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Friday, June 15, 2012

The appellant purchased 8 Kanals 4 Marlas land in village Jatheri, District Sonepat in 1984 and is cultivating the same. He claims to have constructed a boundary wall and is growing different crops. His land is surrounded by agricultural fields, factories and residential houses. In the south of his land, there is a canal and a school. 7. By Notification dated 22.6.2006 issued under Section 4(1) of the Act, the Government of Haryana proposed the acquisition of 3813 Kanals 17 Marlas (476 Acres 5 Kanals 17 Marlas) land situated at villages Badhmalik, Badkhalsa, Jatheri, Liwan, Pritampura and Rai, Tehsil and District Sonepat for the development of 3 Industrial Sector 38, Sonepat. The appellant filed objections under Section 5A(1) and pleaded that his land may not be acquired because the same was being used for agricultural purposes and was the only source of income for his family. The other landowners also submitted their respective objections. District Revenue Officer-cum- Land Acquisition Collector, Sonepat (for short, ‘the Land Acquisition Collector’) is said to have heard the objectors on 29.10.2006 and made recommendations for the acquisition of some parcels of land and for release of some other parcels of land specified in Notification dated 22.6.2006. Thereafter, the State Government issued declaration under Section 6 (1), which was notified on 20.6.2007 for the acquisition of 216 Acres 7 Kanals and 11 Marlas land. As a sequel to this, the Land Acquisition Collector passed award dated 28.11.2008. 8. The appellant challenged the acquisition of his land in Writ Petition No.8441 of 2009 on several grounds including the following: (i) that the notification issued under Section 4(1) had not been published as per the requirement of the statute, (ii) that he was not given opportunity of hearing in terms of Section 5A(2), (iii) that land of large number of persons had been excluded from acquisition at the stage of Section 6 declaration but his land was not released and, in this manner, he had been discriminated, (iv) that there was no justification to acquire his land, which was the only source of livelihood for him and his family, (v) that he was not served with notice in terms of Section 9 (3), and 4 (vi) that the declaration issued under Section 6(1) was not published as per the requirement of Section 6(3). 9. In the written statement filed on behalf of the respondents, it was averred that the notifications issued under Sections 4(1) and 6(1) were duly published; that the appellant was given opportunity of personal hearing and that after issue of declaration under Section 6(1), the Land Acquisition Collector passed the award. It was further averred that possession of the acquired land had been taken and delivered to Haryana State Industrial Infrastructure Development Corporation (HSIIDC) on 28.11.2008. 10. The appellant filed rejoinder affidavit and reiterated that the notifications issued under Sections 4(1) and 6(1) had not been duly published; that he was not given opportunity of hearing by the Land Acquisition Collector; that notice had not been served upon him as per the mandate of Section 9(3). He also pleaded that possession of land was still with him and the paper possession taken by the respondents was inconsequential. in recent past, various State Governments and their functionaries have adopted very casual approach in dealing with matters relating to the acquisition of land in general and the rural areas in particular and in a large number of cases, the notifications issued under Sections 4(1) and 6(1) with or without the aid of Section 17 and the consequential actions have 19 been nullified by the Courts on the ground of violation of the mandatory procedure and the rules of natural justice. The disposal of cases filed by the landowners and others take some time and the resultant delay has great adverse impact on implementation of the projects of public importance. Of course, the delay in deciding such cases may not be of much significance when the State and its agencies want to confer benefit upon private parties by acquiring land in the name of public purpose. It if difficult, if not impossible, to appreciate as to why the State and its instrumentalities resort to massive acquisition of land and that too without complying with the mandate of the statute. As noted by the National Commission on Farmers, the acquisition of agricultural land in the name of planned development or industrial growth would seriously affect the availability of food in future. After independence, the administrative apparatus of the State has not spent enough investment in the rural areas and those who have been doing agriculture have not been educated and empowered to adopt alternative sources of livelihood. If land of such persons is acquired, not only the current but the future generations are ruined and this is one of the reasons why the farmers who are deprived of their holdings commit suicide. It also appears that the concerned authorities are totally unmindful of the plight of those sections of the society, who are deprived of their only asset like small house, small industrial unit etc. They do not realise that having one’s own house is a lifetime dream of majority of population of this country. Economically affluent class of society can easily afford to have one or more houses at any place or locality in the country but other sections of the society find it extremely difficult to purchase land and construct house. Majority of people spend their lifetime savings for building a 20 small house so that their families may be able to live with a semblance of dignity. Therefore, it is wholly unjust, arbitrary and unreasonable to deprive such persons of their houses by way of the acquisition of land in the name of development of infrastructure or industrialisation. Similarly, some people set up small industrial unit after seeking permission from the competent authority. They do so with the hope of generating additional income for their family. If the land on which small units are established is acquired, their hopes are shattered. Therefore, before acquiring private land the State and/or its agencies/instrumentalities should, as far as possible, use land belonging to the State for the specified public purposes. If the acquisition of private land becomes absolutely necessary, then too, the concerned authorities must strictly comply with the relevant statutory provisions and the rules of natural justice. 27. In the result, the appeals are allowed. The impugned orders are set aside. As a corollary to this, the writ petition filed by the appellant is allowed and the acquisition of his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from the respondents. ………………….………………J. (G.S. Singhvi) ….……………….…………………J. (Sudhansu Jyoti Mukhopadhaya) New Delhi, November 23, 2011. ITEM NO.1A COURT NO.6 SECTION IVB S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeals Nos……./2011 @ Petition(s) for Special Leave to Appeal (Civil) No(s).12042- 12043/2011 21 (From the judgement and order(s) dated 17/05/2010 in CWP No.8441/2009 and order dated 19/11/2010 in RA No.321/2010 in CWP No.8441/2009 of The HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH) RAGHBIR SINGH SEHRAWAT Petitioner(s) VERSUS STATE OF HARYANA & ORS. Respondent(s) [HEARD BY HON'BLE G.S.SINGHVI AND HON'BLE SUDHANSU JYOTI MUKHOPADHAYA, JJ.] Date: 23/11/2011 These Petitions were called on for Judgment today. For Petitioner(s) Dr. Kailash Chand,Adv.(Not present) For Respondent(s) Mr. Ravindra Bana,Adv. Nos.1 to 3 Hon’ble Mr. Justice G.S. Singhvi pronounced the judgment of the Bench comprising His Lordship and Hon’ble Mr.Justice Sudhansu Jyoti Mukhopadhaya. Delay condoned. Leave granted. For the reasons recorded in the Reportable Judgment which is placed on the file, the appeals are allowed. The impugned orders are set aside. As a corollary to this, the writ petition filed by the appellant is allowed and the acquisition of his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from the respondents. (Parveen Kr. Chawla) Court Master (Phoolan Wati Arora) Court Master [Signed Reportable judgment is placed on the file]


1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 10080-10081 OF 2011
(Arising out of SLP(C) Nos. 12042-12043 of 2011)
Raghbir Singh Sehrawat ..Appellant(s)
Versus
State of Haryana and others ..Respondent(s)
J U D G M E N T
G.S. SINGHVI, J.
1. Delay condoned.
2. Leave granted.
3. More than 16 decades ago, John Stuart Mill wrote: “land differs from other
elements of production, labour and capital in not being susceptible to infinite increase.
Its extent is limited and the extent of the more productive kinds of it more limited still.
It is also evident that the quantity of produce capable of being raised on any given
piece of land is not indefinite. These limited quantities of land, and limited
productiveness of it, are the real limits to the increase of production”.
4. In 1947, the first Prime Minister of India Pt. Jawahar Lal Nehru said
“everything else can wait, but not agriculture”. In its fifth and final report, the
National Commission on Farmers headed by Dr. M.S. Swaminathan observed that
prime farmland must be conserved for agriculture and should not be diverted for non2
agricultural purposes, else it would seriously affect availability of food in the country
where 60% population still depends on agriculture and people living below poverty
line are finding it difficult to survive.
5. Unfortunately, these words of wisdom appear to have become irrelevant for
the State apparatus which has used the Land Acquisition Act, 1894 (for short, 'the
Act’) in last two decades for massive acquisition of the agricultural land in different
parts of the country, which has not only adversely impacted the farmers, but also
generated huge litigation adjudication consumes substantial time of the Courts. These
appeals filed against orders dated 17.5.2010 and 19.11.2010 of the Division Bench of
the Punjab and Haryana High Court is one of many such cases which the landowners
are compelled to file with the hope that by Court’s intervention they will be able to
save their land.
6. The appellant purchased 8 Kanals 4 Marlas land in village Jatheri, District
Sonepat in 1984 and is cultivating the same. He claims to have constructed a
boundary wall and is growing different crops. His land is surrounded by agricultural
fields, factories and residential houses. In the south of his land, there is a canal and a
school.
7. By Notification dated 22.6.2006 issued under Section 4(1) of the Act, the
Government of Haryana proposed the acquisition of 3813 Kanals 17 Marlas (476
Acres 5 Kanals 17 Marlas) land situated at villages Badhmalik, Badkhalsa, Jatheri,
Liwan, Pritampura and Rai, Tehsil and District Sonepat for the development of
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Industrial Sector 38, Sonepat. The appellant filed objections under Section
5A(1) and pleaded that his land may not be acquired because the same was being used
for agricultural purposes and was the only source of income for his family. The other
landowners also submitted their respective objections. District Revenue Officer-cum-
Land Acquisition Collector, Sonepat (for short, 'the Land Acquisition Collector’) is
said to have heard the objectors on 29.10.2006 and made recommendations for the
acquisition of some parcels of land and for release of some other parcels of land
specified in Notification dated 22.6.2006. Thereafter, the State Government issued
declaration under Section 6 (1), which was notified on 20.6.2007 for the acquisition of
216 Acres 7 Kanals and 11 Marlas land. As a sequel to this, the Land Acquisition
Collector passed award dated 28.11.2008.
8. The appellant challenged the acquisition of his land in Writ Petition No.8441
of 2009 on several grounds including the following:
(i) that the notification issued under Section 4(1) had not been published as per
the requirement of the statute,
(ii) that he was not given opportunity of hearing in terms of Section 5A(2),
(iii) that land of large number of persons had been excluded from acquisition
at the stage of Section 6 declaration but his land was not released and, in
this manner, he had been discriminated,
(iv) that there was no justification to acquire his land, which was the only
source of livelihood for him and his family,
(v) that he was not served with notice in terms of Section 9 (3), and
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(vi) that the declaration issued under Section 6(1) was not published as per
the requirement of Section 6(3).
9. In the written statement filed on behalf of the respondents, it was averred
that the notifications issued under Sections 4(1) and 6(1) were duly published; that the
appellant was given opportunity of personal hearing and that after issue of declaration
under Section 6(1), the Land Acquisition Collector passed the award. It was further
averred that possession of the acquired land had been taken and delivered to Haryana
State Industrial Infrastructure Development Corporation (HSIIDC) on 28.11.2008.
10. The appellant filed rejoinder affidavit and reiterated that the notifications
issued under Sections 4(1) and 6(1) had not been duly published; that he was not
given opportunity of hearing by the Land Acquisition Collector; that notice had not
been served upon him as per the mandate of Section 9(3). He also pleaded that
possession of land was still with him and the paper possession taken by the
respondents was inconsequential.
11. The Division Bench of the High Court did not examine the grounds on which
the appellant challenged the acquisition of his land and dismissed the writ petition by
relying upon the judgments of this Court in Municipal Corporation of Greater Bombay
v. Industrial Development and Investment Company (P) Limited (1996) 11 SCC 501,
Star Wire (India) Ltd. v. State of Haryana (1996) 11 SCC 698, C. Padma v. Deputy
Secretary to the Government of Tamil Nadu (1997) 2 SCC 627, Municipal Council,
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Ahmednagar v. Shah Hyder Beig (2000) 2 SCC 48 and Swaika Properties (P) Ltd. v.
State of Rajasthan (2008) 4 SCC 695, wherein it has been held that once the award is
passed and possession taken, the acquired land will be deemed to have vested in the
Government and the High Court cannot entertain the writ petition filed for quashing
the acquisition proceedings.
12. The appellant challenged the order of the High Court in SLP(C) No.26631 of
2010 but withdrew the same with liberty to seek review of the impugned order.
Thereafter, he filed Review Application No.321 of 2010. He relied upon the judgment
of this Court in NTPC Limited v. Mahesh Dutta (2009) 8 SCC 339 and pleaded that
possession of the acquired land cannot be treated to have been taken because the
procedure laid down in Order XXI Rule 35 of the Code of Civil Procedure had not
been followed. He also pleaded that paper possession taken by the respondents does
not have any sanctity in the eye of law and physical possession of land was still with
him. The Division Bench rejected the review application by observing that the order
dismissing the writ petition does not suffer from any error apparent. However, the
date of filing the writ petition mentioned in paragraph (1) of order dated 17.5.2010
was corrected from 27.3.2010 to 27.3.2009.
