compensation payable to the owner of the land is the market value which is determined by reference to the price which a seller might reasonably expect to obtain from a willing purchaser. v.of converting the net income of a property into its equivalent capital value-rate of return tat an ordinary investor would ordinarily get on his investment. but this may not be possible to ascertain with any amt. having due regard to all relevant circumstances. S.. P. Land Acquisition Offcr. the authority charged with the duty to award compensation is bound to make an estimate judged by an objective std.

ought not to be conjectural. but also its value in relation to further posiibilities (Collector. 1965 H.MV does not merely mean.fair market-value exclusive of solatiumordinarily.Offcr.determination on future possibilities and not on its realised possibilities. but should reasonably be based on normal busines principles (-Revenue Divnl.the amt.P)such future utility which an owner of land can take advantage of . is the price the property may fetch in the open market if sold by a willing seller unaffected by the special needs of a particular purchase. A comparable instance ought to be identified having regard to the proximity from time angle as well as proximity from situation angle.. Bilaspur v.Lachhman. the value which the land has on a/c of the manner in which it is actually being used for the time being.• Market Value(MV):. of compensation cannot be ascertained with mathematical accuracy. .

1967.it is part of the amt. Mad.When the acquisition is not of a compulsory nature like. Eastern Rly..). NOT TO BE LOWER THAN AWARDED BY COLLECTOR (S. St.B. 1978.• Chidambaram v. AMOUNT OF COMPENSATION . Guj. Spl.no discretion is left to the deciding authority as regards the quantum of solatium to be awarded. between the owner of the land and the govt. of W. of compensation to be awarded (-Chandulal Pitamberdas . .. no obligation exists to the pay the addl.27): • I. Form of Wards (s. Damodara Mudaliar.) • Solatium:-A statutory right in addition to compensation which an objector can claim for the compulsory acquisition of his land. when it is on the basis of an agrmt. Costs (s. Land Acquisition Offcr.26): • H. Sum (-Lily Ghosh v.25) . 1979) • G.

from the . St.Amendment of the claim made in claim petition.28: @ 9% P..(i) When the applicant has made a claim.• . the amt. awarded by the collector. not barred (Bikram Singh v.A. awarded shall not be less than.(ii) When the applicant has refused to make a claim or omitted to do so with out sufficient reason. nor be less than the amt. the amt. awarded . . awarded by the Collector. the amt. and may exceed.1984) J. . the amt. awarded shall never exceed the amt. by the collector .COLLECTOR MAY BE DIRECTED TO PAY INTEREST ON EXCESS COMPENSATION -S. of Punjab. awarded shall not exceed the claim amt.(iii) When the judge thinks there was sufficient reason for such omission.

determined by the collector. the ct. through an award. may direct payment of interest @ 15%. RE-DETERMINATION OF THE AMT. in excess of the amt.28-A: (i) Upon the determination of compensation amount by the ct. the persons interested in all the other land covered by the same notn.date on which he took possession of the land to the date of payment of such excess into court – if such payment is made beyond one year of taking possession. notwithstanding . and who are also aggrieved by the collectors’ award may. on that amount from the expiry of the said period of 1 year K. OF COMPENSATION ON THE BASIS OF THE AWARD OF THE COURT -S.

(ii) On receipt of such an appln. by written appln. after conducting the necessary enquiries. . may apply to the collector for making a reference to the ct. starting with s. make an award determining the compensation amt. where by the process of ref.. (iii) Any person who has not accepted such an award. to the collector with in 3 months of the award by the ct.that they had not applied for reference earlier.. the collector shall .18 get applied . of compensation be redetermined on the basis of the amt. of compensation awarded by the ct. require that the amt.

in the first place.• .(-UoI v. with the sole object of giving the same benefits to the poor people who by reason of their poverty and ignorance have failed to take advantage of the rt. on the touch stone of A. 2006 Jhar.Provision inserted in 1984.Hansoli Devi 2002. awarded by the collector .It is not material whether the petitioner received the amt. APPORTIONMENT OF COMPENSATION (a) S.14 of the Constn.) • .with or with out protest. Of ref.S. the particulars of apportionment shall be specified in the award. As between such persons the award shall be conclusive evidence of the correctness of the apportionment . 18 (-Raghu Sao UoI.C) • L. u/s.28-A has been inserted.29: Upon an agreement of the several persons interested.S.

.the dispute need not be limited to the persons to whom the compensation is payable .The DC can either himself decide the question of apportionment or.Reference here.• (b) S. if any dispute arises as to the apportionment of the same. the collector may refer such dispute to the decision of the court .No bar for a new person not previously appearing before the collector to apply for any reference.11. is subject to the discretion of the Collectorreference can also be suo motu if there exists a dispute and not necessarily because the parties have asked for it . in the alternative refer it to the ct.30: When the amount of compensation has been settled u/s.

Mohan Lal.under the award.the collector may refer the dispute raised by any person other than those mentioned as persons interested in his award ( Ka Kriksibon Kharkongor v. 1986. a pre-condition for reference • EXAMINE: (i)-The collector is not authorised to decide finally conflicting rights of the persons interested in the amt.1981 Gau. of compensation.C. The award is conclusive between the collector and the persons interested ( -Gaffar Masih v.D.) • -Existence of a dispute.the scheme of apportionment by the collector does not finally determine the rights of the persons interested in the amt. Kash. of compensation. Khasi Hills.) .

