JUDGEMENT
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(1.) I had the advantage of reading the well-written judgment
of my learned brother, A.K. Ganguly, J. Regretfully but
respectfully, I am unable to persuade myself to concur with
the findings recorded and the exposition of law expressed by
my learned brother. In order to discernly state the reasons for
my expressing a contrary view and dismissing the appeals of
the appellants on merits, it has become necessary for me to
state the facts as well as the law in some detail. It has been
necessitated for the reason that complete facts, as they appear
from the record and the facts which were brought to the notice
of the Court during the course of hearing by the respondents,
supported by the official records, duly maintained by them in
normal course of their business, have not, in their entirety,
and correctly been noticed in the judgment. I am also of the
considered view that, in fact, the questions framed
(particularly question 'D') in the judgment by my learned
brother neither so comprehensively arise in the facts and
circumstances of the present case nor were argued in that
manner and to that extent before the Court. Be that as it
may, I consider it necessary to restate the facts, deal with
different legal aspects of the case and then record the
conclusions which would even provide answers to the
questions framed by my learned brother at the very beginning
of his judgment. Before I proceed to do so, let me briefly but,
inter alia, state the reasons for my taking a view contrary to
the one recorded in the judgment of my learned brother:
I. I have already stated that complete and correct facts,
in their entirety, as they emerge from the records
produced before the Court (including the trial court
record) as well as the documents referred to during
the course of arguments by the respondents have not
been correctly noticed. The records referred to have
been maintained by the authorities in the normal
course of their business and their authenticity can
hardly be questioned. These documents have been
executed inter se various institutions/departments,
including the Collector's office, who discharges quasi-
judicial functions under the Act.
II. The judgment of this court in the case of Satendra Prasad Jain & Ors. v. State of U.P. & Ors., 1993 AIR(SC) 2517, in my humble view,
cannot be ignored and the principle stated therein
cannot be avoided on the ground that the judgment
was sub silentio. This I say so, for the reason that it
is not a decision in which the point was not raised,
argued and perceived by the Court. On the contrary,
the issue in relation to the consequences of non-
payment flowing from Section 17(3A) of the Land
Acquisition Act (for short, the 'Act') was specifically
noticed by the three-Judge Bench in paragraph 11 of
the judgment. It was discussed in some detail and a
definite finding was recorded thereby bringing the
judgment well within the dimensions of good
precedent. Thus, I, with respect, would prefer to
follow the larger Bench judgment rather than ignoring
the same for the reasons stated by my learned brother
in his judgment do not apply in the facts of the
present case.
III. The ratio decidendi of the judgment of this Court in
the case of Satendra Prasad Jain (supra) is squarely
applicable to the present case, on facts and law.
IV. It has not been correctly noticed in the judgment
that 80 per cent of due compensation, which even the
appellants did not dispute during the course of
hearing, had not been tendered or paid to the
claimants, as contemplated under Section 17(3A) of
the Act. From the facts recorded hereinafter, it is
clear that within the prescribed period, the payments
were deposited with the State office of the
Collector/competent authority and it was for the State
to distribute the money in accordance with the
provisions of the Act. It is not only the scheme of the
Act but also an established practice that the amounts
are disbursed by the Collector to the claimants and
not directly by the beneficiary, for whose benefit the
land had been acquired. The beneficiary had
discharged its obligation by depositing, in fact, in
excess of 80 per cent of due compensation with the
competent authority. De hors the approach that one
may adopt in regard to the interpretation of Section
17(3A), on facts the notification is incapable of being
invalidated for non-compliance of the said Section.
V. The doctrine of strict construction does not per se
mandate that its application excludes the
simultaneous application of all other principles of
interpretation. It is permissible in law to apply the
rule of strict construction while reading the provisions
of law contextually or even purposively. The golden
rule of interpretation is the rule of plain language,
while preferring the interpretation which furthers the
cause of the Statute rather than that which defeats
the objects or purposes of the Act.
VI. Non-providing of consequences under Section
17(3A) of the Act, in contradistinction to Sections 6
and 11 of the same Act, in my considered view is
largely the determinative test for proper and judicious
interpretation of Section 17(3A).
VII. The judgment by my learned brother does not
consider the judgments of the Constitution Bench,
the larger Bench and even the equi-Bench, which
have to some extent a direct bearing on the matters in
issue before us. In this regard, reference can be made
to the Constitution Bench judgment of this Court in
the case of Offshore Holdings Pvt. Ltd. v. Bangalore Development Authority & Ors., 2011 3 SCC 139, the
three-Judge Bench judgment in the case of Tika Ram & Ors. v. State of U.P. & Ors., 2009 10 SCC 689 and
particularly the judgment of another equi-Bench of
this Court in the case of Banda Development Authority, Banda v. Moti Lal Agarwal & Ors., 2011 5 Scale 173], to which my learned brother (Ganguly,
J.) was a member. The latter case, inter alia, dealt
with a question of lapsing of proceedings under
Section 11A on the ground that the possession of the
property had not been taken as required under that
provision. While rejecting such a contention in that
case, the Court observed that if the beneficiary of the
acquisition is an agency or instrumentality of the
State 80 per cent of the total compensation is
deposited in terms of Section 17(3A) and substantial
portion of the acquired land has been utilized in
furtherance of the particular public purpose, it could
reasonably be presumed that the possession of the
acquired land had been irrevocably taken. The Court
then held that relief to the appellants (like the
appellants in the present case) of invalidating the
acquisition proceedings and restoring the land could
not be granted.