13. Shri Neeraj Jain, learned senior counsel for the appellant argued that the
view taken by the High Court on the issue of maintainability of the writ petition is
clearly erroneous and the impugned orders are liable to be set aside because
possession taken by the respondents was only on papers and the same did not result in
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vesting of land in the State Government. Learned senior counsel further argued that
the acquisition of the appellant’s land is liable to be quashed because the Land
Acquisition Collector had made recommendations under Section 5A(2) without giving
him opportunity of hearing. He submitted that the official to whom the Land
Acquisition Collector had entrusted the task of serving the notice had not performed
his duty and submitted false report showing delivery of notice to the appellant and his
wife. Shri Jain referred to the typed and xerox copies of notices dated 2.11.2006
issued to S/Shri Madan Lal s/o. Shri Jagdish, Ram Singh s/o. Chhote Lal, Jai Bhagwan
s/o. of Hoshiar Singh, Mukhtar Singh s/o. Lakhi Ram, Rajender Singh s/o. Hoshiar
Singh, Mohinder Singh s/o. Swarup Singh, the appellant and his wife Smt. Moorti
Devi and pointed out that while other addressees acknowledged the receipt of notices
by putting their signatures, the notices shown as duly served upon the appellant and
his wife do not contain their signatures acknowledging the receipt thereof. Learned
senior counsel also invited our attention to Annexure R-3 filed with the counter
affidavit of the respondents to show that the name of the appellant’s wife has been
shown as Moorti Devi widow of Raghbir though he is very much alive. He then
pointed out that the signatures appended against the appellant’s name in the list of
objectors, who are said to have appeared before the Land Acquisition Collector on
29.10.2006 are not that of the appellant and someone had forged the signatures to
show his presence. Learned senior counsel submitted that notice under Section 9(3)
was not served upon the appellant before passing of award dated 28.11.2008 and
physical possession of the acquired land is still with him. In support of this argument,
Shri Jain relied upon the entries contained in the copy of Girdawari/Record of
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cultivation of village Jatheri, Tehsil and District Sonepat for the years 2001 to 2010,
which have been placed on record as Annexure P-20. Learned senior counsel
emphasized that the High Court failed to notice that the respondents had prepared
false record showing delivery of possession of the acquired land to HSIIDC and this
has caused serious prejudice to the appellant. In the end, Shri Jain argued that release
of more than 50% of land proposed to be acquired is clearly indicative of total nonapplication
of mind by the concerned functionaries of the State and the entire exercise
undertaken by them for the acquisition of land is liable to be nullified on the ground of
violation of the mandate of Sections 4, 5A, 6 and 9 of the Act and, in any case, there is
no justification for uprooting persons like the appellant, whose livelihood is dependent
on small parcels of land or who have constructed residential houses or have set up
small industrial units by spending lifetime earnings.
14. Learned counsel for the respondents supported the impugned orders and
argued that even though the appellant may not have been given opportunity of
personal hearing by the Land Acquisition Collector, he cannot question the acquisition
proceedings because possession of the acquired land has already been taken by the
competent authority and handed over to HSIIDC. Learned counsel submitted that
minor discrepancies in the list containing signatures of the objectors, who appeared
before the Land Acquisition Collector on 29.10.2006, cannot lead to an inference that
the concerned officer had not given opportunity of personal hearing to the appellant
and his wife. He further submitted that the Land Acquisition Collector had made
recommendations after giving due opportunity of hearing to the objectors and the
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declaration under Section 6(1) was issued by the State Government after duly
considering the recommendations of the Land Acquisition Collector and this is
evinced from the fact that various parcels of land on which residential houses and
factories were existing on the date of Section 4(1) notification were not included in the
declaration issued under Section 6(1). Learned counsel invited our attention to Part
Layout Plan of Sector 38 (Phase II), which has been placed on record as Annexure R-1
along with affidavit dated 12.8.2011 of Shri Yogesh Mohan Mehra, Senior Manager
(IA), HSIIDC to show that the acquired land has already been utilised for development
of industrial estate and plots have been allotted to entrepreneurs, who are desirous of
setting up industries. He submitted that HSIIDC has taken up development of the
acquired land at an estimated cost of rupees fifty eight crores and submitted that the
acquisition of the appellant’s land may not be quashed at this stage because 24 meter
wide road has already been constructed through his land.
15. We have considered the respective submissions and carefully scrutinized the
record.
16. Since the appellant has been non suited by the High Court only on the
ground that possession of the acquired land had been taken by the concerned officers
and the same will be deemed to have vested in the State Government free from all
encumbrances, we think that it will be appropriate to first consider this facet of his
challenge to the impugned orders. In the writ petition filed by him, the appellant
categorically averred that physical possession of the acquired land was with him and
9
he has been cultivating the same. This assertion finds support from the entries
contained in Girdawari/Record of cultivation, Book No.1, village Jatheri, Tehsil and
District Sonepat (years 2001 to 2010). A reading of these entries shows that during
those years crops of wheat, paddy and chari were grown by the appellant and at the
relevant time, i.e. the date on which possession of the acquired land is said to have
been taken and delivered to HSIIDC, paddy crop was standing on 5 Kanals 2 Marlas
of land. The respondents have not questioned the genuineness and correctness of the
entries contained in the Girdawaris. Therefore, there is no reason to disbelieve or
discard the same. That apart, it is neither the pleaded case of the respondents nor any
evidence has been produced before this Court to show that the appellant had
unauthorisedly taken possession of the acquired land after 28.11.2008. It is also not
the pleaded case of the respondents that the appellant had been given notice that
possession of the acquired land would be taken on 28.11.2008 and he should remain
present at the site. Therefore, Rojnamcha Vakyati prepared by Sadar Kanungo and
three Patwaris showing delivery of possession to Shri Yogesh Mohan Mehra, Senior
Manager (IA), HSIIDC, Rai, which is a self serving document, cannot be made basis
for recording a finding that possession of the acquired land had been taken by the
concerned revenue authorities. The respondents have not produced any other
evidence to show that actual possession of the land, on which crop was standing, had
been taken after giving notice to the appellant or that he was present at the site when
possession of the acquired land was delivered to the Senior Manager of HSIIDC.
Indeed, it is not even the case of the respondents that any independent witness was
present at the time of taking possession of the acquired land. The Land Acquisition
10
Collector and his subordinates may claim credit of having acted swiftly inasmuch as
immediately after pronouncement of the award, possession of the acquired land of
village Jatheri is said to have taken from the landowners and handed over to the
officer of HSIIDC but keeping in view the fact that crop was standing on the land, the
exercise undertaken by the respondents showing delivery of possession cannot but be
treated as farce and inconsequential. We have no doubt that if the High Court had
summoned the relevant records and scrutinized the same, it would not have summarily
dismissed the writ petition on the premise that possession of the acquired land had
been taken and the same vested in the State Government.
17. The legality of the mode and manner of taking possession of the acquired
land has been considered in a number of cases. In Balwant Narayan Bhagde v. M. D.
Bhagwat (1976) 1 SCC 700, Untwalia, J. referred to provisions of Order 21 Rules 35,
36, 95 and 96 of the Code of Civil Procedure and opined that delivery of symbolic
possession should be construed as delivery of actual possession of the right, title and
interest of the judgment-debtor. His Lordship further observed that if the property is
land over which there is no building or structure, then delivery of possession over the
judgment-debtor’s property becomes complete and effective against him the moment
the delivery is effected by going upon the land. The learned Judge went on to say:
“When a public notice is published at a convenient place or near the land
to be taken stating that the Government intends to take possession of the
land, then ordinarily and generally there should be no question of resisting
or impeding the taking of possession. Delivery or giving of possession by
the owner or the occupant of the land is not required. The Collector can
enforce the surrender of the land to himself under Section 47 of the Act if
impeded in taking possession. On publication of the notice under Section
9(1) claims to compensation for all interests in the land has to be made; be
11
it the interest of the owner or of a person entitled to the occupation of the
land. On the taking of possession of the land under Section 16 or 17(1) it
vests absolutely in the Government free from all encumbrances. It is,
therefore, clear that taking of possession within the meaning of Section 16
or 17(1) means taking of possession on the spot. It is neither a possession
on paper nor a ‘symbolical’ possession as generally understood in civil
law. But the question is what is the mode of taking possession? The Act is
silent on the point. Unless possession is taken by the written agreement of
the party concerned the mode of taking possession obviously would be for
the authority to go upon the land and to do some act which would indicate
that the authority has taken possession of the land. It may be in the form of
a declaration by beat of drum or otherwise or by hanging a written
declaration on the spot that the authority has taken possession of the land.
The presence of the owner or the occupant of the land to effectuate the
taking of possession is not necessary. No further notice beyond that under
Section 9(1) of the Act is required. When possession has been taken, the
owner or the occupant of the land is dispossessed. Once possession has
been taken the land vests in the Government.”
Bhagwati, J. (as he then was) and Gupta, J., who constituted the majority did
not agree with Untwalia, J. and observed as under :
“We think it is enough to state that when the Government proceeds to take
possession of the land acquired by it under the Land Acquisition Act,
1894, it must take actual possession of the land, since all interests in the
land are sought to be acquired by it. There can be no question of taking
‘symbolical’ possession in the sense understood by judicial decisions
under the Code of Civil Procedure. Nor would possession merely on paper
be enough. What the Act contemplates as a necessary condition of vesting
of the land in the Government is the taking of actual possession of the
land. How such possession may be taken would depend on the nature of
the land. Such possession would have to be taken as the nature of the land
admits of. There can be no hard-and-fast rule laying down what act would
be sufficient to constitute taking of possession of land. We should not,
therefore, be taken as laying down an absolute and inviolable rule that
merely going on the spot and making a declaration by beat of drum or
otherwise would be sufficient to constitute taking of possession of land in
every case. But here, in our opinion, since the land was lying fallow and
there was no crop on it at the material time, the act of the Tahsildar in
going on the spot and inspecting the land for the purpose of determining
what part was waste and arable and should, therefore, be taken possession
of and determining its extent, was sufficient to constitute taking of
possession. It appears that the appellant was not present when this was
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done by the Tahsildar, but the presence of the owner or the occupant of the
land is not necessary to effectuate the taking of possession. It is also not
strictly necessary as a matter of legal requirement that notice should be
given to the owner or the occupant of the land that possession would be
taken at a particular time, though it may be desirable where possible, to
give such notice before possession is taken by the authorities, as that
would eliminate the possibility of any fraudulent or collusive transaction
of taking of mere paper possession, without the occupant or the owner
ever coming to know of it.”
18. In Banda Development Authority, Banda v. Moti Lal Agarwal and others
(2011) 5 SCC 394, the Court referred to the judgments in Balwant Narayan Bhagde v.
M. D. Bhagwat (supra), Balmokand Khatri Educational and Industrial Trust v. State
of Punjab (1996) 4 SCC 212, P. K. Kalburqi v. State of Karnataka (2005) 12 SCC
489, NTPC Ltd. v. Mahesh Dutta (supra), Sita Ram Bhandar Society v. Govt. of NCT
of Delhi (2009) 10 SCC 501 and culled out the following propositions:
“(i) No hard-and-fast rule can be laid down as to what act would constitute
taking of possession of the acquired land.
(ii) If the acquired land is vacant, the act of the State authority concerned
to go to the spot and prepare a panchnama will ordinarily be treated as
sufficient to constitute taking of possession.
(iii) If crop is standing on the acquired land or building/structure exists,
mere going on the spot by the authority concerned will, by itself, be not
sufficient for taking possession. Ordinarily, in such cases, the authority
concerned will have to give notice to the occupier of the building/structure
or the person who has cultivated the land and take possession in the
presence of independent witnesses and get their signatures on the
panchnama. Of course, refusal of the owner of the land or
building/structure may not lead to an inference that the possession of the
acquired land has not been taken.
(iv) If the acquisition is of a large tract of land, it may not be possible for
the acquiring/designated authority to take physical possession of each and
every parcel of the land and it will be sufficient that symbolic possession
is taken by preparing appropriate document in the presence of independent
witnesses and getting their signatures on such document.
(v) If beneficiary of the acquisition is an agency/instrumentality of the
State and 80% of the total compensation is deposited in terms of Section
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17(3-A) and substantial portion of the acquired land has been utilised in
furtherance of the particular public purpose, then the court may reasonably
presume that possession of the acquired land has been taken.”
19. If the appellant’s case is examined in the light of the propositions culled out
in Banda Development Authority, Banda v. Moti Lal Agarwal and others, we have no
hesitation to hold that possession of the acquired land had not been taken from the
appellant on 28.11.2008, i.e. the day on which the award was declared by the Land
Acquisition Collector because crops were standing on several parcels of land
including the appellant’s land and possession thereof could not have been taken
without giving notice to the landowners. That apart, it was humanly impossible to
give notice to large number of persons on the same day and take actual possession of
land comprised in various survey numbers (total measuring 214 Acres 5 Kanals and 2
Marlas).
