The Supreme Court on Monday addressed questions relating to compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, in a long-pending land acquisition dispute dating back to 2004.
The case arose from acquisition proceedings initiated under the Land Acquisition Act, 1894, where urgency provisions under Section 17 had been invoked. The High Court had found infirmities in the invocation of urgency and, while saving the larger development project in public interest, directed that landowners be compensated under the 2013 Act, taking 1 January 2014 as the relevant date for determining market value.
Before the Supreme Court, landowners argued that the High Court’s approach was flawed and that equities ought to have been adjusted by preserving certain residential and developed properties instead of resorting solely to “high monetisation.” It was contended that the principle of proportionality required the adoption of the least restrictive method, particularly where residential buildings and institutions were already functioning on the acquired land.
The State, however, submitted that once land is acquired for a public purpose, individual claims must yield to the larger development plan. It was submitted that the High Court had correctly balanced public interest with private rights by enhancing compensation rather than invalidating the acquisition altogether.
Taking note of prolonged litigation surrounding Section 24 of the 2013 Act and the uncertainty that prevailed until the Constitution Bench judgment in Indore Development Authority (2019), the Bench of Chief Justice of India, Justice Surya Kant, and Justice Joymalya Bagchi revisited the appropriate cut-off date for compensation. Invoking its powers under Article 142 of the Constitution, the Court held:
“We are of the view that the description of the cut-off date for the purpose of determining compensation under the 2013 Act deserves to be revisited.”
Invoking Article 142, the Court modified the High Court’s approach and issued the following directions:
1. Compensation for the acquired land shall be determined as on 1 January 2020 under the 2013 Act.
2. The evolved cut-off date shall not create a fresh cause of action for landowners whose compensation matters have already attained finality.
3. The acquisition itself stands preserved in public interest; only the compensation component stands recalibrated.
4. In view of the significant financial implications, the State authorities are granted an extended period of six months to take a final call and implement the directions.
5. If the authorities fail to act within the extended period, the appellants are at liberty to seek revival of the issue before the Court.
Appearances
Sr Adv Aman Lekhi
Sr Adv Arijit Prasad