Court Orders Recalculation of Compensation Under 2013 Act to Ensure Fair Treatment to Landowners
The Allahabad High Court, in a landmark decision, ruled that land acquisition proceedings initiated under the repealed Land Acquisition Act, 1894, after its nullification on January 1, 2014, are void ab initio. The Division Bench, comprising Justices Rajan Roy and Manjive Shukla, delivered the judgment in the case of Lohia Developers (India) Pvt. Ltd. v. State of U.P., emphasizing the necessity for determining compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
The case revolved around the acquisition of land belonging to Lohia Developers, where the notification under the old Act was issued post its repeal, thereby rendering the proceedings legally invalid. The court observed that the statutory procedure for land acquisition mandates the initiation of proceedings through a notification under Section 4(1) of the Act, which, if undertaken post-repeal, holds no legal standing.
The bench highlighted that any notification or public notice published under the repealed Act after January 1, 2014, lacks legal validity, as the Act was no longer in effect. This decision is a significant assertion of the rights of landowners, ensuring they receive just compensation as per the provisions of the 2013 Act, which is more beneficial and fairer in terms of compensation.
Despite the procedural nullity identified, the court took a balanced approach by not quashing the entire acquisition proceedings outright. Recognizing the public interest involved in the development project — the construction of a 45-meter wide road — the court instead directed the respondents to recalculate the compensation based on current rates under the 2013 Act. This recalculation aims to rectify the violation of the petitioner’s rights under Article 14 and 300A of the Indian Constitution.
The court's decision underscores the importance of adhering to current legislation and ensuring that landowners are not deprived of their rightful compensation due to administrative oversights or procedural errors. The ruling mandates that no possession of the land shall be taken until the recalculated compensation is paid, with the entire process to be completed within six months.
This judgment not only sets a precedent for similar cases but also reinforces the legislative intent behind the 2013 Act, focusing on transparency and fairness in land acquisition processes.
Bottom line:-
Land acquisition proceedings initiated under the Land Acquisition Act, 1894 after its repeal on 01.01.2014 by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 are void ab initio. Compensation must be determined under the 2013 Act.
Statutory provision(s): Land Acquisition Act, 1894 Sections 4(1), 6; Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Sections 24, 114; General Clauses Act, 1897 Section 6; Constitution of India Articles 14, 300A