20. In view of the above discussion, we hold that the record prepared by the
revenue authorities showing delivery of possession of the acquired land to HSIIDC
has no legal sanctity and the High Court committed serious error by dismissing the
writ petition on the specious ground that possession of the acquired land had been
taken and the same vested in the State Government in terms of Section 16.
21. The judgments on which reliance has been placed in the impugned order are
clearly distinguishable. In Municipal Corporation of Greater Bombay v. Industrial
Development and Investment Company (P) Limited (supra), this Court reversed the
judgment of the Bombay High Court which had quashed the acquisition of land under
14
the Land Acquisition Act, 1894 read with the provisions of Maharashtra Regional and
Town Planning Act, 1966. This Court noted that the respondent had approached the
High Court after a gap of four years’ and held:
“It is thus well-settled law that when there is inordinate delay in filing the
writ petition and when all steps taken in the acquisition proceedings have
become final, the Court should be loath to quash the notifications. The High
Court has, no doubt, discretionary powers under Article 226 of the
Constitution to quash the notification under Section 4(1) and declaration
under Section 6. But it should be exercised taking all relevant factors into
pragmatic consideration. When the award was passed and possession was
taken, the Court should not have exercised its power to quash the award
which is a material factor to be taken into consideration before exercising
the power under Article 226. The fact that no third party rights were created
in the case is hardly a ground for interference. The Division Bench of the
High Court was not right in interfering with the discretion exercised by the
learned Single Judge dismissing the writ petition on the ground of laches.”
Similar view was expressed in C. Padma v. Deputy Secretary to the
Government of Tamil Nadu (supra), Star Wire (India) Ltd. v. State of Haryana (supra),
Municipal Council, Ahmednagar v. Shah Hyder Beig (supra) and Swaika Properties
(P) Ltd. v. State of Rajasthan (supra). In all the cases, challenge to the acquisition
proceedings was negatived primarily on the ground of delay. An additional factor
which influenced this Court was that physical possession of the acquired land had
been taken by the concerned authorities. In none of these cases, the landowners
appear to have questioned the legality of the mode adopted by the concerned
authorities for taking possession of the acquired land. Therefore, these judgments
cannot be relied upon for sustaining the High Court’s negation of the appellant’s
challenge to the acquisition of his land.
15
22. The next issue which merits consideration is whether the acquisition of the
appellant’s land is vitiated due to violation of Section 5A(2) and the rules of natural
justice. A careful scrutiny of record reveals that the Land Acquisition Collector had
fixed 29.10.2006 as the date for hearing the objections. He issued notices dated
2.11.2006 to inform the objectors that hearing will take place on 29.11.2006 at 11 a.m.
in P.W.D. Rest House, Rai and asked them to appear either in person or through their
agent. The notices were delivered to some of the landowners, who acknowledged the
receipt thereof. However, the notices issued to the appellant and his wife were not
served upon them. This is evident from the fact that other objectors had
acknowledged the receipt of notices by putting their signatures, the notices allegedly
served upon the appellant and his wife do not bear their signatures and no explanation
has been offered by the respondents about this omission. The Land Acquisition
Collector proceeded to decide the objections by assuming that the notice has been
delivered to all the objectors. Not only this, someone in the office of Land
Acquisition Collector forged the appellant’s signature to show his presence in P.W.D.
Rest House, Rai on 29.11.2006. A bare comparison of the signatures appearing
against the appellant’s name at serial No.90 (page 184 of the paper book) and those
appearing on the vakalatnama and affidavit filed in support of the special leave
petitions shows that there is no similarity in the two signatures. Not only this, in the
list, appended with Annexure R-3, the appellant’s wife has been shown as widow of
Raghbir Singh. It is impossible to believe that a woman who knows how to sign a
document would put signatures against her name showing her as a widow despite the
fact that her husband is alive. When the Court pointed out to the learned
16
counsel for the respondents that the signatures appearing against serial No. 90 at page
8 of Annexure R-3 (page 184 of the paper book) do not tally with the signatures of the
appellant on the vakalatnama and the affidavit filed in support of special leave
petitions, the learned counsel expressed his inability to offer any explanation. He also
expressed helplessness in defending the description of the appellant’s wife Smt.
Moorti Devi as widow of Raghbir Singh.
23. From what we have stated above, it is clear that the appellant had not been
given opportunity of hearing as per the mandate of Section 5A(2). The importance of
Section 5A(2) was highlighted by this Court in Munshi Singh v. Union of India (1973)
2 SCC 337 in the following words:
“Sub-section (2) of Section 5-A makes it obligatory on the Collector to
give an objector an opportunity of being heard. After hearing all
objections and making further inquiry he is to make a report to the
appropriate Government containing his recommendation on the
objections. The decision of the appropriate Government on the objections
is then final. The declaration under Section 6 has to be made after the
appropriate Government is satisfied, on a consideration of the report, if
any, made by the Collector under Section 5-A(2). The legislature has,
therefore, made complete provisions for the persons interested to file
objections against the proposed acquisition and for the disposal of their
objections. It is only in cases of urgency that special powers have been
conferred on the appropriate Government to dispense with the provisions
of Section 5-A.”
In State of Punjab v. Gurdial Singh (1980) 2 SCC 471, this Court observed:
“….it is fundamental that compulsory taking of a man’s property is
a serious matter and the smaller the man the more serious the
matter. Hearing him before depriving him is both reasonable and
pre-emptive of arbitrariness, and denial of this administrative
fairness is constitutional anathema except for good reasons. Save in
real urgency where public interest does not brook even the
17
minimum time needed to give a hearing land acquisition authorities
should not, having regard to Articles 14 (and 19), burke an enquiry
under Section 17 of the Act. Here a slumbering process, pending for
years and suddenly exciting itself into immediate forcible taking,
makes a travesty of emergency power.”
In Shyam Nandan Prasad v. State of Bihar (1993) 4 SCC 255, this Court
reiterated that compliance with provisions of Section 5A is sine qua non for valid
acquisition and observed as under:
“The decision of the Collector is supposedly final unless the
appropriate Government chooses to interfere therein and cause
affectation, suo motu or on the application of any person interested
in the land. These requirements obviously lead to the positive
conclusion that the proceeding before the Collector is a blend of
public and individual enquiry. The person interested, or known to
be interested, in the land is to be served personally of the
notification, giving him the opportunity of objecting to the
acquisition and awakening him to such right. That the objection is
to be in writing, is indicative of the fact that the enquiry into the
objection is to focus his individual cause as well as public cause.
That at the time of the enquiry, for which prior notice shall be
essential, the objector has the right to appear in person or through
pleader and substantiate his objection by evidence and argument.”
24. The same view has been reiterated in Union of India v. Mukesh Hans (2004)
8 SCC 14, Hindustan Petroleum Corporation Ltd. v. Darius Shapur Chenai (2005) 7
SCC 627, Anand Singh v. State of U.P. (supra) and Radhy Shyam v. State of U. P.
(supra).
25. In this context, it is necessary to remember that the rules of natural justice
have been ingrained in the scheme of Section 5A with a view to ensure that before any
person is deprived of his land by way of compulsory acquisition, he must get an
18
opportunity to oppose the decision of the State Government and/or its
agencies/instrumentalities to acquire the particular parcel of land. At the hearing, the
objector can make an effort to convince the Land Acquisition Collector to make
recommendation against the acquisition of his land. He can also point out that land
proposed to be acquired is not suitable for the purpose specified in the notification
issued under Section 4(1). Not only this, he can produce evidence to show that
another piece of land is available and the same can be utilized for execution of the
particular project or scheme. Though, it is neither possible nor desirable to make a list
of the grounds on which the landowner can persuade the Collector to make
recommendations against the proposed acquisition of land, but what is important is
that the Collector should give a fair opportunity of hearing to the objector and
objectively consider his plea against the acquisition of land. Only thereafter, he
should make recommendations supported by brief reasons as to why the particular
piece of land should or should not be acquired and whether or not the plea put forward
by the objector merits acceptance. In other words, the recommendations made by the
Collector must reflect objective application of mind to the objections filed by the
landowners and other interested persons.
26. Before concluding, we deem it necessary to observe that in recent past,
various State Governments and their functionaries have adopted very casual approach
in dealing with matters relating to the acquisition of land in general and the rural areas
in particular and in a large number of cases, the notifications issued under Sections
4(1) and 6(1) with or without the aid of Section 17 and the consequential actions have
19
been nullified by the Courts on the ground of violation of the mandatory procedure
and the rules of natural justice. The disposal of cases filed by the landowners and
others take some time and the resultant delay has great adverse impact on
implementation of the projects of public importance. Of course, the delay in deciding
such cases may not be of much significance when the State and its agencies want to
confer benefit upon private parties by acquiring land in the name of public purpose.
It if difficult, if not impossible, to appreciate as to why the State and its
instrumentalities resort to massive acquisition of land and that too without complying
with the mandate of the statute. As noted by the National Commission on Farmers,
the acquisition of agricultural land in the name of planned development or industrial
growth would seriously affect the availability of food in future. After independence,
the administrative apparatus of the State has not spent enough investment in the rural
areas and those who have been doing agriculture have not been educated and
empowered to adopt alternative sources of livelihood. If land of such persons is
acquired, not only the current but the future generations are ruined and this is one of
the reasons why the farmers who are deprived of their holdings commit suicide. It
also appears that the concerned authorities are totally unmindful of the plight of those
sections of the society, who are deprived of their only asset like small house, small
industrial unit etc. They do not realise that having one’s own house is a lifetime
dream of majority of population of this country. Economically affluent class of
society can easily afford to have one or more houses at any place or locality in the
country but other sections of the society find it extremely difficult to purchase land
and construct house. Majority of people spend their lifetime savings for building a
20
small house so that their families may be able to live with a semblance of dignity.
Therefore, it is wholly unjust, arbitrary and unreasonable to deprive such persons of
their houses by way of the acquisition of land in the name of development of
infrastructure or industrialisation. Similarly, some people set up small industrial unit
after seeking permission from the competent authority. They do so with the hope of
generating additional income for their family. If the land on which small units are
established is acquired, their hopes are shattered. Therefore, before acquiring private
land the State and/or its agencies/instrumentalities should, as far as possible, use land
belonging to the State for the specified public purposes. If the acquisition of private
land becomes absolutely necessary, then too, the concerned authorities must strictly
comply with the relevant statutory provisions and the rules of natural justice.
27. In the result, the appeals are allowed. The impugned orders are set aside. As a
corollary to this, the writ petition filed by the appellant is allowed and the acquisition of
his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from
the respondents.
………………….………………J.
(G.S. Singhvi)
....……………….…………………J.
(Sudhansu Jyoti Mukhopadhaya)
New Delhi,
November 23, 2011.
ITEM NO.1A COURT NO.6 SECTION IVB
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeals Nos......./2011 @
Petition(s) for Special Leave to Appeal (Civil) No(s).12042-
12043/2011
21
(From the judgement and order(s) dated 17/05/2010 in CWP
No.8441/2009 and order dated 19/11/2010 in RA No.321/2010 in CWP
No.8441/2009 of The HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH)
RAGHBIR SINGH SEHRAWAT Petitioner(s)
VERSUS
STATE OF HARYANA & ORS. Respondent(s)
[HEARD BY HON'BLE G.S.SINGHVI AND HON'BLE SUDHANSU JYOTI
MUKHOPADHAYA, JJ.]
Date: 23/11/2011 These Petitions were called on for Judgment today.
For Petitioner(s) Dr. Kailash Chand,Adv.(Not present)
For Respondent(s) Mr. Ravindra Bana,Adv.
Nos.1 to 3
Hon'ble Mr. Justice G.S. Singhvi pronounced the judgment
of the Bench comprising His Lordship and Hon'ble Mr.Justice
Sudhansu Jyoti Mukhopadhaya.
Delay condoned.
Leave granted.
For the reasons recorded in the Reportable Judgment which
is placed on the file, the appeals are allowed. The
impugned orders are set aside. As a corollary to this, the
writ petition filed by the appellant is allowed and the
acquisition of his land is declared illegal and quashed.
The appellant shall get cost of Rs.2,50,000/- from the
respondents.
