Summary
ONGC had held the appellants' land in Ahmedabad under temporary acquisition for oil exploration since 1996. It paid rent of Rs. 24, later Rs. 30, per square metre per year, and repeatedly assured the courts that it would acquire the land permanently. The Supreme Court held that a temporary acquisition continued for 20 to 25 years loses its character, and that continuing it is arbitrary and infringes the right to property under Article 300A. Because the High Court had already ordered ONGC to complete permanent acquisition by 26.04.2023, the Court directed compliance with that order, failing which the consequences would follow. Disputes over the rent could go to the Collector for reference to the court.
Issues
- Whether temporary acquisition of land by ONGC continued for about 26 years on low annual rent was arbitrary and violative of Article 300A, and what relief should follow where the High Court had already directed permanent acquisition within twelve months.
Provisions considered
- Section 35, Land Acquisition Act, 1894Temporary occupation is permitted for a term not exceeding three years on compensation agreed with the persons interested, with any difference on sufficiency referred by the Collector to the Court; the landowners may invoke that remedy for the rent. (¶¶ 6, 8)
- Article 300A, Constitution of IndiaKeeping land under temporary acquisition for decades, depriving the owners of its use, was held arbitrary and an infringement of the right to use property. (¶ 7)
- Permanent acquisition, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013Notifications for permanent acquisition issued in 2018 and 2019 were put on hold, apparently because of the higher compensation payable. (¶¶ 5.1, 7)
Held
- Though appellant No. 1 bought the land in 2005 while it was under temporary acquisition, as owner he may question its continuance for a long period; temporary acquisition cannot continue for about 20 to 25 years, as its purpose is lost and the owners cannot use, cultivate or deal with the land, which is arbitrary and violates Article 300A. (¶¶ 6, 7)
- Since the High Court had issued a mandamus to complete permanent acquisition by 26.04.2023, ONGC is directed to act in terms of paragraph 7(ii) of the impugned judgment, failing which the necessary consequences shall follow. (¶ 7)
- On the quantum of rent, the High Court's directions in paragraph 7(iii) govern, and the landowners remain free to approach the Collector, who must refer the dispute to the Court. (¶ 8)
Result
Civil Appeal No. 472 of 2023 against the Gujarat High Court judgment dated 26.04.2022 in R/Special Civil Application No. 9258 of 2021 disposed of with the above observations and directions.