VIII. The 44th Constitutional Amendment, on the one
hand, omitted Article 19(1)(f) and Article 31 while
introducing Articles 31A and 300A to the Constitution
of India on the other. Right to property was deleted
as a fundamental right in the Constitution. Thus,
this right cannot be placed on equi terms,
interpretatively or otherwise, to the pre-constitutional
amendments. The right to eminent domain would
operate on a different sphere, interpretation and
effect, pre and post constitutional repealments of
these Articles and introduction of Article 300A of the
Constitution. Even on this aspect, I respectfully
disagree with the conclusions recorded by my learned
brother (Ganguly, J.).
FACTS:
(2.) Appellant No.1 is a company duly incorporated under the
provisions of the Indian Companies Act, 1956 and is alleged to
be the owner of the land sought to be acquired by the
respondents. The land of the appellant, admeasuring about 2-
06-1/3-0 Bighas situated in Village Haldauni, Tehsil and
Pargana Dadri, District Gautam Budh Nagar, which is an
abadi land, was sought to be acquired by the appropriate
Government under a notification dated 17th April, 2002 issued
under Section 4(1) read with Sections 17(1) and 17(4) of the
Act. This land was acquired for the planned industrial
development in District Gautam Budh Nagar through the New
Okhla Industrial Development Authority (NOIDA). The
notification also stated that the provisions of Section 5A of the
Act shall not apply. In pursuance to the said notification, a
declaration under Section 6 of the Act was published on 22nd
August, 2002, declaring the area which was required by the
Government. It also stated that after expiry of 15 days from
the date of the publication of the notification possession of the
acquired land shall be taken under sub-section (1) of Section 9
of the Act. The appellants have alleged that they did not
receive any notice under Section 9(1) of the Act but possession
of the land was nevertheless taken on 4th February, 2003.
According to the appellants, even after lapse of more than
three and a half years after publication of declaration under
Section 6 of the Act, the award had not been made and
published.
The appellants also alleged in the petition that, despite
inordinate delay, they were neither paid 80 per cent of the
estimated compensation in terms of Section 17(3A) of the Act
at the time of taking of possession, nor had the Collector
passed an award within two years of making the declaration
under Section 17(1), as required by Section 11A of the Act. It
was the case of the appellants in the writ petition that this has
the effect of vitiating the entire acquisition proceedings. Non-
payment of the compensation and conduct of the Government
compelled the petitioners to file a writ petition in the High
Court of Allahabad praying for issuance of an order or
direction in the nature of certiorari or any other writ, not to
create any encumbrance or interest on the land of the
petitioners. Further, they prayed that the acquisition
proceedings, in so far as they relate to the land of the
petitioner, be declared void ab initio and that the respondents
be directed to return the land from the possession of the
Government to the owners. Lastly, the petitioners prayed that
the respondents/Government be directed to pay damages for
use and occupation of the land.
To this writ petition, the respondents had filed a counter
affidavit in the High Court, denying that the acquired land was
in fact a part of the abadi land. The respondent-authority has
also stated that 80 per cent compensation in terms of Section
17(3A) of the Act had been deposited with the authorities. The
land had been acquired for planned development of NOIDA
and was in the physical possession of the said authority.
Possession of the land had been taken on 4th February, 2003
and no right had survived in favour of the petitioners as the
land vested in the Government.
The High Court, vide its judgment dated 28th August,
2006, dismissed the writ petition. The High Court relied upon
the judgment of this Court in the case of Satendra Prasad Jain
(supra) and dismissed the petition holding that the provisions
of Section 11A of the Act are not attracted to proceedings for
acquisition taken by the Government under Section 17 of the
Act. However, liberty was granted to the petitioners to pray for
grant of appropriate compensation in accordance with law
before the competent forum.
Aggrieved by the said order of the High Court, the
appellants have filed the present appeal impugning the
judgment dated 28th August, 2006.
(3.) In the counter affidavit filed by respondent No.2 before
this Court, the submissions made before the High Court have
been reiterated with an additional fact that the sector in
question was designated as industrial area and after the
development activity was completed, allotment has been made
and possession of these industrial plots has also been handed
over to such entrepreneurs/allottees. This land falls under
Sector 88 of the NOIDA City. The rest of the allegations made
in the writ petition, except the dates in question, have been
disputed.
It has also been stated at the Bar, on the basis of the
record maintained in regular course of its business by the
respondent-authority, that 10 per cent of the estimated
compensation was deposited by the Authority with the State
Government even prior to the date of the notification under
Section 4(1) read with Section 17(4) of the Act, issued by the
Government, i.e., 17th April, 2002. The remaining 70 per cent
of the estimated compensation had allegedly been deposited
vide cheque dated 8/14th July, 2002 amounting to
approximately '6,66,00,000/-. As such, there is complete
compliance with the provisions of Section 17(3A) of the Act by
the authority concerned. The Award was made on 9th June,
2008, which has been accepted by a large number of owners,
i.e., 97.6 per cent of all owners. Some of these facts have also
been averred in the counter affidavit filed before the High
Court. ;