(Parveen Kr. Chawla)
Court Master
(Phoolan Wati Arora)
Court Master
[Signed Reportable judgment is placed on the file]

The appellant purchased 8 Kanals 4 Marlas land in village Jatheri, District Sonepat in 1984 and is cultivating the same. He claims to have constructed a boundary wall and is growing different crops. His land is surrounded by agricultural fields, factories and residential houses. In the south of his land, there is a canal and a school. 7. By Notification dated 22.6.2006 issued under Section 4(1) of the Act, the Government of Haryana proposed the acquisition of 3813 Kanals 17 Marlas (476 Acres 5 Kanals 17 Marlas) land situated at villages Badhmalik, Badkhalsa, Jatheri, Liwan, Pritampura and Rai, Tehsil and District Sonepat for the development of 3 Industrial Sector 38, Sonepat. The appellant filed objections under Section 5A(1) and pleaded that his land may not be acquired because the same was being used for agricultural purposes and was the only source of income for his family. The other landowners also submitted their respective objections. District Revenue Officer-cum- Land Acquisition Collector, Sonepat (for short, 'the Land Acquisition Collector’) is said to have heard the objectors on 29.10.2006 and made recommendations for the acquisition of some parcels of land and for release of some other parcels of land specified in Notification dated 22.6.2006. Thereafter, the State Government issued declaration under Section 6 (1), which was notified on 20.6.2007 for the acquisition of 216 Acres 7 Kanals and 11 Marlas land. As a sequel to this, the Land Acquisition Collector passed award dated 28.11.2008. 8. The appellant challenged the acquisition of his land in Writ Petition No.8441 of 2009 on several grounds including the following: (i) that the notification issued under Section 4(1) had not been published as per the requirement of the statute, (ii) that he was not given opportunity of hearing in terms of Section 5A(2), (iii) that land of large number of persons had been excluded from acquisition at the stage of Section 6 declaration but his land was not released and, in this manner, he had been discriminated, (iv) that there was no justification to acquire his land, which was the only source of livelihood for him and his family, (v) that he was not served with notice in terms of Section 9 (3), and 4 (vi) that the declaration issued under Section 6(1) was not published as per the requirement of Section 6(3). 9. In the written statement filed on behalf of the respondents, it was averred that the notifications issued under Sections 4(1) and 6(1) were duly published; that the appellant was given opportunity of personal hearing and that after issue of declaration under Section 6(1), the Land Acquisition Collector passed the award. It was further averred that possession of the acquired land had been taken and delivered to Haryana State Industrial Infrastructure Development Corporation (HSIIDC) on 28.11.2008. 10. The appellant filed rejoinder affidavit and reiterated that the notifications issued under Sections 4(1) and 6(1) had not been duly published; that he was not given opportunity of hearing by the Land Acquisition Collector; that notice had not been served upon him as per the mandate of Section 9(3). He also pleaded that possession of land was still with him and the paper possession taken by the respondents was inconsequential. in recent past, various State Governments and their functionaries have adopted very casual approach in dealing with matters relating to the acquisition of land in general and the rural areas in particular and in a large number of cases, the notifications issued under Sections 4(1) and 6(1) with or without the aid of Section 17 and the consequential actions have 19 been nullified by the Courts on the ground of violation of the mandatory procedure and the rules of natural justice. The disposal of cases filed by the landowners and others take some time and the resultant delay has great adverse impact on implementation of the projects of public importance. Of course, the delay in deciding such cases may not be of much significance when the State and its agencies want to confer benefit upon private parties by acquiring land in the name of public purpose. It if difficult, if not impossible, to appreciate as to why the State and its instrumentalities resort to massive acquisition of land and that too without complying with the mandate of the statute. As noted by the National Commission on Farmers, the acquisition of agricultural land in the name of planned development or industrial growth would seriously affect the availability of food in future. After independence, the administrative apparatus of the State has not spent enough investment in the rural areas and those who have been doing agriculture have not been educated and empowered to adopt alternative sources of livelihood. If land of such persons is acquired, not only the current but the future generations are ruined and this is one of the reasons why the farmers who are deprived of their holdings commit suicide. It also appears that the concerned authorities are totally unmindful of the plight of those sections of the society, who are deprived of their only asset like small house, small industrial unit etc. They do not realise that having one’s own house is a lifetime dream of majority of population of this country. Economically affluent class of society can easily afford to have one or more houses at any place or locality in the country but other sections of the society find it extremely difficult to purchase land and construct house. Majority of people spend their lifetime savings for building a 20 small house so that their families may be able to live with a semblance of dignity. Therefore, it is wholly unjust, arbitrary and unreasonable to deprive such persons of their houses by way of the acquisition of land in the name of development of infrastructure or industrialisation. Similarly, some people set up small industrial unit after seeking permission from the competent authority. They do so with the hope of generating additional income for their family. If the land on which small units are established is acquired, their hopes are shattered. Therefore, before acquiring private land the State and/or its agencies/instrumentalities should, as far as possible, use land belonging to the State for the specified public purposes. If the acquisition of private land becomes absolutely necessary, then too, the concerned authorities must strictly comply with the relevant statutory provisions and the rules of natural justice. 27. In the result, the appeals are allowed. The impugned orders are set aside. As a corollary to this, the writ petition filed by the appellant is allowed and the acquisition of his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from the respondents. ………………….………………J. (G.S. Singhvi) ....……………….…………………J. (Sudhansu Jyoti Mukhopadhaya) New Delhi, November 23, 2011. ITEM NO.1A COURT NO.6 SECTION IVB S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeals Nos......./2011 @ Petition(s) for Special Leave to Appeal (Civil) No(s).12042- 12043/2011 21 (From the judgement and order(s) dated 17/05/2010 in CWP No.8441/2009 and order dated 19/11/2010 in RA No.321/2010 in CWP No.8441/2009 of The HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH) RAGHBIR SINGH SEHRAWAT Petitioner(s) VERSUS STATE OF HARYANA & ORS. Respondent(s) [HEARD BY HON'BLE G.S.SINGHVI AND HON'BLE SUDHANSU JYOTI MUKHOPADHAYA, JJ.] Date: 23/11/2011 These Petitions were called on for Judgment today. For Petitioner(s) Dr. Kailash Chand,Adv.(Not present) For Respondent(s) Mr. Ravindra Bana,Adv. Nos.1 to 3 Hon'ble Mr. Justice G.S. Singhvi pronounced the judgment of the Bench comprising His Lordship and Hon'ble Mr.Justice Sudhansu Jyoti Mukhopadhaya. Delay condoned. Leave granted. For the reasons recorded in the Reportable Judgment which is placed on the file, the appeals are allowed. The impugned orders are set aside. As a corollary to this, the writ petition filed by the appellant is allowed and the acquisition of his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from the respondents. (Parveen Kr. Chawla) Court Master (Phoolan Wati Arora) Court Master [Signed Reportable judgment is placed on the file]


1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 10080-10081 OF 2011
(Arising out of SLP(C) Nos. 12042-12043 of 2011)
Raghbir Singh Sehrawat ..Appellant(s)
Versus
State of Haryana and others ..Respondent(s)
J U D G M E N T
G.S. SINGHVI, J.
1. Delay condoned.
2. Leave granted.
3. More than 16 decades ago, John Stuart Mill wrote: “land differs from other
elements of production, labour and capital in not being susceptible to infinite increase.
Its extent is limited and the extent of the more productive kinds of it more limited still.
It is also evident that the quantity of produce capable of being raised on any given
piece of land is not indefinite. These limited quantities of land, and limited
productiveness of it, are the real limits to the increase of production”.
4. In 1947, the first Prime Minister of India Pt. Jawahar Lal Nehru said
“everything else can wait, but not agriculture”. In its fifth and final report, the
National Commission on Farmers headed by Dr. M.S. Swaminathan observed that
prime farmland must be conserved for agriculture and should not be diverted for non2
agricultural purposes, else it would seriously affect availability of food in the country
where 60% population still depends on agriculture and people living below poverty
line are finding it difficult to survive.
5. Unfortunately, these words of wisdom appear to have become irrelevant for
the State apparatus which has used the Land Acquisition Act, 1894 (for short, 'the
Act’) in last two decades for massive acquisition of the agricultural land in different
parts of the country, which has not only adversely impacted the farmers, but also
generated huge litigation adjudication consumes substantial time of the Courts. These
appeals filed against orders dated 17.5.2010 and 19.11.2010 of the Division Bench of
the Punjab and Haryana High Court is one of many such cases which the landowners
are compelled to file with the hope that by Court’s intervention they will be able to
save their land.
6. The appellant purchased 8 Kanals 4 Marlas land in village Jatheri, District
Sonepat in 1984 and is cultivating the same. He claims to have constructed a
boundary wall and is growing different crops. His land is surrounded by agricultural
fields, factories and residential houses. In the south of his land, there is a canal and a
school.
7. By Notification dated 22.6.2006 issued under Section 4(1) of the Act, the
Government of Haryana proposed the acquisition of 3813 Kanals 17 Marlas (476
Acres 5 Kanals 17 Marlas) land situated at villages Badhmalik, Badkhalsa, Jatheri,
Liwan, Pritampura and Rai, Tehsil and District Sonepat for the development of
3
Industrial Sector 38, Sonepat. The appellant filed objections under Section
5A(1) and pleaded that his land may not be acquired because the same was being used
for agricultural purposes and was the only source of income for his family. The other
landowners also submitted their respective objections. District Revenue Officer-cum-
Land Acquisition Collector, Sonepat (for short, 'the Land Acquisition Collector’) is
said to have heard the objectors on 29.10.2006 and made recommendations for the
acquisition of some parcels of land and for release of some other parcels of land
specified in Notification dated 22.6.2006. Thereafter, the State Government issued
declaration under Section 6 (1), which was notified on 20.6.2007 for the acquisition of
216 Acres 7 Kanals and 11 Marlas land. As a sequel to this, the Land Acquisition
Collector passed award dated 28.11.2008.
8. The appellant challenged the acquisition of his land in Writ Petition No.8441
of 2009 on several grounds including the following:
(i) that the notification issued under Section 4(1) had not been published as per
the requirement of the statute,
(ii) that he was not given opportunity of hearing in terms of Section 5A(2),
(iii) that land of large number of persons had been excluded from acquisition
at the stage of Section 6 declaration but his land was not released and, in
this manner, he had been discriminated,
(iv) that there was no justification to acquire his land, which was the only
source of livelihood for him and his family,
(v) that he was not served with notice in terms of Section 9 (3), and
4
(vi) that the declaration issued under Section 6(1) was not published as per
the requirement of Section 6(3).
9. In the written statement filed on behalf of the respondents, it was averred
that the notifications issued under Sections 4(1) and 6(1) were duly published; that the
appellant was given opportunity of personal hearing and that after issue of declaration
under Section 6(1), the Land Acquisition Collector passed the award. It was further
averred that possession of the acquired land had been taken and delivered to Haryana
State Industrial Infrastructure Development Corporation (HSIIDC) on 28.11.2008.
10. The appellant filed rejoinder affidavit and reiterated that the notifications
issued under Sections 4(1) and 6(1) had not been duly published; that he was not
given opportunity of hearing by the Land Acquisition Collector; that notice had not
been served upon him as per the mandate of Section 9(3). He also pleaded that
possession of land was still with him and the paper possession taken by the
respondents was inconsequential.
11. The Division Bench of the High Court did not examine the grounds on which
the appellant challenged the acquisition of his land and dismissed the writ petition by
relying upon the judgments of this Court in Municipal Corporation of Greater Bombay
v. Industrial Development and Investment Company (P) Limited (1996) 11 SCC 501,
Star Wire (India) Ltd. v. State of Haryana (1996) 11 SCC 698, C. Padma v. Deputy
Secretary to the Government of Tamil Nadu (1997) 2 SCC 627, Municipal Council,
5
Ahmednagar v. Shah Hyder Beig (2000) 2 SCC 48 and Swaika Properties (P) Ltd. v.
State of Rajasthan (2008) 4 SCC 695, wherein it has been held that once the award is
passed and possession taken, the acquired land will be deemed to have vested in the
Government and the High Court cannot entertain the writ petition filed for quashing
the acquisition proceedings.
12. The appellant challenged the order of the High Court in SLP(C) No.26631 of
2010 but withdrew the same with liberty to seek review of the impugned order.
Thereafter, he filed Review Application No.321 of 2010. He relied upon the judgment
of this Court in NTPC Limited v. Mahesh Dutta (2009) 8 SCC 339 and pleaded that
possession of the acquired land cannot be treated to have been taken because the
procedure laid down in Order XXI Rule 35 of the Code of Civil Procedure had not
been followed. He also pleaded that paper possession taken by the respondents does
not have any sanctity in the eye of law and physical possession of land was still with
him. The Division Bench rejected the review application by observing that the order
dismissing the writ petition does not suffer from any error apparent. However, the
date of filing the writ petition mentioned in paragraph (1) of order dated 17.5.2010
was corrected from 27.3.2010 to 27.3.2009.