• (ii) Where the collector has made an award u/s 11 of the Act and before payment has been made. for the determination of that claim .. if a new person.H. of Bihar v. or on the qn.It presupposes inability on the part of the collector to give a decn.&K) . will be competent to decide the question between them(-St.Amarnath. G. 30 can be made only before the award is made.J. 1959 Pat. and the ct. Of apportionment of the compensation settled by him.Custodian Evacuee Property v. to which the reference is made. not previously appearing before him appears then he can make a reference to the ct. of the title to its claimant to receive the same (.Grant. 1981.) • (iii) Reference u/s. on the qn.

18 ( –there can be receipt of payment under protest as to the sufficiency of amt.collector to deposit the amount in the ct.31): 1.VI. .31-34) • A. of reference u/s. etc.) 3. The Collector. instead of paying compensation may. enter into any arrangement with a person having limited interest. PAYMENT (Ss. PAYMENT/DEPOSIT(S. grant other lands in exchange or remission of land revenue in other lands held under the same title. that may include. Absence of consent to receive/ absence of person to make a valid alienation/dispute as to title to receive compensation/or apportionment of it. Collector to make payment to persons interested consequent to award 2.

for any cause other than the one mentioned in s. on an application of the interested party. the ct. S.B.32: In the case of money deposited in respect of the lands belonging to persons incompetent to alienate. order the same be invested in such govt.33:When any money is deposited in the ct. C. to invest it in such securities as it deems fit and enable such persons to derive benefits accruing there from. the court shall order that the money be invested in the purchase of other lands held under similar circumstances or when such a purchase was not possible. may. S.33. . or other approved securities as deemed fit by it.

S.delay by over an year. the collector shall pay interest @9%p.• D.a from the time of taking possession to actual payment. enhances the interest to 15% ..34: Where the amount of such compensation is paid/deposited on /before taking possession.

– the collector shall there upon give notice in writing to the persons interested about the same and pay such compensation. 2.. as shall be agreed upon between him and the interested parties and 3. may direct the Collector to procure the occupation and use of the same. S. the collector shall refer the difference to the decn. for such purpose and period as it deems fit but not exceeding 3 years.. 1.the govt.TEMPORARY OCCUPATION(Ss.35: TEMPY. for a public purpose/co. Of the ct. in the event of a difference between them as to the sufficiency of compensation/ apportionment thereof.VII.35-37) • A. . OCCUPATION OF WASTE/ ARABLE LAND.

36:Collector’s power to take possession. and upon expiration of the term . • C. -Collector has also the obligation to pay compensation for the damage done to the land that is not provided for in the agreement. S.• B. obligation to restore to the person interested.S. shall proceed to acquire the land as if it was needed permanently for a public purpose or for a co.if the land becomes permanently unfit to be used for the purpose for which it was used immediately before acquisition and if the person interested so requires then the govt.37: In case the collector and persons interested differ as to the condition of the land at the expiration of the term or as to any matter connected with the said .

• Agreement, the colector shall refer such difference to the decn. Of the ct.

VIII. ACQUISTION FOR COMPANIES Ss.38A-44B
• A.S.38A: INDUSTIAL CONCERNS SHALL BE DEEMED TO BE A COMPANY , when such an entity employs at least one hundred workmen , desires to acquire land for erection of dwelling houses for its workmen or for provision of amenities directly connected therewith • B.S.39: WITHOUT THE PREVIOUS CONSENT OF THE GOVT. AND EXECUTION OF AN AGREEMENT WITH IT NO LAND CAN BE ACQUIRED FOR A CO. UNDER THIS ACT • C.S.40: CONSENT OF THE GOVT. SHALL NOT BE GIVEN UNLESS IT IS SATISFIED, EITHER ON A REPORT BY COLLECTOR U/S.5A OR BY AN

• HELD BY AN OFFICER APPOINTED FOR THE PURPOSE, THAT THE PURPOSE OF ACQUISITION IS (i)FOR ERECTION OF DWELLING HOUSES FOR WORKMEN EMPLOYED BY THE CO. OR (ii) FOR CONSTRUCTION OF SOME BUILDING OR WORK FOR A CO. ENGAGED IN AN ACTIVITY FOR A PUBLIC PURPOSE OR (iii)THAT WHICH IS USEFUL TO THE PUBLIC • D. AGREEMENT: AFTER GETTING SO SATISFIED AS ABOVE, THE GOVT. SHALL REQUIRE THE CO. TO ENTER INTO AN AGREEMENT WITH IT FOR,(i) PAY - OF THE COST OF ACQUISITION ,(ii) TRANSFER OF

.OF THE GOVT. .39-42 SHALL NOT APPLY • S.43: WHEN THE SECY.(iii)TERMS ON WHICH THE LAND SHALL BE HELD BY THE CO.(iv) AND FOR THE PURPOSES STATED IN S. CANNOT TRANSFER THE SAID LAND EXCEPT WITH THE PREVIOUS SANCTION OF GOVT.. SHALL BE PUBLISHED IN THE OFFICIAL GAZETTE(S.• SUCH LAND ON PAYMENT TO THE CO. TO PROVIDE LAND TO RAILWAYS OR OTHER CO.44A: SUCH CO.42) • S.(aa) and (b) • SUCH AGRMTS. Ss. WAS BOUND BY AN AGRMT.40 (a).

Cos.44B : LAND NOT TO BE ACQUIRED UNDER THIS PART EXCEPT FOR CERTAIN PURPOSES FOR PVT. . OTHER THAN GOVT. Cos.• S.

C .IX.54: APPEALS. u/s 36).H. MISCELLANEOUS • S.49:ACQUISITION OF PART OF HOUSE / BUILDING • S. BUT COMPENSATION TO BE AWARDED WHEN NOT COMPLETED • S.48: COMPLETION OF ACQUISITION NOT COMPULSORY (-except.