13. Shri Neeraj Jain, learned senior counsel for the appellant argued that the
view taken by the High Court on the issue of maintainability of the writ petition is
clearly erroneous and the impugned orders are liable to be set aside because
possession taken by the respondents was only on papers and the same did not result in
6
vesting of land in the State Government. Learned senior counsel further argued that
the acquisition of the appellant’s land is liable to be quashed because the Land
Acquisition Collector had made recommendations under Section 5A(2) without giving
him opportunity of hearing. He submitted that the official to whom the Land
Acquisition Collector had entrusted the task of serving the notice had not performed
his duty and submitted false report showing delivery of notice to the appellant and his
wife. Shri Jain referred to the typed and xerox copies of notices dated 2.11.2006
issued to S/Shri Madan Lal s/o. Shri Jagdish, Ram Singh s/o. Chhote Lal, Jai Bhagwan
s/o. of Hoshiar Singh, Mukhtar Singh s/o. Lakhi Ram, Rajender Singh s/o. Hoshiar
Singh, Mohinder Singh s/o. Swarup Singh, the appellant and his wife Smt. Moorti
Devi and pointed out that while other addressees acknowledged the receipt of notices
by putting their signatures, the notices shown as duly served upon the appellant and
his wife do not contain their signatures acknowledging the receipt thereof. Learned
senior counsel also invited our attention to Annexure R-3 filed with the counter
affidavit of the respondents to show that the name of the appellant’s wife has been
shown as Moorti Devi widow of Raghbir though he is very much alive. He then
pointed out that the signatures appended against the appellant’s name in the list of
objectors, who are said to have appeared before the Land Acquisition Collector on
29.10.2006 are not that of the appellant and someone had forged the signatures to
show his presence. Learned senior counsel submitted that notice under Section 9(3)
was not served upon the appellant before passing of award dated 28.11.2008 and
physical possession of the acquired land is still with him. In support of this argument,
Shri Jain relied upon the entries contained in the copy of Girdawari/Record of
7
cultivation of village Jatheri, Tehsil and District Sonepat for the years 2001 to 2010,
which have been placed on record as Annexure P-20. Learned senior counsel
emphasized that the High Court failed to notice that the respondents had prepared
false record showing delivery of possession of the acquired land to HSIIDC and this
has caused serious prejudice to the appellant. In the end, Shri Jain argued that release
of more than 50% of land proposed to be acquired is clearly indicative of total nonapplication
of mind by the concerned functionaries of the State and the entire exercise
undertaken by them for the acquisition of land is liable to be nullified on the ground of
violation of the mandate of Sections 4, 5A, 6 and 9 of the Act and, in any case, there is
no justification for uprooting persons like the appellant, whose livelihood is dependent
on small parcels of land or who have constructed residential houses or have set up
small industrial units by spending lifetime earnings.
14. Learned counsel for the respondents supported the impugned orders and
argued that even though the appellant may not have been given opportunity of
personal hearing by the Land Acquisition Collector, he cannot question the acquisition
proceedings because possession of the acquired land has already been taken by the
competent authority and handed over to HSIIDC. Learned counsel submitted that
minor discrepancies in the list containing signatures of the objectors, who appeared
before the Land Acquisition Collector on 29.10.2006, cannot lead to an inference that
the concerned officer had not given opportunity of personal hearing to the appellant
and his wife. He further submitted that the Land Acquisition Collector had made
recommendations after giving due opportunity of hearing to the objectors and the
8
declaration under Section 6(1) was issued by the State Government after duly
considering the recommendations of the Land Acquisition Collector and this is
evinced from the fact that various parcels of land on which residential houses and
factories were existing on the date of Section 4(1) notification were not included in the
declaration issued under Section 6(1). Learned counsel invited our attention to Part
Layout Plan of Sector 38 (Phase II), which has been placed on record as Annexure R-1
along with affidavit dated 12.8.2011 of Shri Yogesh Mohan Mehra, Senior Manager
(IA), HSIIDC to show that the acquired land has already been utilised for development
of industrial estate and plots have been allotted to entrepreneurs, who are desirous of
setting up industries. He submitted that HSIIDC has taken up development of the
acquired land at an estimated cost of rupees fifty eight crores and submitted that the
acquisition of the appellant’s land may not be quashed at this stage because 24 meter
wide road has already been constructed through his land.
15. We have considered the respective submissions and carefully scrutinized the
record.
16. Since the appellant has been non suited by the High Court only on the
ground that possession of the acquired land had been taken by the concerned officers
and the same will be deemed to have vested in the State Government free from all
encumbrances, we think that it will be appropriate to first consider this facet of his
challenge to the impugned orders. In the writ petition filed by him, the appellant
categorically averred that physical possession of the acquired land was with him and
9
he has been cultivating the same. This assertion finds support from the entries
contained in Girdawari/Record of cultivation, Book No.1, village Jatheri, Tehsil and
District Sonepat (years 2001 to 2010). A reading of these entries shows that during
those years crops of wheat, paddy and chari were grown by the appellant and at the
relevant time, i.e. the date on which possession of the acquired land is said to have
been taken and delivered to HSIIDC, paddy crop was standing on 5 Kanals 2 Marlas
of land. The respondents have not questioned the genuineness and correctness of the
entries contained in the Girdawaris. Therefore, there is no reason to disbelieve or
discard the same. That apart, it is neither the pleaded case of the respondents nor any
evidence has been produced before this Court to show that the appellant had
unauthorisedly taken possession of the acquired land after 28.11.2008. It is also not
the pleaded case of the respondents that the appellant had been given notice that
possession of the acquired land would be taken on 28.11.2008 and he should remain
present at the site. Therefore, Rojnamcha Vakyati prepared by Sadar Kanungo and
three Patwaris showing delivery of possession to Shri Yogesh Mohan Mehra, Senior
Manager (IA), HSIIDC, Rai, which is a self serving document, cannot be made basis
for recording a finding that possession of the acquired land had been taken by the
concerned revenue authorities. The respondents have not produced any other
evidence to show that actual possession of the land, on which crop was standing, had
been taken after giving notice to the appellant or that he was present at the site when
possession of the acquired land was delivered to the Senior Manager of HSIIDC.
Indeed, it is not even the case of the respondents that any independent witness was
present at the time of taking possession of the acquired land. The Land Acquisition
10
Collector and his subordinates may claim credit of having acted swiftly inasmuch as
immediately after pronouncement of the award, possession of the acquired land of
village Jatheri is said to have taken from the landowners and handed over to the
officer of HSIIDC but keeping in view the fact that crop was standing on the land, the
exercise undertaken by the respondents showing delivery of possession cannot but be
treated as farce and inconsequential. We have no doubt that if the High Court had
summoned the relevant records and scrutinized the same, it would not have summarily
dismissed the writ petition on the premise that possession of the acquired land had
been taken and the same vested in the State Government.
17. The legality of the mode and manner of taking possession of the acquired
land has been considered in a number of cases. In Balwant Narayan Bhagde v. M. D.
Bhagwat (1976) 1 SCC 700, Untwalia, J. referred to provisions of Order 21 Rules 35,
36, 95 and 96 of the Code of Civil Procedure and opined that delivery of symbolic
possession should be construed as delivery of actual possession of the right, title and
interest of the judgment-debtor. His Lordship further observed that if the property is
land over which there is no building or structure, then delivery of possession over the
judgment-debtor’s property becomes complete and effective against him the moment
the delivery is effected by going upon the land. The learned Judge went on to say:
“When a public notice is published at a convenient place or near the land
to be taken stating that the Government intends to take possession of the
land, then ordinarily and generally there should be no question of resisting
or impeding the taking of possession. Delivery or giving of possession by
the owner or the occupant of the land is not required. The Collector can
enforce the surrender of the land to himself under Section 47 of the Act if
impeded in taking possession. On publication of the notice under Section
9(1) claims to compensation for all interests in the land has to be made; be
11
it the interest of the owner or of a person entitled to the occupation of the
land. On the taking of possession of the land under Section 16 or 17(1) it
vests absolutely in the Government free from all encumbrances. It is,
therefore, clear that taking of possession within the meaning of Section 16
or 17(1) means taking of possession on the spot. It is neither a possession
on paper nor a ‘symbolical’ possession as generally understood in civil
law. But the question is what is the mode of taking possession? The Act is
silent on the point. Unless possession is taken by the written agreement of
the party concerned the mode of taking possession obviously would be for
the authority to go upon the land and to do some act which would indicate
that the authority has taken possession of the land. It may be in the form of
a declaration by beat of drum or otherwise or by hanging a written
declaration on the spot that the authority has taken possession of the land.
The presence of the owner or the occupant of the land to effectuate the
taking of possession is not necessary. No further notice beyond that under
Section 9(1) of the Act is required. When possession has been taken, the
owner or the occupant of the land is dispossessed. Once possession has
been taken the land vests in the Government.”
Bhagwati, J. (as he then was) and Gupta, J., who constituted the majority did
not agree with Untwalia, J. and observed as under :
“We think it is enough to state that when the Government proceeds to take
possession of the land acquired by it under the Land Acquisition Act,
1894, it must take actual possession of the land, since all interests in the
land are sought to be acquired by it. There can be no question of taking
‘symbolical’ possession in the sense understood by judicial decisions
under the Code of Civil Procedure. Nor would possession merely on paper
be enough. What the Act contemplates as a necessary condition of vesting
of the land in the Government is the taking of actual possession of the
land. How such possession may be taken would depend on the nature of
the land. Such possession would have to be taken as the nature of the land
admits of. There can be no hard-and-fast rule laying down what act would
be sufficient to constitute taking of possession of land. We should not,
therefore, be taken as laying down an absolute and inviolable rule that
merely going on the spot and making a declaration by beat of drum or
otherwise would be sufficient to constitute taking of possession of land in
every case. But here, in our opinion, since the land was lying fallow and
there was no crop on it at the material time, the act of the Tahsildar in
going on the spot and inspecting the land for the purpose of determining
what part was waste and arable and should, therefore, be taken possession
of and determining its extent, was sufficient to constitute taking of
possession. It appears that the appellant was not present when this was
12
done by the Tahsildar, but the presence of the owner or the occupant of the
land is not necessary to effectuate the taking of possession. It is also not
strictly necessary as a matter of legal requirement that notice should be
given to the owner or the occupant of the land that possession would be
taken at a particular time, though it may be desirable where possible, to
give such notice before possession is taken by the authorities, as that
would eliminate the possibility of any fraudulent or collusive transaction
of taking of mere paper possession, without the occupant or the owner
ever coming to know of it.”
18. In Banda Development Authority, Banda v. Moti Lal Agarwal and others
(2011) 5 SCC 394, the Court referred to the judgments in Balwant Narayan Bhagde v.
M. D. Bhagwat (supra), Balmokand Khatri Educational and Industrial Trust v. State
of Punjab (1996) 4 SCC 212, P. K. Kalburqi v. State of Karnataka (2005) 12 SCC
489, NTPC Ltd. v. Mahesh Dutta (supra), Sita Ram Bhandar Society v. Govt. of NCT
of Delhi (2009) 10 SCC 501 and culled out the following propositions:
“(i) No hard-and-fast rule can be laid down as to what act would constitute
taking of possession of the acquired land.
(ii) If the acquired land is vacant, the act of the State authority concerned
to go to the spot and prepare a panchnama will ordinarily be treated as
sufficient to constitute taking of possession.
(iii) If crop is standing on the acquired land or building/structure exists,
mere going on the spot by the authority concerned will, by itself, be not
sufficient for taking possession. Ordinarily, in such cases, the authority
concerned will have to give notice to the occupier of the building/structure
or the person who has cultivated the land and take possession in the
presence of independent witnesses and get their signatures on the
panchnama. Of course, refusal of the owner of the land or
building/structure may not lead to an inference that the possession of the
acquired land has not been taken.
(iv) If the acquisition is of a large tract of land, it may not be possible for
the acquiring/designated authority to take physical possession of each and
every parcel of the land and it will be sufficient that symbolic possession
is taken by preparing appropriate document in the presence of independent
witnesses and getting their signatures on such document.
(v) If beneficiary of the acquisition is an agency/instrumentality of the
State and 80% of the total compensation is deposited in terms of Section
13
17(3-A) and substantial portion of the acquired land has been utilised in
furtherance of the particular public purpose, then the court may reasonably
presume that possession of the acquired land has been taken.”
19. If the appellant’s case is examined in the light of the propositions culled out
in Banda Development Authority, Banda v. Moti Lal Agarwal and others, we have no
hesitation to hold that possession of the acquired land had not been taken from the
appellant on 28.11.2008, i.e. the day on which the award was declared by the Land
Acquisition Collector because crops were standing on several parcels of land
including the appellant’s land and possession thereof could not have been taken
without giving notice to the landowners. That apart, it was humanly impossible to
give notice to large number of persons on the same day and take actual possession of
land comprised in various survey numbers (total measuring 214 Acres 5 Kanals and 2
Marlas).
20. In view of the above discussion, we hold that the record prepared by the
revenue authorities showing delivery of possession of the acquired land to HSIIDC
has no legal sanctity and the High Court committed serious error by dismissing the
writ petition on the specious ground that possession of the acquired land had been
taken and the same vested in the State Government in terms of Section 16.
21. The judgments on which reliance has been placed in the impugned order are
clearly distinguishable. In Municipal Corporation of Greater Bombay v. Industrial
Development and Investment Company (P) Limited (supra), this Court reversed the
judgment of the Bombay High Court which had quashed the acquisition of land under
14
the Land Acquisition Act, 1894 read with the provisions of Maharashtra Regional and
Town Planning Act, 1966. This Court noted that the respondent had approached the
High Court after a gap of four years’ and held:
“It is thus well-settled law that when there is inordinate delay in filing the
writ petition and when all steps taken in the acquisition proceedings have
become final, the Court should be loath to quash the notifications. The High
Court has, no doubt, discretionary powers under Article 226 of the
Constitution to quash the notification under Section 4(1) and declaration
under Section 6. But it should be exercised taking all relevant factors into
pragmatic consideration. When the award was passed and possession was
taken, the Court should not have exercised its power to quash the award
which is a material factor to be taken into consideration before exercising
the power under Article 226. The fact that no third party rights were created
in the case is hardly a ground for interference. The Division Bench of the
High Court was not right in interfering with the discretion exercised by the
learned Single Judge dismissing the writ petition on the ground of laches.”
Similar view was expressed in C. Padma v. Deputy Secretary to the
Government of Tamil Nadu (supra), Star Wire (India) Ltd. v. State of Haryana (supra),
Municipal Council, Ahmednagar v. Shah Hyder Beig (supra) and Swaika Properties
(P) Ltd. v. State of Rajasthan (supra). In all the cases, challenge to the acquisition
proceedings was negatived primarily on the ground of delay. An additional factor
which influenced this Court was that physical possession of the acquired land had
been taken by the concerned authorities. In none of these cases, the landowners
appear to have questioned the legality of the mode adopted by the concerned
authorities for taking possession of the acquired land. Therefore, these judgments
cannot be relied upon for sustaining the High Court’s negation of the appellant’s
challenge to the acquisition of his land.
15
22. The next issue which merits consideration is whether the acquisition of the
appellant’s land is vitiated due to violation of Section 5A(2) and the rules of natural
justice. A careful scrutiny of record reveals that the Land Acquisition Collector had
fixed 29.10.2006 as the date for hearing the objections. He issued notices dated
2.11.2006 to inform the objectors that hearing will take place on 29.11.2006 at 11 a.m.
in P.W.D. Rest House, Rai and asked them to appear either in person or through their
agent. The notices were delivered to some of the landowners, who acknowledged the
receipt thereof. However, the notices issued to the appellant and his wife were not
served upon them. This is evident from the fact that other objectors had
acknowledged the receipt of notices by putting their signatures, the notices allegedly
served upon the appellant and his wife do not bear their signatures and no explanation
has been offered by the respondents about this omission. The Land Acquisition
Collector proceeded to decide the objections by assuming that the notice has been
delivered to all the objectors. Not only this, someone in the office of Land
Acquisition Collector forged the appellant’s signature to show his presence in P.W.D.
Rest House, Rai on 29.11.2006. A bare comparison of the signatures appearing
against the appellant’s name at serial No.90 (page 184 of the paper book) and those
appearing on the vakalatnama and affidavit filed in support of the special leave
petitions shows that there is no similarity in the two signatures. Not only this, in the
list, appended with Annexure R-3, the appellant’s wife has been shown as widow of
Raghbir Singh. It is impossible to believe that a woman who knows how to sign a
document would put signatures against her name showing her as a widow despite the
fact that her husband is alive. When the Court pointed out to the learned
16
counsel for the respondents that the signatures appearing against serial No. 90 at page
8 of Annexure R-3 (page 184 of the paper book) do not tally with the signatures of the
appellant on the vakalatnama and the affidavit filed in support of special leave
petitions, the learned counsel expressed his inability to offer any explanation. He also
expressed helplessness in defending the description of the appellant’s wife Smt.
Moorti Devi as widow of Raghbir Singh.
23. From what we have stated above, it is clear that the appellant had not been
given opportunity of hearing as per the mandate of Section 5A(2). The importance of
Section 5A(2) was highlighted by this Court in Munshi Singh v. Union of India (1973)
2 SCC 337 in the following words:
“Sub-section (2) of Section 5-A makes it obligatory on the Collector to
give an objector an opportunity of being heard. After hearing all
objections and making further inquiry he is to make a report to the
appropriate Government containing his recommendation on the
objections. The decision of the appropriate Government on the objections
is then final. The declaration under Section 6 has to be made after the
appropriate Government is satisfied, on a consideration of the report, if
any, made by the Collector under Section 5-A(2). The legislature has,
therefore, made complete provisions for the persons interested to file
objections against the proposed acquisition and for the disposal of their
objections. It is only in cases of urgency that special powers have been
conferred on the appropriate Government to dispense with the provisions
of Section 5-A.”
In State of Punjab v. Gurdial Singh (1980) 2 SCC 471, this Court observed:
“….it is fundamental that compulsory taking of a man’s property is
a serious matter and the smaller the man the more serious the
matter. Hearing him before depriving him is both reasonable and
pre-emptive of arbitrariness, and denial of this administrative
fairness is constitutional anathema except for good reasons. Save in
real urgency where public interest does not brook even the
17
minimum time needed to give a hearing land acquisition authorities
should not, having regard to Articles 14 (and 19), burke an enquiry
under Section 17 of the Act. Here a slumbering process, pending for
years and suddenly exciting itself into immediate forcible taking,
makes a travesty of emergency power.”
In Shyam Nandan Prasad v. State of Bihar (1993) 4 SCC 255, this Court
reiterated that compliance with provisions of Section 5A is sine qua non for valid
acquisition and observed as under:
“The decision of the Collector is supposedly final unless the
appropriate Government chooses to interfere therein and cause
affectation, suo motu or on the application of any person interested
in the land. These requirements obviously lead to the positive
conclusion that the proceeding before the Collector is a blend of
public and individual enquiry. The person interested, or known to
be interested, in the land is to be served personally of the
notification, giving him the opportunity of objecting to the
acquisition and awakening him to such right. That the objection is
to be in writing, is indicative of the fact that the enquiry into the
objection is to focus his individual cause as well as public cause.
That at the time of the enquiry, for which prior notice shall be
essential, the objector has the right to appear in person or through
pleader and substantiate his objection by evidence and argument.”
24. The same view has been reiterated in Union of India v. Mukesh Hans (2004)
8 SCC 14, Hindustan Petroleum Corporation Ltd. v. Darius Shapur Chenai (2005) 7
SCC 627, Anand Singh v. State of U.P. (supra) and Radhy Shyam v. State of U. P.
(supra).
25. In this context, it is necessary to remember that the rules of natural justice
have been ingrained in the scheme of Section 5A with a view to ensure that before any
person is deprived of his land by way of compulsory acquisition, he must get an
18
opportunity to oppose the decision of the State Government and/or its
agencies/instrumentalities to acquire the particular parcel of land. At the hearing, the
objector can make an effort to convince the Land Acquisition Collector to make
recommendation against the acquisition of his land. He can also point out that land
proposed to be acquired is not suitable for the purpose specified in the notification
issued under Section 4(1). Not only this, he can produce evidence to show that
another piece of land is available and the same can be utilized for execution of the
particular project or scheme. Though, it is neither possible nor desirable to make a list
of the grounds on which the landowner can persuade the Collector to make
recommendations against the proposed acquisition of land, but what is important is
that the Collector should give a fair opportunity of hearing to the objector and
objectively consider his plea against the acquisition of land. Only thereafter, he
should make recommendations supported by brief reasons as to why the particular
piece of land should or should not be acquired and whether or not the plea put forward
by the objector merits acceptance. In other words, the recommendations made by the
Collector must reflect objective application of mind to the objections filed by the
landowners and other interested persons.
26. Before concluding, we deem it necessary to observe that in recent past,
various State Governments and their functionaries have adopted very casual approach
in dealing with matters relating to the acquisition of land in general and the rural areas
in particular and in a large number of cases, the notifications issued under Sections
4(1) and 6(1) with or without the aid of Section 17 and the consequential actions have
19
been nullified by the Courts on the ground of violation of the mandatory procedure
and the rules of natural justice. The disposal of cases filed by the landowners and
others take some time and the resultant delay has great adverse impact on
implementation of the projects of public importance. Of course, the delay in deciding
such cases may not be of much significance when the State and its agencies want to
confer benefit upon private parties by acquiring land in the name of public purpose.
It if difficult, if not impossible, to appreciate as to why the State and its
instrumentalities resort to massive acquisition of land and that too without complying
with the mandate of the statute. As noted by the National Commission on Farmers,
the acquisition of agricultural land in the name of planned development or industrial
growth would seriously affect the availability of food in future. After independence,
the administrative apparatus of the State has not spent enough investment in the rural
areas and those who have been doing agriculture have not been educated and
empowered to adopt alternative sources of livelihood. If land of such persons is
acquired, not only the current but the future generations are ruined and this is one of
the reasons why the farmers who are deprived of their holdings commit suicide. It
also appears that the concerned authorities are totally unmindful of the plight of those
sections of the society, who are deprived of their only asset like small house, small
industrial unit etc. They do not realise that having one’s own house is a lifetime
dream of majority of population of this country. Economically affluent class of
society can easily afford to have one or more houses at any place or locality in the
country but other sections of the society find it extremely difficult to purchase land
and construct house. Majority of people spend their lifetime savings for building a
20
small house so that their families may be able to live with a semblance of dignity.
Therefore, it is wholly unjust, arbitrary and unreasonable to deprive such persons of
their houses by way of the acquisition of land in the name of development of
infrastructure or industrialisation. Similarly, some people set up small industrial unit
after seeking permission from the competent authority. They do so with the hope of
generating additional income for their family. If the land on which small units are
established is acquired, their hopes are shattered. Therefore, before acquiring private
land the State and/or its agencies/instrumentalities should, as far as possible, use land
belonging to the State for the specified public purposes. If the acquisition of private
land becomes absolutely necessary, then too, the concerned authorities must strictly
comply with the relevant statutory provisions and the rules of natural justice.
27. In the result, the appeals are allowed. The impugned orders are set aside. As a
corollary to this, the writ petition filed by the appellant is allowed and the acquisition of
his land is declared illegal and quashed. The appellant shall get cost of Rs.2,50,000/- from
the respondents.
………………….………………J.
(G.S. Singhvi)
....……………….…………………J.
(Sudhansu Jyoti Mukhopadhaya)
New Delhi,
November 23, 2011.
ITEM NO.1A COURT NO.6 SECTION IVB
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeals Nos......./2011 @
Petition(s) for Special Leave to Appeal (Civil) No(s).12042-
12043/2011
21
(From the judgement and order(s) dated 17/05/2010 in CWP
No.8441/2009 and order dated 19/11/2010 in RA No.321/2010 in CWP
No.8441/2009 of The HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH)
RAGHBIR SINGH SEHRAWAT Petitioner(s)
VERSUS
STATE OF HARYANA & ORS. Respondent(s)
[HEARD BY HON'BLE G.S.SINGHVI AND HON'BLE SUDHANSU JYOTI
MUKHOPADHAYA, JJ.]
Date: 23/11/2011 These Petitions were called on for Judgment today.
For Petitioner(s) Dr. Kailash Chand,Adv.(Not present)
For Respondent(s) Mr. Ravindra Bana,Adv.
Nos.1 to 3
Hon'ble Mr. Justice G.S. Singhvi pronounced the judgment
of the Bench comprising His Lordship and Hon'ble Mr.Justice
Sudhansu Jyoti Mukhopadhaya.
Delay condoned.
Leave granted.
For the reasons recorded in the Reportable Judgment which
is placed on the file, the appeals are allowed. The
impugned orders are set aside. As a corollary to this, the
writ petition filed by the appellant is allowed and the
acquisition of his land is declared illegal and quashed.
The appellant shall get cost of Rs.2,50,000/- from the
respondents.
(Parveen Kr. Chawla)
Court Master
(Phoolan Wati Arora)
Court Master
[Signed Reportable judgment is placed on the file]

Act: Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: s.17 - Default in repayment of secured debt - Notice issued u/s.13(2) to borrower to discharge liability -Application u/s.14 by secured creditor before Magistrate for taking possession of mortgaged properties, allowed - Writ petition by borrower/ guarantOTHERS before High Court, dismissed on the ground that an alternative remedy was available to them u/s.17 - On appeal, held: s.13(4) provides that if borrower fails to discharge his liability within the period specified in s.13(2) then secured creditor may take recourse to action to recover his debt - Secured creditor may, in order to enforce his rights u/s.13(4) take recourse to s.14 of the Act - An action u/s.14 constitutes an action taken after the stage of s.13(4), and, therefore, the same would fall within the ambit of s.17(1) - Thus, the Act itself contemplates an efficacious remedy for the borrower or any person affected by an action u/s.13(4) by providing for an appeal before the DRT - Ordinarily relief under Articles 226/227 of the Constitution is not available if an efficacious alternative remedy is available to any aggrieved person - Therefore, High Court was fully justified in declining to exercise its jurisdiction under Articles 226 and 227 of the Constitution - Constitution of India, 1950 - Articles 226 and 227. Respondent no.3 had advanced a loan amount of Rs. 4.50 crores to appellant no.6 on an equitable mortgage by deposit of title deeds of certain properties. Appellant Nos.1 to 5 were the guarantOTHERS Respondent no.3 issued a notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Thereafter, respondent no.3 filed an application before the Chief Metropolitan Magistrate under Section 14 of the Act for taking possession of the mortgaged properties. The Magistrate allowed the said application and directed the Assistant Registrar to take possession of the mortgaged properties after issuing notice to the appellants. Aggrieved by such notice issued by the Assistant Registrar, the appellants filed a writ petition before the High Court. The writ petition was dismissed on the ground that an alternative remedy was available to the appellants under Section 17 of the Act. The High Court also directed the respondents to maintain status quo in the matter for a period of 10 weeks from the date of its order, so as to enable the appellants to approach the Debt Recovery Tribunal under Section 17 of the Act. The appellants filed an application before the High Court seeking an extension of the status quo period. The High Court rejected the said application. The instant appeals were filed challenging the orders whereby the writ petition and the application were dismissed.Dismissing the appeals, the Court HELD: 1.1. Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 deals with enforcement of security interest, providing that notwithstanding anything contained in Sections 69 or 69A of the Transfer of Property Act, 1882, any security interest created in favour of any secured creditor may be enforced, without the court's intervention, by such creditor in accordance with the provisions of the Act. Section 13(2) of the Act provides that when a borrower, who is under a liability to a secured creditor, makes any default in repayment of secured debt, and his account in respect of such debt is classified as non-performing asset, then the secured creditor may require the borrower, by notice in writing, to discharge his liabilities within sixty days from the date of the notice, failing which the secured creditor shall be entitled to exercise all or any of the rights given in Section 13(4) of the Act. Section 13(3) of the Act provides that the notice under Section 13(2) of the Act shall give details of the amount payable by the borrower as also the details of the secured assets intended to be enforced by the bank. Section 13(3-A) of the Act provides for a last opportunity for the borrower to make a representation to the secured creditor against the classification of his account as a non-performing asset. The secured creditor is required to consider the representation of the borrowers, and if the secured creditor comes to the conclusion that the representation is not tenable or acceptable, then he must communicate, within one week of the receipt of the communication by the borrower, the reasons for rejecting the same. Section 13(4) of the Act provides that if the borrower fails to discharge his liability within the period specified in Section 13(2), then the secured creditor, may take recourse to actions, to recover his debt. [Para 16] [610-G-H; 611-A-H; 612-A] 1.2. Section 14 of the Act provides that the secured creditor can file an application before the Chief Metropolitan Magistrate or the District Magistrate, within whose jurisdiction, the secured asset or other documents relating thereto are found for taking possession thereof. If any such request is made, the Chief Metropolitan Magistrate or the District Magistrate, as the case may be, is obliged to take possession of such asset or document and forward the same to the secured creditor. Therefore, it follows that a secured creditor may, in order to enforce his rights under Section 13(4), in particular Section 13(4)(a), may take recourse to Section 14 of the Act. An action under Section 14 of the Act constitutes an action taken after the stage of Section 13(4), and therefore, the same would fall within the ambit of Section 17(1) of the Act. Thus, the Act itself contemplates an efficacious remedy for the borrower or any person affected by an action under Section 13(4) of the Act, by providing for an appeal before the DRT. Therefore, the High Court rightly dismissed the petition on the ground that an efficacious remedy was available to the appellants under Section 17 of the Act. It is well-settled that ordinarily relief under Articles 226/227 of the Constitution of India is not available if an efficacious alternative remedy is available to any aggrieved person. [Paras 16, 20 and 21] [612-G-H; 615-C-E] United Bank of India v. Satyawati Tondon AND OTHERS (2010) 8 SCC 110; Authorised Officer, Indian Overseas Bank AND ANOTHERv. Ashok Saw Mill (2009) 8 SCC 366; Sadhana Lodh v. National Insurance Co. Ltd. AND ANOTHER(2003) 3 SCC 524; Surya Dev Rai v. Ram Chander Rai AND OTHERS (2003) 6 SCC 675; State Bank of India v. Allied Chemical Laboratories AND ANOTHER(2006) 9 SCC 252; City and Industrial Development Corporation v. Dosu Aardeshir Bhiwandiwala AND OTHERS (2009) 1 SCC 168 - relied on. Transcore v. Union of India AND ANOTHER(2008) 1 SCC 125, Mardia Chemicals Ltd. AND OTHERS v. Union of India AND OTHERS (2004) 4 SCC 311 - referred to. 1.3. In the instant case, apart from the fact that admittedly certain disputed questions of fact viz. non-receipt of notice under Section 13(2) of the Act, non-communication of the order of the Chief Judicial Magistrate etc. were involved, an efficacious statutory remedy of appeal under Section 17 of the Act was available to the appellants, who ultimately availed of the same. Therefore, having regard to the facts obtaining in the case, the High Court was fully justified in declining to exercise its jurisdiction under Articles 226 and 227 of the Constitution. The impugned judgments cannot be flawed, warranting interference by this Court. [Paras 22, 23] [616-D-F] Case Law Reference: (2008) 1 SCC 125 referred to Para 13 (2004) 4 SCC 311 referred to Paras 14, 16 (2010) 8 SCC 110 relied on Para 16 (2009) 8 SCC 366 relied on Para 19 (2003) 3 SCC 524 relied on Para 21 (2003) 6 SCC 675 relied on Para 21 (2006) 9 SCC 252 relied on Para 21 (2009) 1 SCC 168 relied on Para 21 CRIMINAL APPELLATE JURISDICTON : Criminal Appeal Nos. 338-340 of 2011. From the Judgment AND Order dated 28.4.2009 of the High Court of Judicature at Bombay in Crl. Writ Petition No. 707 of 2009 and order dated 08.5.2009 in Crl. Writ Petition No. 707 of 2009 and order dated 01.07.2009 in Application No. 178 of 2009 in Crl. Writ Petition No. 707 of 2009. Kranti Anand, Aishwarya Bhati, Rashid Khan, Angeline S. A. Rodriques, Buddy A. Ranganadhan, A.V. Rangam, Sushil Karanjakar, Sanjay Kharde, Asha Gopalan Nair for the appearing parties.


REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NOS. 338-340 OF 2011
(Arising out of S.L.P. (Crl.) Nos.4436-4438 of 2009)
KANAIYALAL LALCHAND SACHDEV &
ORS.
— APPELLANTS
VERSUS
STATE OF MAHARASHTRA & ORS. — RESPONDENTS
J U D G M E N T
D.K. JAIN, J.:
Leave granted.
2. Challenge in these appeals, by special leave, is to the judgments and
orders dated 28th April, 2009 and 1st July, 2009 delivered by the High
Court of Bombay in W.P. No. 707 of 2009, and Criminal Application No.
178 of 2009 in W.P. No. 707 of 2009, respectively whereby it has
dismissed the writ petition filed by the appellants herein, and also
declined to extend the status-quo order granted by it to them.
1
3. Briefly stated, the facts, material for adjudication of the present appeals,
may be stated thus:
Respondent No. 3, viz. the State Bank of India had advanced a loan of
`4,50,00,000/- to appellant No. 6 on an equitable mortgage by deposit of the
title deeds of certain properties, subject matter of these appeals, on 6th
February, 2006. Appellant Nos.1 to 5 and one Mr. Lalchand Sachdeo stood
as personal guarantors to the said loan.
4. On default of re-payment of loan amount, respondent No. 3 issued a
notice under the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest (Second) Ordinance, 2002 on 18th
November, 2006. On 12th February, 2007, the officers of respondent No.
3 dispossessed the appellants of one of the secured properties viz. T-125,
CTS, No. 1729. Being aggrieved, the appellants filed a writ petition
being CRL. W.P. No.286 of 2007 before the Bombay High Court,
inter-alia, contending that the notice issued by respondent No. 3 was
illegal, no action could be taken in pursuance thereof, and if at all, the
respondent wanted to take any action, it was required to approach the
Chief Metropolitan Magistrate under Section 14 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (for short “the Act”).
2
5. Before the High Court, respondent No. 3 offered to withdraw the notice
dated 18th November, 2006 without prejudice to the rights and
contentions advanced by them, and to return the possession of the said
property to the appellants, subject to the appellants and all adult members
furnishing an undertaking to the effect that they shall not alienate,
encumber, transfer, dispose of and/or create any third party interest in the
said premises for a period of six months. Accepting the statement made
on behalf of respondent No. 3, the High Court dismissed the writ petition
vide order dated 7th March, 2007.
6. Thereafter, on 11th April, 2007 respondent No. 3 issued to the appellants
a notice under Section 13(2) of the Act. The appellants replied to the said
notice on 23rd May, 2007. Vide letter dated 29th May, 2007, respondent
No. 3, communicated its reasons for not accepting the reply.
Subsequently, respondent No. 3 issued a public notice in newspapers,
informing the appellants of the issuance of notice under Section 13(2) of
the Act.
7. In pursuance thereof, respondent No.3, filed C.C. No. 223/M/2008 before
the Chief Metropolitan Magistrate under Section 14 of the Act for taking
possession of the secured assets. Vide order dated 3rd February, 2009, the
Magistrate allowed the said application and directed the Assistant
3
Registrar, Kurla Centre of Courts, to take possession of the mortgaged
properties after issuing notice to the appellants.
8. Vide notice dated 27th February, 2009, the Assistant Registrar, directed
the appellants to hand over the possession of the mortgaged properties to
respondent No. 3 within 15 days from the receipt of the said notice. At
this juncture, it would be expedient to extract the relevant portions of
the said notice:
“Whereas, the Chief Metropolitan Magistrate, Esplanade,
Mumbai has passed the following order on 3.2.2009 on the
application filed before him by State Bank of India, Mazda
Complex, Parsi Agari Lane, Thana (W) 400601 through its
Authorized Officer Fazlur Rehman Sheikh.
ORDER
The Application is allowed. Asst. Registrar, Mr. P.A.
Tendolkar, Kurla Centre of Court after issuing notice of taking
possession of the secured assets………………………………
…………………………………………………………………
…………………………………………………………………
…………………………”
It is manifest from a bare perusal of the said notice that the order passed by
the Magistrate dated 3rd February, 2009 was referred to by the Assistant
Registrar in his notice.
9. Being aggrieved by the said notice, the appellants herein again
approached the High Court. As afore-stated, the High Court dismissed
4
the said writ petition, vide order dated 28th April, 2009, on the ground
that an alternative remedy was available to the appellants under Section
17 of the Act. Nevertheless, the High Court directed the respondents to
maintain status quo in the matter for a period of 10 weeks from the date
of its order, so as to enable the appellants to approach the Debts
Recovery Tribunal (for short the “DRT”) under Section 17 of the Act.
10. Thereafter, the appellants filed Criminal Application No. 178 of 2009 in
W.P. No. 707 of 2009 seeking an extension of the status quo period
granted vide order dated 28th April, 2009. As afore-stated, the High Court
rejected the said application filed by the appellants.
11.Hence, the present appeals against both the said orders.
12.Ms. Kranti Anand, learned counsel appearing on behalf of the appellants,
while assailing the impugned orders, strenuously urged that apart from
the fact that the notice issued by the Assistant Registrar was vague, it was
never served on the appellants. In fact, appellants received a copy of the
order of the Magistrate during the proceedings before the High Court,
pleaded the learned counsel. Learned counsel also urged that the notice
issued by the Assistant Registrar was vitiated on account of noncompliance
with Rule 8 of the Security Interest (Enforcement) Rules,
2002 (for short “the 2002 Rules”) as well. It was argued that the High
5
Court had also erred in equating action under Section14 of the Act with
action under Section 13(4)(a) of the Act. It was thus, asserted that for all
these reasons, the impugned orders deserve to be set aside.
13. Per contra, Mr. Buddy A. Ranganadhan, learned counsel appearing on
behalf of respondent No.3—Bank, supporting the impugned judgments,
contended that in light of the decision of this Court in Transcore Vs.
Union of India & Anr.1, no fault could be found with the impugned
judgments. It was also urged that the appellants having already availed of
the remedy of approaching the DRT, they are estopped from challenging
the decision of the High Court.
14. Mr. Sushil Karanjakar, learned counsel appearing on behalf of the State
of Maharashtra contended that Rule 8 of the 2002 Rules was inapplicable
in the instant case, in as much as it deals with sale of secured assets.
According to the learned counsel, it was Rule 4 which was applicable to
the facts of the instant case. In support, reliance was placed on the
decision of this Court in Mardia Chemicals Ltd. & Ors. Vs. Union of
India & Ors.2.
15. Having bestowed our anxious consideration to the facts at hand, we are
of the opinion that the appeals are utterly misconceived.
1 (2008) 1 SCC 125
2 (2004) 4 SCC 311
6
16. Section 13 of the Act deals with enforcement of security interest,
providing that notwithstanding anything contained in Sections 69 or 69A
of the Transfer of Property Act, 1882, any security interest created in
favour of any secured creditor may be enforced, without the court’s
intervention, by such creditor in accordance with the provisions of the
Act. Section 13(2) of the Act provides that when a borrower, who is
under a liability to a secured creditor, makes any default in repayment of
secured debt, and his account in respect of such debt is classified as nonperforming
asset, then the secured creditor may require the borrower, by
notice in writing, to discharge his liabilities within sixty days from the
date of the notice, failing which the secured creditor shall be entitled to
exercise all or any of the rights given in Section 13(4) of the Act. Section
13(3) of the Act provides that the notice under Section 13(2) of the Act
shall give details of the amount payable by the borrower as also the
details of the secured assets intended to be enforced by the bank. Section
13(3-A) of the Act was inserted by Act 30 of 2004 after the decision of
this Court in Mardia Chemicals (supra), and provides for a last
opportunity for the borrower to make a representation to the secured
creditor against the classification of his account as a non-performing
asset. The secured creditor is required to consider the representation of
the borrowers, and if the secured creditor comes to the conclusion that
7
the representation is not tenable or acceptable, then he must
communicate, within one week of the receipt of the communication by
the borrower, the reasons for rejecting the same. Section 13(4) of the Act
provides that if the borrower fails to discharge his liability within the
period specified in Section 13(2), then the secured creditor, may take
recourse to any of the following actions, to recover his debt, namely-
“(a) take possession of the secured assets of the borrower
including the right to transfer by way of lease, assignment or
sale for realising the secured asset;
(b) take over the management of the business of the borrower
including the right to transfer by way of lease, assignment or
sale for realising the secured asset:
Provided that the right to transfer by way of lease, assignment
or sale shall be exercised only where the substantial part of the
business of the borrower is held as security for the debt:
Provided further that where the management of whole, of the
business or part of the business is severable, the secured
creditor shall take over the management of such business of the
borrower which is relatable to the security for the debt;
(c) appoint any person (hereafter referred to as the manager), to
manage the secured assets the possession of which has been
taken over by the secured creditor;
(d) require at any time by notice in writing, any person who
has acquired any of the secured assets from the borrower and
from whom any money is due or may become due to the
borrower, to pay the secured creditor, so much of the money as
is sufficient to pay the secured debt.”
8
Section 14 of the Act provides that the secured creditor can file an
application before the Chief Metropolitan Magistrate or the District
Magistrate, within whose jurisdiction, the secured asset or other documents
relating thereto are found for taking possession thereof. If any such request
is made, the Chief Metropolitan Magistrate or the District Magistrate, as the
case may be, is obliged to take possession of such asset or document and
forward the same to the secured creditor. (See: United Bank of India Vs.
Satyawati Tondon & Ors.3). Therefore, it follows that a secured creditor
may, in order to enforce his rights under Section 13(4), in particular Section
13(4)(a), may take recourse to Section 14 of the Act.
17.Section 17 of the Act which provides for an appeal to the DRT, reads as
follows:
“17. Right to appeal.—(1) Any person (including borrower),
aggrieved by any of the measures referred to in sub-section (4)
of Section 13 taken by the secured creditor or his authorised
officer under this Chapter, may make an application along with
such fee, as may be prescribed to the Debts Recovery Tribunal
having jurisdiction in the matter within forty-five days from the
date on which such measures had been taken:
Provided that different fees may be prescribed for making the
application by the borrower and the person other than the
borrower.
Explanation.—For the removal of doubts it is hereby declared
that the communication of the reasons to the borrower by the
secured creditor for not having accepted his representation or
3 (2010) 8 SCC 110
9
objection or the likely action of the secured creditor at the stage
of communication of reasons to the borrower shall not entitle
the person (including borrower) to make an application to the
Debts Recovery Tribunal under sub-section (1) of Section 17.
(2) The Debts Recovery Tribunal shall consider whether any of
the measures referred to in sub-section (4) of Section 13 taken
by the secured creditor for enforcement of security are in
accordance with the provisions of this Act and the rules made
thereunder.”
18.The 2002 Rules, enacted under sub-section (1) and clause (b) of subsection
(2) of Section 38 read with sub-sections (4), (10) and (12) of
Section 13 of the Act, set down the procedure for enforcing a security
interest. Rule 4 of the 2002 Rules deals with the possession of movable
assets, whereas Rule 8 deals with the possession of immoveable assets. It
is manifest that Rule 4 has no application to the facts of the instant case,
as contended by the learned counsel for the State.
19. In Authorised Officer, Indian Overseas Bank & Anr. Vs. Ashok Saw
Mill4, the main question which fell for determination was whether the
DRT would have jurisdiction to consider and adjudicate post Section
13(4) events or whether its scope in terms of Section 17 of the Act will
be confined to the stage contemplated under Section 13(4) of the Act?
On an examination of the provisions contained in Chapter III of the Act,
in particular Sections 13 and 17, this Court, held as under :
4 (2009) 8 SCC 366
1
“35. In order to prevent misuse of such wide powers and to
prevent prejudice being caused to a borrower on account of an
error on the part of the banks or financial institutions, certain
checks and balances have been introduced in Section 17 which
allow any person, including the borrower, aggrieved by any of
the measures referred to in sub-section (4) of Section 13 taken
by the secured creditor, to make an application to the DRT
having jurisdiction in the matter within 45 days from the date of
such measures having taken for the reliefs indicated in subsection
(3) thereof.
36. The intention of the legislature is, therefore, clear that while
the banks and financial institutions have been vested with
stringent powers for recovery of their dues, safeguards have
also been provided for rectifying any error or wrongful use of
such powers by vesting the DRT with authority after
conducting an adjudication into the matter to declare any such
action invalid and also to restore possession even though
possession may have been made over to the transferee.
…………………………………………………………………..
39. We are unable to agree with or accept the submissions made
on behalf of the appellants that the DRT had no jurisdiction to
interfere with the action taken by the secured creditor after the
stage contemplated under Section 13(4) of the Act. On the other
hand, the law is otherwise and it contemplates that the action
taken by a secured creditor in terms of Section 13(4) is open to
scrutiny and cannot only be set aside but even the status quo
ante can be restored by the DRT.”
(Emphasis supplied by us)
20.We are in respectful agreement with the above enunciation of law on the
point. It is manifest that an action under Section 14 of the Act constitutes
an action taken after the stage of Section 13(4), and therefore, the same
would fall within the ambit of Section 17(1) of the Act. Thus, the Act
itself contemplates an efficacious remedy for the borrower or any person
1
affected by an action under Section 13(4) of the Act, by providing for an
appeal before the DRT.
21. In our opinion, therefore, the High Court rightly dismissed the petition on
the ground that an efficacious remedy was available to the appellants
under Section 17 of the Act. It is well-settled that ordinarily relief under
Articles 226/227 of the Constitution of India is not available if an
efficacious alternative remedy is available to any aggrieved person. (See:
Sadhana Lodh Vs. National Insurance Co. Ltd. & Anr.5; Surya Dev
Rai Vs. Ram Chander Rai & Ors.6; State Bank of India Vs. Allied
Chemical Laboratories & Anr.7). In City and Industrial Development
Corporation Vs. Dosu Aardeshir Bhiwandiwala & Ors.8, this Court had
observed that:
“The Court while exercising its jurisdiction under Article 226 is
duty-bound to consider whether:
(a) adjudication of writ petition involves any complex and
disputed questions of facts and whether they can be
satisfactorily resolved;
(b) the petition reveals all material facts;
(c) the petitioner has any alternative or effective remedy for the
resolution of the dispute;
5 (2003) 3 SCC 524
6 (2003) 6 SCC 675
7 (2006) 9 SCC 252
8 (2009) 1 SCC 168
1
(d) person invoking the jurisdiction is guilty of unexplained
delay and laches;
(e) ex facie barred by any laws of limitation;
(f) grant of relief is against public policy or barred by any valid
law; and host of other factors.”
22.In the instant case, apart from the fact that admittedly certain disputed
questions of fact viz. non-receipt of notice under Section 13(2) of the
Act, non-communication of the order of the Chief Judicial Magistrate etc.
are involved, an efficacious statutory remedy of appeal under Section 17
of the Act was available to the appellants, who ultimately availed of the
same. Therefore, having regard to the facts obtaining in the case, the
High Court was fully justified in declining to exercise its jurisdiction
under Articles 226 and 227 of the Constitution.
23. For the foregoing reasons, the impugned judgments cannot be flawed,
warranting interference by this Court. Accordingly, the appeals, being
devoid of any merit, are dismissed with costs, quantified at `20,000/-.
.……………………………………
(D.K. JAIN, J.)
.…………………………………….
(H.L. DATTU, J.)
NEW DELHI;
1
FEBRUARY 7, 2011.
ARS
1

Act: Constitution of India, 1950 : Articles 226 and 227-Order of Debt Recovery Tribunal-Remedy of appeal available u/s 20 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993-Exercise of jurisdiction by High Court under Articles 226/227.-Decree passed by Debt Recovery Tribunal-Direction given to Recovery Officer to proceed to realise the amount by sale of plant and machinery and mortgaged property-Order challenged by guarantor whose property was mortgaged before High Court under Article 227-High Court allowing the petition- Citation: 2001 AIR 3208,2001(1 )Suppl.SCR466 ,2001(6 )SCC569 ,2001(5 )SCALE196 ,2001(6 )JT408Held, order of Tribunal was appealable u/s. 20-High Court ought hot to have exercised jurisdiction under Article 227-The Act has been enacted with a view to provide a special procedure for recovery of debts due to bank and financial institutions-There is hierarchy of appeal provided in the Act and this fast track procedure cannot be allowed to be derailed either by taking recourse to proceedings under Articles 226 and-227 or by filing a civil suit-When there is an alternative remedy courts should refrain from exercising jurisdiction under constitutional provisions- Filing of a civil suit is expressly barred-Alternative remedy-Recovery of Debts Due to Banks and Financial Institutions Act, 1993-ss.18 and 20. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5287 of 2001. From the Judgment and Order dated 6.6.2000 of the Calcutta High Court in Co. No. 1305/97. Mr. Dhruv Mehta, Ms. Shobha, Ms. Anu Mehta, Mr. Saptrishi Ghosh and Mr. S.K. Mehta for the Appellant. Mr. V.J. Francis for the Respondents.


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CASE NO.:
Appeal (civil) 5287 of 2001
PETITIONER:
PUNJAB NATIONAL BANK
RESPONDENT:
O.C. KRISHNAN AND ORS.
DATE OF JUDGMENT: 13/08/2001
BENCH:
B.N. KIRPAL & N. SANTOSH HEGDE
JUDGMENT:
JUDGMENT
2001 Supp(1) SCR 466
The following Order of the Court was delivered :
Special leave granted.
In the instant case, a suit was filed by the appellant for recovery of
money from the principal debtor as well as the guarantors. The suit was
transferred to the Debts Recovery Tribunal and thereafter on 17th May, 1996
decree was passed by the Debts Recovery Tribunal, Calcutta.
The said suit was decieed for a sum of Rs. 12,09,175.39 against the
principal debtor as well as against the guarantors, along with interest
thereon, and it was further directed that the Recovery Officer shall first
proceed to realise the amount on the sale of hypothecated plant and
machinery and mortgaged property belonging to respondents 5 and 4
respectively and thereafter proceed to realise the balance, if any, in
accordance with law. Pursuant thereto, certificate was issued and recovery
proceedings started.
The respondent who was a guarantor and whose property was stated to have
been mortgaged filed a petition under Article 227 before the High Court at
Calcutta. The High Court allowed the petition by observing that as the
mortgaged property was situated in Chennai the Debts Recovery Tribunal had
no territorial jurisdiction in respect thereto and it could not have
directed sale of mortgaged property It, accordingly, held that the Bank
would be at liberty to proceed against defendant No. 4, respondent herein,
in appropriate forum for recovery of debts by sale of mortgaged property.
Hence this appeal.
In our opinion, the order which was passed by the Tribunal directing sale
of mortgaged property was appealable under Section 20 of the Recovery of
Debts Due to Banks and Financial Institutions Act, 1993 (for short "the
Act"). The High Court ought not to have exercised its jurisdiction under
Article 227 in view of the provision for alternative remedy contained in
the Act. We Jo not propose to go into the correctness of the decision of
the High Court an I whether the order passed by the Tribunal was correct or
not has to be decided before an appropriate forum.
The Act has been enacted with a view to provide a special procedure for
recovery of debts due to the banks and the financial institutions. There is
hierarchy of appeal provided in the Act, namely, filing of an appeal under
Section 20 and this last track procedure cannot be allowed to be derailed
either b> taking recourse to proceedings under Articles 226 and 227 of the
Constitution or by filing a civil suit, which is expressly barred. Even
though a provision court under Articles 226 and 227 of the Constitution,
nevertheless when there is an alternative remedy available judicial
prudence demands that the court refrains from exercising its jurisdiction
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under the said constitutional provisions. This was a case where the High
Court should not have entertained the petition under Article 227 of the
Constitution and should have directed the respondent to take recourse to
the appeal mechanism provided by the Act.
For the aforesaid reasons, this appeal is allowed and the impugned order of
the Calcutta High Court in CO. No. 1305/1997 is set aside.